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HomeMy WebLinkAbout2009-01-12-Meeting Agenda Public Service Committee Meeting Committee Room- 1/12/2009- 12:30 PM PUBLIC SERVICES 1. Motion to approve, in resolution form, support of the Georgia Transit Association’s FY 2009 Legislative Agenda. Attachments 2. Motion to approve the Letter of Agreement between the airport, Augusta Air Traffic Control, and the 94 AW. Attachments 3. Motion to approve a request for the Daniel Field Manager Job Grade change. Attachments 4. New Ownership Application: A. N. 08 - 58: A request by Keith Douglas for an on premise consumption Liquor, Beer & Wine license to be used in connection with Club 3000 located at 1602 Gordon Hwy. There will be Dance. District 2. Super District 9. Attachments 5. Motion to approve an Ordinance to amend the Augusta, Ga. Code Article Three Section 3-1-1 relating to "Curfew for Minors" so as to establish provisions for business tax certificate applicants for teen social clubs to comply with the regulations set forth in the "Dance Hall" Ordinance. Attachments 6. Motion to approve an Ordinance to amend the Augusta, Ga. Code Title Six Article Three Section 6-6-43 so as to require applicants to receive Augusta-Richmond County Commission's consent to operate; to repeal all code sections and ordinances and parts of code sections and ordinances in conflict herewith; to provide an effective date and for other purposes. Attachments 7. Motion to approve an Ordinance to amend the Augusta, Georgia Code Article Two Section 2-1-38 so as to establish additional conditions for suspension of a business tax certificate; to repeal all ordinance and parts of ordinances in conflict herewith; to provide an effective date and for other purposes. Attachments 8. Motion to approve an Ordinance to amend the Augusta, Ga. Code Article Six Section 6-2-74 to establish provisions for the suspension of a license for alcoholic beverages; to repeal all ordinances and parts of ordinances in conflict herewith; to provide for an effective date and for other purposes. Attachments 9. Approve a request to approve AvFuel Corporation as the Aviation Fuel Attachments www.augustaga.gov Supplier for the airport and approval of the contract between AvFul and Augusta Regional Airport. 10. Motion to approve Bid Item 08-159A, Exterior Painting at the Old Government House to Morris Insulation for $28,300. Attachments 11. Discuss placing the Limelight Cafe on probation for violating the Sunday sales revenue percentages. (Requested by Commissioner Bowles) Attachments 12. Motion to approve the contract between Otis and Augusta Regional Airport for maintenance of the two elevators in the main terminal leading to airport administration. Attachments 13. Motion to renew the Sec. 5311 Rural Transit grant application between the Georgia Department of Transportation (GDOT) and Augusta, Georgia from July 2009 to June 2010. Attachments 14. Motion to approve an increase in transit fares, elimination of transfers and elimination of Saturday service. Attachments 15. Approve request for the approval of the contract between W. McKellar Logging and Augusta Regional Airport for the removal of trees impeding the view of the approach end of runway 26. Attachments Public Service Committee Meeting 1/12/2009 12:30 PM 2009 GTA Legislative Agenda Department:Augusta Public Transit Caption:Motion to approve, in resolution form, support of the Georgia Transit Association’s FY 2009 Legislative Agenda. Background:Annually, the GTA sponsors a legislative agenda for State and Federal issues. The FY 2009 agenda was approved by the GTA and is now being sponsored as a Resolution by local governing bodies in an attempt to get transit friendly legislation passed. Analysis:Support of the agenda will strengthen public transit and assist in bringing vital transit issues to the attention of our state legislators. Financial Impact:Support of the resolution will encourage the legislators to consider issues related to Public Transit. Alternatives:Non-approval. Recommendation:Approve the Resolution. See attached resolution. Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 1 A RESOLUTION SUPPORTING THE GEORGIA TRANSIT ASSOCIATION’S 2009 LEGISLATIVE AGENDA WHEREAS, increased pubic investment in transit services provides the potential to create jobs and enhance business prosperity; and WHEREAS, the nation, our communities and our citizens face the risk to health and the environment that are brought on by automobile exhaust emissions; and WHEREAS, transportation is vital to the quality of life and economic well-being of the citizens of Augusta, Georgia and the State of Georgia; and WHEREAS, workers, school children, senior citizens, people with disabilities, and those unable to afford an automobile use public transportation to gain access to jobs, schools, medical facilities and other fundamental services; and WHEREAS, traffic congestion which wastes productive time can be alleviated through the increased availability and use of public transportation to gain access to jobs, schools, medical facilities and other fundamental services. WHEREAS, the Georgia Transit Association (GTA) has prepared a legislative agenda that recommends the following: 1. Alternative Transportation Revenue Sources: The need for additional financial resources for transit and other modes of transportation in Georgia remains greater than ever. The Georgia Transit Association (GTA) is an active member of the Get Georgia Moving Coalition (GGM) and joins GGM in making the following policy statement: “There is a need to create a new, coherent, and consistent transportation funding policy in Georgia. The promotion of economic development, environmental sustainability, air quality and safety underpin any successful policy.” The 2008 Georgia General Assembly built upon the work of the Joint House-Senate Transportation Funding Study Committee and came very close to passage of legislation which would allow Georgians on a regional basis to impose a sales tax upon themselves for “all transportation purposes.” In the past year GTA has joined GGM and others in advocating for some and proposing analysis of others of the following ways to provide alternative and other revenue sources for all modes of transportation. Some of these include: • A new sales tax funding mechanism that would be dedicated to providing congestion relief, improving air quality and promoting environmentally responsible economic development for all regions of the state. • Optimization of current revenue sources Attachment number 1 Page 1 of 4 Item # 1 o Allocation of the fourth percent of the state sales tax user fee on motor fuel to all transportation purposes, including operating expenses for transit. o Examination of agreements governing the use of state-owned transportation facilities (e.g. existing leases) and dedication of revenue to appropriate transportation uses. • Innovative funding programs like concession/privatization of transportation facilities and public-private initiatives (PPI). GTA notes that while PPIs may be an option for some transit projects, they are but one of many approaches which could be employed in addressing overall transportation needs. In addition, some aspects of the PPI law do not allow transit as much flexibility as other transportation sectors. It is crucial that any new funding source for transportation be consistent with the following principles established by the Georgia Transit Association: • Purpose (use of proceeds) should include all modes of transportation, including transit; • Allow for funding of existing operations; • Supplement, not replace, existing funding; and • Provide flexibility for regions of the state to address their transportation needs GTA also joins GGM in advocating that new revenue sources have a multi-year funding basis, be able to be implemented in the short-term, and be based on a fair system of geographical return on investment. GTA urges the General Assembly to seek alternative sources of revenue to increase funding for all modes of transportation, including capital and operating support of public transit systems, both urban and rural. All necessary options which supplement but do not replace current funding should be considered, and current financing laws should be reviewed to remove any barriers to the facilitation of transit projects. 2. Transit Operating Assistance: Georgia is one of nine states that do not partner with local and federal governments to support the operation of public transportation systems. In addition, Georgia is the only one of the ten most populous states that does not provide such support. While Georgia’s transit buses and vans travel on a road system supported by the motor fuel tax, local transit systems do not have access to dedicated revenues. They must rely on local government operating subsidies, which typically are provided through local property taxes or general funds. Both urban and rural Georgia transit systems would benefit greatly from state-provided general operating assistance. Rural areas in particular would benefit from this assistance, as the rural governments often do not have the resources to provide the local operating match for general public trips. As a result, rural public health transit services are generally available only to human service agency clients. Urban transit systems- as is the case with rural transit- are struggling under the burden of the highest fuel prices ever experienced, and they continue to face funding challenges, including homeland security concerns. If Georgia were to provide operating assistance to local transit systems, it would join several southeastern states that provide such assistance, including Florida, North Carolina, South Carolina, Virginia, and Tennessee. GTA recommends that the General Assembly appropriate a permanent source of funds for operating assistance to Georgia’s rural and urban transit systems. 3. Tax Exemption from Motor Fuel Purchases by Transit Systems: Local governments in Georgia have few alternatives to the property tax for funding transit systems for capital or operational purposes. In passing HB 1035 in 2008 the General Assembly extended current law granting an exemption from taxes on Attachment number 1 Page 2 of 4 Item # 1 motor fuel purchases by transit systems until June 30, 2010. This exemption is likewise authorized in 22 other states, thus helping transit systems to lower their operating costs. However, it would be helpful if the MFT exemption allowed Georgia’s transit systems did not “sunset” every two years. This approach would be similar to that applied to other governmental entities in Georgia (e.g. counties, municipalities and the university system) whose sales tax exemptions do not have to be periodically extended by the General Assembly. GTA requests that the General Assembly enact legislation authorizing the long-term exemption from taxes paid on motor fuel purchases by transit systems. 4. Rural and Human Services Transportation Services Coordination and Funding: Presently, local governments and at least four state agencies have a role in health and social services transportation service delivery (including transit). These agencies – the Georgia Departments of Community Health, Human Resources, Labor, and Transportation – receive nearly $200 million per year in federal grants to transport individuals who have no other means of accessing services. Currently, coordination among these agencies is primarily on an ad hoc basis. The programs under which the state agencies operate are based largely on classifications of riders, which are established by the federal agency providing the federal funds. Depending upon the program, riders may be transported for such purposes as accessing medical appointments; going to senior centers and community mental health centers; and participating in job-training activities. This lack of coordination spurred the introduction and consideration of SB 402 in the 2008 General Assembly, and it is one of the reasons the governor has shown interest in creating a rural and human services transportation coordinating council. Despite increased demand on local government and human services transportation providers, there has not been a real increase in funding for human services transportation programs in Georgia since FY 2001. Because of heavy demand and escalating costs, including high fuel prices, consumers in these programs are being encouraged to use public transit, paying regular fares, thereby putting increased pressure on transit providers. An appropriation to address the significant increase in demand and operating costs would enable human services transportation providers to better deliver the transportation services needed by their clients. GTA applauds the governor’s interest in creation of a State Rural and Human Services Transportation Coordinating Council. If the governor declines to create a Council, GTA urges the General Assembly to again introduce and to pass legislation along the lines of that considered in 2008. No matter the genesis of such an entity, GTA recommends the Council review and make recommendations on a number of issues, including the delivery and coordination of transportation services; sharing of federal funding, vehicles and facilities; allowing human service transportation contractors to apply for state insurance; and determining the feasibility of a statewide specialized transportation assistance program to relieve the pressure on local transit systems and provide human services transportation to clients who are not eligible under existing programs. GTA also urges the General Assembly to appropriate additional funds to state agencies operating human services transportation programs to assist in coping with the increasing cost of providing human services transportation, such as the increased cost of motor fuel, vehicles, insurance, and growing trip demand. 5. State Individual Income Tax Credit: In 1999, legislation was passed to give state corporate income tax credits to companies that provide certain qualified transportation fringe benefits, including the purchase of transit fare cards, to their employees. There is no such incentive for other employees-like government workers- to increase their use of transit. HB 307, which was introduced in the 2007 General Assembly, would have allowed an individual to claim a maximum of $300 as a credit on his or her individual income tax for “qualified personal mass transportation expenses.” The Get Georgia Moving Coalition has joined GTA in supporting this concept. Attachment number 1 Page 3 of 4 Item # 1 GTA urges the reintroduction and General Assembly passage of legislation allowing a state individual income tax credit of up to $300 for persons who purchase their own transit fare cards or have other qualified personal mass transportation expenses. 6. Regional Transportation Planning and Coordination: In recent years, there has been a growing recognition of the needs of rural transit systems as well as a movement toward regionalization of transit services across the state. This is evidenced by the creation of the Transit Planning Board (TPB) in the metropolitan Atlanta area and the establishment of a regional approach to transit in some rural areas of the state by partnering with regional development centers. provide examples of how regional planning can be accomplished statewide. This regionalization of public transportation services has occurred with little to no overarching organizational framework or statewide strategy. The establishment of regional transportation planning organizations or transit districts would permit the continued beneficial trend toward regionalization in a more coordinated and organized fashion. GTA applauds the creation of the metro Atlanta Transit Planning Board and recommends that the state move toward a comprehensive, regionalized transportation planning process with the establishment of regional planning districts statewide. 