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11 - Airport Management and FBO agreements - retirement of Jerry RichieItem No. 11 Memorandum TO: City Council Grayson Path, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: DOCUMENTS AFFECTING RETIREMENT OF JERRY RICHIE FROM AIRPORT MANAGEMENT DUTIES AND FIXED BASE OPERATOR DUTIES AT COX FIELD AIRPORT DATE: July 12, 2021 BACKGROUND: As you will recall, at a previous meeting, Council approved in principle a separation agreement between the city and Jerry Richey regarding his contracts as airport manager and FBO manager. Tonight you have in front of you documents to affect that change. STATUS OF ISSUE: Before you for your approval are three documents: A termination of the FBO agreement; a termination of the airport management agreement; and a bill of sale. Both agreements provide that Mr. Richey will stay on as a consultant 40 hours per week until the city has hired, and Mr. Richey has trained, a new employee to manage these duties. The weekly rate is $1,200.00. After the employee has been trained, Mr. Richey will be available for consultations at the hourly rate of $30.00 with a $30.00 call out fee, and for telephone consultations at no charge. BUDGET: The impact to the budget will be as set forth above, but will be offset by the revenues from fuel sales once the FBO agreement is terminated. RECOMMENDATION: Approve the termination of the FBO management agreement, the termination of the airport management agreement, and the bill of sale documents and authorize the City Manager to execute same. TERMINATION OF AGREEMENT FOR AIRPORT MANAGEMENT STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF LAMAR § THAT this Termination Agreement is made this day of July, 2021, by and between the CITY OF PARIS, PARIS, TEXAS, a municipal corporation, hereinafter CITY, and J. R. AVIATION, hereinafter CONSULTANT. WITNESSETH: It is the desire of CITY and CONSULTANT that the Agreement for Airport Management dated April 1, 2019, a copy of which is attached hereto and incorporated herein by reference as Exhibit A, and executed by CITY and CONSULTANT for the management if Cox Field, the Municipal Airport of the City of Paris, Texas, be terminated due to the retirement of Jerry Richey, principal of CONTRACTOR. IN CONSIDERATION HEREOF, it is hereby mutually agreed between CITY and CONSULTANT that CONSULTANT continue providing consulting services as an independent contractor until such time as CITY has hired and trained an employee to take over as airport manager and to perform FBO duties' (the CONSULTATION PERIOD) as follows: 1. CONSULTANT shall be responsible for the management and operational oversight of the Airport and shall continue providing the services set forth in the Agreement for Airport Management (the CONSULTING SERVICES) during the CONSULTATION PERIOD. 2. As consideration for said CONSULTING SERVICES and FBO consulting services, CITY will pay CONSULTANT the sum of $1,200.00 for a 40 hour work week during the CONSULTATION PERIOD. 3. After the CONSULTATION PERIOD has ended and the city has a trained employee to take over airport management and FBO management duties, thus decreasing the number 1 The termination of the FBO management agreement is the subject of a separate document TERMINATION AND BUYOUT OF FIXED BASE OPERATOR MANAGEMENT LEASE AGREEMENT which is incorporated herein by reference as if fully set forth herein. The compensation stated herein shall be for performance of both airport management services and FBO services combined. —1— of hours CONSULTANT's services are needed, CONSULTANT agrees to provide additional CONSULTING SERVICES on an as needed basis, for which CITY agrees to pay CONSULTANT at the rate of $30.00 per hour, with a guarantee of one hour's pay plus a $30.00 call out fee. There will be only one $30.00 call out fee for each provision of CONSULTING SERVICES, regardless of the number of hours of work performed by CONSULTANT. 4. CONSULTANT also agrees to provide telephone consultations as needed at no charge. 5. That CITY will provide, at its sole cost and expense, all materials, equipment, and parts necessary to maintain CITY -owned equipment in proper working condition, if any. CITY will also pay all costs associated with repairs made by third parties to CITY -owned equipment, if any. 6. That CONSULTANT is an independent contractor and shall not be considered an employee of CITY in the performance of the responsibilities under this Agreement. 