HomeMy WebLinkAboutIR 7285 tMFORMAL REPORT TO CITY COUNCIL MEMBERS No.- 7285 p . I
May 17 , 1988
__ ~Q440RT�p To the Mayor and Members of the City Council
Subject: FBO AND FUELING AGREEMENT, RIFE ISLAND CORPORATION
(REVISED) - SOUTH FORT WORTH AIRPORT
On December 17, 1987, the Aviation Advisory Board (AABC-1200) unanimously
recommended City Council approval of the FBO and Fueling Agreement with Rife
Island Corporation at the South Fort Worth Airport. Subsequently, the City
Council authorized the City Manager to enter into FBO agreements for a land
lease, tank farm lease, public fueling permit, and airport services contract
with Rife Island Corporation at the South Fort Worth Airport under certain
terms and conditions referenced in Mayor and Council Communication C-10735
dated January 5, 1988.
Following City Council approval of the agreement, City Staff prepared
agreements for execution by Rife Island Corporation. In review of the
documents, Rife Island Corporation requested that the Department of Law
clarify and revise certain terms and conditions contained in the contract
documents.
The terms and conditions referenced below are for clarification and revision
to M&C C-10735.
The term of the lease will be 30 years, subject to termination at the end of
the fifth year. If terminated, the following will occur:
Poll
1. The City will reimburse the audited costs for construction of the
facilities built by Rife Island Corporation, plus a return of 12%.
2. The City will reimburse operation and maintenance expenses incurred
until the installation of an Instrument and Landing System is
installed and operational. We believe installation of this system
will be completed within 24 months.
3. Following reimbursement, the contractual relationship will end, and
neither party will have any further rights, duties or obligations to
the other party under the contract.
The City will reserve the right to renegotiate or terminate the contract
during the first five years, should unanticipated, operating costs arise. As
compensation for providing (1 ) a staffed fixed base operations , a portion of
which will serve as an airport terminal for the use and benefit of the public
and (2) security services for the airport, during the hours the fixed base
operator business is closed, the City agrees to pay Rife Island Corporation
$175,000 for the first year of the contract. In the second year, the City
proposes to pay Rife Island Corporation $150,000. If the above referenced
services are continued in the third year, further payment can be made but at
a negotiated rate that would be subject to operating expenses that are
audited by the City.
[ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS N0. 7285 1) . 2
c4soar,* May 17 , 1988
90)?,"* To the Mayor and Members of the City Council
0
x Subject: FBO AND FUELING AGREEMENT, RIFE ISLAND CORPORATION
(REVISED) - SOUTH FORT WORTH AIRPORT
According to the terms set out in M&C C-10735, Rife Island Corporation was to
have constructed certain facilities, referred to as public facilities, for
which reimbursement was to occur through a crediting of rentals and fees owed
the City. The FAA has now agreed to provide partial funding (90% FAA and 10%
City) for these facilities. Therefore, the City is no longer requesting that
Rife Island undertake this construction, thereby eliminating the necessity of
the crediting procedure.
The Aviation Advisory Board will consider the above revisions at their
meeting scheduled for May 19, 1988. Unless advised differently, Staff will
present to City Council, a Mayor and Council Communication after Aviation
Advisory Board consideration of the proposed revisions.
If desired, additional information will be provided upon request.
ouglas Ha m
C z
ity Manage
DH/sf:2
-ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS