City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01671 10/15/2024 Consent Item 18.
Aviation Fuel Agreement [Published for 10-Day Review on 10/04/2024] File ID: 2024-01671
Location: Citywide
Recommendation: Adopt a Resolution to 1) suspend competitive bidding in the best interests of the City; and 2) authorize the City Manager or the City Manager’s designee to execute an agreement with McClellan Jet Services, LLC for the purchase of aviation fuel for a term of ten years for a total not-to-exceed amount of $1,500,000. through June 30, 2034.
Contact: Brent Kaneyuki, Police Captain, Metro Division, (916) 808-4504, [email protected], Police Department
Presenter: None
Attachments:
1-Description/Analysis
2-Fuel Rate Comparisons
3-Agreement
4-Resolution
Description/Analysis
Issue Detail: The Sacramento Police Department’s (SPD) Air Operations Unit requires fuel to operate its aircraft fleet of four helicopters and one fixed-wing airplane. The SPD respectfully requests authorization to suspend competitive bidding and enter into a 10-year agreement with McClellan Jet Services, LLC (MJS) in an amount not to exceed $1,500,000. through June 30, 2034. Staff research and negotiations with McClellan confirm that suspension of competitive bidding is in the best interests of the City.
Policy Considerations: The recommendations contained in this report are consistent with: 1) Sacramento City Code Section 3.56.090 requiring City Council approval for agreements equal to or greater than $250,000; and 2) City Code section 3.56.230(C) allowing the City Council to suspend competitive bidding for any purchase or contract upon a two-thirds vote when City Council determines that it is in the best interests of the City to suspend the competitive bidding requirements.
File ID: 2024-01671 10/15/2024 Consent Item 18.
The Sacramento City Code Section 4.04.020 and the City Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to City Council action. This item was published for 10-day review on October 4, 2024, incompliance with the City Code.
Economic Impacts: Not applicable.
Environmental Considerations: Not applicable.
California Environmental Quality Act (CEQA):
This report concerns administrative activities that will not have a significant effect on the environment and does not constitute a “project” as defined by the California Environmental Quality Act (CEQA) Guidelines, Sections 15061(b)(3) and 15378(b)(2).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable
Rationale for Recommendation: Since aviation fuel is not available at any City owned/ operated fueling stations, the SPD must purchase aviation fuel from third-party entities such as MJS. MJS is the on-site fuel provider for the Sacramento McClellan Airport, where the SPD houses its Air Operations Fleet; it also provides fuel to other government public safety agencies such as the Sacramento Metropolitan Fire District, the Sacramento County Sheriff’s Department, and the California Highway Patrol.
SPD has negotiated with MJS to obtain aviation fuel at rates which are approximately $1.37 less per gallon compared to current commercial averages, or the equivalent of a 21% discount.
JetA AvGas Average Total
FY2024 MJS Inventory Cost Avg 3.46 5.30
Surcharge: Into Truck 0.60
Surcharge: Into Aircraft 1.05
MJS Price 4.06 6.35 5.21
Gallons/Year 42,000.00 500.00
Estimated MJS Cost 170,520.00 3,175.00 173,695.00
Commercial Rate (6/2024) 6.86 6.30 6.58 Gallons/Year 42,000.00 500.00
Estimated Commercial Cost 288,120.00 3,150.00 291,270.00 Estimated Commercial Cost 288,120.00 3,150.00 291,270.00 Estimated MJS Cost (170,520.00) (3,175.00) (173,695.00) Estimated Savings 117,600.00 (25.00) 117,575.00 % Discount 40.82% -0.79% 20.90%
File ID: 2024-01671 10/15/2024 Consent Item 18.
Ignoring the negotiated rates, research of local commercial fuel rates indicates that MJS' commercial helicopter fuel rate is still less, on average, than what is offered by other fuel providers within a 50- nautical mile (nm) radius of SPD’s aircraft hangar. While there are providers with comparable rates within this radius, it would not be operationally efficient for Air Operations staff to regularly drive its fuel truck offsite to obtain fuel.
