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HomeMy WebLinkAboutContract 9779 CITY SECRETARY CO,KT.RACT; �Io. ` 77Y TRANSIENT FUELING AND TANK FARM AGREEMENT DON E. HANSEN Meacham Field Fort Worth, Texas CI6V unpFTARV TRANSIENT FUELING AND TANK FARM AGREEMENT MEACHAM FIELD STATE OF TEXAS COUNTY OF TARRANT § WHEREAS, Lessor owns and operates Meacham Field, (herein- after called "Airport") , located in the County of Tarrant, State of Texas, and WHEREAS, Lessee currently holds a valid lease on said Airport for the use of certain building space and ground area for the conduct of commercial aviation activities, all as particularly defined in city Secretary Contract No. 7066; and WHEREAS, under City Secretary Contract No. 7190, Lessor granted unto Lessee the right and privilege to sell aviation gas and fuel to all aircraft which are not regularly stored on said Airport, (herein called "transient aircraft"') , as well as any aircraft regularly stored on said Airport; and WHEREAS, under said City Secretary Contract No. 7190, Lessee installed a fuel tank farm at the Airport for use in selling aviation gas and fuel to such transient aircraft; and WHEREAS, the primary term of said City Secretary Contract No. 7190 was for a period of five (5) years, commencing on the lst day of August 1972, and ending on the 31st day of July 1977, with the option to renew this said agreement for successive addi- tional periods of five (5) years each to terminate the same day as Lessee 's Fixed Base Operator 's Lease (City Secretary Contract No. 7066) ; and WHEREAS, the primary term of said City Secretary Contract No. 7190 has expired and Lessee does not desire to exercise its option to renew as granted therein, but rather to enter into a new lease agreement with a primary term commencing on the lst day of August 1977, and ending on the 28th day of February 1983, with the option to extend said agreement for two (2) successive addi- tional periods of five years each; NOW, THEREFORE, the City of Fort Worth, a municipal corporation in Tarrant County, Texas, acting herein by and through Morris C. Matson, its duly authorized City Manager, hereinafter called "Lessor, " and Don E. Hansen of Tarrant County, Texas, here- inafter called "Lessee, " do hereby make and enter into the following agreement: ARTICLE I RIGHTS, PRIVILEGES AND PREMISES For and in consideration of the terms, conditions and covenants of this lease to be performed by Lessee, all of which Lessee accepts, Lessor hereby grants to Lessee certain rights and privileges for the sale of aircraft fuels, lubricants, and propellants on said Airport. A. DESCRIPTION OF FUELING PRIVILEGES. Lessee shall have the non-exclusive right and privilege to store, dispense and sell to transient and based aircraft on said Airport aircraft fuels, lubri- cants and propellants. In the exercise of said privilege, Lessee may vend, dispense and sell said aircraft fuels, lubricants and propellants on its exclusive lease plots, as delineated .in red on Exhibit A, attached hereto and by this reference made a part hereof, and in addition may vend, dispense and sell said aircraft fuels, lubricants and propellants, with others authorized so to do, on the public-use transient apron, as delineated in green on Exhibit A, attached hereto. Lessee is hereby granted the right to exercise -2- said fueling privileges for aircraft stored in other hangars on said Airport, subject to permission from the owner or Lessee of such other hangar. B. DESCRIPTION OF AIRCRAFT PARKING PRIVILEGES. Lessee shall have the right and be obligated to provide for parking, tie-down or storage of transient or visiting aircraft on its exclusive premises as delineated in red on Exhibit A attached hereto. Lessee shall have the right from time to time to park aircraft on the public-use transient apron as delineated in green on Exhibit A attached hereto at parking fees and under conditions to be determined under the authority of the City Council of the City of Fort Worth by the Airport Manager or his authorized representative. It is specifically stipulated and agreed that the control of all aircraft parked on the public-use transient apron by Lessee shall at all times and in all ways vest in Lessee subject to regulations and to restric- tions placed on parking time by Lessor or prohibition of extended parking time if adequate space cannot be made available. Lessee shall also have the right and obligation to collect parking fees as established by Lessor on the public use transient apron, and any such fees collected shall be shared on a percentage basis as hereinafter stated in Article IV, Paragraph B, to reimburse Lessee for the collection services rendered. C. CONDITIONS OF GRANTING LEASE. The granting of this Lease and its acceptance by Lessee is conditioned upon the following covenants: -3- (1) The right to vend, sell, and dispense said aviation fuels, lubricants and propellants in common with others authorized so to do shall be exercised in accordance with applicable fire codes and ordinances of the City of Fort Worth or with the rules and regulations of any other agency authorized to regulate the same. (2) That the privileges granted by this Agree- ment are not exclusive and that Lessor shall have the right to deal with and perfect. arrangements with any other individual; however, that any other or future non-exclusive agreement for transient aircraft fueling shall not be on terms or condi- tions more favorable than those granted to Lessee herein. (3) That Lessee's right to vend, dispense and sell aircraft fuels, lubricants and propellants on the Airport shall at all times be subject to such rules and regulations as may from time to time be estab- lished by the Airport Manager of the City of Fort Worth or his authorized representative. (4) That a continuing condition precedent of this . Lease is the continuing possession by Lessee of a valid fixed base operator's lease with Lessor containing a minimum investment requirement on said Airport. (5) That as part of the conside3rations herefor, Lessee shall continue to maintain a minimum of two under- ground fuel storage tanks in the area delineated in red on Exhibit A, in accordance with the terms and conditions hereinafter set out. (6) That the right to store, dispense and sell all aircraft fuels and the right to park aircraft at said Airport facilities in common with others authorized so to do shall be exercised only subject to and in accordance with the laws of the United States of America, the State of Texas, and the City of Fort Worth; the rules and regulations promulgated by their authority with reference to aviation and air navigation; and all applicable rules, regulations and ordinances of Lessor now in force or hereafter prescribed or promulgated. (7) That Lessee will not on the grounds of race, color or national origin, discriminate or permit discrimina- tion against any person or group of persons in any manner prohibited by Federal, State and local laws. ARTICLE II OPERATIONS A. HOURS OF OPERATION. Lessee shall make its fueling services available to the public 24 hours per day seven days per week, and ..................................... i shall provide for storage or parking of transient aircraft 24 hours per day, seven days per week. B. TYPE OF OPERATION BY LESSEE. Lessee shall conduct i a first-class aircraft fueling and parking service adequate at i all times to meet the demands for such service on the Airport. Lessee agrees to conduct said services in a proper and courteous manner; to furnish good, prompt, and efficient services at all times; and to promote aviation activity on the Airport. Lessee further agrees to furnish said services on a fair, equal, and non-discriminatory basis to all users thereof and to charge fair, reasonable, and non-discriminatory prices for each unit of sale of services; provided, however, that Lessee will be allowed to make reasonable and non-discriminatory discounts, rebates or other similar types of price reductions to volume purchasers. C. SOLICITATION AND CONDUCT. Lessee shall prohibit its agents, servants and employees from engaging in the solicitation of its fueling services on or about the Airport in a loud, boisterous, offensive, promiscuous or objectionable manner. In the event of questionable conduct in such solicitations, Lessor shall be sole judge in its reasonable discretion in determining if said conduct is a violation of this paragraph; and upon written notice from Lessor, Lessee shall immediately take all steps nec- essary to eliminate the undesirable condition. Lessee, its agents and employees shall conduct said fueling business on the Airport so as to maintain a friendly and coopera- tive, though competitive, relationship with other companies engaged -5- I in like business on said Airport; Lessee shall not engage in open public disputes, disagreements or conflicts which would tend to deteriorate the quality of the service of Lessee or its competi- tors or which would be incompatible to the best interests of the public at the Airport. Lessor shall have the right to resolve all such disputes, disagreements or conflicts; and its determin- ation thereof or the manner in which Lessee shall thereafter operate shall be binding upon Lessee. D. PRODUCTS, PERSONNEL AND EQUIPMENT REQUIREMENTS. In the exercise of the fueling privileges granted hereunder, Lessee agrees to provide the following minimum products and equipment: (1) At least two grades of aircraft fuel, including 100 octane, and TF-lA. Said fuel shall be that of a nationally recognized company acceptable to Lessor. (2) Adequate and properly maintained fueling trucks. (3) Apron service equipment, such as steps, power units, dollies, etc. for aircraft. (4) An adequate number of well trained and neatly attired personnel. E. CONDITION OF PREMISES. Lessee accepts all the premises demised hereunder in their present condition, and, without expense to Lessor, will repair and maintain any installations thereon and remove or cause to be removed any debris to the extent required for its use thereof. F. MAIN'T'ENANCE AND USE OF FUEL STORAGE TANKS. As a part of the consideration under City Secretary Contract No. 7190, Lessee installed a minimum of two fuel storage tanks in the area delineated in red on Exhibit A, attached hereto. Lessor hereby grants to Lessee the right to continued use of those fuel storage tanks authorized to be installed under said City Secretary Contract No, 7190. Lessee agrees to maintain such fuel storage tanks in -6- i good, workable condition. All fuel storage tanks on said premises shall be underground and such installation shall comply with applicable fire codes and i ordinances of the City of Fort Worth. All plans and specifications for improvements on said Tank Farm (including landscaping) shall be prepared as hereinafter set out and shall require the written approval of Lessor before any construction or installation may be undertaken. G. CONSTRUCTION REQUIREMENTS. All construction of improvements on said premises shall conform with any general architectural requirements of Lessor and shall be undertaken in accordance with local, State and Federal codes, ordinances and regulations now in force or hereafter prescribed by authority of law. Lessee shall at sole cost and expense obtain all necessary building permits and all labor and material bonds as provided in Article V. Upon completion of construction, title to all permanent improve- ments shall vest in Lessor. All other improvements of a non-perman- ent nature and all trade fixtures, machinery and furnishings made or installed by Lessee may be removed from the leased premises at any time by Lessee. H. MAINTENANCE. Lessee shall, at its sole cost and expense, maintain said premises, all improvements thereon, and all appur- tenances thereto, in a presentable condition consistent with good business practice and equal in appearance and character to other similar improvements on said Airport. Lessee shall repair all damages caused by his employees, patrons, or their operation thereon; shall maintain and repair all equipment thereon, including tie-downs, paving and improvements, and shall keep his premises in a safe, neat, sightly and good physical condition. I Lessee agrees that in the event it shall become necessary to make changes on his leased premises of any wiring or similar Lessor in its reasonable discretion shall be the sole judge of the quality of maintenance. Upon written notice by Lessor to Lessee, Lessee shall be required to perform whatever reasonable maintenance Lessor deems necessary. If said main- tenance is not undertaken by Lessee within ten days after receipt of written notice, Lessor shall have the right to enter upon the demised premises and perform the necessary maintenance, the cost of which shall be borne by Lessee. I. UTILITIES. Lessee shall assume and pay for all costs or charges for utility services furnished to Lessee during the term hereof, provided, however, that Lessee shall have the right to connect to any and all storm and sanitary sewers and utility outlets at its own cost and expense; and Lessee shall pay for any and all service charges incurred therefor. J. TRASH, GARBAGE, ETC. Lessee shall provide a complete and proper arrangement for the adequate handling and disposal, away from the Airport, of all trash, garbage and other refuse caused as a result of the operation of its business. Lessee shall provide and use suitable covered metal receptacles for all such garbage, trash and other refuse. Filing of boxes, cartons, barrels or other similar items, in an unsightly or unsafe manner, on or about the demised premises, shall not