7. CONSULTANT agrees to indemnify, save, keep and hold harmless CITY from and against any and all demands, debts, liabilities, suits, claims and causes of action of every kind and character whatsoever for damage or injuries to persons and/or property occurring or arising as a result of the services provided by CONSULTANT under this Agreement, including, but not limited to, those demands, debts, liabilities, suits, claims, and causes of action resulting from the actions or inactions of CONSULTANT's invitees, agents, servants, employees, or visitors, and CITY shall not be liable for CONSULTANT, his invitees, agents, servants, employees or visitors in the performance of this Agreement and CONSULTANT agrees to hold and save CITY harmless from all claims for any such damages or injuries. CITY agrees to, indemnify, save, keep and hold harmless CONSULTANT from and against any and all demands, debts, liabilities, suits, claims and causes of action of every kind and character whatsoever for damage or injuries to persons and/or property occurring or arising as a result of the services provided by CITY under this Agreement, including, but not limited to, those demands, debts, liabilities, suits, claims, and causes of action resulting from the actions or inactions of CITY'S invitees, agents, servants, employees, or visitors, and CONSULTANT shall not be liable for CITY, its invitees, agents, servants, employees or visitors in the performance of this Agreement and CITY agrees to hold and save CONSULTANT harmless from all claims for any such damages or injuries. -2- That CITY and CONSULTANT have the right to unilaterally terminate this Agreement at any time upon ninety (90) days written notice to the other party. CITY further retains the right to terminate this agreement upon thirty (30) days written notice to CONSULTANT for failure to perform the services required hereunder. 9. That this Agreement constitutes the entire agreement between the parties. No agreements, representations or warranties other than those specifically set forth in this Agreement shall be binding on any of the parties unless set forth in writing and signed by both parties. That neither this Agreement nor any duties or obligations under it shall be assignable by CONSULTANT without the prior written consent of CITY. 10. That all notices required under this Agreement must be given by certified mail or registered mail, addressed to the proper party, at the following addresses: CITY City Manager City of Paris P. O. Box 9037 Paris, TX 75461-9037 CONSULTANT J. R. Aviation Either party may change the address to which notices are to be sent by giving the other party notice of the new address in the manner provided in this paragraph. In case any one or more of the provisions contained in the Agreement shall for any reason be held by a court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of the Agreement, and this Agreement shall be construed as if the invalid, illegal, or unenforceable provision had never been included in the Agreement. 11. That this Agreement shall be construed under, and in accordance with, the laws of the State of Texas, and all obligations of the parties created by this Agreement are performable in Lamar County, Texas. Venue for state court actions arising under this Agreement shall be exclusively in the courts of Lamar County, Texas; venue for federal court actions arising under this Agreement shall be exclusively in the federal courts for the Eastern District of Texas. -3- EXECUTED on the dates shown in the acknowledgments below. CITY OF PARIS, PARIS, TEXAS By: ATTEST: Janice Clerk, City Clerk APPROVED AS TO FORM: Stephanie H. Harris, City Attorney STATE OF TEXAS ) COUNTY OF LAMAR ) Grayson Path, City Manager CONTRACTOR President, J. R. Aviation BEFORE ME, the undersigned authority, on this day personally appeared City Manager of the City of Paris, Paris, Texas, known to me to be the person whose same is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this ® day of -4- 2019. Notary Public, State of Texas STATE OF TEXAS COUNTY OF LAMAR BEFORE ME, the undersigned authority, on this day personally appeared �m , known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed and in the capacity therein stated. 2018. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of -5- Notary Public, State of Texas TERMINATION AND BUYOUT OF FIXED BASE OPERATOR MANAGEMENT LEASE AGREEMENT This TERMINATION AND BUYOUT OF FIXED BASE OPERATOR MANAGEMENT LEASE AGREEMENT (hereinafter CONTRACT) shall be between the City of Paris, Texas, a home rule municipal corporation of the State of Texas (hereinafter CITY), and J. R. Aviation. , which in consideration of the mutual covenants, agreements, stipulations, and payments, do hereby contract and agree as follows: WHEREAS, on or about April 1, 2019, the parties hereto executed a fixed base operator management agreement entitled "Flight Based Operator Management Lease Agreement" (hereinafter FBO AGREEMENT), a copy of which is attached hereto as Exhibit A and incorporated herein by reference, whereby CITY contracted with J.R. Aviation to act as a fixed base operator at Cox Field Airport, a municipally owned and federally obligated airport in Paris, Texas; and WHEREAS, said FBO AGREEMENT was for a term of five (5) years beginning on April 1, 2019 and ending on March 31, 2024, with an option for J.R. Aviation to extend the FBO AGREEMENT for an additional five (5) year period at the expiration of the original term; and WHEREAS, Mr. Jerry Richey of J.R. Aviation has conveyed his wish to CITY to retire and to sell to CITY the physical assets of said J.R. Aviation as well as J.R. Aviation's rights and interests under said FBO AGREEMENT for good and equitable consideration; and WHEREAS, City has agreed to terminate the FBO AGREEMENT, to purchase J.R. Aviation's physical assets associated with the fixed base management operations at Cox Field Airport and to buy out J.R. Aviation's rights and interests under the FBO AGREEMENT; WHEREFORE, PREMISES CONSIDERED, in consideration of the mutual covenants, agreements, stipulations, and payments set forth herein, do hereby contract and agree as follows: Article 1: TERMINATION Upon execution of this CONTRACT, the FBO AGREEMENT and all rights and duties thereunder, unless otherwise set forth herein, shall be terminated. Article 2: CONSIDERATION As consideration for the termination of the FBO AGREEMENT, the purchase of assets as set forth hereunder-, and thex. FBO Agreement, City will pay to J.R. Aviation the sum of EIGHTY NINE THOUSANT) DOLLARS AND NO/100 ($89,000.00). This sum is the all-inclusive purchase price of all assets being transferred by this CONTRACT, and in no event shall the CITY pay to J.R. Aviation any further sums. As a part of the termination of the 17130 AGREEMENT, and as part of the consideration for the purchase price set forth hereinabove, JR. Aviation shall transfer tothe CITY the following assets: I One 1987 or 3000 gallon Jet A reftieler truck, VIN Number IFDYK84A2JVA09765 in a condition acceptable to the City, after inspection by City. 1 One (1) 1982 or 2500 gallon AVGAS relueler truck, VIN Number IFDPF82HOCVA32917 in a condition acceptable tote City, after inspection by the City. 3. Two new coelesor type fuel filters for the AVGAS relueler truck. 4. Three (3) spare AVGAS nozzles. 5. One (1) spare Jet A nozzle. 6. Office ftirniture: three (3) desks, chairs, and microwave. 7. Two (2) refrigerators. 8. Two (2) air to ground radios. 9. Shelving for backroom, storage. .10. One (1) air compressor. IL Spill kit for cleaning up fuel spills 12. To bar for towing aircraft. 13. Miscellaneous gaskets and tools for fuel trucks. JR. Aviation will transfer said assets as is to CITY as of the date of execution ofthis CONTRACT. JR. Aviation further agrees to sell to CITY all aviation fuel contained in the refueler trucks mentioned above as well as all fuel on ,) f C o x F i e I d. 1 1,,, i � L,,,, s.,_L7- ftfib f t - d a of the execution of this CONTRACT at J.R. Aviation's cost. This cost determination will be made upon execution of this CONTRACT. Thereafter, the CITY shall be entitled to the proceeds from all fuel sales moving forward. Article 5: CONTINUED CONSULTING SERVICES J.R. Aviation and CITY hereby acknowledge that CITY will be retaining fix based operating duties to be conducted in-house by a CITY employee. In that connection, J.R. Aviation agrees to assist in the training of said employee and to provide consulting services, including but not limited to airport management services' and FBO services until such time as said employee has been hired and trained (the consultation period). CITY agrees to compensate J.R. Aviation for both FBO services and said services at a combined rate of $1,200.00 per week during the consultation period. Said compensation will be for both airport management services and FBO services inclusive. After the expiration of the consultation period, J.R. Aviation agrees to provide consulting services on an as needed basis at the rate of $30.00 per hour with a $30.00 call out fee and a guarantee of at least one hour's pay, and to provide telephone consultations as