Financial Considerations: The SPD has operating grant resources to purchase aviation fuel. No general fund resources are required.
Local Business Enterprise (LBE): McClellan Jet Services is not an LBE. The minimum LBE participation requirement is waived as the City has suspended competitive bidding and utilized an alternate procurement method to select a vendor.
Results are listed by Lowest Fuel Price (JETA)
18 Matching Results
Name Identifier Distance FBO Price Longest Runway
BUCHANAN FLD
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CCR
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41 nm Concord Jet Center $4.39 5001 ft
WESTOVER FLD AMADOR COUNTY JAQ 33 nm Amador County $5.39 3401 ft TRACY MUNI TCY 49 nm City of Tracy $5.39 4001 ft
YOLO COUNTY DWA 17 nm PreStar / SkyDance SkyDiving $5.53 6000 ft NUT TREE VCB 23 nm County of Solano $5.80 4700 ft
WATTS-WOODLAND O41 20 nm Watts-Woodland Airport, Inc. $5.99 3759 ft MC CLELLAN AIRFIELD MCC 10 nm McClellan Jet Services $6.18 10599 ft PLACERVILLE PVF 36 nm El Dorado County $6.29 3914 ft
NEVADA COUNTY GOO 48 nm Nevada County Airport $6.70 4657 ft AUBURN MUNI AUN 32 nm Threshold Technologies, Inc. $6.72 3700 ft RANCHO MURIETA RIU 18 nm Rancho Murieta Airport $7.00 3798 ft YUBA COUNTY MYV 35 nm Honeycutt Aviation Services, Inc. $7.29 6007 ft LINCOLN RGNL/KARL HARDER FLD LHM 24 nm Lincoln Regional Airport/Karl Harder Field $7.31 6001 ft STOCKTON METRO SCK 38 nm Atlantic Aviation $7.58 10249 ft SACRAMENTO MATHER MHR 9 nm Modern Aviation $8.77 11301 ft SACRAMENTO EXEC SAC 0 nm Modern Aviation $8.78 5503 ft
SACRAMENTO INTL SMF 11 nm Modern Aviation $8.89 8605 ft NAPA COUNTY APC 41 nm Atlantic Aviation $9.05 5930 ft
6/26/24, 10:20 AM Compare 100LL & jet fuel prices for airports near SACRAMENTO EXEC ksac | Globalair.com https://www.globalair.com/airport/fuelmap.aspx?aptcode=ksac&av=pu&rad=50&factype=airport&rwy=any&app=&fueljeta=true&fuelbrand= 1/1 ATTACHMENT 2 - FUEL RATE COMPARISONS
Results are listed by Lowest Fuel Price (100LL)
28 Matching Results
Name Identifier Distance FBO Price Longest Runwa
NEVADA COUNTY
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GOO
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48 nm Nevada County Airport $5.25 4657 ft
CALAVERAS COUNTY-MAURY RASMUSSEN FLD CPU 45 nm Calaveras County Airport $5.35 3602 ft WESTOVER FLD AMADOR COUNTY JAQ 33 nm Amador County $5.39 3401 ft TRACY MUNI TCY 49 nm City of Tracy $5.39 4001 ft
MC CLELLAN AIRFIELD MCC 10 nm McClellan Jet Services $5.44 10599 ft SONOMA SKYPARK 0Q9 46 nm Sonoma Skypark $5.80 2490 ft
RIO LINDA L36 9 nm Mauser Aviation $5.85 2625 ft
SUTTER COUNTY O52 36 nm Sutter County Airport $5.92 3045 ft RIO VISTA MUNI O88 21 nm Rio Vista Municipal Airport $5.95 4199 ft GEORGETOWN E36 38 nm County of El Dorado $5.95 2979 ft
PLACERVILLE PVF 36 nm El Dorado County $5.99 3914 ft
SACRAMENTO EXEC SAC 0 nm Modern Aviation $6.00 5503 ft
YOLO COUNTY DWA 17 nm PreStar / SkyDance SkyDiving $6.15 6000 ft NUT TREE VCB 23 nm County of Solano $6.15 4700 ft
CAMERON PARK O61 25 nm Cameron Park Airport $6.16 4051 ft YUBA COUNTY MYV 35 nm Honeycutt Aviation Services, Inc. $6.19 6007 ft BYRON C83 41 nm Contra Costa County $6.20 4500 ft
AUBURN MUNI AUN 32 nm Threshold Technologies, Inc. $6.21 3700 ft LINCOLN RGNL/KARL HARDER FLD LHM 24 nm Lincoln Regional Airport/Karl Harder Field $6.25 6001 ft COLUSA COUNTY O08 46 nm Colusa County Airport $6.39 3034 ft UNIVERSITY EDU 13 nm University Airport $6.47 3176 ft
RANCHO MURIETA RIU 18 nm Rancho Murieta Airport $6.50 3798 ft WATTS-WOODLAND O41 20 nm Watts-Woodland Airport, Inc. $6.79 3759 ft STOCKTON METRO SCK 38 nm Atlantic Aviation $6.80 10249 ft SACRAMENTO MATHER MHR 9 nm Modern Aviation $7.17 11301 ft SACRAMENTO INTL SMF 11 nm Modern Aviation $7.19 8605 ft BUCHANAN FLD CCR 41 nm Pacific States Aviation $7.75 5001 ft NAPA COUNTY APC 41 nm Atlantic Aviation $8.50 5930 ft
6/26/24, 10:21 AM Compare 100LL & jet fuel prices for airports near SACRAMENTO EXEC ksac | Globalair.com https://www.globalair.com/airport/fuelmap.aspx?aptcode=ksac&av=pu&rad=50&factype=airport&rwy=any&app=&fuel100ll=true&fuelbrand= 1/1 ATTACHMENT 2 - FUEL RATE COMPARISONS