7. SAFETEA-LU: Federal Appropriations for Transit: The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) was signed in 2005 and is now in effect. Its reauthorization will be considered in 2009 by Congress. A number of states, including Georgia, continue to seek federal appropriations earmarks for bus acquisition. Statewide earmarks especially benefit smaller systems that have not been able to obtain federal discretionary bus money on their own on a regular basis. In addition, several smaller urban transit systems, including some in Georgia, have transitioned into a new category serving populations of 200,000 or more and as a result, are now precluded from using federal funds for operational purposes. The reauthorization of SAFETEA-LU should address all of these issues GTA urges the Georgia Congressional Delegation to support reauthorization of SAFETEA-LU and to work for continued increases in “guaranteed funding” for transit formula programs and earmarks for Georgia transit providers in both urban and rural areas of our state. GTA also requests that the delegation support which allows smaller transit systems to use SAFETEA-LU funds for operational purposes. NOW, THEREFORE BE IT RESOLVED by the Augusta-Richmond County Commission that Augusta, Georgia, supports The 2009 Georgia Transit Association Legislative Agenda. Duly adopted this day of January, 2009. The Augusta Richmond County Commission BY: Deke Copenhaver, Mayor ATTEST: By: Clerk of Commission Attachment number 1 Page 4 of 4 Item # 1 Public Service Committee Meeting 1/12/2009 12:30 PM 94th Air Wing Letter of Agreement Department:Augusta Regional Airport Caption:Motion to approve the Letter of Agreement between the airport, Augusta Air Traffic Control, and the 94 AW. Background:Aircraft from the 94th Air Wing perform training maneuvers, such as landings and take offs, at the airport. They have requested a letter of agreement between the airport, air traffic control tower to ensure that they do not interfere with airport operations etc.and that the airport has the necessary fire fighting personnel etc.available during their maneuvers. Analysis:This agreement will define parameters, procedures, responsibilities and coordination needed between the airport, tower and the 94 Airlift Wing aircraft so they can to perform air/landing/etc. maneuvers necessary for training purposes. Financial Impact:N/A Alternatives:Deny request Recommendation:Approve request. Funds are Available in the Following Accounts: No financial impact REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 2 Public Service Committee Meeting 1/12/2009 12:30 PM Airport Manager Job Grade Department:Daniel Field Airport Caption:Motion to approve a request for the Daniel Field Manager Job Grade change. Background:The city HR Department, at the request of the General Aviation Commission, conducted a review of the Airport Manager job description and job grade. Analysis:The HR Department recommended two items be added to the Airport Manager job description, and the job grade be increased from a 43 to a 50. The General Aviation Commission, at the November 2008 meeting, voted to approve the HR recommendations. Financial Impact:None. The job grade change will not apply to the current manager. This change will take effect with the selection of the next airport manager. Alternatives:Deny request. Recommendation:Approve request. Funds are Available in the Following Accounts: N/A REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 3 Attachment number 1 Page 1 of 1 Item # 3 General Aviation Commission The regular meeting of the General Aviation Commission was held at Daniel Field on Monday, November 17, 2008 at 12:00 p.m. There were present: Bill Wood, Chairman Locke McKnight, Vice-Chairman Jojo Gardon Boykin Jones Ashbury Lawton Bill Welsh Betty Tyler Randy Sasser Humphrey Peterson Absent: Don Grantham Harold Engler Kay Roland Also Present: Willis Boshears, Airport Manager Reginald Weaver, WK Dickson Becky Shealy, GAC Secretary Steve Gay, FBO Manager Chairman Wood called the meeting to order and asked for approval or amendments to the October 13, 2008 meeting minutes. Commissioner Welsh motioned to approve the minutes of the meeting held on October 13, 2008, to be accepted as submitted. Commissioner Lawton seconded the motion. The motion was unanimously approved. Chairman Wood addressed the 2009 schedule. January 19, 2009 is Martin Luther King, Jr. Day, which is a federal holiday. Normally the GAC meets on the third Tuesday of the month in January to avoid conflict with this holiday. The third Tuesday in January 2009 is the 20th. Chairman Wood also noted that the third Monday in October is the day after the Boshears SkyFest. Chairman Wood recommended moving the October meeting to the Monday prior, which would be October 12, 2009. Attachment number 2 Page 1 of 3 Item # 3 Commissioner Lawton made a motion to change the meeting in January to Tuesday, January 20, 2009 and to change the meeting in October to Monday, October 12, 2009. Commissioner Gardon seconded the motion. The motion was unanimously approved. FBO Manager Gay gave an update on the Boshears SkyFest 2008. Gay said the cold weather on Saturday caused several people to leave early but the crowd was over 4,000 each day with 1,500-1,800 of that being kids. Gay said the Air Show Committee was very happy with the numbers despite the economic situation. The show made enough money to have a few thousand dollars to start Boshears SkyFest 2009. Gay also said that 3 scholarships were awarded at the air show: 1 full Private Pilot and 2 First Solos. Chairman Wood gave an update on the usage of the Tower Ramp. Mr. Walter Lawton of CSRA Trucking met with the Special Events Committee and agreed to pay $500 monthly for the use of the ramp effective December 1, 2008, for one year pending legal approval from the city. Commissioner Lawton made a motion to approve CSRA Trucking using the tower ramp. Commissioner Jones seconded the motion. The motion was unanimously approved. Manager Boshears told the GAC that the Family Y sent a letter of thanks for the use of the field for the outdoor picnic. Manager Boshears said that the fencing project was complete with the exception of the drive through gate. The lighting and signage will start mid-January. Commissioner Peterson told the CommisVLRQWKDWWKHUHYLHZRIWKH$LUSRUW0DQDJHU¶V job description by the City HR Department showed a need in pay increase. The current job grade is a 43 and the Personnel Committee would like to see this position at a job grade 50, which means an increase in the pay range. Peterson said that a survey of salaries of airport managers in the area was performed and the increase would be comparable. Peterson also stated that it would be desirable for the airport manager to be able to perform minor maintenance of the airport property. Additionally, the Personnel Committee sees the implementation and maintenance of airport security at the top of the priority list. Commissioner Peterson made a motion to adopt the amended job description for the Airport Manager and that it be presented to the Augusta Commission by Chairman Wood. Vice-Chairman McKnight seconded the motion. The motion carried. Chairman Wood thanked Commissioner Peterson and the Personnel Committee for such a good job. Attachment number 2 Page 2 of 3 Item # 3 Manager Boshears gave an update on SPLOST VI. Fred Russell is presenting to the Augusta Commission for SPLOST VI and Daniel Field renovations are requested in SPLOST VI. 2.1 million is needed for the terminal upgrade. Boshears said that in the past, applications for SPLOST funding for Daniel Field have been made but never received. Vice-Chairman McKnight made a motion to submit an application for SPLOST VI funding for Daniel Field. Commissioner Welsh seconded the motion. The motion was unanimously approved. Chairman Wood thanked everyone for their support of Daniel Field. There being no further business, Commissioner Tyler made a motion to adjourn the meeting. Commissioner Welsh seconded the motion. The meeting was adjourned. Attachment number 2 Page 3 of 3 Item # 3 Public Service Committee Meeting 1/12/2009 12:30 PM Alcohol Application Department:License & Inspections Caption:New Ownership Application: A. N. 08 - 58: A request by Keith Douglas for an on premise consumption Liquor, Beer & Wine license to be used in connection with Club 3000 located at 1602 Gordon Hwy. There will be Dance. District 2. Super District 9. Background:This is a new ownership application. Formerly in the name of Rajiv Bhardhwaj. Analysis:The applicant meets the requirements of the Augusta Richmond County Alcohol Ordinance. Financial Impact:The applicant will pay a fee of $4345.00 Alternatives: Recommendation:License & Inspections recommends approval. The RCSD recommends approval. Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Law. Administrator. Clerk of Commission Cover Memo Item # 4 Attachment number 1 Page 1 of 2 Item # 4 Attachment number 1 Page 2 of 2 Item # 4 Public Service Committee Meeting 1/12/2009 12:30 PM AN ORDINANCE TO AMEND THE AUGUSTA, GA. CODE RELATING TO CURFEW FOR MINORS SO AS TO ESTABLISH PROVISIONS FOR APPLICANTS TO ACQUIRE AUGUSTA- RICHMOND COUNTY COMMISSION'S CONSENT PRIOR TO AN ISSUANCE OF A BUSINESS TAX CERTIFICATE Department:Commissioner Jerry Brigham, Commissioner Joe Bowles and Commissioner Don Grantham Caption:Motion to approve an Ordinance to amend the Augusta, Ga. Code Article Three Section 3-1-1 relating to "Curfew for Minors" so as to establish provisions for business tax certificate applicants for teen social clubs to comply with the regulations set forth in the "Dance Hall" Ordinance. Background:“Entertainment and Social Activities” by definition within the “Curfew for Minors” ordinance meets the standard of a dance hall as set forth in the Augusta-Richmond County “Dance Hall Ordinance.” The Honorable Jerry Brigham, Don Grantham, and Joe Bowles, Commissioners, recommend that applicants for teen social clubs and/or teen dance clubs in Augusta- Richmond County comply with the Augusta, Ga. Code §6-6-43 by requiring the consent of Augusta-Richmond County Commission prior to a business tax certificate being issued. Analysis:This Ordinance would amend the AUGUSTA, GA. CODE Article 3 as set forth in Ordinance No. 7042, enacted April 15, 2008, is hereby amended by adding subsection 3-1-9 as set forth in “Exhibit A” hereto. Financial Impact:No immediate financial impact is anticipated. Alternatives:Alternatives include not amending the Code or approving only some of the modifications suggested by the proposed ordinance. Recommendation:Approve this ordinance. Funds are Available in the Following Accounts: Not applicable. REVIEWED AND APPROVED BY: Finance. Law. Administrator. Cover Memo Item # 5 Clerk of Commission Cover Memo Item # 5 AN ORDINANCE BY THE HONORABLE JERRY BRIGHAM, DON GRANTHAM AND JOE BOWLES, COMMISSIONERS; AUGUSTA-RICHMOND COUNTY, GEORGIA ORDINANCE NO. ___________ AN ORDINANCE TO AMEND THE AUGUSTA, GA. CODE, TITLE THREE, CHAPTER ONE “CURFEW FOR MINORS” SO AS TO ESTABLISH PROVISONS REQUIRING APPLICANTS FOR TEEN SOCIAL CLUB BUSINESS TAX CERTIFICATES TO COMPLY WITH THE AUGUSTA- RICHMOND COUNTY, GEORGIA “DANCE HALL” ORDINANCE CODIFIED IN AUGUSTA, GA. CODE §6-6-43; TO CREATE A NEW CODE SECTION KNOWN AS “SECTION 3-1-9”; TO REPEAL ALL ORDINANCES AND PARTS OF ORDINANCES IN CONFLICT HEREWITH; TO PROVIDE AN EFFECTIVE DATE AND FOR OTHER PURPOSES. WHEREAS, Augusta-Richmond County, Georgia is a home rule governing authority pursuant to the Georgia Constitution, Art. 9 §2, ¶1 which exercises the authority “to adopt clearly reasonable ordinances… relating to its property, affairs, and local government…” WHEREAS, The Augusta-Richmond County Commission has the authority under general law to regulate business tax certificates and to provide for the punishment of violations of the same pursuant to O.C.G.A. §48-13-6; WHEREAS, Augusta-Richmond County Commission deems it necessary to regulate business tax certificates issued to dance halls in order promote the health, moral interests, and public safety of its community and citizens; WHEREAS, the “Entertainment and Social Activities” definition within the AUGUSTA, GA. CODE §3-1-1 et al., “Curfew for Minors” Ordinance, meets the standards of a dance hall as set forth in AUGUSTA, GA. CODE §6-6-43 also known as the “Dance Hall” Ordinance; WHEREAS, based upon the increase of reports of fighting and other illicit crimes at dance halls within Augusta-Richmond County, Georgia from the Augusta-Richmond County Licensing and Inspection and Richmond County Sheriff’s Departments, the Augusta-Richmond County Commission finds that teen social clubs are a public nuisance; WHEREAS, The Augusta-Richmond County Commission finds that such nuisances and other illicit behavior negatively affects the public health, safety, morals and general Attachment number 1 Page 1 of 4 Item # 5 welfare of Augusta-Richmond County, Georgia and negatively impacts its youth and surrounding businesses; WHEREAS, based on the foregoing, the Augusta-Richmond County Commission recommends that business tax certificate applicants for teen social clubs obtain the approval of Augusta-Richmond County Commission prior to a business tax certificate being issued. THE AUGUSTA-RICHMOND COUNTY COMMISSION ordains as follows: SECTION 1. AUGUSTA, GA. CODE Title 3 Sections 3-1-1 through 3-1-8, as set forth in Ordinance No. 5719 enacted October 4, 1993 and Ordinance No. 7042 enacted April 15, 2008, are hereby amended by adding Section 3-1-9 as set forth in “Exhibit A” hereto. SECTION 2. This ordinance shall become effective upon its adoption in accordance with applicable laws. SECTION 3. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Adopted this ___ day of ___________, 2009. ___________________________ David S. Copenhaver As its Mayor Attest: ______________________________ Lena J. Bonner, Clerk of Commission Seal: Attachment number 1 Page 2 of 4 Item # 5 CERTIFICATION The undersigned Clerk of Commission, Lena J. Bonner, hereby certifies that the foregoing Ordinance was duly adopted by the Augusta-Richmond County Commission on_________________, 2009 and that such Ordinance has not been modified or rescinded as of the date hereof and the undersigned further certifies that attached hereto is a true copy of the Ordinance which was approved and adopted in the foregoing meeting(s). ______________________________ Lena J. Bonner, Clerk of Commission Published in the Augusta Chronicle. Date: ______________________ Attachment number 1 Page 3 of 4 Item # 5 Exhibit A Add Section 3-1-9. Commission approval. The License and Inspection Department Director, or his/her designee will present the teen social club applicants to Public Services Committee. The Committee shall have the right to determine whether the applicant(s) or location for the proposed teen social clubl is proper and appropriate and will make a recommendation to the full Board of Commissioners for a vote. No person shall operate a dance hall within the limits of Augusta-Richmond County without first receiving a favorable majority vote from the Board of Commissioners. Attachment number 1 Page 4 of 4 Item # 5 Public Service Committee Meeting 1/12/2009 12:30 PM AN ORDINANCE TO AMEND THE AUGUSTA, GA. CODE RELATING TO THE DANCE HALL ORDINANCE SO AS TO REQUIRE THE AUGUSTA-RICHMOND COUNTY COMMISSION'S CONSENT TO OPERATE WITHIN AUGUSTA-RICHMOND COUNTY LIMITS Department:Commissioner Jerry Brigham, Commissioner Joe Bowles and Commissioner Don Grantham Caption:Motion to approve an Ordinance to amend the Augusta, Ga. Code Title Six Article Three Section 6-6-43 so as to require applicants to receive Augusta- Richmond County Commission's consent to operate; to repeal all code sections and ordinances and parts of code sections and ordinances in conflict herewith; to provide an effective date and for other purposes. Background:Augusta-Richmond County deems it necessary to regulate business tax certificates issued to dance halls and to promote the health, moral interests, and public safety of its community and citizens. The Honorable Jerry Brigham, Don Grantham, and Joe Bowles, Commissioners, recommend that applicants for business tax certificates for dance halls be required to obtain the approval and consent of the Augusta-Richmond County Commission prior to a business tax certificate being issued. Analysis:This Ordinance would amend AUGUSTA, GA. CODE §6-6-43 by repealing it in its entirety, and inserting in lieu thereof subsections (a) through (h) restated as set forth in “Exhibit A” hereto. This ordinance more clearly sets forth procedures for the approval of a dance hall business tax certificate. Financial Impact:No immeidate financial impact is anticipated. Alternatives:Alternatives include not modifiying the Code at this time, or approving only a portion of the modifications at this time. Recommendation:Approve the modifications to the proposed ordinance. Funds are Available in the Following Accounts: Not applicable. REVIEWED AND APPROVED BY: Finance. Law. Cover Memo Item # 6 Administrator. Clerk of Commission Cover Memo Item # 6 AN ORDINANCE BY THE HONORABLE JERRY BRIGHAM, DON GRANTHAM AND JOE BOWLES, COMMISSIONERS; AUGUSTA-RICHMOND COUNTY, GEORGIA ORDINANCE NO. ___________ AN ORDINANCE TO AMEND THE AUGUSTA, GA. CODE, TITLE SIX, ARTICLE THREE RELATING TO THE “DANCE HALL” ORDINANCE; TO REQUIRE APPLICANTS TO RECEIVE THE CONSENT OF THE AUGUSTA-RICHMOND COUNTY COMMISSION TO OPERATE WITHIN AUGUSTA-RICHMOND COUNTY; TO REPEAL ALL ORDINANCES AND PARTS OF ORDINANCES IN CONFLICT HEREWITH; TO PROVIDE AN EFFECTIVE DATE AND FOR OTHER PURPOSES. WHEREAS, Augusta-Richmond County, Georgia is a home rule governing authority pursuant to the Georgia Constitution, Art. 9 §2, ¶1 which exercises the authority “to adopt clearly reasonable ordinances… relating to its property, affairs, and local government…” WHEREAS, The Augusta-Richmond County Commission has the authority under general law to regulate business tax certificates and to provide for the punishment of violations of the same pursuant to O.C.G.A. §48-13-6; WHEREAS, based upon the increase of reports of illicit crimes at dance halls within Augusta- Richmond County, Georgia from the Augusta-Richmond County Licensing and Inspection and Richmond County Sheriff’s Departments, the Augusta-Richmond County Commission finds that dance halls could create environments which are public nuisances; WHEREAS, The Augusta-Richmond County Commission finds that such nuisances and other illicit behavior negatively affects the public health, safety, morals and general welfare of Augusta-Richmond County, Georgia and negatively impacts its neighborhoods and businesses; WHEREAS, Augusta-Richmond County Commission deems it necessary to regulate business tax certificates issued to dance halls and to promote the public health, moral interests, and public safety of its community and citizens; WHEREAS, based on the foregoing, applicants for business tax certificates for dance halls must acquire the approval of Augusta-Richmond County Commission prior to a business tax certificate being issued. THE AUGUSTA-RICHMOND COUNTY COMMISSION ORDAINS as follows: Attachment number 1 Page 1 of 6 Item # 6 SECTION 1. AUGUSTA, GA. CODE Title Six, Article 3, Section 6-6-43 as set forth in Ordinance No. 5906, enacted March 18, 1997, is hereby amended by repealing it in its entirety, and inserting in lieu thereof subsections (a) through (h) as set forth in “Exhibit A” hereto. SECTION 2. This ordinance shall become effective upon its adoption in accordance with applicable laws. SECTION 3. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Adopted this ___ day of ___________, 2009. ___________________________ David S. Copenhaver As its Mayor Attest: ______________________________ Lena J. Bonner, Clerk of Commission Seal: Attachment number 1 Page 2 of 6 Item # 6 CERTIFICATION The undersigned Clerk of Commission, Lena J. Bonner, hereby certifies that the foregoing Ordinance was duly adopted by the Augusta-Richmond County Commission on_________________, 2009 and that such Ordinance has not been modified or rescinded as of the date hereof and the undersigned further certifies that attached hereto is a true copy of the Ordinance which was approved and adopted in the foregoing meeting(s). ______________________________ Lena J. Bonner, Clerk of Commission Published in the Augusta Chronicle. Date: ______________________ Attachment number 1 Page 3 of 6 Item # 6 Repealed. Sec. 6-6-43. Dance halls. (a) Defined. Dance hall means a location where music, whether live or recorded, is played or otherwise provided for the purpose of dancing by the patrons of the location, or where such dancing is allowed or permitted. (b) Business tax certificate required. Any person, firm or corporation who does business in Augusta-Richmond County as a dance hall shall, before engaging in such business, obtain a business tax certificate in accordance with the Augusta-Richmond County Code. (c) Regulatory fee. Any person, firm or corporation who does business in Augusta-Richmond County as a dance hall shall, before engaging in such business, pay such regulatory fee as is provided in section 2-1-3(c) of the Augusta-Richmond County Code. (d) Right of suspension by License & Inspection Department. The License & Inspection Department shall have the right to suspend any business tax certificate issued under this chapter whenever a person, firm or corporation doing business shall deviate from the normal operation for which the business tax certificate was obtained or fails in performance to meet the required regulations and code as set forth by the License & Inspection Department, sheriff's department or health department; or violates any law or ordinance of the United States, or the state or Augusta- Richmond County, in pursuance of such business conducted under such business tax certificate; or when it shall be proven before the License & Inspection Department that there is a violation of a nuisance law; or when the health, morals, interests and convenience of the public demand the suspension of such business tax certificate. The License & Inspection Department shall report the suspension of such business tax certificate to the next regular or called meeting of the Commission; then the business tax certificate shall be suspended, placed on probation, permanently revoked, or otherwise it shall be restored and remain in full force. (e) Penalty for violation of article. All persons, firms or corporations failing to comply with the mandatory provisions of this article or doing any act prohibited in this article shall be guilty of an offense, and, upon trial as a misdemeanor and conviction, shall be punished by a fine in an amount not to exceed one thousand dollars ($1,000.00) and/or imprisonment in the Augusta- Richmond County jail for a period not in excess of sixty (60) days. Sec. 6-6-43. Dance halls. (a) Defined. Dance hall means a location where music, whether live or recorded, is played and/or otherwise provided for the purpose of dancing by the patrons of the location, or where such dancing is allowed or permitted. Attachment number 1 Page 4 of 6 Item # 6 (b) Application. A written application to the Augusta-Richmond County Commission for a license under this Ordinance shall be made on forms approved by the Augusta-Richmond County Commission. All questions and information required by the application form should be filled in and subscribed to by all applicants, under oath, and shall disclose among other information whether the applicant has been convicted of any crime, misdemeanor or a violation of any municipal ordinance (except minor traffic violations) in any state, county, municipal or federal court, and the particulars of same; the prior business of applicant for the past ten (10) years; names and addresses of three (3) persons who have known applicant for the past five (5) years; whether the interest of applicant is total, partial, or exact extent of same, and, if partial, the names and addresses of all others having a partial interest in said business and the extent of such interest; and such other and further information as the Commission shall deem necessary. (c) Inspection of application by license inspector; investigation by sheriff; provision of information to license & inspection department upon request. An application under this Ordinance shall be sworn to and directed to the Director of License & Inspection for Augusta- Richmond County, who shall inspect the application and refer same to the Augusta-Richmond County Sheriff, who shall investigate the character and reputation of the applicant, owners, partners, officers of the corporation, shareholders, managers, employees, and others associated with the application, and the suitability of the location for the dance hall. (1) All applicants shall furnish all data, information and records requested of them by the License & Inspection Department and/or the Augusta-Richmond County Sheriff's Department, and failure to furnish such data, information and records within thirty (30) days from the date of the request shall automatically serve to dismiss, with prejudice, the application. Applicants, by filing an application, agree to produce for oral interrogation any person or persons involved in any transaction pertinent to the application or any evidence relevant to the application as may be requested by the Augusta-Richmond County License & Inspection Department or the Augusta-Richmond County Sheriff's Department. Failure to produce such evidence, person or persons within thirty (30) days after being requested to do so shall result in the automatic dismissal of the application. (d) Commission Approval. The License and Inspection Department Director, or his/her designee will present the dance hall applicants to Public Services Committee. The Committee shall have the right to determine whether the applicant or location for the proposed dance hall is proper and appropriate and will make a recommendation to the full Board of Commissioners for a vote. No person shall operate a dance hall within the limits of Augusta-Richmond County without first receiving a favorable majority vote from the Board of Commissioners. (e) Business tax certificate required. Any person, firm or corporation who does business in Augusta-Richmond County as a dance hall shall, before engaging in such business, obtain a business tax certificate in accordance with the Augusta-Richmond County Code. (f) Regulatory fee. Any person, firm or corporation who does business in Augusta-Richmond County as a dance hall shall, before engaging in such business, pay such regulatory fee as is provided in section 2-1-3(c) of the Augusta-Richmond County Code. Attachment number 1 Page 5 of 6 Item # 6 (g) Right of suspension by License & Inspection Department. The License & Inspection Department shall have the right to suspend any business tax certificate issued under this chapter whenever a person, firm or corporation doing business shall deviate from the normal operation for which the business tax certificate was obtained or fails in performance to meet the required regulations and code as set forth by the License & Inspection Department, Augusta-Richmond County Sheriff's Department or Augusta-Richmond County Health Department; or violates any law or ordinance of the United States, or the state or Augusta-Richmond County, in pursuance of such business conducted under such business tax certificate; or when it shall be proven before the License & Inspection Department that there is a violation of a nuisance law; or when the health, morals, interests and convenience of the public demand the suspension of such business tax certificate. The License & Inspection Department shall report the suspension of such business tax certificate to the next regular or called meeting of the Commission. The Commission in shall determine whether the certificate-holder will be suspended, placed on probation, permanently revoked, or otherwise it shall be restored and remain in full force. (h) Penalty for violation of article. All persons, firms or corporations failing to comply with the mandatory provisions of this article or doing any act prohibited in this article shall be guilty of an offense, and, upon trial as a misdemeanor and conviction, shall be punished by a fine in an amount not to exceed one thousand dollars ($1,000.00) and/or imprisonment in the Augusta- Richmond County jail for a period not in excess of sixty (60) days. Attachment number 1 Page 6 of 6 Item # 6 Public Service Committee Meeting 1/12/2009 12:30 PM AN ORDINANCE TO AMEND THE AUGUSTA, GA. CODE TO ESTABLISH ADDITIONAL CONDITIONS FOR SUSPENSION OF A BUSINESS TAX CERTIFICATE Department:Commissioner Jerry Brigham, Commissioner Joe Bowles and Commissioner Don Grantham Caption:Motion to approve an Ordinance to amend the Augusta, Georgia Code Article Two Section 2-1-38 so as to establish additional conditions for suspension of a business tax certificate; to repeal all ordinance and parts of ordinances in conflict herewith; to provide an effective date and for other purposes. Background:The Licensing and Inspection Department finds that some businesses fail to comply with the requirements set forth in the Augusta, Ga. Code. This behavior can negatively affect the health, safety, and general welfare of Augusta-Richmond County citizens in the area, and negatively affect surrounding businesses. Augusta-Richmond County desires to protect its citizens and to promote successful business practices for Augusta-Richmond County business tax certificate holders. The Honorable Jerry Brigham, Don Grantham, and Joe Bowles, Commissioners, recommend establishing provisions for probation and suspension of a business tax certificate. Analysis:This Ordinance would amend AUGUSTA, GA. CODE §2-1-38 by repealing it in its entirety, and inserting in lieu thereof subsections (a) through (g) restated as set forth in “Exhibit A” hereto. This ordinance more clearly sets forth procedures for suspension of a tax certificate. Financial Impact:No immdiate financial impact is anticipated. Alternatives:An alternative is to not amend the Ordinance at this time or implementing only some of the modifications suggested by the proposed ordinance. Recommendation:Approve the proposed ordinance. Funds are