be permitter. K. SIGNS. Lessee shall not maintain upon the outside of any improvements on the demised premises any billboards or advertising signs, provided, however, that Lessee may maintain signs identifying the fuel stored on the site. The size, location and design of any such signs shall be subject to the prior written approval of Lessor's Airport Manager. Flashing lighted signs shall be prohibited. i -8- ARTICLE III TERM OF AGREEMENT A. TERM. The term of this Agreement shall be for a period commencing on the lst day of August 1977, and ending February 28, 1983. Lessee is granted the option to renew this agreement for two (2) successive additional periods of five (5) years each. ARTICLE IV A. FUEL FLOWAGE FEE. For the privileges granted hereunder, Lessee shall pay to Lessor a fuel flowage fee at the rate of $ 0.05 per gallon for each gallon of aviation fuel delivered in plane at said Airport for the first 1,000,000 gallons during each of Lessor 's fiscal years. From 1,000,000 to 1,500,000 gallons delivered in plane annually, the fee shall be $0.03 per gallon and on all fuel' in excess of 1,500,000 gallons delivered in plane annually, the fee shall be $0.02 per gallon. Such fuel flowage fee rate may be adjusted by Lessor at anytime during the term of this agreement so as to coincide with the fuel flowage fee rates paid by Butler Aviation or its successors or by any other fixed base operator at Meacham Field. B. PARKING FEES. For any and all aircraft parking fees as established by Lessor 's Aviation Advisory Board and collected by Lessee for parking on the public use transient apron or on any other property of Lessor, not leased out on an exclusive basis, Lessee shall pay to Lessor 50% of the amounts so collected. C. TIME OF PAYMENT. Fuel flowage fees and the percentage payments on aircraft parking fees shall be due on the tenth day of the month succeeding that in which the aircraft fuels were supplied by Lessee and/or parking fees collected, and shall be delinquent if unpaid before the fifteenth day of each month. D. RECORDS OF LESSEE. Lessee shall keep true and accurate records and books which shall show all fuel deliveries made to Lessee at said Airport and all parking fees collected on a percentage basis. With the payment of the fuel flowage fees and the percentage fee on aircraft parking as set forth in Paragraphs A and B above, Lessee shall submit to Lessor detailed statements of such parking fees collected and of all fuel sales for the preceding calendar month. These statements shall be in a form and show such reason- able detail and breakdown as may be required by Lessor. E. AUDIT. Within thirty days after the end of each of Lessor 's fiscal years, Lessee shall submit to Lessor a detailed statement of total gallons of fuel delivered in plane and total parking fees collected on a percentage basis. Such statement shall be prepared by an independent certified Public Accountant and any adjustment due on payments made during the previous year shall be accomplished at that time. In addition, Lessor shall have the right at any time during the term of this Lease to authorize an audit of Lessee's records pertaining to its fueling operation on the Airport. Such audits shall be undertaken by a reputable firm of independent certified public accountants, satisfactory to Lessor. The cost of such audit shall be borne by Lessor. ARTICLE V. INSURANCE AND INDEMNIFICATION A. FIRE INSURANCE. During the full term of this Lease, Lessee shall, at its sole cost and expense, cause all improve- ments constructed or installed in Lessee's leased premises to be kept insured to the full insurable value thereof against the perils of fire, extended coverage, and vandalism, and in amounts customary in the area against perils of explosion and like perils. Said insurance shall be procured from a company authorized to do business in the State of Texas, and Lessee shall provide Lessor with evidence satisfactory to Lessor that such coverage has been procured and is being maintained. The proceeds of any such insurance, paid on account of any of the perils aforesaid, shall be used to defray the cost of repairing, restoring or reconstructing said improvements, as necessary; provided, however, that such proceeds need not be devoted to such repair, restoration or reconstruction but shall be retained by Lessor if Lessor cancels this Lease pursuant to Article VI, Paragraph B (6) , hereof. Property insurance policies required by this paragraph shall contain waiver of subrogation endorsements. and shall contain a provision