Loading...
HomeMy WebLinkAboutAgenda Bill 4.A 09/20/2010~;A L UfL1. a . '~ -385.$ DATE: ,4 ~~v-.dcv I t~wv #4 . ~1 September 20; 201'0.. TO: Honorable Mayor and 1Vlembers of they City _ouncil through City Manager FROM: Vincent Marengo, Director of Public Work '. SUBJECT: Resolution Approving aSelf-Fueling Agreement and Accompanying Rules and Regulations for Self-Fueling at the Petaluma Municipal Airport, and Authorizing City Manager to Execute the Agreement on Behalf of the City of Petaluma RI•.COIVI1VIIiJNDATI ON It is recommended that the City Council adopt the attached resolution approving aSelf-Fueling Agreement and accompanying. Rules and Regulations for Self-Fueling at the. Petaluma Municipal Airport, and authorizing City Manager to execute the Agreement on behalf of the City of Petaluma. . BACKGROUND As a recipient of Federal Aviation Administration (FAA) funding, the Petaluma Municipal Airport must adhere to their'Grant Assurances. Section 11.;1 (attached) of the Assurances obligates. the Airport to permit aeronautical users the right to self-service their own aircraft "in conformance with the sponsor's rules and regulations pertaining to self-service operations." Currently, there are no rules and regulations governing self service fueling at the Airport, and there is one tenant. performing this .operation.. At its meeting of September 2, 2010, the Airport Commission recommended approval of the Self-Fueling Agreement and accompanying Rules and Regulations for Self-Fueling. DISCUSSION The Self Fueling Agreement and Rules and Regulations for Self Fueling were developed collaboratively`by Risk Management, the City Attorney's office, the. Fire Department and Airport staff to ensure that the. City of Petaluma is protected,. and tfi`at the performance of this operations in accordance with all federal, state and local above-ground.tank regulations, which will allow enforcement. As of January 1, 2011, above-ground. tank. regulations require general containmentof fueling vehicles while they are parked. The Rules and Regulations ensure proper trairai_ng, testing of and disposal ofaviation fuel and limit the chance of a fuel spill. The Regulations will apply to all tenants~and operators who self-fuel. Age~da,Review: City Attorney Finance Director ~ City Manager hINANCIAL IMPACTS Currently, the Airport realizes a fuel flow fee of $.24 per gallon of jet fuel from those tenants who self fuel, and will continue to do so from those tenants who sign the new agreement. A tenant who decides not to sign the agreement will still be able to purchase fuel utilizing atwo- tiered volume discount, based on purchases of 500 or 1,000 gallons per month. ATTACIIMENTS 1. Resolution, including Exhibit A to Resolution, Self Fueling Agreement and accompanying Regulations for Self-Fueling Tenants 2. FAA Grant Assurances Section 11.1 2 A~TAC~6M~~BT '~ RESOLUTION APPROVING ASELF-FUELING AGREEMENT~AND ACCOMPANYING RULES AND REGULATIONS FOR SELF-FUELING AT TI-IE PETAI.UMA MUNICIPAL AIRPORT AND AUTHORIZING CITY MANAGER. TO EXECUTE THE AGREEMENT ON BEHALF OF THE CITY OF PETALUMA WHEREAS, as a recipient of Federal Aviation Administration (FAA) grants for capital improvements, the Petaluma Municipal Airport must abide by the Grant Assurances the FAA dictates; and WHEREAS, Section 11.1 of the Assurances obligates the Airport to permit aeronautical users the right to self-service their own aircraft "in conformance with the sponsor's rules and regulations pertaining to self-service operations"; and WHEREAS, currently, there are no rules and regulations governing self-service fueling at the Airport, and one tenant is performing this operation; :and WHEREAS, the proposed Self Fueling Agreement and accompanying Rules and Regulations for Self-Fueling require safety standards that will protect the City of Petaluma; and WHEREAS, WHEREAS, at their meeting of September 2, 2010, the Airport Commission took action recommending that the City Council approve the Self Fueling Agreement and accompanying Rules and Regulations for Self-Fueling. NOW, TI~EREFORE, BE IT RESOLVED that the City Council of the City of Petaluma hereby 1. Approves the Self Fueling Agreement and accompanying Rules and Regulations for Self- Fueling at the Petaluma Municipal Airport, attached as Exhibit A to Resolution and incorporated herein by reference; and 2. Authorizes the City Manager to execute the agreement on behalf of the City of Petaluma. 3 EXHI~IY A T® RESOL~TB~R~ DRAFT AIRPORT:SELF=FUELING AGREEIViENT PETALUIVIA IUIUNICIPAL AIRPORT This Self-Fueling Agreement ("Agreement") is made and entered effective 20_, b.y and between the City of Petaluma, a California municipal. corporation ("City"), and _ , a . ("Lessee"). City and Lessee are hereinafter'referred to individually as "Party'' and collectively as "Parties.." WHEREAS, City owns all that certain real property located of the Petaluma Municipal Airport ("Airport"); and WHEREAS, Lessee leases from the City the premises at .the Airport more particularly identified on Exhibit A attached' and incorporated by ;reference herein ("Leased Premises") pursuant to that certain dated [as amended on ], ihcorporated by reference as if fully set forth herein ("Lease"); and WHEREAS, Lessee desires to self-fuel Lessee's :aircraft at the Leased Premises, and City is willing to permit such self fueling, but only :upon the terms and conditions set forth in the Regulations for Self-Fueling approved by the Gity on, , 2010 pursuant to Resolution Ng~. , as the carne may be amended from time. to time, attached as Exhibit B and incorporated herein by reference ("Regulations"). NOW, THEREFORE, in consideration of the promises and mutual covenants contained in this Agreement, City and Lessee hereby agree as follows: 1'. Compliance with Regulaations. Lessee has received and reviewed the Regulations attached hereto as Exhibf B; .and agrees'to comply, and to cause all Operators (as defined in the Regulations) to comply,, at all times with the Regulations. 2. Termination of Agreement.This Agreement,. and Lessee's right to self-fuel its aircraft at the Leased. Premises, shall be terminated as follows: ,(i) by e`ifher Party upon not -less than thirty (30) days written. notice to the other Party, except that Citymay act to terminate. this Agreement immediately for cause, without notice,. in the caseof a failure by Lessee to comply with the terms ofthisAgreement that presents a clear and immediate danger to :the public health,, safety and welfare generally and/or to Airport opecations.and/oc~users (ii) termination of the Lease; or (iii) Lessee's assignment or sublease of the Lease, o~ assignment of this .Agreement; without City's prior written consent. 4 3. Assignment or,Delegation. Lessee: may not assign or delegate its rights under this Agreement, regardless of any assigni~nenf or.sublease of tfie Lease, without City's prior written consent. ,Any purported assignment or delegation without City's prior written consent shall be void, and City may treat such purported assignment or delegation as a material breach of this Agreement subject: to termination in accordance with Section 2 of this Agreement. 4. Fuel Flowage .,Fee.. The fuel flowage fee payable to .City shall be ($ )per gallon. 5. Notices. Any and all nrotiees to be given .under this Agreement or otherwise may be given by enclosing the same in a sealed envelope addressed to the Party intended to receive same,. at its address, and deposited in the United States Post Office as registered mail with postage prepaid. When so given, such notice shall be effective from the date of mailing. Unless otherwise provided in writing by the Parties, the addresses to which notices shall be sent are: To City: To Lessee: F. Amendment. This Agreement`may be arnended~only by a written instrument executed by authorized representatives of each Party.: 7. Construction. The Parties agree that, notwithstanding Civil Code Section 1654, any uncertainty in the Agreement shall not be construed against the drafter of the Agreement. 8. Severability. If a court of competent jurisdiction holds that any term or portion of this Agreement is unenforceable, the remaining portions of this Agreement shall continue in full force and effect. 9': No Third Party Beneficiaries. The Parties. do not intend to create, and nothing in this Agreement shall be construed to create, any benefit or right in 'any third party. 10. Non-Waivers Tle failure to enforce any provision ofthis Agreement or the waiver thereof in a particular instance shall not be construed as a general waiver of any part of such provision, and the provision shall remain in full force and effect. 