Available in the Following Accounts: Not applicable REVIEWED AND APPROVED BY: Finance. Cover Memo Item # 7 Law. Administrator. Clerk of Commission Cover Memo Item # 7 AN ORDINANCE BY THE HONORABLE JERRY BRIGHAM, DON GRANTHAM AND JOE BOWLES, COMMISSIONERS; AUGUSTA-RICHMOND COUNTY, GEORGIA ORDINANCE NO. ___________ AN ORDINANCE TO AMEND THE AUGUSTA, GA. CODE, TITLE TWO, ARTICLE TWO, SECTION THIRTY-EIGHT, ENTITLED THE “RIGHT TO DENY, SUSPEND OR REVOKE A BUSINESS TAX CERTIFICATE”; SO AS TO ESTABLISH ADDITIONAL CONDITIONS FOR THE SUSPENSION OF A BUSINESS TAX CERTIFICATE; TO REPEAL ALL ORDINANCES AND PARTS OF ORDINANCES IN CONFLICT HEREWITH; TO PROVIDE AN EFFECTIVE DATE AND FOR OTHER PURPOSES. WHEREAS, Augusta-Richmond County, Georgia is a home rule municipality pursuant to the Georgia Constitution, Art. 9 §2, ¶1 which exercises the authority “to adopt clearly reasonable ordinances… relating to its property, affairs, and local government…” WHEREAS, The Augusta-Richmond County Commission has the authority under general law to levy an occupational tax on businesses, to issue business tax certificates, to classify businesses and practitioners of professions and occupations, to assess different taxes on different classes of businesses and practitioners, and to provide for the punishment of violations the same pursuant to O.C.G.A. §48-13-6; WHEREAS, based upon reports and investigations by the Licensing and Inspection Department, the Augusta-Richmond County Commission finds that businesses that fail to comply with the business tax certificate requirements set forth in the AUGUSTA, GA. CODE create public nuisances and illicit crimes; WHEREAS, The Augusta-Richmond County Commission finds that such nuisances and other illicit behavior negatively affects the public health, safety, morals and general welfare of Augusta-Richmond County, Georgia and negatively impact businesses that are compliant with the AUGUSTA, GA. CODE; WHEREAS, The Augusta-Richmond County Commission desires to protect its citizenry and regulate taxes imposed on Augusta-Richmond County business tax certificate holders; WHEREAS, based on the foregoing, Augusta-Richmond County establishes provisions for probation and suspension of a business tax certificate. THE AUGUSTA-RICHMOND COUNTY COMMISSION ORDAINS as follows: Attachment number 1 Page 1 of 7 Item # 7 2 SECTION 1. AUGUSTA, GA. CODE Section 2-1-38, enacted September 2, 1997 and readopted on July 10, 2007, is hereby amended by repealing it in its entirety, and inserting in lieu thereof subsections (a) through (g) restated as set forth in “Exhibit A” hereto. SECTION 2. This ordinance shall become effective upon its adoption in accordance with applicable laws. SECTION 3. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Adopted this ___ day of ___________, 2009. ___________________________ David S. Copenhaver As its Mayor Attest: ______________________________ Lena J. Bonner, Clerk of Commission Seal: Attachment number 1 Page 2 of 7 Item # 7 3 CERTIFICATION The undersigned Clerk of Commission, Lena J. Bonner, hereby certifies that the foregoing Ordinance was duly adopted by the Augusta-Richmond County Commission on_________________, 2009 and that such Ordinance has not been modified or rescinded as of the date hereof and the undersigned further certifies that attached hereto is a true copy of the Ordinance which was approved and adopted in the foregoing meeting(s). ______________________________ Lena J. Bonner, Clerk of Commission Published in the Augusta Chronicle. Date: ______________________ Attachment number 1 Page 3 of 7 Item # 7 4 Repealed. Sec. 2-1-38. Right to deny, suspend, or revoke a business tax certificate. (a) A Business Tax Certificate under this Chapter may be denied, suspended, or revoked if one (1) or more of the following exists: (1) The applicant or holder of the certificate has failed to obtain any paper or documents necessary in pursuance of its business as may be required by any office, agency or department of the county, state, or the United States under authority of any law, ordinance or resolution of the county, state or United States. (2) The applicant or holder of the certificate has supplied false information to the supervisor of the business license office. (3) The applicant or holder of the certificate intends to violate or has violated any federal or state law, or local ordinance or any ordinance or resolution regulating such business or intends to violate any regulation made pursuant to authority granted for the purpose of regulating such business. (4) The applicant or holder of the certificate has failed to pay any fee required under this chapter, has failed to make a return or pay a tax due to the tax commissioner, or has otherwise failed to comply with the provisions of this chapter. (5) The applicant or holder of the certificate during the twelve (12) months next preceding has engaged in misrepresentation of facts, whether through advertisement or through any form of direct communication, oral or written, which is intended to mislead the public or any party with whom the holder of the certificate deals in pursuance of the registered business. The term misrepresentation of fact as used herein shall embrace not only express misrepresentations, but also misrepresentations arising by virtue of the conduct of the holder of this certificate, including acts of omissions. By way of illustration only, and without limiting the scope of this subsection, due cause as herein defined shall consist of any act or practice designated as unlawful in sections 393(b)(1) through (b)(29) of the Fair Business Practices Act found in O.C.G.A. § 10-1-390 et seq. (b) Anything to the contrary notwithstanding, if a health certificate is required for the operation of the business, a conditional Business Tax Certificate may be issued for a period of sixty (60)days, so as to allow compliance with the rules and regulations of the county health department; however, the applicant may not commence operations of any food service establishment, as that term is defined by O.C.G.A. § 26-2-370, unless and until it receives a health permit from the county health department pursuant to O.C.G.A. § 26-2-371.Upon issuance of a valid health permit by the county health department, the conditional Business Tax Certificate shall automatically, by virtue of this subsection, be converted into an annual Business Tax Certificate under the terms of this chapter, effective as of the date of its issuance. Attachment number 1 Page 4 of 7 Item # 7 5 (c) The Commission shall provide notice and hearing before suspending or revoking any Business Tax Certificate. (d) Where a Business Tax Certificate is revoked for cause by the Commission, no certificate shall be thereafter issued to such holder for a period of twelve (12) months from the date of said revocation to engage in the type of business for which said certificate was issued and revoked and shall not be issued to any person, firm or corporation or other entity which has an agent, employee, officer or stockholder of the firm whose certificate was revoked for cause employed in a position of management or control of operations of an integral part of its enterprise, or who aided and abetted in the violation of the law or otherpractices resulting in said revocation for cause of a Business Tax Certificate. The period of twelve(12) months shall run from the date of the revocation of the certificate of the firm or entity with whom such agent, employee, officer or stockholder was associated. A stockholder shall be defined to be owning or having the control of at least twenty (20) percent of the issued stock in the corporation whose certificate was revoked for cause. (e) A Business Tax Certificate or an application for a Business Tax Certificate under this chapter may be denied, suspended or revoked only for due cause as defined in subsections (a)and (f) hereof. A Business Tax Certificate may be denied, suspended or revoked only after a hearing before the Commission upon prior written notice to the applicant or holder of the certificate of the time, place and purpose of such hearing and a statement of the reason why the application would be denied, suspended or revoked. Three (3) days notice shall be deemed reasonable, but shorter or longer periods of notice shall be authorized as the Augusta-Richmond County Commission may deem the circumstances justify. Unless the circumstances otherwise justify, the hearing shall be held no later than thirty (30) days after the application is filed with the supervisor of the business license office, or notice given of suspension or revocation hearing. (f) Due cause for denial, suspension or revocation of a Business Tax Certificate shall consist of the violation by the holder of same of any laws or ordinances of the county, including the provisions herein, or violation of any state or federal law, other than traffic laws. Sec. 2-1-38. Probation, suspension, revocation or denial of a business tax certificate. (a) Any business having a business tax certificate issued under this Ordinance may be placed on probation, and the business tax certificate may be suspended, revoked and/or denied by the Augusta-Richmond County Commission after a finding of due cause. Due cause for the probation of a business, or the suspension, revocation or denial of a business tax certificate shall include but shall not be limited to, the following: (1) The applicant or holder of the certificate has failed to obtain any paper or documents necessary in pursuance of its business as may be required by any office, agency or department of Augusta-Richmond County, State of Georgia, or the United States under authority of any law, ordinance or resolution of Augusta-Richmond County, State of Georgia or United States. Attachment number 1 Page 5 of 7 Item # 7 6 (2) The applicant or holder of the certificate has supplied false information to any employee of the business license office. (3) The applicant or holder of the certificate intends to violate or has violated any federal or state law, or local ordinance or any ordinance or resolution regulating such business or intends to violate any regulation made pursuant to authority granted for the purpose of regulating such business. (4) The applicant or holder of the certificate has failed to pay any fee required under this chapter, has failed to make a return or pay a tax due to the tax commissioner, the State of Georgia, the Federal Government or has otherwise failed to comply with the provisions of this chapter. (5) The applicant or holder of the certificate during the twelve (12) preceding months has engaged in misrepresentation of facts, whether through advertisement or through any form of direct communication, oral or written, which is intended to mislead the public or any party with whom the holder of the certificate deals in pursuance of the registered business. The term misrepresentation of fact as used herein shall embrace not only express misrepresentations, but also misrepresentations arising by virtue of the conduct of the holder of this certificate, including acts of omissions. By way of illustration only, and without limiting the scope of this subsection, due cause as herein defined shall consist of any act or practice designated as unlawful in sections 393(b)(1) through (b)(29) of the Fair Business Practices Act found in O.C.G.A. §10-1-390 et seq. (6) The applicant or holder of the certificate fails to adequately supervise and monitor the conduct of the employees, patrons and others on the subject premises, or on any property owned or leased by the applicant or holder, including but not limited to parking lots and parking areas, or on any parking lots or areas which may be lawfully used by patrons of the establishment of the applicant or holder, in order to protect the safety and well-being of the general public and of those using the premises. (7) When it shall be proven before the License & Inspection Department that there is a violation of a nuisance laws pursuant to O.C.G.A §§41-2-7 through 41-2-17 and AUGUSTA, GA. CODE §7- 2-1 et seq.; or license-holders have been charged or convicted of a crime or of moral turpitude; or when the health, morals, interests and convenience of the public demand the suspension of such business tax certificate. (b) Anything to the contrary notwithstanding, if a health certificate is required for the operation of the business, a conditional Business Tax Certificate may be issued for a period of sixty (60) days, so as to allow compliance with the rules and regulations of the Augusta-Richmond County Health Department; however, the applicant may not commence operations of any food service establishment, as that term is defined by O.C.G.A. §26-2-370, unless and until it receives a health permit from the county health department pursuant to O.C.G.A. §26-2-371. Upon issuance of a valid health permit by the Augusta-Richmond County Health Department, the conditional Business Tax Certificate shall automatically, by virtue of this subsection, be converted into an annual Business Tax Certificate under the terms of this chapter, effective as of the date of its issuance. Attachment number 1 Page 6 of 7 Item # 7 7 (c) The Commission shall provide notice and hearing before the probation, suspension or revocation any Business Tax Certificate. (d) Where a Business Tax Certificate is revoked for cause by the Commission, no certificate shall be thereafter issued to such holder for a period of twelve (12) months from the date of said revocation to engage in the type of business for which said certificate was issued and revoked and shall not be issued to any person, firm or corporation or other entity which has an agent, employee, officer or stockholder of the firm whose certificate was revoked for cause employed in a position of management or control of operations of an integral part of its enterprise, or who aided and abetted in the violation of the law or other practices resulting in said revocation for cause of a Business Tax Certificate. The period of twelve (12) months shall run from the date of the revocation of the certificate of the firm or entity with whom such agent, employee, officer or stockholder was associated. A stockholder shall be defined to own or having the control of at least twenty (20) percent of the issued stock in the corporation whose certificate was revoked for cause. (e) A Business Tax Certificate or an application for a Business Tax Certificate under this chapter may be denied, suspended, revoked or placed on probation only for due cause as defined in subsections (a) and (f) hereof. A Business Tax Certificate may be denied, suspended or revoked only after a hearing before the Commission upon prior written notice to the applicant or holder of the certificate of the time, place and purpose of such hearing and a statement of the reason why the application would be denied, suspended revoked or placed on probation. Three (3) days notice shall be deemed reasonable, but shorter or longer periods of notice shall be authorized as the Augusta-Richmond County Commission may deem the circumstances justify. Unless the circumstances otherwise justify, the hearing shall be held no later than thirty (30) days after the application is filed with any supervisor of the business license office, or notice given of probation, suspension or revocation hearing. (f) Due cause for denial, suspension, probation or revocation of a