CONTRACT ROUTING SHEETContract Cover/Routing Form: Must Accompany ALL Contracts; however, it is NOT part of the contract.General Information (Required)Original Contract # (supplements only): ________ Supplement/Addendum #: ___________________Assessor’s Parcel Number(s): ________________________________________________________________Contract Effective Date: _________ Contract Expiration Date (if applicable): _________$ Amount (Not to Exceed): ______________________ Adjusted $ Amount (+/-): _____________________Other Party: ______________________________________________________________________________Project Title: _____________________________________________________________________________Project #: ____________________________________ Bid/RFQ/RFP #: ___________________________City Council Approval: if YES, Council File ID#: __________Contract Processing ContactsDepartment: ______________________________Contract Coordinator: _______________________Project Manager: _________________________________Department Review and Routing(Signature) (Date)(Signature) (Date)(Signature) (Date)(Signature) (Date)Special Instruction/Comments (i.e. recording requested, other agency signatures required, etc.)_______________________________________________________________________________________------------------FOR CLERK & IT DEPARTMENTS ONLY – DO NOT WRITE BELOW THIS LINE------------------ 07/01/202406/30/2034$1,500,000McClellan Jet ServicesFuel PurchaseYES2024-01671PoliceBrenda Perez, Admin AnalystTammy [email protected] File #24-104 1 FUEL PURCHASE AGREEMENT This Fuel Purchase Agreement (“Agreement”) is entered into this 13th day of June, 2024, between MCCLELLAN JET SERVICES, LLC whose address is 3028 Peacekeeper Way, McClellan, CA 95652 (“Seller”), and the CITY OF SACRAMENTO, by and through, Sacramento Police Department, a municipal corporation, whose address for purposes of this Agreement is 2409 Dean Street, McClellan, CA 95652 (“Buyer”). WHEREAS, Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, Fuel (as defined below) at the prices and quantities provided hereinafter. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto agree as follows: 1. Product: Seller agrees to provide Jet A and AvGas 100LL or equivalent fuel (“Fuel”) to Buyer as further set forth in Exhibit A attached hereto. 2. Term: The term of this Agreement shall be for a period of ten (10) years, commencing on July 1, 2024, and expiring on June 30, 2034. The total not-to-exceed amount through June 30, 2034 will be one million five hundred thousand dollars ($1,500,000). Notwithstanding the foregoing, the Agreement may be cancelled by either party by providing the other party with at least thirty (30) days written notice of termination. 3. Quantity: Up to approximately forty-two thousand (42,500) gallons per year, subject to the availability to Seller of the Fuel and the not-to-exceed amount. If the amount of fuel purchased exceeds $1,500,000 at any time through June 30, 2034, this Agreement may be amended or terminated upon mutual agreement of the parties. Either party may terminate the Agreement with five (5) days prior written notice. 4. Rate: The rate for the Fuel shall be as set forth in Exhibit B attached hereto. 5. Payment: The timing of payment for the Fuel shall be set forth in Exhibit A attached hereto. If, at any time, Seller has not received payment from Buyer for a shipment of Fuel within thirty (30) days after the time period set forth in Exhibit A (the “Payment Period”) or if Buyer is delinquent in its payment for Fuel within the above-stated Payment Period more than two (2) times in any one calendar year, Seller may, in its sole discretion, either terminate this Agreement in writing upon thirty (30) days written notice to Buyer or require Buyer to pay for all subsequent deliveries of Fuel at the time of delivery. Except as expressly provided for herein, nothing in this Agreement shall be construed as obligating Seller to extend any credit to Buyer. 