11. Governing Law; Venue: This Agreement shall be enforced and interpreted under the laws of the State of California. and the City of Petaluma. Venue for any action arising from or brought in connection with this Agreement shall be in the County 5 of Sonoma., :State of California, or the United States District Court'for the Northern District of°California, as applicable. 12. Entire,Agreement. This Agreement,; including Exhibits A and B hereto, constitutes the entire agreement between the Parties and supersedes all prior agreements or understandings, oral. or written, between the Partie's concerning the subject matter of this Agreement. IN WITNESS WHEREOF, the rParties have executed this Agreement as of the date first written above. CITY OF PETALUMA LESSEE x., John G. Brown, City Manager [Printed Name] ATTEST: City Clerk ' APPROVED AS TO FORM: City Attorney APPROVED: k :Department Director APPROVED: Risk Manager APPROVED' Finance Director 6 EXHIBIT A TO AGREEMENT (Attach identification of Leased 'Premises) EXHIBIT B TO'"AGREEMENT DRAFT Regulations for Self-Fueling Tenants ofi the Petaluma Municipal Airport. Applicability.. These Regulations apply to .those private parties who have executed leases with the City of. Petaluma ("City") and have executed a "Self-Fueling Agreement" with City for the- self'-fueling of their aircraft ("Tenants"), and to those, persons, including but not limited to Tenants,. who use, cause ~to be used, or authorize use of a Tenant's aircraft, with or without. the -right of legal control (as owner, lessee or otherwise) ("Operators"), for the purpose,of air navigation including the piloting of the aircraft, or any part of the surface of the Petaluma Municipal Airport ("Airport"). All references herein to Operators shall be deemed to include Tenants. 1-Fueling. Fuel shall only be dispensed by or on behalf of those Tenants who have a written lease or other agreement granting such permission,. which is signed by both Tenant and City. Fuel shall be uploaded from the Airport storage tank into Tenant's fuel trucks by Airport staff only. 2-Fueling Areas. Self-fueling is prohibited in any hangar. Fueling activities shall be conducted outdoors and only in such areas as designated 'by Airport Manager: No aircraff'.may be fueled unless the point of contact between the fuel transfer device (e.g., the fuel nozzle) and the aircraft. fuel tank is at lease ten (10) feet away from any hangar structures or enclosed space... No fueling may occur within fifty (50) feet of any combustion and ventilation air-intake to any boiler, heater, or incinerator room. 3-Fueling Apparatus and Permit Issuance. Prior to the: user of any type of self-fueling apparatus, Operators shall have such apparatus inspected, at Tenant's expense, 6.y a third-party licensed Professional Engineer with experience andlor training in Fire Protection, to be approved by the City Fire Marshal, and referred to herein as a Fire Protection ,Engineer ("FPE"). Results of the 'inspection shall be submitted in writing to, and require written concurrence by, the Fire Marshal. All hoses and de-fueling equipment shall be maintained in safe, sound, and non-leaking condition at all times„~ During. the fueling of an aircraft, the dispensing apparatus and the aircraft shall be bonded h accordance with all applicable codes and standards, including but not limited to the California Fire Code, National Fire Protection Association (NFPA) Standards, and FAA and Federal Aboveground Tank regulations ,(collectively, "Applicable Laws"). Tenant shall submit to the Airport. Manager a plan for daily, monthly, and ,yearly inspection .procedures for fueling apparatus, including forms to be used and submittal and filing procedures. The FPE shall review all forms, inspect each vehicle, and review all training and inspection records for each re-fueler prior to operation'. The;FFE shall also inspect fueling vehicles on an annual basis and provide an opinion regarding whether o~ not each vehicle and, fueling operation is in compliance with all Applicable Laws. and these Regulations ("Re=Fueler Annual Report"). The Re-Fueler Annual Report shall. contain all relevant:records for the prior year, including without limitation reports of inventory,,. daily/monthly inspections, training, and all items referenced in 'this Section 3. The Re-Fueler Annual Report shall be submitted to the Fire Marshal, whose concurrence shall be required. for'issuance of aSelf-Fueling Permit, and maintained by the Airport Manager. The Re-Fueler Annual Report is subject' to review by the Fire Marshal