Business Tax Certificate shall consist of the violation by the holder of same of any laws or ordinances of Augusta-Richmond County, including the provisions herein, or violation of any state or federal law, other than traffic laws. (g) A Business Tax Certificate issued under this Ordinance may be suspended by the Augusta- Richmond County Commission if the certificate-holder has been placed on any term of probation, under Title Two, twice within a twelve (12) month period. Attachment number 1 Page 7 of 7 Item # 7 Public Service Committee Meeting 1/12/2009 12:30 PM AN ORDINANCE TO AMEND THE AUGUSTA, GA. CODE TO ESTABLISH THE SUSPENSION OF A LICENSE FOR ALCOHOLIC BEVERAGES Department:Commissioner Jerry Brigham, Commissioner Joe Bowles and Commissioner Don Grantham Caption:Motion to approve an Ordinance to amend the Augusta, Ga. Code Article Six Section 6-2-74 to establish provisions for the suspension of a license for alcoholic beverages; to repeal all ordinances and parts of ordinances in conflict herewith; to provide for an effective date and for other purposes. Background:Augusta-Richmond County desires to protect its citizens and to promote successful business practices for alcoholic beverage licensees and desires to maintain community safety and the quality of life for its citizens. The Honorable Jerry Brigham, Don Grantham, and Joe Bowles, Commissioners, recommend that provisions for the suspension of alcoholic beverage license be an option for the Augusta-Richmond County Commission when an alcoholic beverage license-holder has been placed on probation twice within a twelve (12) month period. Analysis:This Ordinance would amend the AUGUSTA, GA. CODE §6-2-74, by repealing it in its entirety, and inserting in lieu thereof subsections (a) through (f) restated as set forth in “Exhibit A” hereto. This proposed ordinance establishes provisions for the suspension of an alcoholic license where a license-holder has been placed on probation twice by the Augusta- Richmond County Commission. Financial Impact:No immediate financial impact is expected. Alternatives:Alternatives include not approving the proposed amendments or approving only a portion of the proposed amendments to the Ordinance. Recommendation:Approve the proprosed ordinance. Funds are Available in the Following Accounts: Not applicable. REVIEWED AND APPROVED BY: Finance. Cover Memo Item # 8 Law. Administrator. Clerk of Commission Cover Memo Item # 8 AN ORDINANCE BY THE HONORABLE JERRY BRIGHAM, DON GRANTHAM AND JOE BOWLES, COMMISSIONERS; AUGUSTA-RICHMOND COUNTY, GEORGIA ORDINANCE NO. ___________ AN ORDINANCE TO AMEND THE AUGUSTA, GA. CODE, TITLE SIX, ARTICLE TWO, SECTION SEVENTY-FOUR, ENTITLED “PROBATION, SUSPENSION AND REVOCATION”; SO AS TO ESTABLISH SUSPENSION OF A LICENSE FOR ALCOHOLIC BEVERAGES; TO REPEAL ALL ORDINANCES AND PARTS OF ORDINANCES IN CONFLICT HEREWITH; TO PROVIDE AN EFFECTIVE DATE AND FOR OTHER PURPOSES. WHEREAS, Augusta-Richmond County, Georgia is a home rule governing authority pursuant to the Georgia Constitution, Art. 9 §2, ¶1 which exercises the authority “to adopt clearly reasonable ordinances… relating to its property, affairs, and local government…” WHEREAS, The Augusta-Richmond County Commission has the authority under general laws to adopt rules and regulations “governing the conduct of any licensee including, but not limited to, regulation of hours of business, types of employees, and other matters which may fall within the police powers of such municipalities or counties” pursuant to O.C.G.A. §§3-4-110 and 3-7- 43; WHEREAS, based upon reports from the Augusta-Richmond County Licensing and Inspection and Richmond County Sheriff’s Departments, the Augusta-Richmond County Commission finds that unregulated businesses, which sell alcoholic beverages, could create environments which are public nuisances and illicit crimes; WHEREAS, The Augusta-Richmond County Commission finds that such nuisances, illicit behavior and the degradation of public morals negatively impact the public health, safety, and general welfare of the Augusta-Richmond County citizenry and negatively affect regulated businesses in the area; WHEREAS, The Augusta-Richmond County Commission desires to protect the public health and safety and regulate the sale of alcoholic beverages in Augusta-Richmond County, Georgia; WHEREAS, based on the foregoing, the Augusta-Richmond County Commission may suspend an alcohol beverage license when a license-holder has been placed on probation twice within a twelve (12) month period. THE AUGUSTA-RICHMOND COUNTY COMMISSION ORDAINS as follows: Attachment number 1 Page 1 of 5 Item # 8 SECTION 1. AUGUSTA, GA. CODE Section 6-2-74, enacted March 18, 1997 and readopted on July 10, 2007, is hereby amended by repealing it in its entirety, and inserting in lieu thereof subsections (a) through (f) restated as set forth in “Exhibit A” hereto. SECTION 2. This ordinance shall become effective upon its adoption in accordance with applicable laws. SECTION 3. All ordinances or parts of ordinances in conflict herewith are hereby repealed. Adopted this ___ day of ___________, 2009. ___________________________ David S. Copenhaver As its Mayor Attest: ______________________________ Lena J. Bonner, Clerk of Commission Seal: Attachment number 1 Page 2 of 5 Item # 8 CERTIFICATION The undersigned Clerk of Commission, Lena J. Bonner, hereby certifies that the foregoing Ordinance was duly adopted by the Augusta-Richmond County Commission on_________________, 2009 and that such Ordinance has not been modified or rescinded as of the date hereof and the undersigned further certifies that attached hereto is a true copy of the Ordinance which was approved and adopted in the foregoing meeting(s). ______________________________ Lena J. Bonner, Clerk of Commission Published in the Augusta Chronicle. Date: ______________________ Attachment number 1 Page 3 of 5 Item # 8 Exhibit A Repealed. Sec. 6-2-74. Probation, suspension & revocation. Any license issued under this Ordinance may be put on probation, suspended and/or revoked by the Augusta-Richmond County Commission after a finding of due cause. Due cause for the probation, suspension or revocation of a license shall include but shall not be limited to, the following: (a) A violation of this Ordinance or any State or federal law governing the manufacture, transport, or sale of alcoholic beverages by the licensee or any person in his employ or in the employ of the establishment for which the license was issued. (b) The conviction of the licensee of a crime, which would render him or her ineligible to apply for a license. The term conviction as used herein includes a plea of guilty or nolo contendere. (c) Failure by the licensee, or any person in his employ or in the employ of the establishment for which the license was issued, to adequately supervise and monitor the conduct of the employees, patrons and others on the licensed premises, or on any property owned or leased by the licensee, including but not limited to parking lots and parking areas, or on any parking lots or areas which may be lawfully used by patrons of a licensed establishment, in order to protect the safety and well-being of the general public and of those using the premises. (d) The revocation of the license or permit of the business to operate by any State, County, City or other governmental authority due to a violation of any law applicable to the business including, but not limited to, building codes and health codes. (e) Falsifying information or making any material misrepresentation on the application for a license under this Ordinance. Sec. 6-2-74. Probation, suspension & revocation. Any license issued under this Ordinance may be put on probation, suspended and/or revoked by the Augusta-Richmond County Commission after a finding of due cause. Due cause for the probation, suspension or revocation of a license shall include but shall not be limited to, the following: (a) A violation of this Ordinance or any State or federal law governing the manufacture, transport, or sale of alcoholic beverages by the licensee or any person in his employ or in the employ of the establishment for which the license was issued. (b) The conviction of the licensee of a crime, which would render him or her ineligible to apply for a license. The term conviction as used herein includes a plea of guilty or nolo contendere. Attachment number 1 Page 4 of 5 Item # 8 (c) Failure by the licensee, or any person in his employ or in the employ of the establishment for which the license was issued, to adequately supervise and monitor the conduct of the employees, patrons and others on the licensed premises, or on any property owned or leased by the licensee, including but not limited to parking lots and parking areas, or on any parking lots or areas which may be lawfully used by patrons of a licensed establishment, in order to protect the safety and well-being of the general public and of those using the premises. (d) The revocation of the license or permit of the business to operate by any State, County, City or other governmental authority due to a violation of any law applicable to the business including, but not limited to, building codes and health codes. (e) Falsifying information or making any material misrepresentation on the application for a license under this Ordinance. (f) A license issued under this Ordinance may be suspended by the Augusta-Richmond County Commission if the license-holder has been placed on any term of probation, under Title Six Article Two, twice within a twelve (12) month period. Attachment number 1 Page 5 of 5 Item # 8 Public Service Committee Meeting 1/12/2009 12:30 PM Aviation Fuel Supplier Contract Department:Augusta Regional Airport Caption:Approve a request to approve AvFuel Corporation as the Aviation Fuel Supplier for the airport and approval of the contract between AvFul and Augusta Regional Airport. Background:AvFuel was selected through the RFP process for the aviation fuel supplier. There were five vendor proposals submitted to procurement for the Aviation Fuel Supplier RFP for Augusta Regional Airport of which two were disqualified. After careful evaluation of the remaining three; AvFuel was selected because of both pricing and their provision for providing a 5,000 gallon fuel truck to the Airport at no cost. Analysis:The contract with AvFuel is for three years with options for 2 one year renewals. Financial Impact:The Airport's fuel sales and cost of goods sold are the primary source of operating revenue and expense. The sale of fuel will generate approx 13.6 million in 2008 with CGS at approx 11.1 million which will result in a gross profit of approx 2.5 million. Alternatives:Deny request. Recommendation:Approve request. Funds are Available in the Following Accounts: Revenue 551/3492112 Expense 551/5315120 REVIEWED AND APPROVED BY: Finance. Procurement. Augusta Regional Airport Finance. Procurement. Law. Administrator. Clerk of Commission Cover Memo Item # 9 Cover Memo Item # 9 Customer Code: ______________ AVFUEL CORPORATION FIXED BASE OPERATOR AVIATION FUEL SUPPLY AGREEMENT Reference Date: October 29, 2008 Effective Date: January 1, 2009 SUMMARY This Agreement is between Avfuel Corporation and its affiliates and subsidiaries all of which have AUGUSTA GEORGIA, a political subdivision of the State of Georgia, acting through the AUGUSTA AVIATION COMMISSION whose address is 1501 Aviation Way, Augusta Regional Airport at Bush Field, Augusta, Georgia 30906-9600, hereinDIWHUFDOOHG³&XVWRPHU´FROOHFWLYHO\FDOOHG³WKH3DUWLHV´DQGLVHIIHFWLYHRQWKH Effective Date or, if no Effective Date is specified then on the Reference Date noted above. THIS IS AN INTEGRATED AGREEMENT CONSISTING OF SEVERAL PARTS, ALL OF WHICH SHALL BE READ TOGETHER AND INTERPRETED AS ONE AGREEMENT. The parts shall include this Summary, the Special Terms and Conditions, and the General Terms and Conditions. In the event of any inconsistencies between the Special Terms and Conditions and the General Terms and Conditions, the Special Terms and Conditions shall govern. Avfuel offers other Programs that it believes are of benefit to Customer. Customer chooses to participate in those Programs that are checked below and agrees that the applicable provisions of the Special and General Terms and Conditions govern those Programs. Additions or deletions to this agreement are governed by the Changes Provision set forth in Section 17 of the General Terms and Conditions. If customer should avail itself of any of the Programs not checked below then Customer specifically agrees to be bound by the Special and General Terms and Conditions that govern those Programs. Applicable Certificates of Insurance are attached hereto, Insurance Company Name_________________________________________________ X Customer Credit Program X Addendums: A X Brand Program X AVTRIP Program X Credit and Charge Cards Acceptance Program X Contract Fuel Dealer Program X Equipment Lease Agreement Avsurance Primary Commercial Insurance Program CUSTOMER FEIN: 58-2204274 TYPE OF BUSINESS: _____________________________________ (i.e. C-corp, S-corp, Partnership, LLC, Sole Prop, or other) STATE ID NUMBER: STATE OF INCORPORATION: GA FOR: AVFUEL CORPORATION FOR: AUGUSTA, GEORGIA By: ____________________________________________ ____ By: ________________________________________________________ William B. Light (Signature) Title: Vice President, Administration AS ITS: MAYOR ATTEST: _________________________________ CLERK OF COMMISSION FOR: AUGUSTA AVIATION COMMISSION BY: ______________________________________ AS ITS: ________________________________ ATTEST: __________________________________ CLERK The undersigned hereby guarantee(s) payment and performance of this Agreement by Customer. By: _______________________________ ____________________________________ ____________________________________ Signature Name Printed Social Security Number By: _______________________________ ___________________________________ ____________________________________ Signature Name Printed Social Security Number Attachment number 1 Page 1 of 11 Item # 9 Attachment number 1 Page 2 of 11 Item # 9 ADDENDUM A to the AVIATION FUEL SUPPLY AGREEMENT between AVFUEL CORPORATION and AUGUSTA GEORGIA The following is incorporated and made part of the above named agreement with a reference date of October 29, 2008 Section 2., TERM: This section is deleted in its entirety and replaced with the following, ³7KHLQLWLDOWHUPRIWKLV Agreement is three (3) years with two, one year renewable options, beginning on the Effective Date specified in the Summary´ AVFUEL CORPORATION AUGUSTA GEORGIA By: _____________________________________ By: _____________________________________ William B. Light (Signature) Title: Vice President, Administration AS ITS: MAYOR ATTEST: _____________________________________ CLERK OF COMMISSION AUGUSTA AVIATION COMMISSION BY: ______________________________________ AS ITS: _______________________________ ATTEST: ______________________________________ CLERK Attachment number 1 Page 3 of 11 Item # 9 Attachment number 1 Page 4 of 11 Item # 9 FBO Aviation Fuel Supply Agreement Rev 4/10/08 &XVWRPHU¶V,QLWLDOV _________ Page 2 of 8 7. LIMITED WARRANTY: 7.1. Avfuel warrants that all products delivered pursuant to this agreement, regardless of whether title transfers at that time, will, at the time of delivery, conform to the then latest revision of following specifications: Aviation Gasoline will conform to the ASTM Specification D910; and Jet Fuel will conform to the ASTM Specification D1655. Avfuel retains the right to revise the applicable specifications upon written notice to Customer. 