2 6. Insurance. A. Insurance Requirements. During the entire term of this Contract, Contractor shall maintain the insurance coverage described in the Insurance Terms below. Full compensation for all premiums that Contractor is required to pay for the insurance coverage described herein shall be included in the compensation specified under this Contract. No additional compensation will be provided for Contractor's insurance premiums. Any available insurance proceeds in excess of the specified minimum limits and coverages shall be available to the City. Contractor's liability to the City is not in any way limited to or affected by the amount of insurance coverage required or carried by the Contractor in connection with this Contract. B. General Liability and Aviation Liability Insurance. Minimum Scope and Limits of Insurance Coverage. Commercial General Liability Insurance is required providing coverage at least as broad as ISO CGL Form 00 01 on an occurrence basis for bodily injury, including death, of one or more persons, property damage, and personal injury, arising out of activities performed by or on behalf of the Contractor and subcontractors, products and completed operations of Contractor and subcontractors, and premises owned, leased, or used by Contractor and subcontractors, with limits of not less than five million dollars ($5,000,000) per occurrence. The policy shall provide contractual liability and products and completed operations coverage for the term of the policy. The City, its officials, employees and volunteers shall be covered by policy terms or endorsement as additional insureds as respects general liability arising out of: activities performed by or on behalf of Contractor and subcontractors; products and completed operations of Contractor and subcontractors; and premises owned, leased, or used by Contractor and subcontractors. C. Automobile Liability Minimum Scope and Limits of Insurance Coverage. (Check the applicable provision.) _X__ Automobile Liability Insurance is required providing coverage at least as broad as ISO Form CA 00 01 for bodily injury, including death, of one or more persons, property damage and personal injury, with limits of not less than one million dollars ($1,000,000) per occurrence. The policy shall provide coverage for owned, non-owned and/or hired autos as appropriate to the operations of the Contractor. The City, its officials, employees and volunteers shall be covered by policy terms or endorsement as additional insureds as respects auto liability. ____ No automobile liability insurance is required, and by signing this Contract, Contractor certifies as follows: “Contractor certifies that a motor vehicle will not be used in the performance of any work or services under this agreement. If, however, Contractor does transport items under this Contract, or this Contract is amended to require any employees of 3 Contractor to use a vehicle to perform services under the Contract, Contractor understands that it must maintain and provide evidence of Automobile Liability Insurance providing coverage at least as broad as ISO Form CA 00 01 for bodily injury, including death, of one or more persons, property damage and personal injury, with limits of not less than one million dollars ($1,000,000) per occurrence. The policy shall provide coverage for owned, non-owned and/or hired autos as appropriate to the operations of the Contractor.” D. Excess Insurance. The minimum limits of insurance required above may be satisfied by a combination of primary and umbrella or excess insurance coverage, provided that any umbrella or excess insurance contains, or is endorsed to contain, a provision that it will apply on a primary basis for the benefit of the City, and any insurance or self-insurance maintained by City, its officials, employees, or volunteers will be in excess of Contractor's umbrella or excess coverage and will not contribute to it. E. Workers’ Compensation Minimum Scope and Limits of Insurance Coverage. (Check the applicable provision.) _X_ Workers’ Compensation Insurance is required with statutory limits and Employers' Liability