during compliance inspections and at other times as requesfed by the Fire Marshal.. The; Fire Marshal reserves the right to request additional information andLor testing to confirm Tenant's compliance. The FPE shall develop "Standard Operating .Procedures" for the fueling of aircraft. All :persons engaged in any manner in the fueling operation must be trained, and currentwritten documentation of such training must be submitted to and maintained by the Airport Manager. Issuance of a ,Fire:. Permit shall. be at .the. discretion of the Fire Marshal, in the exercise of reasonable judgmerit'to ensure compliance with these Regulations. and protection of. the public safety. If the Re-Fueler Annual Report. indicates #hat the Operator is incompliance with all applicable regulations, the Fire Marshal's Office may issue Gone-year operational .Self-Fueling Permit. If the FPE's ahriual report identifies :deficiencies, the Operator will normally ,have thirty (30) days. to .achieve compliance; provided, however, that the Fire Marshal reserves the right` to revoke the annual Self-Fueling Permit and recommend Germination' of the Self-Fueling Agreement or allow addition. al time to correct deficiencies. In the event that the Re-Fueler Annual Report identifies an,emergency sifuation, the. FireMarshal shall, in the exercise of his or her ole discretion and at his or her option, require immediate compliance and%or termination. 4-Compliance with City'and State Law. Applicable Laws with, which Tenants and Operators must comply include not only those laws and regulations referenced in ..Section... 3, put also Chapter 16.24 of the Petaluma Municipal Code and all applicable, local, state;, ,and federal ;regulations. Without limiting the foregoing, Applicable Laws shall include aircraft fueling and de-fueling requirements, including but not limited to, ground devices, prohibition of'smoking while fueling,, fueling hoses, and restrictions on engine start-up. Additionally, fueling, de-fueling and fuel storage activities of ,the Airport shall conform to the current applicable provisions: of Title 14 of the Code of Federal Regulations, as amended; FAA Circular 150/5230-4A (including: updates or amendments); applicable provisions of the Petaluma. Airport Storm Water Pollution Prevention Plan ("SWPPP"); and applicable provisions of Environmental Protection Agency regulations. No person shall dispose of any oils, fuels; solvents, chemicals; or any other toxic substances or pollutants on Airport property~except in receptacles provided for that purpose, nor allow them to enter, or pose a risk of entry'into, the surface water., sewer, or drainage system. -Waste fuel (hazardous waste) must be disposed of according to requirements specified in California Health and Safety Code Section 23500 et seq.;and Title:22, California Code of Regulations. Failure to;,comply with these regulations may result in both civil and criminal penalties.. Operators are be 'required to submit,a complete a Hazardous Materials Business Plan ("HMBP") pursuant fo Health and` Safety Code Section 23500 et seq. Operators shall pay all associated fees and submit. their plan electronically to the. California Environmental Reporting System ("CERS")pursuant to AB 2286.- 5-Bonding. During fueling -and de-fueling; the aircraft shall be properly bonded. Operators shall connect bonding cables from the fueling vehicle to the aircraft,: Operators shall disconnect grounding and bonding cables in reverse order. All grounding and bonding must be done according to accepted codes and standards as confirmed by-the FPE~. Tenant shall obtain Standard Operating Procedures from an FPE for .grounding and bonding activities. Training records maintained irr .the Re-Fueler Annual Report shall include evidence oftrainipg in grounding and bonding. 6-Spill ;Prevention: Operators shall exercise due care to prevent spillage of fuel, including avoiding the filling of tanks to the ,point where they could overflow from heat expansion. Operators shall file a written copy of a Spill Prevention Control and Countermeasure Plan (°SPC`C"); approved. by the Fire Marshal and maintained by~the Airport Manager: Operators shall make immediate riotification to the Petaluma. Fire Department; by calling 9:11 iii the event, of any fuel leaks or spills,. regardless of the amount. The .Airport Manager 'shall also be notified. of any leakage or spills promptly .upon the occurrence, or Operators' subsequent discovery of; any leakage or spills. Operators. shall be responsible for cleanup and removal of all fuel leakage or spills caused by Operators, at Tenant's sole expense, under the supervision and approval of the :Petaluma Fire Department; and/or any other regulatory agency with jurisdiction. Failure to report a spill or release of hazardous materials may result in significant fines and/or legal action. 