7.2. THE LIMITED WARRANTY STATED ABOVE IS THE ONLY WARRANTY GIVEN BY AVFUEL REGARDING THE PRODUCTS. AVFUEL DISCLAIMS ANY OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. 7.3. Customer shall sample and test each shipment of Product prior to delivery using industry standard test procedures. If Customer determines or suspects non- conformity then Avfuel must be immediately notified, while the Shipping Agent is still present, and the delivery shall not be completed until either Customer accepts the Product, acknowledging conformity, or Avfuel replaces the Product. &XVWRPHUZLOOSHUPLW$YIXHODFFHVVWR&XVWRPHU¶VSUHPLVHVDQGUHFRUGVGXULQJQRUPDOEXVLQHVVKRXUVDQGXSRQIRXU  KRXUV¶WHOHSKRQLFRUZULWWHQQRWLFHWR Customer for purposes of investigating any claim of non-conformity. If it is determined that the Product is non-FRQIRUPLQJ$YIXHO¶VVROHREOLJDWLRQVKDOOEH either (1) replacement of the non-conforming Product with conforming Product, or (2) removal of the non-conforming Product and cancellation of the invoice for that Product or refund of the amount paid for that Product, as determined by Avfuel. Avfuel will be reasonably prompt in its actions hereunder. TIME IS OF THE ESSENCE AND ANY FAILURE TO FOLLOW THE ABOVE PROCEDURE SHALL VOID THE LIMITED WARRANTY. 8. COMPLIANCE WITH LAWS: 8.1. Each Party shall, at all times and in all respects, comply with all federal, state, county or municipal laws, ordinances, rules and regulations governing its actions in the purchase, storage, handling and sale of the Products and all industry standards pertaining thereto, including those that may contain tetraethyl lead or lead alkyl. Further, each of the Parties agree to use its reasonable best efforts to assist the other Party in complying with such laws, ordinances, rules and regulations which the other Party may be required to observe in the performance of its obligations under this Agreement. Each Party reserves the right to terminate those portions of this Agreement governing the purchase of a Product if the other Party violates the provisions of this subsection with respect to that Product. In such event, the remaining provisions of this Agreement shall continue in full force and effect. 8.2. Each Party shall properly instruct its employees, agents and contractors with regard to compliance with all applicable laws, ordinance, rules, regulations and standards governing the sale and distribution of the Products that are the subject of this Agreement. 9. INDEPENDENT STATUS: Each Party shall at all times function as an independent contractor and not as a subcontractor, employee or other agent of the other Party. Neither Party shall have the authority to and shall not purport to make any commitments or representations on behalf of the other Party or otherwise to take any actions on behalf of the other Party. 10. RECIPROCAL INDEMNIFICATION: EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, EACH PARTY (THE "INDEMNIFYING PARTY") AGREES TO INDEMNIFY AND TO HOLD HARMLESS THE OTHER PARTY AND THE OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS OF THE OTHER PARTY (THE "INDEMNIFIED PARTIES") FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, LOSSES, LIABILITIES, CAUSES OF ACTION, COSTS OR EXPENSES (INCLUDING ATTORNEY'S FEES) OF WHATSOEVER NATURE WHICH ARE ASSERTED AGAINST OR INCURRED BY ANY INDEMNIFIED PARTY AS A RESULT OF THE BREACH BY THE INDEMNIFYING PARTY OF ITS OBLIGATIONS UNDER THIS AGREEMENT OR AS A RESULT OF ANY WRONGFUL ACT OR OMISSION OF THE INDEMNIFYING PARTY OR OF ANY OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS OF THE INDEMNIFYING PARTY. ANY AMOUNT PAYABLE BY THE INDEMNIFYING PARTY UNDER THIS SECTION 10 SHALL BE DUE WITHIN TEN (10) DAYS AFTER WRITTEN DEMAND AND ANY SUCH AMOUNT WHICH IS NOT PAID WHEN DUE SHALL BEAR INTEREST FROM THE DUE DATE TO THE DATE OF PAYMENT AT THE RATE OF 16% PER ANNUM (OR, IF LESS, AT THE MAXIMUM RATE OF INTEREST PERMITTED UNDER THE LAWS OF THE STATE IN WHICH THE INDEMNIFYING PARTY HAS ITS PRINCIPAL PLACE OF BUSINESS). WITHOUT LIMITING THE ABOVE PROVISIONS, THE OBLIGATION OF THE INDEMNIFYING PARTY UNDER THIS SECTION 10 SHALL INCLUDE ANY REASONABLE ATTORNEY'S FEES OR OTHER COSTS INCURRED BY THE INDEMNIFIED PARTIES IN ENFORCING THE OBLIGATION OF INDEMNITY UNDER THIS SECTION. EACH PARTY'S OBLIGATION TO INDEMNIFY SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT AND SHALL REMAIN IN FULL FORCE AND EFFECT UNTIL THE LAPSE OF ALL APPLICABLE STATUTES OF LIMITATIONS OR SIMILAR TIME PERIODS WITHIN WHICH AN ACTION FOR INDEMNITY OR CONTRIBUTION MUST BE BROUGHT. 11. BREACH AND TERMINATION: 11.1. Failure of a Party to comply with the provisions of this Agreement shall constitute a breach of the Agreement by the non-complying Party. Except as otherwise permitted under this Agreement, the non-breaching Party shall provide Notice of that breach to the other Party in the manner set forth in Section 14. The Notice shall specify the alleged breach and the period within which the breach must be cured which, except as provided in Section 11.2, shall be at least ten (10) business days. The Party receiving such Notice shall respond thereto in writing within three (3) business days. If the breach is not cured or the dispute resolved within the period specified in the Notice, the Party claiming breach, by further written Notice, at its election, may affirm this Agreement and initiate appropriate legal actions to require the other Party to remedy that breach or may immediately terminate this Agreement. In either instance, the Party claiming the breach may by appropriate legal proceedings seek and secure recovery of any damages resulting from that breach. 11.2. The provisions of Section 11.1 to the contrary notwithstanding, if the EUHDFKLVRIWKH&XVWRPHU¶VREOLJDWLRQWRPDNHDSD\PHQWWR$YIXHOZKHQGXH then Avfuel may declare all amounts owed to it immediately due and payable, and Avfuel, in addition to all other rights hereunder, may suspend its performance or terminate this Agreement forthwith and without giving Customer Notice or the opportunity to cure. Avfuel shall also have the right to offset any amount that Avfuel then or thereafter owes to Customer, to any guarantor of the CustRPHU¶VREOLJDWLRQVXQGHUWKLV$JUHHPHQWRUWRDQ\DIILOLDWHHQWLW\WKDWRZQV is owned by or is under common ownership with the Customer against any amounts owed by Customer to Avfuel. Customer warrants that it is authorized to make this commitment with respect to amounts owed by Avfuel to such guarantors and affiliate entities. In addition, Avfuel or its agents or employees may, without further notice and without legal process enter onto any facility of Customer for the purpose of repossessing any item of Equipment or any personal property of any description owned by Avfuel, and Customer shall use its best efforts to assist Avfuel in such repossession. Pursuit of the foregoing shall not preclude pursuit of any other remedies provided by law, nor constitute a waiver of any amount due by Customer hereunder or of any damages accruing by reason of the breach of any of the terms or conditions contained herein. Aviation fuels on board repossessed Equipment will become the property of Avfuel, and credited against any amount owed Avfuel by Customer at that day's market price. 11.3. The Party claiming a breach may waive that breach by giving Notice to the other party in the manner set forth in Section 14 below. The waiver of any Attachment number 1 Page 5 of 11 Item # 9 FBO Aviation Fuel Supply Agreement Rev 4/10/08 &XVWRPHU¶V,QLWLDOV _________ Page 3 of 8 breach shall not constitute a waiver of any subsequent breach of the same or any other term or condition. Any failure of either Party to enforce rights or seek remedies arising out of any breach by the other Party shall not prejudice or affect the rights and remedies of that Party in the event of any subsequent breach by the other Party. 11.4. Except as set forth in Section 11.2 above, any dispute that arises under this Agreement, pursuant to Section 11.1 above or otherwise, shall be submitted to a senior officer or other person having the authority to negotiate the resolution of such disputes for each Party. Those persons shall attempt, in good faith, to resolve the dispute, and no action in law or equity shall lie until the process set forth herein shall have run its course. If the dispute involves the payment of money, all undisputed amounts shall be paid when due regardless of whether the undisputed amount is only part of an invoice. 7KHH[HUFLVHRID3DUW\¶VULJKWWRWHUPLQDWHWKH$JUHHPHQWDVDIRUHVDLGRU to seek any other remedy shall not be deemed an election of remedies and shall EHZLWKRXWSUHMXGLFHWRWKH7HUPLQDWLQJ3DUW\¶VULJKWVWRVHHNDQ\RWKHUUHPHG\ afforded to it by this Agreement or by law or equity. In any action related to the enforcement or breach of this Agreement, the prevailing Party shall have the ULJKWWRUHFRYHULWVUHDVRQDEOHDWWRUQH\¶VIHHVDQGFRVWVDFWXDOO\LQFXUUHG 12. INSURANCE: 12.1. Prior to the Effective Date stated in the Summary, Customer shall submit proof that it holds, or, if it does not so hold, shall secure, at its cost, the following insurance and furnish Avfuel a Certificate of Insurance evidencing: (1) aviation general liability insurance, including products and completed operations liability, with limits not less than one million dollars ($1,000,000.00) combined single limit for bodily injury and property damage; and (2) automobile liability insurance with limits not less than one million dollars ($1,000,000.00) combined single limit for bodily injury and property damage; (3) workers compensation covering all employees of Customer and (4) physical damage coverage covering the value of any leased Equipment. Insurance policies shall be issued by insurance companies acceptable to Avfuel (whose acceptance may not be unreasonably withheld), shall name Avfuel, or its subsidiary, as applicable, as an additional insured and/or loss payee, and shall provide for at least thirty (30) GD\V¶ZULWWHQQRWLFHWR$YIXHOSULRUWRFDQFHOODWLRQRUPRGLILFDWLRQ&XVWRPHU shall maintain such policies in full force and effect throughout the term of this Agreement. Customer may, if it chooses, apply for this insurance through $YIXHO¶VVXEVLGLDU\$YVXUDQFH&RUSRUDWLRQ 12.2. Avfuel currently maintains an excess aviation products liability policy under which its qualified customers may be named as additional insureds. For so long as Avfuel elects to continue to maintain that insurance and permit customers to be additional insureds, upon the written request of Customer and to the extent that Customer qualifies for such coverage, Customer shall be added as an additional insured under that policy upon payment by Customer of any additional SUHPLXPUHTXLUHGE\$YIXHO¶VLQVXUHUIRUVXFKFRYHUDJH,I$YIXHOQRORQJHU offers this product liability insurance program, or the product liability insurance LVQRORQJHUIUHHWR&XVWRPHU$YIXHOZLOOQRWLI\&XVWRPHUZLWKWKLUW\  GD\V¶ZULWWHQQRWLFHRIWKLVFKDQJHRU$YIXHO¶VLQWHQWWRWHUPLQDWHWKHSURGXFWOLDELOLW\ insurance program. 13. ASSIGNMENT: Customer shall not assign its rights or delegate its obligations under this Agreement, in whole or in part, unless with the prior written consent of Avfuel, which consent will not be unreasonably withheld. Any transfer of a controlling interest in Customer shall be deemed an assignment requiring the consent of Avfuel. 14. NOTICES: All notices permitted or required under this Agreement shall be LQZULWLQJ1RWLFHVE\IDFVLPLOHVKDOOEHGHHPHG³GHOLYHUHG´RQWKHGDWHRI confirmed transmission, without error, to the fax number designated in the Summary. Notices by mail shall be deemed delivered three (3) business days following the date deposited with the United States Postal Service, certified mail, return receipt requested, postage prepaid, addressed to the Party at the address of the principal office. Notices sent by overnight courier shall be effective on the next business day following deposit with the overnight courier for overnight delivery with the delivery fee prepaid, addressed to the Party at the address of the principal office, and with instructions to obtain the signature of the addressee. 15. GOVERNING LAW: This Agreement shall be construed as having been made in the State of Michigan, and all rights and obligations under it shall be governed by the laws of the State of Michigan without regard to its Conflict of Laws provisions. All litigation arising hereunder shall be brought in the State of Michigan, and exclusive jurisdiction shall lie with the courts located in Washtenaw County, Michigan and each Party hereby submits to the exclusive jurisdiction of those courts. 16. SEVERABILITY: In the event that any court of competent jurisdiction shall determine that any provision of this Agreement shall be unenforceable, then that provision shall be deemed to be null and void and the remaining provisions hereof shall remain in full force and effect. 17. ENTIRE AGREEMENT TERMS: This Agreement, including all of its parts, sets forth the entire agreement between Avfuel and Customer with respect to the subject matter hereof and there are no other terms or conditions, oral or written, express or implied, relating to or otherwise affecting such subject matter. No term or condition of this Agreement shall be changed, supplemented, cancelled or waived unless in writing and signed by both Avfuel and Customer. If Avfuel and Customer have, prior to the effective date, been parties to any other DJUHHPHQW UHODWLQJ GLUHFWO\ WR WKH VDOH RI 3URGXFWV WR &XVWRPHU D ³3ULRU $JUHHPHQW´ VXFK3ULRU$JUHHPHQWH[cept for guarantees, shall be superseded as of the effective date and all rights and obligations between Avfuel and Customer with respect to the supply of Products from and after the effective date shall be governed by the terms of this Agreement. The terms and conditions of such Prior Agreement shall, however, remain in full force and effect with respect to rights and obligations relating to the supply of Products prior to the effective date and nothing contained in this Agreement shall be construed as terminating or otherwise affecting any such rights or obligations. CUSTOMER CREDIT PROGRAM: IN THE EVENT THAT AVFUEL CHOOSES TO DELIVER GOODS OR SERVICES THAT HAVE NOT BEEN PAID FOR IN FULL BY WIRE TRANSFER PRIOR TO THE TIME OF THAT DELIVERY, AVFUEL SHALL BE CONSTRUED AS HAVING EXTENDED CREDIT TO CUSTOMER AND THE FOLLOWING TERMS AND CONDITIONS SHALL APPLY. 1. Credit terms may not be used during any period in which the Customer is in default of this Agreement. In addition to the provisions of Section 11 of the General Terms and Conditions, for the specific purposes of this Customer Credit Program, the Customer will be in default if (1) any amount charged to the Customer's account is not paid in accordance with the agreed upon payment terms; (2) if and for so long as the Customer is in breach of any of its obligations under any Agreement with Avfuel or any of its subsidiaries; or (3) if Avfuel determines that there is any misrepresentation or breach of a warranty by the Customer under or with respect to any Agreement with Avfuel. Use of credit is limited to the amount specified in the Special Terms and Conditions of this Agreement. No purchase may be made which would cause the total amount owed under this Agreement to exceed that credit limit. 