Insurance with limits of not less than one million dollars ($1,000,000). The Workers' Compensation policy shall include a waiver of subrogation in favor of the City. ____ No work or services will be performed on or at CITY facilities or CITY Property, therefore a Workers’ Compensation waiver of subrogation in favor of the CITY is not required. ___ No Workers’ Compensation insurance is required, and by signing this Contract, Contractor certifies as follows: “Contractor certifies that its business has no employees, and that it does not employ anyone, and is therefore exempt from the legal requirements to provide Workers' Compensation insurance. If, however, Contractor hires any employee during the term of this Contract, Contractor understands that Workers’ Compensation with statutory limits and Employer’s Liability Insurance with a limit of not less than one million dollars ($1,000,000) is required. The Workers’ Compensation policy will include a waiver of subrogation in favor of the City.” F. Other Insurance Provisions. The policies must contain, or be endorsed to contain, the following provisions: 1. Contractor's insurance coverage, including excess insurance, shall be primary insurance as respects the City, its officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officials, employees or volunteers will be in excess of Contractor's insurance and will not contribute with it. 2. Any failure to comply with reporting provisions of the policies will not affect 4 coverage provided to the City, its officials, employees or volunteers. 3. Coverage shall state that Contractor's insurance applies separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 4. Contractor shall provide the City with 30 days written notice of cancellation or material change in the policy language or terms. G. Pollution Legal Liability. Contractor shall obtain Pollution Liability insurance. This insurance shall be written in comprehensive form either as a separate policy or as an endorsement to contractor’s general liability coverage and shall cover liability for bodily injury, property damage, and environmental damage resulting from pollution and related cleanup costs incurred, all arising out of any work to be performed under the contract, including liability for and defense of lawsuits and regulatory actions. If endorsed, the City, its officers, officials, employees and volunteers are to be covered as additional insureds with respect to liability arising out of work or operations performed by or on behalf of the contractor including materials, part or equipment furnished in connection with such work or operations. Coverage shall be provided for both work performed on site, as well as during the transport of hazardous materials. Coverage shall apply to sudden as well as gradual pollution conditions, including without limitation conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids, or gases, natural gas, waste materials, or other irritants, contaminants, or pollutants, including asbestos. The liability limits shall be not less than: 1. Combined Single Limit for each occurrence: $2,000,000. 2. If the coverage required is written on a claims-made coverage form: a. The retroactive date must be shown, and this date must be before the award date of the contract. 3. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after final payment. 4. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the contract award date, the contractor must purchase extended reporting period coverage for a minimum of five (5) years after final payment. 5. A copy of the claims reporting requirements must be submitted to the City for review H. Acceptability of Insurance. Insurance must be placed with insurers with a Bests' rating of not less than A:VI. Self-insured retentions, policy terms or other variations that do not comply with the requirements of this Section 6 must be declared to and approved by the City in writing before execution of this Contract. I. Verification of Coverage. 