needed at no additional charge. During the time that J.R. Aviation provides said services, J.R. Aviation shall be acting in the role of an independent contractor and not an agent, servant, employee, or representative of the CITY, and nothing herein shall be construed as creating a partnership or joint enterprise between CITY and J.R. Aviation. Notwithstanding the foregoing, the CITY shall be entitled to all proceeds from fuel sales from the date of execution forward. Article 6: INDEMITY AND WAIVER OF CLAIMS For all periods for which J.R. Aviation has acted as the fixed base operator at Cox Field Airport, J.R. Aviation agrees to indemnify, save, keep and hold harmless CITY from and against any and all demands, debts, liabilities, suits, claims, administrative and/or regulatory actions, and causes of action of every kind and character whatsoever for damage or injuries to persons and/or property, including but not limited to environmental damage, occurring on the leased premises resulting from its invitees, agents, servants or employees' use and activities at Cox Field Airport. CITY shall not be liable for J.R. Aviation, its invitees, agents, servants, employees or visitors due to the improvements located thereon, or hereafter constructed, or any other condition of the premises improperly constructed, maintained or being or becoming out of repair, J.R. Aviation hereby waiving any defects therein and agreeing to hold and save CITY harmless from all claims from any such damages or injuries. CITY agrees to, indemnify, save, keep and hold harmless CONSULTANT from and against any and all demands, debts, 'The termination of the airport management contract is the subject of a separate Termination of Agreement for Airport Management executed concurrently herewith and incorporated by reference as if fully set forth herein. liabilities, suits, claims and causes of action of every kind and character whatsoever for damage or injuries to persons and/or property occurring or arising as a result of the services provided by CITY under this Agreement, including, but not limited to, those demands, debts, liabilities, suits, claims, and causes of action resulting from the actions or inactions of CITY'S invitees, agents, servants, employees, or visitors, and CONSULTANT shall not be liable for CITY, its invitees, agents, servants, employees or visitors in the performance of this Agreement and CITY agrees to hold and save CONSULTANT harmless from all claims for any such damages or injuries. J.R. Aviation furthermore waives and releases CITY from, and CITY shall not be liable for, any and all claims, demands, debts, liabilities, suits, and causes of action, whether known or unknown, including but not limited to lost profits, related in any way to the FBO AGREEMENT and any prior FBO agreements between the parties, including but not limited to claims sounding in tort or in contract, or through regulatory or administrative action. CITY furthermore waives and releases J.R. Aviation, and J.R. Aviation shall not be liable for, any and all claims, demands, debts, liabilities, suits, and causes of action, whether known or unknown, including but not limited to lost profits, related in any way to the FBO AGREEMENT and any prior FBO agreements between the parties, including but not limited to claims sounding in tort or in contract, or through regulatory or administrative action. Article 7: VENUE The controlling law and venue for any dispute that should arise out ofthis CONTRACT shall be that of Lamar County, Texas. Article 6: MISCELLANEOUS PROVISIONS 1. The undersigned officers and/or agents of the parties hereto are the properly authorized officials and have the necessary authority to execute this CONTRACT on behalf of the parties hereto, and each party hereby certifies to the other that any necessary resolutions or other acts extending such authority have been duly passed and are now in full force and effect. 2. This Agreement represents the entire and integrated agreement between CITY and J.R. Aviation and supersedes all prior negotiations, representations and/or agreements, either written or oral. This Agreement may be amended only by written instrument signed by both CITY and J.R. Aviation. 3. If any clause, paragraph, section or portion of this CONTRACT shall be found to be illegal, unlawful, unconstitutional or void for any reason, the balance of the CONTRACT shall remain in full force and effect and the parties shall be deemed to have contracted as if said clause, section, paragraph or portion had not been in the Agreement initially. 