2. Upon termination of this Agreement, Customer shall have no right to credit terms for new purchases, but all obligations incurred prior to the termination, as well as all remedies provided for default or breach, shall survive. If Avfuel, intentionally or unintentionally, permits any purchases on credit after termination, then the terms of this Agreement shall pertain to those charges. 3. Subject to the approval by Avfuel at its offices in Michigan, all purchases by Customer for which Avfuel does not receive payment at or prior to the time of delivery to Customer shall be charged as principal to Customer's account. Avfuel may require Customer or Customer's authorized representative, as a condition of delivery or at any time thereafter, to give receipt for all deliveries in writing and to sign sales slips and other documents in Avfuel's opinion necessary to record or substantiate any or all transactions resulting in a charge to Customer's account. 4. Avfuel shall invoice Customer for all Fuel products delivered to Customer or WR&XVWRPHU¶VGHVLJQHHV,QYRLFHVVKDOOLQFOXGHWKHVHOOLQJSULFHRIWKHSURGXFW delivered, taxes, duties, and any other charges as separate line items. Invoices are payable on or before that due date specified in the invoice. Unless otherwise determined by Avfuel in its discretion, all payments received will be applied by Avfuel (subject to collection of remittance if other than cash) first to interest, if any, accrued on Customer's account, then to the unpaid principal balance owed upon such account in direct calendar order of due date. Customer agrees to pay to Avfuel upon demand a fee of $50.00 for each check, draft or other form of remittance that is not honored by the drawee upon due presentment by Avfuel or its agents. From time to time, Avfuel may send Customer a statement of Customer's account for Customer's information showing in summary, or in such detail as Avfuel may deem appropriate, current transactions Avfuel posted to Customer's account to date thereof, the amount of interest (if any) which has accrued, and the balance owing thereon; however, the failure of Avfuel to furnish any such statement shall not relieve Customer of the obligation to make payment against invoices when due in accordance with the other terms of this Agreement. Customer agrees to review all statements promptly after receipt, and shall have Attachment number 1 Page 6 of 11 Item # 9 FBO Aviation Fuel Supply Agreement Rev 4/10/08 &XVWRPHU¶V,QLWLDOV _________ Page 4 of 8 fifteen (15) days from date of receipt to notify Avfuel in writing of any discrepancies. If no such notice is given, such statement shall be conclusively presumed correct. 5. In the event that any invoice is not paid in full by the due date stated therein, the unpaid amount of the invoice shall bear interest until paid at the lower of 18% per annum or the highest rate which may lawfully be contracted for, charged and received according to applicable law for business purchases at the time of delivery. Notwithstanding anything in this Agreement to the contrary, Customer shall never be obligated to pay and Avfuel shall never be entitled to receive any interest upon any indebtedness incurred by Customer pursuant hereto in excess of the maximum contract rate of interest authorized by applicable law for business purposes, and it is expressly understood and agreed that if Avfuel shall render any charge for the payment of usurious interest, such charge shall be automatically and unconditionally reduced to the maximum non-usurious DPRXQWDQGWKHH[FHVVLISDLGVKDOOEHDSSOLHGDVFUHGLWWR&XVWRPHU¶VDFFRXQW ,IVXFKDSSOLFDWLRQUHVXOWVLQDFUHGLWEDODQFHLQ&XVWRPHU¶VVDLGDFFRXQWVXFK balance shall be refunded to Customer or applied to the next due amount in such account as Customer shall direct. 6. If, at any time during the term of this Agreement, the financial responsibility of Customer becomes impaired or unsatisfactory to Avfuel, in the sole judgment of Avfuel, Avfuel, effective immediately upon delivery of Notice to Customer, may require the advance cash payment or other security satisfactory to Avfuel for any shipment of fuel and shipment may be withheld until such payment or security is received. 7. For the purpose of securing a payment of all indebtedness of Customer to Avfuel from time to time outstanding (including, without limitation, any amounts due under this Agreement or any other agreement or instrument between Avfuel and the Customer) grants to Avfuel a purchase money security interest in and to all of Customer's inventory of aviation fuels and other products of similar type or description as are purchased from Avfuel, and all accounts, contract rights and other proceeds from such inventory, whether now owned or hereafter acquired. Customer warrants that the purchase money security interest granted herein is and shall remain superior to any other security interests granted by Customer to any other entity. For so long as this Agreement is in effect, all of Customer's inventory of aviation fuels will be presumed to be merchandise purchased pursuant to the Agreement and subject to the purchase money security interest granted by this Agreement. Customer hereby authorizes Avfuel to sign and record all financing statements and other instruments which Avfuel may reasonably require in order to create, perfect and continue in force said security interest and first priority lien. Customer authorizes Avfuel to file a true copy of this Agreement in lieu of any financial statement. The rights and obligations of Avfuel and the Customer under and with respect to the security interest and first priority lien created by this Section shall be interpreted in accordance with the Uniform Commercial Code in effect in the state of the Billing Address of the Customer as stated in the Summary. 7+,63$5$*5$3+$33/,(621/<727+26(3(56216:+2¶6 SIGNATURES APPEAR AS GUARANTORS ON THE SIGNATURE PAGE OF THIS AGREEMENT. PERSONS SIGNING AS GUARANTORS SHALL BE CONSTRUED AS PERSONAL GUARANTORS REGARDLESS OF ANY OTHER DESIGNATION. In consideration of the extension of credit by Avfuel to Customer, each of the parties signing as Guarantors on the signature page of this Agreement agrees to guarantee the prompt payment of all amounts owed to Avfuel by Customer whether such amounts are existing at the time that this Guarantee is signed or are incurred at any time during the life of this Guarantee. Avfuel may demand payment from a Guarantor under this Guarantee at any time that it deems itself insecure with respect to any amount owed by Customer. Each Guarantor hereby waives notice of acceptance of this Guarantee by Avfuel, notice of default by Customer, and all other notices that the Guarantor may otherwise be entitled to receive. Failure on the part of Avfuel to give any such notice shall not discharge any obligation of any Guarantor under this Guarantee. Each Guarantor also hereby waives any requirement that Avfuel proceed against Customer before making a demand for payment hereunder, and DJUHHV WR SD\ DOO DWWRUQH\¶V IHHV DQd court costs incurred by Avfuel in the enforcement of its rights hereunder. This is a continuing Guarantee and shall not be revoked by the death of any individual party or by the dissolution of any corporate party or any other entity that is a party hereto, and shall remain in force until Avfuel receives written notice to extend no further credit to Customer on the security of this Guarantee. Such notice shall not discharge any obligation of any Guarantor as to any then existing indebtedness or obligation of Customer arising out of a transaction that took place prior to the receipt of such notice, regardless of the time for determination, maturity, or performance thereof. Each Guarantor agrees to provide periodic statements of financial condition to Avfuel upon request. This Guarantee shall survive the termination of this Agreement until all amounts due Avfuel under this Agreement have been paid in full. BRAND PROGRAM: ,) &86720(5 +$6 (/(&7(' 72 3$57,&,3$7( ,1 $9)8(/¶6 BRAND PROGRAM, THE FOLLOWING WILL APPLY. 1. &XVWRPHUKDVEHHQLQYLWHGDQGKDVHOHFWHGWRSDUWLFLSDWHLQ$YIXHO¶V%UDQG3URJUDP$FFRUGLQJO\$YIXHOKHUHE\OLFHQVHV&XVWRPHUDVDGHDOHU ³%UDQGHG'HDOHU´ WRXVH$YIXHO¶V%UDQG1DPHVDQG7UDGHPDUNVVXEMHFWWRWKHSURYLVLRQV set forth herein. All trade names, trademarks, service marks, logos and other commercial symbols that Avfuel either owns or has the right to sub-license (the "Intellectual Property") shall be and remain the property of Avfuel. Further all signs, decals, graphic materials and other tangible property supplied by Avfuel which bear or are imprinted with any of the Intellectual Property or are used to imprint or display the same (the "Branded Property") and all replacements thereof shall be and remain the property of Avfuel. Any use of the Intellectual Property or the Branded Property by the Customer otherwise than as expressly authorized by this Agreement is hereby expressly prohibited. Upon termination RI&XVWRPHU¶VSDUWLFLSDWLRQLQWKH%UDQG3URJUDP&XVWRPHUVKDOODWits expense, de-install and return to Avfuel all salvageable signage and return or destroy all other items that identify Customer as a branded Avfuel dealer. 2. Avfuel agrees to supply to Customer, for Customer's use and possession during the term of this Agreement such signs, decals, credit card imprinters and other graphic materials as Avfuel deems necessary in order to identify Customer as an Avfuel Branded Dealer. Unless otherwise agreed in writing, Avfuel will bear all costs of such materials. Customer agrees to honor all Avfuel charge cards, subject to the provisions of the Credit and Charge Card Acceptance 3URJUDP VHW IRUWK EHORZ GXULQJ &XVWRPHU¶V SDUWLFLSDWLRQ LQ $YIXHO¶V %UDQG Program. 3. Customer shall be responsible for obtaining all necessary permits and for installation of all Branded Property including (without limitation) all electrical and other connections, and shall make sure that all installations shall comply with all brand specifications and with all applicable state and local codes, ordinances and governmental regulations (if any). Unless otherwise agreed in writing, the Customer will bear all costs of installation. No signage shall be installed so as to become a fixture upon real property. The use of color schemes and Intellectual Property painted on facilities and equipment owned by Customer or others and used in the conduct of Customer's business, shall comply with particular and displayed specifications. Customer shall be responsible for maintenance and upkeep of Branded Property and Paint-ons, and agrees to keep and maintain the same at all times in a good, clean, safe, operative and first class condition, neatly painted and displayed. If any of such installation or maintenance is performed by Avfuel, Customer agrees to remit upon demand all costs thereof, including (without limitation) all expenditures for labor, materials and the like. If any Branded Property is damaged, lost or destroyed while in Customer's use, possession or control, or if Customer shall deliver any of such property to anyone not herein expressly authorized to use or possess it, Customer agrees to repair, recover or replace such property forthwith, at Customer's expense. 4. Customer shall keep all Branded Property insured at all times against loss, theft, fire or physical damage, up to the full replacement cost thereof, designating Avfuel as the loss payee. The Customer shall pay when due all personal property taxes and assessments assessed against the Branded Property and shall neither suffer nor permit any lien or encumbrance or any attachment against any of such Branded Property. 5. Customer agrees that it will not use or display any Branded Property or Intellectual Property: (1) in a manner which causes or is calculated to cause confusion among patrons of Customer or the general public as to the type, characteristics, quality, manufacture or sponsorship of any fuel or other product which Customer offers for sale; (2) for the purpose of selling or promoting the sale of aviation fuel other than fuels supplied by Avfuel; or (3) for the purpose of selling or offering for sale any product which has been diluted or adulterated, whether intentionally or not. Customer further agrees that it will at all times maintain its facilities and conduct its operations in compliance with those standards and procedures established from time to time by Avfuel and applicable to aviation fixed base operators displaying any of the Intellectual Property. Such standards and procedures may include (without limitation) image quality standards for the brand displayed, quality control and refueling procedures for products bearing such brand, and standards for services offered and facilities utilized by Customer in conjunction with such products. Avfuel may, but shall be under no obligation to conduct periodic tests and inspections as it may deem appropriate to evaluate compliance with this Agreement. Copies of all test and inspection reports shall be given to Customer. It is expressly understood that the purpose of any such tests or inspections is to assist Customer in complying with the standards set for a Branded Dealer. By performing such tests or inspections Attachment number 1 Page 7 of 11 Item # 9 FBO Aviation Fuel Supply Agreement Rev 4/10/08 &XVWRPHU¶V,QLWLDOV _________ Page 5 of 8 Avfuel assumes no responsibility for Customer's failure to comply with the Standards or for safety hazards, latent or patent, created or maintained by Customer. If Avfuel determines, in its sole discretion, that Customer is or has YLRODWHGWKLVSURYLVLRQWKHQ$YIXHOPD\VXVSHQGRUWHUPLQDWH&XVWRPHU¶VULJKWWRXVH$YIXHO¶V%UDQGVDQGRU7UDGHPDUNV Avfuel reserves the right to amend, suspend, or terminate the program at any time. Customer may withdraw from this Program upon 60 days Notice to Avfuel. See Section 14 of the General Terms and Conditions regarding Notices. 7HUPLQDWLRQRI&XVWRPHU¶VSDUWicipation in this Program shall not be construed DVWHUPLQDWLQJWKH$JUHHPHQWRU&XVWRPHU¶VSDUWLFLSDWLRQLQDQRWKHU3URJUDP AVTRIP PROGRAM: ,) &86720(5 +$6 (/(&7(' 72 3$57,&,3$7( ,1 $9)8(/¶6 AVTRIP PROGRAM, THE FOLLOWING WILL APPLY. 1. Customer has EHHQLQYLWHGDQGKDVHOHFWHGWRSDUWLFLSDWHLQ$YIXHO¶V$975,3 Program a marketing incentive program intended to reward pilots who choose to purchase fuel and services from participating Avfuel dealers. 2. Customer will: 2.1. Use its best efforts to enroll pilots in the AVTRIP Program; 2.2. Award all participating pilots two AVTRIP Points for each U.S. gallon of IXHOSXUFKDVHGIURP&XVWRPHUDQGDW&XVWRPHU¶VGLVFUHWLRQDPLQLPXPRIRQH point for each U.S. dollar, or part thereof, spent by a participating pilot for parts DQGVHUYLFHVDW&XVWRPHU¶VIDFLOLWLHV 2.3. Pay to Avfuel, by deduction from amounts due to Customer or in cash if no amounts are due Customer, $.01 for each AVTRIP point awarded; 2.4. Maintain complete records of all points earned by participating pilots; 2.5. Train its personnel in the operation of the AVTRIP Program, and prominently post written materials relating to AVTRIP in and around its facilities in order to encourage pilot participation in the program; and 2.6. Promptly send all enrollments to Avfuel so that the enrollee can be added to the list of AVTRIP participants. Not less frequently than every two weeks, Customer will send Avfuel copies of all records pertaining to points earned by pilots that have not been previously reported via POS transmission, and remit to Avfuel all sums due hereunder. 