1. Contractor shall furnish City with certificates and required endorsements evidencing the insurance required. Certificates of insurance must be signed by an authorized representative of the insurance carrier. Copies of policies shall be 5 delivered to the City Representative on demand. 2. Contractor shall send all insurance certificates and endorsements, including policy renewals, during the term of this Contract directly to: City of Sacramento c/o Exigis LLC P.O. Box 947 Murrieta, CA 92564 3. Certificate Holder must be listed as: City of Sacramento c/o Exigis LLC P.O. Box 947 Murrieta, CA 92564 4. The City may withdraw its offer of Contract or cancel this Contract if the certificates of insurance and endorsements required have not been provided before execution of this Contract. The City may withhold payments to Contractor and/or cancel the Contract if the insurance is canceled or Contractor otherwise ceases to be insured as required herein. J. Subcontractor Insurance Coverage. Contractor shall require and verify that all subcontractors maintain insurance coverage that meets the minimum scope and limits of insurance coverage specified in this Section 6. 7. Notices: All notices, demands, or other communications to be delivered or given hereunder shall be in writing and shall be deemed to be duly given upon personal delivery or upon mailing if sent by certified or registered mail, or express service, as follows: If to Buyer: City of Sacramento Police Air Support 2409 Dean Street McClellan, CA 95652 Attn: Sergeant Nicholas Fox If to Seller: McClellan Jet Services, LLC 3028 Peacekeeper Way McClellan, CA 95652 Attn: Bill Appleton Either party may change the address where such communications are to be directed and the person to whose attention such communications are to be delivered, by giving written notice to the other party. 8. Assignment:
6 This Agreement may not be assigned by either party without the prior written consent of the parties and any such attempted assignment shall be void. 9. Entire Agreement: This Agreement represents the entire agreement between the parties, supersedes any prior oral or written understanding concerning the subject matter and may be modified only by written instrument signed by an authorized representative of the parties. 10. Dispute Resolution: In the event there are matters related to this Agreement in dispute between the parties, the parties' representatives will meet to attempt to resolve such dispute(s) in good faith prior to implementing any litigation or dispute resolution mechanism. Disputes arising hereunder which are not resolved informally between the parties' representatives may be resolved by initiating a lawsuit in state or federal court located in Sacramento County. Should the parties agree in writing, the matter may be resolved through binding arbitration under the commercial arbitration Rules of the American Arbitration Association. 11. Governing Law: This Agreement and any dispute arising hereunder shall be governed by the laws of the State of California, without regard to the rules of conflict of laws of the State of California or any other jurisdiction. 12. Licenses; Permits; Approvals; Etc.: Seller represents and warrants that Seller has all licenses, permits, qualifications, and approvals that are legally required for Seller to furnish any fuel or goods under this Agreement. Seller represents and warrants that Seller shall, at its own cost and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to furnish the fuel or goods. 13. Public Records Act Requests: As a public entity, the City of Sacramento is subject to various regulations and requirements that can make certain documents generated in the course and scope of business accessible for review and inspection the public. The parties acknowledge this Agreement can be made available to a person upon a properly made California Public Records Act Request. 14. Limitation on Liability: Buyer agrees that the obligations incurred by Seller with respect to this Agreement shall not constitute personal obligations of the members, partners, joint ventures, directors, officers, trustees, employees, policyholders or any other principals or representatives of Seller. 15. Authority of Signatories:
7 All individuals signing below on behalf of the parties warrant and represent that they have full authority to execute this Agreement on behalf of the entities for which they have signed. Furthermore, neither Seller nor Buyer's obligations shall arise under this Agreement until this Agreement is approved by the Sacramento City Manager or City Manager's authorized designee, or by the Sacramento City Council, as required by the Sacramento City Code. 16. Counterparts: The parties may execute this Agreement in counterparts which shall, in the aggregate, be signed by all the parties. 8 Executed as of the day and year first above stated. · SELLER: BUYER: McCLELLAN JET SERVICES, LLC, a California limited liability company CITY OF SACRAMENTO, a municipal corporation By: McClellan Business Park LLC, a Delaware limited liability company By: Frank Myers, COO Date: By: Name: Howard Chan Title: City Manager Date: APPROVED AS TO FORM City Attorney ATTEST: City Clerk 10/02/2024
9 EXHIBIT A SCOPE OF WORK City of Sacramento, Police Air Operations Team, has an ongoing requirement for Jet-A and AvGas 100LL aviation fuel. Approximately 42,500 gallons of fuel are necessary annually. Responsibilities Buyer will: Provide operational and clean fuel tank trucks and/or aircraft, as appropriate, for Jet-A and AvGas 100LL aviation fuel. Such fuel trucks and aircraft shall comply with all applicable laws for uplifting fuel at Seller’s facilities. Buyer acknowledges that fixed wing aircraft shall uplift its fuel at Seller’s self-serve facilities when practical. Provide adequate advance notice of fuel requirements Provide billing information necessary Pay Net 30 days Seller will: Upon request, provide copies of fuel sample Subject to availability, (i) fill all City of Sacramento provided fuel trucks at Seller's facility with Jet-A fuel and (ii) fill appropriate City of Sacramento aircraft with AvGas 100LL aviation fuel Provide access for disposal of sump fuel Provide aviation fuel that meets all applicable laws Bill monthly in arrears with terms of Net 30 Days Points of Contact Sacramento Police Air Support McClellan Jet Services 2409 Dean Street 3028 Peacekeeper Way McClellan, CA 95652 McClellan, CA 95652 Sergeant Nicholas Fox William Appleton, Executive Vice President (916) 566-4264 phone (916) 641-8970 phone [email protected] [email protected] Billing and Correspondence All invoices and correspondence are to be sent to: (1) Email. Submit email invoices and any attachments to: [email protected] (2) Postal Mail. If emailing is not an option, mail to: A/P Processing Center City of Sacramento 915 I St, Floor 4 Sacramento, CA 95814-2608 10 Fuel Rates EXHIBIT B RATE Seller will provide the Buyer into truck Jet-A, into aircraft Jet-A and into plane Avgas/100LL at the following pricing (pricing changes every Tuesday): Jet-A Into Truck- Inventory cost plus $0.60 Jet-A Into Aircraft-Inventory cost plus $1.60 AvGas/100LL Into Plane-Inventory cost plus $1.05 *Inventory Cost: Fuel prices change every Tuesday and as a result, inventory cost is based off of the cost of the fuel in our tank. Inventory cost is also based on the LA Mean PLATTS price for that week plus the cost to purchase the fuel from our supplier. It also includes the cost to truck the fuel to McClellan and any acceptable taxes or fees. Commencing on July 1, 2025, and on each annual anniversary thereafter, charges for into- truck and into-aircraft fueling services shall be increased by the amount of four percent (4.00%) of the into-truck and into-aircraft fuel rates then in effect. Billing and Correspondence All invoices and correspondence are to be sent to: (1) Email. Submit email invoices and any attachments to: [email protected] (2) Postal Mail. If emailing is not an option, mail to: A/P Processing Center City of Sacramento 915 I St, Floor 4 Sacramento, CA 95814-2608 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORETHE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED INACCORDANCE WITH THE POLICY PROVISIONS.
INSURER(S) AFFORDING COVERAGEINSURER F :INSURER E :INSURER D :INSURER C :INSURER B :INSURER A :NAIC #NAME:CONTACT(A/C, No):FAXE-MAILADDRESS:PRODUCER(A/C, No, Ext):PHONEINSUREDREVISION NUMBER:CERTIFICATE NUMBER:COVERAGESIMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement onthis certificate does not confer rights to the certificate holder in lieu of such endorsement(s).THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THISCERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIESBELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZEDREPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
OTHER:(Per accident)(Ea accident)$$N / ASUBRWVDADDLINSDTHIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIODINDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THISCERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.$$$$PROPERTY DAMAGEBODILY INJURY (Per accident)BODILY INJURY (Per person)COMBINED SINGLE LIMITAUTOS ONLYAUTOSAUTOS ONLYNON-OWNEDSCHEDULEDOWNEDANY AUTOAUTOMOBILE LIABILITYY / NWORKERS COMPENSATIONAND EMPLOYERS' LIABILITYOFFICER/MEMBER EXCLUDED?(Mandatory in NH)DESCRIPTION OF OPERATIONS belowIf yes, describe underANY PROPRIETOR/PARTNER/EXECUTIVE$$$E.L. DISEASE - POLICY LIMITE.L. DISEASE - EA EMPLOYEEE.L. EACH ACCIDENTEROTH-STATUTEPERLIMITS(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)POLICY EFFPOLICY NUMBERTYPE OF INSURANCELTRINSR DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)EXCESS LIABUMBRELLA LIAB$EACH OCCURRENCE$AGGREGATE$OCCURCLAIMS-MADEDED RETENTION $$PRODUCTS - COMP/OP AGG$GENERAL AGGREGATE$PERSONAL & ADV INJURY$MED EXP (Any one person)$EACH OCCURRENCEDAMAGE TO RENTED$PREMISES (Ea occurrence)COMMERCIAL GENERAL LIABILITYCLAIMS-MADE OCCURGEN'L AGGREGATE LIMIT APPLIES PER:POLICYPRO-JECTLOC
CERTIFICATE OF LIABILITY INSURANCEDATE (MM/DD/YYYY)
CANCELLATIONAUTHORIZED REPRESENTATIVEACORD 25 (2016/03)© 1988-2015 ACORD CORPORATION. All rights reserved.CERTIFICATE HOLDERThe ACORD name and logo are registered marks of ACORD
HIREDAUTOS ONLY
10/02/2024BUSINESS AVIATION INSURANCE SERVICES, INC.PO Box 6452Lic # 0E02007Concord CA 94524Geoffrey Bruce Logan(925) [email protected] Jet Services, LLC et al3028 Peacekeeper WayMcClellan CA 95652ACE AMER INS CO 22667TRAVELERS CAS INS CO OF AMER 19046AIG/ Natl Union Fire InsuranceChubb/ Illinois Union InsuranceAAviation LiabilityY Y AAP N10754513-006 09/15/2024 09/15/2025100,000,00050,000,000100,000,000100,000,000Hangarkeepers Liability100,000,000BY BA-0N648482-24-91-G 05/31/2024 05/31/20251,000,000C Y WC012-06-6462-04 06/01/2024 06/01/20251mm1mm1mmDPollution Legal LiabilityClaims Made retro date:10-01-2001G71746136-002 10/01/202410/015/2025Per Condition $5,000,000See Supplemental Certificate Information-page 2.County of SacramentoContract and Purchasing Services Division9660 Ecology Ln.Sacramento, CA 95827 RESOLUTION NO.
Adopted by the Sacramento City Council
[Date]
AVIATION FUEL AGREEMENT
BACKGROUND
The Sacramento Police Department’s (SPD) Air Operations Unit requires fuel to operate its aviation fleet of four helicopters and one fixed-wing airplane. Since aviation fuel is not available at any City-owned/operated fueling station, the SPD must purchase aviation fuel from third-party entities. SPD has negotiated with McClellan Jet Services to secure an approximate 21% discount on aviation fuel purchases.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. Competitive bidding is suspended for the purchase of aviation fuel.
Section 2. The City Manager, or the City Manager’s designee, is authorized to execute an Agreement with McClellan Jet Services for the purchase of aviation fuel for a term of ten years for a total not-to-exceed amount of $1,500,000 through June 30, 2034.