07-F Cox Field Fuel Truck - Laserfiche WebLink

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AGENDA INFORMATION SHEET PROJECT: Consider a resolution authorizing the release of the City's security interest and legal title in a fuel truck located at Cox Field Airport. BACKGROUND: The City has received inquiries from Mr. J. B. Richey, the Fixed Base Operator (F.B.O.) at Cox Field Airport, regarding the City releasing or signing over its security interest and legal title to the fuel truck that is located at the airport. The FBO has indicated release of the title is incident to purchase of a new fuel truck for use at the airport. Based on this inquiry, the Legal Department researched its files which referenced the particular fuel truck in question to determine how and on what basis the City obtained the title in the first place. As best as can be determined, and based on an unsigned document attached as an exhibit to Resolution No. 87-071, the issue of the fuel truck first came up with the prior F.B.O., Mr. Roger Sadler, d/b/a Saber Aviation. When Mr. Sadler obtained the F.B.O. contract, apparently the original Lease Agreement required a Certificate of Deposit in the amount of $10,000 as a performance bond to assure Mr. Sadler's performance as the F.B.O. This requirement was apparently included as part of the lease which was authorized by Resolution No. 85-003 in 1985. Subsequently, Mr. Sadler apparently approached the City in 1987 requesting that the Certificate of Deposit be returned to him and in turn he would pledge as a substitute a first lien of $10,000 against the jet fuel truck. This arrangement was then completed by adoption of Addendum No. Two to the Fixed Base Operator Lease dated January 14, 1985. Addendum No. Two was actually approved by Resolution No. 87- 071 on July 13, 1987. The next reference to the truck in the Legal Department files is an apparently new Lease Agreement between the City of Paris and J. B. Richey in which Mr. Richey initially took over the responsibilities as the F.B.O. from Saber Aviation. This document, dated February 8, 1988, and apparently approved by Resolution No. 88-009 on or about February 8, 1988, includes a paragraph VIII B. found on page 8 of said Lease Agreement which references the prior Fixed Base Operator Lease between the City of Paris and Saber Aviation; recognizes the assignment of that agreement from Saber Aviation to J. B. Richey, Inc.; and further references that in order to maintain the rights of the City of Paris, Richey acknowledges that under the prior lease the City had a right to repurchase the 1973 International Jet Fuel Truck. The new lease then references a declining value of the truck beginning in March of 1988 and continuing through March of 1991, and states that the value of the truck following 1991 and any subsequent years would be $2,400. This clause again acted as a performance bond in the sense the City reserved the right, in the event J. B. Richey, Inc. failed to perform under the agreement, to repurchase the fuel truck at the stated price in the contract at the time of the Richey failure to perform. Presumably this arrangement was made not only to secure the performance of Mr. Richey, as was done under the previous contract, but also to assure that the City could have immediate access to the jet fuel truck in the event Mr. Richey no longer performed his duties. Otherwise, the City could have difficulty in continuing to operate the airport. The clause further provides that Mr. Richey, as Lessee, agreed to deliver the title to the fuel truck to the City of Paris or to show the City as a lienholder thereon.