that Lessor shall be notified by the insurance company of any renewals, changes or cancellations of such insurance coverage by at least thirty (30) days written notice to Lessor. B. INDEMNIFICATION. Lessor shall stand indemnified by Lessee as herein provided. Lessee is and shall be deemed to be an independent contractor and operator responsible to all parties for its respective acts or omissions, and Lessor shall in no way be responsible therefor. Lessee covenants and agrees to indemnify, hold harmless and defend Lessor, its officers, agents, servants and employees from and against any and all claims for damages or injury to persons or property arising out of or incident to the leasing of or the use and occupancy of the premises by Lessee, its employees, patrons, contractors or subcontractors; and Lessee does hereby assume all liability and responsibility for injuries, claims or suits for damages to persons or property of whatsoever kind or character, whether real or asserted, occurring during the term of this lease in connection with the use or occupancy of the premises by Lessee, its employees, patrons, contractors or sub- contractors. Lessee shall pay promptly when due all bills or charges for construction or maintenance as well as any other amounts due for material or services furnished in connection herewith, and Lessee shall indemnify Lessor against any and all mechanics and materialmen's liens or any other types of liens imposed upon the premises demised hereunder arising as a result of Lessee's conduct or inactivity. Lessee shall promptly, after the execution of this Lease, provide public liability insurance for personal injuries, including death, growing out of any one accident or other cause in a minimum sum of Two Hundred Thousand and No/100 Dollars ($200,000-00) for one person and One million and N01100 Dollars ($1,000,000.00) for two or more persons; shall provide property damage liability insurance in a minimum sum of Five Hundred Thousand and N01100 Dollars ($500,000.00) for property damage growing out of any one accident or other cause; and shall provide products liability insurance in a minimum sum of Five Hundred Thousand and N01100 Dollars ($500,000-00) , and shall provide hangar keepers ' liability insurance in a minimum sum of Five Hundred Thousand and N01100 Dollars ($500,000.00) . Lessee shall maintain said insurance with insurance under- writers authorized to do business in the State of Texas satisfactory to Lessor. Lessee shall furnish Lessor with a certificate from the insurance carrier showing such insurance to be in full force and effect during the entire term of this Lease, or shall deposit with Lessor copies of said policies. Said policies or certificates shall contain a provision that written notice of cancellation or of any material change in said policy by the insurer shall be delivered to Lessor thirty days in advance of the effective date thereof. C. PERFORMANCE AND PAYMENT BONDS. At any time that Lessee undertakes construction of any additional facilities Lessee shall, at its own cost and expense, cause to be made, executed and delivered to Lessor two separate bonds, as follows: (1) Prior to the date of commencement of construc- tion, a contract surety bond in a sum equal to the full amount of the construction contract awarded. Said bond shall be drawn in a form and from such company as approved by Lessor; shall guarantee the faithful performance of necessary construction and completion of improvements in accordance with approved final' plans and detailed specifications; and shall guarantee Lessor against any losses and liability, damages, expenses, claims, and judgments caused by or resulting from any failure of Lessee to perform completely the work undertaken on said premises. (2) Prior to the date of commencement of con- struction, a payment bond with Lessee's con- tractor or contractors as principal, in a sum equal to the full amount of the construction contract awarded. Said bond shall guarantee payment of all wages, for labor and services engaged and of all bills for materials, supplies and equipment used in the performance of said construction contract. ARTICLE VI. TERMINATION OF LEASE, CANCELLATION, ASSIGNMENT AND TRANSFER A. CANCELLATION BY LESSEE. This lease shall be subject to cancellation by Lessee after the happening of one or more of the following events: (1) The permanent abandonment of the Airport. (2) The lawful assumption by the United States Government, or any authorized agency thereof, of the operation, control or use of the Airport, or any substantial part or parts thereof, in such a manner as substantially to restrict Lessee for a period of at least ninety days from operating (3) issuance by any court of competent jurisdic- tion of any injunction in any way preventing or re- straining the use of the Airport, and the remaining in force .of such injunction for a period of at least ninety days. (4) The default by Lessor in the performance of any covenant or agreement herein required to be performed by Lessor ana the failure of Lessor to remedy such default for a period of sixty days after receipt from Lessee of written notice to remedy the same. Lessee may exercise such right of termination by written notice to Lessor at any time after the elapse of the applicable periods of time and this Lease shall terminate as of that date. Rentals due hereunder shall be payable only to the date of said termination. B. CANCELLATION BY LESSOR. This Lease shall be subject to cancellation by Lessor in the event Lessee shall; (1) Be in arrears in the payment of the whole or any part of the amounts agreed upon hereunder for a period of ten days after the time such payments become due, (2) Make a general assignment for the benefit of creditors, (3) File a voluntary petition in bankruptcy, (4) Abandon the demised premises, (5) Discontinue fueling operations as outlined in Article II, Paragraph B, (6) Fail to replace any improvements which have been destroyed by fire, explosion, etc., within six months from the date of such destruction, or (7) Default in the performance of any of the covenants and conditions required herein (except rental payments) to be kept and performed by Lessee, and such default continues for a period of thirty days after receipt of a written notice from Lessor of said default. In any of the aforesaid events, Lessor may take immediate possession of the demised premises and remove Lessee's effects, forcibly, if necessary, without being deemed guilty of trespassing. upon said entry, this Lease shall terminate. Any rental due hereunder shall be payable to said date of termination. Failure of Lessor to declare this Lease terminated upon the default of Lessee for any of the reasons set out shall not operate to bar or destroy the right of Lessor to cancel this Lease by reason of any subsequent violation of the terms hereof. C. ASSIGNMENT, TRANSFER OR SUBLETTING. Lessee shall not assign, sublet or transfer this agreement nor any privileges herein contained without prior written consent of Lessor. It is specifically stipulated and agreed that Lessee will not enter into any tie-in agreements with other operators or sublet any of the rights herein whereby other operators share in the privileges or the services authorized in this agreement. D. SUSPENSION OF LEASE. During the time of war or national emergency, Lessor shall have the right to lease the landing area or any part thereof to the United States Government for military use. If any such lease is executed, any provisions of this instrument which are inconsistent with the provisions of the lease to the Government will be suspended. ARTICLE VII GENERAL PROVISIONS A. APPLICATION OF FIXED BASE OPERATOR AGREEMENT. It is mutually agreed between the parties hereto that, unless herein otherwise specifically provided, all terms, conditions and covenants of that particular Fixed Base Operator Lease Agreement, being City Secretary Contract No. 7066, effective August 1, 1972, between the parties hereto, shall apply in full force and effect to this Agreement for the full term hereof. III B. CANCELLATION OF CITY SECRETARY CONTRACT NO. 7190. City Secretary Contract No. 7190, dated July 17, 1972, between the City of Fort Worth and Don E. Hansen shall be canceled and terminated on such date as the terms and conditions contained herein become effective. C. ATTORNEY'S FEES. in any action brought by Lessor for the enforcement of the obligations of Lessee, Lessor shall be entitled to recover interest and reasonable attorney's fees. D. TAXES. Lessee agrees to pay any taxes or assessments which may be lawfully levied against Lessee's occupancy or use of the demised premises or any improvements placed thereon as a result of Lessee's occupancy. E. RELOCATION OF IMPROVEMENTS. In the event Lessor requires the demised premises for expansion or development of the Airport, Lessor reserves the right, on six months notice, to relocate or replace Lessee's improvements in substantially similar form at another generally comparable location on said Airport. F. SUBORDINATION OF LEASE. This Lease shall