9 7. Training. Operators shall. complete an approved training program developed and designated' by an Approved Inspector.at;'Tenant's ~or'Operator"s' expense. The App'roued Inspector will compile all documents and training plans, and review all Fire Code-related requirements with ..respect to Tenant's operation; and certify that Tenant and Operator(s) are in compliance with all Applicable Laws. The training .program must be submitted for approval by'the FPE and receive concurrence from the Fire .Department. No person shall' fuel or de-fuel an aircraft prior to completion of training and submission of written evidence of such completion to the- Airport Manager. Copies of all training records shall be maintained by the Airport Manager and be subject to review by the FPE and/or the Fire Marshal. 8.-Indemnification. To the fullest extent allowed by law; Operators shall indemnify, defend (with counsel approved by City) and hold harmless 'the City, Airport; and their respective officials, agents, officers, and employees from and against any and all losses, liabilities, expenses; claims, demands; liens, penalties, costs (including costs of defense).,, suits, damages of every kind, nature and description, reasonable attorneys' fees, costs or expenses directly or indirectly arising from .Operators' use. of the Airport, except to the extent such claims arise as a result of the sole negligence or willful misconduct of the City or Airport. This hold harmless and indemnification clause shall survive the termination of Tenant's lease. 9.-Insurance. Compliance with the Airport Self-Refueling Insurance Requirements ("Insurance Requirements") attached hereto as Attachment A shall be required from every Tenant. City reserves the right'' to require additional forms and amounts of insurance, and to make such other modifications to the Insurance Requirements,. as the City Risk Manager deems appropriate, upon ninety (90) days notice to Tenant. 10.-Metering and Fuel Flowage Fees. The fuel flowage fee shall be $024 per gallon on the net gallons delivered. This: rate will be included in Tenant's Self-Fueling Agreement. Upon a fuel delivery, an invoice will be generated by the Finance ,Department which will 6e due upon receipt. City reserves the right to increase fees as necessary to cover its costs, upon thirty (30) days notice to Tenant. 11.-DOT Approval. All fueling vehicles must meet or exceed minimum California Department of Transportation ("DOT") and United States Department of Transportation ("U.S. DOT") requirements for operation on public highways. Operators shall be responsible for ensuring that such vehicles meet all such DOT and U.S. DOT requirements. 12.-Parking and Storage of Fuel Vehicles: Parking and storage of fuel vehicles are only permitted in areas approved'by:the Airport Manager, All parking and storage areas shall contain a fuel spill;containment area' in compliance with all state and'. local laws, The California 'Fire Code: ("CFG"),, Chapter 27, Section 2704.2.2.4; defines storage requirements for outdoor aboveground storage tanks as "Secondary Containment" for outdoor storage areas and requires that Secondary Containment be designed to contain a spill from the ;largesf~indi~idual .vessel. If the area is open to rainfall,. Secondary Containment shall be designed to include the. volume of~a 24-hour rainfall as determined by "a 25-year-storm, and provisions shall be made to drain accumulations of groundwater and rainwater. Fuet trucks may not be parked in any hangar; tie-down area.. or Airport parking. lot. Coristruction of the Secondary Containment area shall be completed and approved' by the Fire Marshal prior to commencement of self;fueling operations. An Approved Inspector will be required to .evaluate .construction and. capacity of Secondary Containment storage, Engineered plans must be submitted to the Fire Marshal's Office for review and approval. Open outdoor Secondary Containment will be considered, but may not be allowed, depending on environmental 10 conditions and/or sensitive receptors. Certain storage locations may not be feasible if they present a greater risk of release. 