4. This CONTRACT is executed by the parties hereto without coercion or duress and for substantial consideration, the sufficiency of which is hereby acknowledged. 5. Waiver by either party or any breach of this CONTRACT, or the failure of either party to enforce any of the provisions of this Agreement, at any time, shall not in any way affect, limit or waive such party's right thereafter to enforce and compel strict compliance of the CONTRACT. 6. This CONTRACT shall be drafted equally by all parties hereto. The language of all parts of this CONTRACT shall be construed as a whole according to its fair meaning, and any presumption or principle that the language herein is to be construed against any party shall not apply. Headings in this CONTRACT are for the convenience of the parties and are not intended to be used in construing this document. 7. This CONTRACT may be executed in a number of identical counterparts, each of which shall be deemed an original for all purposes. 8. This CONTRACT shall not be assigned without the written consent of CITY, which shall not be unreasonably withheld, conditioned or delayed. Any amendment to this CONTRACT shall be in writing and signed by all parties to the CONTRACT. 9. The rights and remedies provided by the CONTRACT are cumulative, and the use of any one right or remedy by CITY shall not preclude or waive any right to use any or all other remedies. 10. Where the terms of this CONTRACT require that notice in writing be provided, such notice shall be deemed delivered three (3) days following the deposit of the notice in the United States mail, postage prepaid, and sent by certified mail, return receipt requested and properly addressed as follows: CITY: City of Paris P. O. Box 9037 Paris, TX 75461-9037 J.R. Aviation 11. This CONTRACT shall be binding upon, and inure to the benefit of, the parties of this Lease and their respective heirs, executors, administrators, legal representatives, successors, and assigns when permitted by this CONTRACT. 12. This CONTRACT shall be construed under, and in accordance with the laws of the State of Texas, and all obligations of the parties created by this Lease are performable in Lamar County, Texas. EXECUTED on this day of THE CITY OF PARIS, TEXAS City Manager ATTEST: City Clerk APPROVED AS TO FORM: City Attorney STATE OF TEXAS COUNTY OF LAMAR , 2021. JR Aviation This instrument was acknowledged before me on the day of,_",,,,, ___, 2019, by Notary Public, State of Texas STATE OF TEXAS COUNTY OF LAMAR This instrument was acknowledged before me on the day of , 2019, by Notary Public, State of Texas A 14 4 4 KNOW BY ALL MEN BY THESE PRESENTS, that J.R. Aviation, Seller, with a place of business at 6780 Collier Drive, Paris, Texas, 75462, in consideration of EIGHTY-NINE THOUSAND DOLLARS ($89,000.00) payable by the Buyer, The City of Paris, Texas, P.O. Box 9037, Paris, Texas, 75461, does by these presents sell, assign, convey, transfer and deliver to The City of Paris, Buyer, the following goods and chattels: One (1) 1982 Ford Refueler for aviation fuel, VIN number 1 FDPF82HOCVA32917. Tank identification: Determan, Model # 2500J150, serial # 58270182, value of $10,000.00. One (1) 1987 Ford 3000 gallon refueler truck, VIN Number 1 FDYK84A2JVA09765, value of $55.000.00. Other personal property to wit: 1. Two (2) new coelesor type fuel filters for the AVGAS refueler truck. 2. Three (3) spare AVGAS nozzles. 3. One (1) spare Jet A nozzle. 4. Office furniture: three (3) desks, chairs, and microwave. 5. Two (2) refrigerators. 6. Two (2) air to ground radios. 7. Shelving for backroom storage. 8. One (1) air compressor. 9. Spill kit for cleaning up fuel spills 10. Tow bar for towing aircraft. 11. Miscellaneous gaskets and tools for fuel trucks. TO HAVE AND TO HOLD the same unto the said Buyer, and the heirs, executors, administrators, successors and assigns of said Buyer forever. J.R. Aviation warrants that it is the owner of the above described personal property and that it has the right to sell the same. Those items described above are "used" and sold "as is". THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THE FOREGOING DESCRIPTION OF THE PROPERTY.. In witness whereof, THE SAID J.R. Aviation has caused this instrument to be duly executed this day of 2021. J.R. Aviation 0 Before me personally appeared Jerry Richey, who by me being duly sworn upon oath says that the statements set forth above are true and correct. Subscribed and sworn to before me this day of , 2021, Notary Public, State of Texas