be subordinate to the provisions of any existing or future agreement between Lessor and the United States relative to the operation or maintenance of the Airport, the execution of which has or may be required as a condition precedent to the expenditure of Federal funds for the development of the Airport. G. PARAGRAPH HEADINGS. The paragraph headings contained herein are for convenience in reference and are not intended to define or limit the scope of any provisions of this Lease. H. NOTICES. Notices to Lessor provided for herein shall be sufficient if sent by registered mail, postage prepaid, addressed to Airport Manager, Meacham Field, Fort Worth, Texas, and notices to Lessee, if sent registered mail, postage prepaid addressed to D. E. Hansen, Meacham Field, Fort Worth, Texas, or to such other addresses as the parties may designate to each other in writing from time to time. -16- I. SUCCESSORS AND ASSIGNS. All of the terms, covenants and agreements herein contained shall be binding upon and shall inure to the benefit of successors and assigns of the respective parties hereto. IN WITNESS WHEREOF, the parties have hereunto set their hands this ,14—day of _ 1 v __—, 1978. LESSOR: CITY OF FORT WORTH By: '•et— City Manager APPROVED AS TO FORM City Attorney AI'1'liJVli.i) L'i'. �•]-1 x '% �i7�z�'. LESSEE: --=''U� DON E. IiANSEN City Socretary`� Data By: cif �— I!i DON E. HANSEN ATTEST: I Cif Secretary I l —17— • � �r•nr•ury ;::iii:: �\ i ':1�31'i ?fir !�f •`,. 'ft � �. .��� � � � • • rr y► V � f»s�:fs�sl�f, ..rr■rrrree: � M ■' �rrurrrrr■•( ■ur■uues• i apt .. ■r • � aaarrrrraaaN ���,�»itr�j . ►lit �-�• _ :..: ■. , IBS •�� cry.rvr_+�.....-.►�rArr...f....�. , • • :•• MILS►'f f:�::::,•� "--- --' --, ' �ss t=:off■ N �'wyl4tgsw IEfY!s��+: City ®f Fort Worth, Texas Mayor and Council Communication DATE REFERENCE SUBJECT: PAGE i %- L5_77 NUMBER New Transient Fueling and Tank C-3969 arm Agreement - Don EoHansen Meacham i of —2-- Field On July 17, 1972, Don E. Hansen entered into City Secretary Contract No. 7190 for a Transient Fueling and Tank Farm Operation. On August 1, 1974, Mr. Hansen subleased the operation to his wholly-owned corporation, Meacham Aero_, Inc. , under City Secretary Contract No. 8021. Granted under the contract was the right to sell aviation fuel, to park, tiedown or store transient aircraft on the public-use ramp; and to install two underground fuel storage tanks on premises leased to Mr. Hansen under City Secretary Contract No. 7066. Term of the contract began on August 1, 1972 and ended on July 31, 1977° The contract contained an option to renew the agreement for successive additional periods of five years each until September 30, 20020 In addition to Mr. Hansen°s desire to extend his Transient Fueling and Tank Farm Agreement, he sought to amend that portion of the contract which referred to fuel flowage fee adjustments. The Legal Department was consulted and advised the Aviation Department that, in view of the considerable changes proposed, a new contract will benecessary rather than an extension with amendments to the original agreement. After lengthy negotiations with Mr. Hansen, a new Transient Fueling and Tank Farm Agreement is proposed with the following provisions. Term of the agreement (to be effective retroactively to the expiration of City Secretary Contract No. 7190) will begin August 1, 1977 and end February 28, 1983. During the term of the new agreement Mr. Hansen will pay to the City of Fort Worth a fuel flowage fee as follows: First 1,000,000 gallons - $005 per gallon Next 500,000 gallons - 003 per gallon All Over 1,500,000 gallons - - 002 per gallon In addition to the fuel flowage fee as set out above, Mro ;Hansen will collect overnight aircraft parking fees on the public-use, transient ramp and will pay to the City 50% of the amounts so collected. The parking fees charged will be in accordance with those approved by the Aviation Advisory Board. The installation of the two underground fuel storage tanks on premises leased to Mr. Hansen under City Secretary Contract No. 7066 was accomplished during the term of the original agreement. The right to continue use of the tanks will be granted in the new agreement. 1 . DATE REFMEBENCE SUBJECT: New Transient Fueling and Tank PAGE 11/8/77 C-3969 Farm Agreement- Don E. Hansen - Meacham 2 og 2 Field At the expiration of the term of the new agreement, i.e. February 28, 1983, Mr. Hansen has the option to extend the Transient Fueling and Tank Farm Agreement for two periods of five years each at a rate to coincide with that pai