13.-Fuel Sales Prohibited: Fuel sales.or dispensing of fuel by any self-fueling Operators to any aircraft other than the applicable Tenant's aircraft is prohibited. 14. ®ther Safety Measures. A. No aircraft shall be fueled with the engine running (hot-fueling) unless Operator has obtained prior written, authorization from the Airport Manager. No Operator shall start the engine of any aircraft when there is gasoline on the ground under the aircraft. B. No person -shall smoke or use any material or equipment that is likely to cause a spark or ignition within..:fifty (50) feet of any fueling or de-fueling operations, pursuant to Section 16.24.020 of'the City Municipal Code. C. Operators shall treat all. fuel with due caution and. circumspection, with regard to the rights and safety of others and so as not to endanger persons or property. D. No person shall 'use "any material likely to cause a static discharge during fueling or de- fueling of aircraft. E. Operators shall ensure that adequate fire extinguishers; are within ready reach of Operators or any other person engaged in fueling and de-fueling operations at all times. F. Operators shall ensure 'that all fueling activities cease when lightning discharges occur within five (5) miles of the Airport. G. Operators involved in :fueling operations shall ensure that the aircraft's parking, brake is set, at least one aircraft wheel is chocked, or the aircraft is secured to the ground by fhe two wing'tie-down points. 15.-Enforcement. City retains the right to cancel any right to self-fuel in response to any violation of these Regulations or aSelf-Fueling Agreement. 16.-Amendment.. These Regulations may be amended from time to time by the City. ATTACHMENT- A To Regulations for Self-Fueling Tenants~of the Peta{uma Municipal Airport AIRPORT SELF-REFUELING INSURANCE REQUIREMENTS Lessee's performance of the services under this Agreement shall ,not commence until Lessee shall have obtained all. insurance required under this paragraph and such insurance shall have been approved by the City Attorney as to form and the Risk Manager as to carrier and sufficiency. All requirements herein provided shall appear either'in the body of the insurance policies. or as endorsements and shall specifically bind the insurance carrier. Lessee. shall procure and maintain for the duration of the contract all necessary insurance against claims now and in the future for injurie"s to persons or damages to property which may arise from or in connection with the performance of the Services by the Lessee, the Lessee's; agents, representatives, employees or subcontractors. F. Minimum Scope of Insurance Coverage shall beat least as broad as: 1. Insurance Services. Office Commercial General Liability coverage: a. Personal injury;, b. Contracfual liability. c. Pollution Liability Coverage. 2. Insurance Serviees~Offiee form covering Automobile Liability, code 1 (any auto). Pollution Liability Coverage during transport, operation and storage of such vehicles and trailers. 3. Workers' Compensation insurance as required by the- State of California and Employer's Liability Insurance. 4. Such other insurance coverages and limits as may be required by the City. B. Minimum Limits of ~lnsurance Lessee shall maintaih limits no less;than: 1. General Liability': $2;000,000 per occurrence/incident for bodily injury, personal' '.injury property damage and pollution ,liability. If Commercial General Liability Insurance or other form with~a general aggregate liability is used, either the'genecal aggregate limif shall apply separafely to #his Agreement or the general aggregate Jimif shall be twice the required_ occurrence limit. 2.Automobile Liability: $2,000,000 per accident/incident .for bodily injury, property damage and pollution,_liability. 3. Employer's Liability: Bodily Injury 6y Accident -$1,000,000 each accident. Bodily Injury by Disease. - $1,000,000 policy limit. Bodily Injury by Disease - $1,,000,000 each employee. F. Such other insurance coverages and limits as may be required by the City. 12 G. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and. approved by the City. ;4t the option of the City,, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials; employees, and volunteers; or the Lessee shall procure~a, bond guaranteeing payment of losses and related .investigations, claim administration and defense expenses. D. Other Insurance Provisions The required general liability and automobile policies are fo contain, or be endorsed to contain the following, provisions:. 1. The City, its officers; officials, employees, agents and volunteers are to be covered as Additional Insureds as respects: liability arising out of activities performed by or on behalf of the Lessee; prodacts and completed operations of the Lessee; premises .owned, occupied or used fjy the Lessee; or automobiles,ovuned, leased, hired or borrowed by the Lessee. The coverage shall contain no special limitations on the scope of protection afforded to the. City, its officers, officials, employees,.agenfs orvolunteers. 2. For 'any claims related to this project, the Lessee's insurance coverage shall be primary insurance. as respects the City; 'its officers, officials; employees, agents and volunteers. Any insurance or self-insurance `maintained by the City; its officers, officials, employees, agents or volunteers shall be excess of the Lessee's insurance and shall not contribute with it. 3. Any failure to comply-with reporting or other provisions ofthe policies including breaches of uvarranties: shall not. affect coverage provided to the City; its officers, officials, employees, agents or. volunteers: 4. The Lessee's insurance shall apply separately to each insured against whore claim is .made or suit is brought except, with respect to the'limifs of the insurer's liability. 5. Each insurance policy required by this clause ,shall be endorsed ao state that coverage shall not be suspended, voided, canceled by either party,, reduced in coverage or in limits except after'thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. 6. Lessee agreesao waive subrogation rights against the City regardless ofthe applicability of any insurance proceeds,. and to require. all contractors, subcontractors or others involved in any vuay with the Seniices to do likewise. E. .Acceptability ofansurers Insurance is to be placed with insurers with a current A:M. Best's rating of no less than A:VII. F. Verification of'Coverage Lessee shall furnish the .City with original endorsements effecting coverage required by this clause. The endorsements. are to be signed by a person authorized by that insurertobind coverage on its behalf. All endorsements are to be received and approved by the City before the Services commences. 1434293.2 13 AT~AC~M~~~ '2 Section 11.1 of FAA Grant Assurances 09/30/2009 1 ].1: General. The .sponsor of a federally obligated airport ..must permit airport aeronautical users, including .air carriers, the right.to self-.service and to use any of the airport-s fixed-base operators (FBOs).30 11:2. Restrictions on Self-servicing Aircraft. Grant Assurance T2(f), Economic Nondiscrimination, provides that a sponsor "will not exercise or grant any right or privilege which operates to prevent any person, fine; or corporation operating aircraft on the airport from performing any services on its own aircraft with its own employees (including, but not limited to, maintenance; repair; and fueling)' chat it may choose to perform." Chapter 11. Self=Service 5190:6B ~~ - f` w: _ "~_~~ .: ~~ ~ ,~ ~ ~i~,~ _ ~, ?~~ ra ~,~ -ter' - i ---°- ~- ;: a [~~ a ~ ;~~_ - ~f - ~ ~ ~: ~~f ~ ~~ 1 ~, - - ~~ r~i ~,: ~ ~t ~~`, .. t -_~_ 71,~ -_ 1 F- -~• Grant Assur~ce 22(f}, Ecorioinic. Nora'isei`imiiiation, prvvxdes that a sponsor "wilt not exercise or grant;mzy rigtit'onprivitege whirh operates to prevent any person,,fiim, or eorporalion operating aircraft on=the carport from performing ony services on its own, airci•afi with its own employees (inclucfing, but not limited to,~maiiaencmce, repair, andfueling)':that it may choose toperform. (Photos: FAA). The FAA considers the rightto self-service as prohibting,the establishment of anyunreasonable lestrictiori:onthe owners or operators of aircraft.iegarding the ~ ervicing of their own aircraft.and. equipment. 'o A fixed-base operator (FBO) is a commercial entity providing aeronautical services such as;fueling; maintenance, storage, Bound and'flight instruction, etc., to the public. s~ For infonnatiorrsegarding fueling, refer toAircraf2 Fuel Storage, Handling, cndDispenring on Airports; Advisory Circular (AC) 150/5230-4. Page 11-1 14