3. Avfuel will: 3.1. Act as the administrator of the AVTRIP Program; and 3.2. Include the AVTRIP Program in its local, national and international marketing and advertising efforts as it deems appropriate to encourage pilot participation in the AVTRIP Program. 4. The price charged to any pilot for fuel, parts or service shall not be based on whether a pilot participates in the AVTRIP Program. 5. Avfuel reserves the right to amend, suspend, or terminate the AVTRIP Program at any time. Avfuel also reserves the right to terminate any individual's participation at any time for misuse of the AVTRIP card, violation of the rules of the program, or inactivity for a period of 12 consecutive months. Customer may withdraw from this Program upon 90 days Notice to Avfuel. See Section 14 of the General Terms and Conditions regarding Notices. Termination of &XVWRPHU¶VSDUWLFLSDWLon in this Program shall not be construed as terminating WKH$JUHHPHQWRU&XVWRPHU¶VSDUWLFLSDWLRQLQDQ\RWKHUSURJUDP CREDIT AND CHARGE CARD ACCEPTANCE PROGRAM: ,) &86720(5 +$6 (/(&7(' 72 3$57,&,3$7( ,1 $9)8(/¶6 CREDIT CARD ACCEPTANCE PROGRAM, THE FOLLOWING WILL APPLY. 1. &XVWRPHUKDVEHHQLQYLWHGDQGKDVHOHFWHGWRSDUWLFLSDWHLQ$YIXHO¶V&UHGLW and Charge Card Acceptance Program. Accordingly, Customer may honor any valid credit or charge card listed in the most current Accounts Receivable DiscoXQWV6FKHGXOH ³$5'6´ LVVXHGE\$YIXHO $FFHSWDEOH&DUGV IRUWKH purchase of products and services if the purchase has been specifically approved by Avfuel. Avfuel's ARDS is subject to change upon five (5) days prior written notice. 2. Customer shall prepare a voucher for each credit card or charge card transaction and shall promptly submit those vouchers to Avfuel. The term "voucher" means a machine imprinted credit card slip or other written record of a credit sale in form acceptable to Avfuel that has been fully completed by Customer manually or electronically by a Point of Sale (POS) machine in DFFRUGDQFHZLWKWKHLQVWUXFWLRQVFRQWDLQHGLQWKHWKHQFXUUHQWHGLWLRQRI$YIXHO¶V manual and signed by the Authorized User. If the voucher is prepared manually, the Customer is responsible to make sure that the voucher is complete and legible. The Customer is also responsible for making sure that the card presented is not expired and that the person signing the voucher is an Authorized User. If imprinted and hand written amounts on invoices do not agree the lesser amount shall be presumed to be correct. Customer shall make a manual imprint of all cards electronically processed but requiring that the card number be entered manually, in order to prove that the card was present at the time of sale. ³3URPSWO\´ PHDQV LQ WKH FDVH RI 326 WUDQVPLVVLRQV EDWFKHV VKRXOG EH submitted at least once per day and by 11:00 PM Central Time but in no case any less frequently than once every 72 hours, and in the case of manually prepared vouchers, weekly, but not later than ten days after transaction date. Customer must keep copies of vouchers and summaries for a period of seven (7) years and supply Avfuel with duplicates if requested. 3. Upon receipt from Customer of a properly prepared voucher- together with any necessary summaries thereof on forms prescribed by Avfuel, Avfuel shall remit to Customer or, as Avfuel may elect, credit Customer's fuel purchase account with Avfuel, in an amount equal to the total face amount of all such vouchers less such discounts as applicable according to Avfuel's then current ARDS discount schedule, and any fees for AVTRIP point awards. 4. Customer acknowledges receipt of, and agrees to observe, Avfuel's current instructions for recording and processing credit transactions. Avfuel reserves the right to amend any and all instructions and to add new instructions from time to time, and Customer agrees to be bound by all such amendments and new instructions. Avfuel also reserves the right to issue new or revised forms, POS equipment, software and imprinters from time to time, and to issue instructions regarding their use to be effective upon five (5) days prior written notice. 5. Customer shall be solely liable and responsible for remittance of all taxes to the proper authorities regardless of whether charged to purchaser. Avfuel does not assume responsibility for the payment of any tax applicable to sales or other transactions resulting in credit card accounts receivable and Customer shall defend, indemnify and hold harmless Avfuel from any such claims. 6. Without limiting the generality of other provisions of this Agreement pertaining to charge backs, it is specifically understood and agreed that Avfuel may decline to accept or, if accepted, may subsequently charge back to Customer any voucher: 6.1. Where any of the required information is omitted or illegible; 6.2. That is imprinted or processed with an expired credit card; 6.3. Covering a purchase not authorized by the cardholder or involving fraud or any misuse of a credit card by the purchaser with or without Customer's knowledge; 6.4. Covering a transaction that has not been authorized by Avfuel or does not carry a valid authorization code; 6.5. Covering a transaction or series of related transactions (constituting in the reasonable opinion of Avfuel a single sale transaction) the aggregate face amount of that exceeds any of the single sale limitations to which the parties hereto may agree; 6.6. That becomes the subject of a dispute between Customer and purchaser; 6.7. Where the Authorized User has not received his copy of the voucher; 6.8. For which Customer has received or will receive any payment or reimbursement from any person other than Avfuel; 6.9. Where Customer has granted any right of ownership or security interest to any person other than Avfuel unless the invoice is accompanied by a written waiver of such interest; Attachment number 1 Page 8 of 11 Item # 9 FBO Aviation Fuel Supply Agreement Rev 4/10/08 &XVWRPHU¶V,QLWLDOV _________ Page 6 of 8 6.10. Presented by Customer to Avfuel more than ten (10) days after the transaction date; 6.11. If the transaction occurred after the date of expiration or termination of this Agreement; 6.12. Created by any person other than Customer, or in any transaction other than a transaction in which Customer has sold merchandise or services to a purchaser presenting his credit card for use in payment therefor; 6.13. That are charged back to Avfuel by a card issuer for any reason at all; or 6.14 That in any other manner does not conform to this Agreement or with $YIXHO¶VLQVWUXFWLRQVIRUUHFRUGLQJDQGSURFHVVLQJFUHGLWFDUGWUDQVDFWLRQV 7. In the event that a FKDUJHEDFNH[FHHGVWKHFUHGLWEDODQFHLQ&XVWRPHU¶VIXHO purchase account then carried by Avfuel, Customer agrees to pay such amounts within three (3) days after notice that such amounts are due. Upon reimbursement, title to the subject voucher and all indebtedness represented thereby shall pass to Customer. If any funds come into Avfuel's possession for any voucher that has previously been charged back to Customer, Avfuel will promptly credit the full amount thereof to Customer's account. Avfuel's charge back rights and rights of recourse against Customer shall survive the termination of this Agreement. 8. Cash advances may not be charged on any card. A single sale to any one purchaser resulting in one or more than one credit card voucher shall be specifically limited to quantities of fuel and lubricants not greater than the useful capacity of the aircraft, and shall only include fuels from stocks delivered by and purchased from Avfuel. 9. From time to time, Avfuel will send Customer a Credit Card Remittance Summary for Customer's information showing in such detail as Avfuel may deem DSSURSULDWHWKHWUDQVDFWLRQVDQGDPRXQWVWKDWKDYHEHHQFUHGLWHGWR&XVWRPHU¶V account or paid to Customer during the period since the last report. The failure of Avfuel to furnish any such Report shall not relieve Customer of any obligations hereunder. Customer agrees to review all such Reports promptly after receipt. In any event, Customer shall be solely responsible for making sure that it has received proper payment for each transaction submitted. Customer shall have forty-five days (45) days from the date of a transaction to provide Avfuel Notice that the transaction has not been properly accounted for or that payment has not been received. If no such notice is given, such transaction shall be conclusively presumed to have been settled and closed. 10. Avfuel reserves the right to amend, suspend, or terminate the program at any time. Customer may withdraw from this Program upon 60 days Notice to Avfuel. See Section 14 of the General Terms and Conditions regarding Notices. 7HUPLQDWLRQRI&XVWRPHU¶VSDUWLFLSDWLRQLQWKLV3URJUDPVKDOOQRWEHFRQVWUXHGDVWHUPLQDWLQJWKH$JUHHPHQWRU&XVWRPHU¶VSDUWLFLSDWLRQLQDQ\RWKHU3URJUDP CONTRACT FUEL DEALER PROGRAM: ,)&86720(5+$6(/(&7('723$57,&,3$7(,1$9)8(/¶6 CONTRACT FUEL DEALER PROGRAM, THE FOLLOWING WILL APPLY. 1. &XVWRPHUKDVEHHQLQYLWHGDQGKDVHOHFWHGWRSDUWLFLSDWHLQ$YIXHO¶V&RQWUDFW)XHO'HDOHU3URJUDP WKH³&)'3URJUDP´ $FFRUGLQJO\&XVWRPHUDJUHHVWRVHOODQGGHOLYHUWRFOLHQWVZKRSDUWLFLSDWHLQ$YIXHO¶V&RQWUDFW)XHO3URJUDP WKH³&)&V´RUD&)&´DV the context may require) aviation fuel supplied by Avfuel and other products and services supplied by the Customer. A CFC is a person or HQWLW\WKDWKDVH[HFXWHGD&RQWUDFW)XHO8VHU¶V$JUHHPHQWZLWK$YIXHORUWKDWLV specifically authorized in writing, in accordance with authorization procedures established from time to time by Avfuel, to purchase aviation fuel and other products and services. The Customer will secure authorization from Avfuel before completing a sale to a CFC and the failure to obtain such authorization PD\UHVXOWLQ$YIXHO¶VGLVKRQRURIWKHLQYRLFHIRUWKDWVDOH 2. Subject to agreement between Customer and Avfuel, Products supplied hereunder shall be supplied from either Avfuel inventory on site or from Customer inventory. If, as a convenience to Customer, Avfuel maintains LQYHQWRU\ DW &XVWRPHU¶V IDFLOLW\ WKHQ &XVWRPHU DJUHHV WR WKH IROORZLQJ D &XVWRPHUVKDOOPHDVXUH$YIXHO¶VLQYHQWRU\DQGUHFRQFLOHWKDWLQYHQWRU\DWOHDVW monthly. Reconciliation reports, in a form satisfactory to Avfuel, shall be delivered to Avfuel no later than the 5th day following the end of each month. b) Gains and losses shall be allocated proportionally to the parties sharing the storage facility based on receipts of fuel during the month and losses shall be limited to no more than ¼% of total receipts for per annum. Book inventory shall be adjusted to coincide with actual inventory each month. c) Unless the Products are contaminated by an act or omission of Dealer, Avfuel will be liable if the Products do not conform to specifications. If the Products are supplied IURPWKH&XVWRPHU¶VLQYHQWRU\WKH&XVWRPHUZLOOEHOLDEOHLIWKH3URGXFWVGRQRWFRQIRUPWRVSHFLILFDWLRQVG &XVWRPHUVKDOOPDLQWDLQ$YIXHO¶VLQYHQWRU\OHYHO in accordance with Avfuel¶V JXLGHOLQHV DQG VKDOO VSHFLI\ ZKHQ RUGHULQJ IXHOZKHWKHUWKDWIXHOLVIRU&XVWRPHU¶VRU$YIXHO¶VLQYHQWRU\ ZKLFKLVVXEMHFWWR approval by Avfuel). 3. Under the CFD Program, all aviation fuel delivered by the Customer to a CFC will be deemed sold by Avfuel and will be at the prices and terms independently established between Avfuel and the CFC If Avfuel maintains an inventory of DYLDWLRQ IXHO DW WKH &XVWRPHU¶V IDFLOLWLHV WKHQ DYLDWLRQ IXHO VXSSOLHG E\ WKH&XVWRPHUWR&)&VZLOOEHGUDZQIURP$YIXHO¶V inventory. If Avfuel does not PDLQWDLQDQLQYHQWRU\RIDYLDWLRQIXHODWWKH&XVWRPHU¶VIDFLOLWLHVWKHQDYLDWLRQIXHOVXSSOLHGWRD&)&LVGUDZQIURPWKH&XVWRPHU¶VLQYHQWRU\DQG$YIXHOZLOO account for that aviation fuel by issuing a credit to the Customer equal to the &XVWRPHU¶VFRVWIRUWKDWDYLDWLRQIXHOLQFOXGLQJDSSOLFDEOHWD[HVEDVHGXSRQWKH&XVWRPHU¶VFRVWIRUWKHODVWORDGRIDYLDWLRQIXHOSXUFKDVHGIURP$YIXHOSULRUWR the date of supply to the CFC. 4. The charges for all aviation fuel supplied to the CFC will be payable solely to Avfuel. Avfuel will be responsible for collecting and remitting any taxes imposed thereon by any local, state or federal taxing authority. Avfuel will invoice and collect those charges and taxes from the CFC. 5. ,Q DOO VDOHV RI DYLDWLRQ IXHO GUDZQ IURP $YIXHO¶V LQYHQWRU\ WLWOH WR WKDW aviation fuel will be retained by Avfuel until the point in time that the aviation fuel enters into the aircraft of the CFC, at which point in time title will pass to the CFC. ,QDOOVDOHVRIDYLDWLRQIXHOGUDZQIURP&XVWRPHU¶VLQYHQWRU\WLWOHWR that aviation fuel will be retained by the Customer until the point in time that the aviation fuel enters into the aircraft of the CFC, at which point in time title will pass instantaneously first to Avfuel and then to the CFC. The risk of loss or contamination of aviation fuel will be borne at each point in time by the party who or which holds title to that aviation fuel at that point in time. If, while Avfuel holds title, any aviation fuel is lost or contaminated as a result of the acts or omissions of the Customer, then the Customer will be liable to Avfuel for that loss or contamination. 6. If the Customer provides any services or products other than aviation fuel to the CFC for which a fee is charged, such other products and services will be GHHPHGVROGE\WKH&XVWRPHUDQGZLOOEHDWWKH&XVWRPHU¶VQRUPDOO\HVWDEOLVKHG rates. Such other products may include, without limitation, lubricants, spare parts, food and other amenities. Such other services may include, without limitation, flowage fees, tie-down services, into-wing services, catering services and similar services that expedite deliveries and facilitate arrangements for the &)&1RFDVKDGYDQFHVZLOOEHSHUPLWWHGDV³RWKHUSURGXFWVRUVHUYLFHV´7KH Customer will supply all such other products or services as an independent contractor to the CFC and not as an agent or a subcontractor of Avfuel. 7. All other products and services that are supplied by Customer to CFCs will be provided in accordance with procedures and quality standards that are commercially reasonable and that comply with all legal requirements in the MXULVGLFWLRQZKHUHWKH&XVWRPHU¶VIDFLOLWLHVDUHORFDWHG&XVWRPHUZLOOEHVROHO\ liable if such other products and services do not conform to such standards, procedures or requirements. 8. The charges for all other products and services supplied by the Customer to the CFC will be payable solely to the Customer. The Customer will be responsible for collecting and remitting any taxes imposed thereon by any local, state or federal taxing authority. Customer may directly invoice and collect such FKDUJHVIURPWKH&)&$OWHUQDWLYHO\DWWKH&XVWRPHU¶VRSWLRQ&XVWRPHUPD\ assign to Avfuel for collection the account receivable from the CFC for other SURGXFWVDQGVHUYLFHVVXSSOLHGE\WKH&XVWRPHU D³&)&5HFHLYDEOH´ ,IWKH Customer assigns a CFC Receivable to Avfuel, then Avfuel will issue a credit to WKH&XVWRPHU¶VDFFRXQWIRUWKHDPRXQWRIWKDW&)&5HFHLYDEOHDnd Avfuel will thereafter invoice, collect and retain those charges from the CFC. 9. Any fees for any services supplied by the Customer in the delivery of aviation fuel to a CFC, including, without limitation any flowage fees or into-wing fees, will be earned by the Customer only after it has completed delivery of the entire load of aviation fuel into the aircraft of the CFC and title to that aviation fuel has passed to the CFC. Initial into-wing fees are established in the Special Terms and Conditions and Customer may change those fees upon seven (7) days written notice to Avfuel. Attachment number 1 Page 9 of 11 Item # 9 FBO Aviation Fuel Supply Agreement Rev 4/10/08 &XVWRPHU¶V,QLWLDOV _________ Page 7 of 8 10. &XVWRPHUZLOOJHQHUDWHDZULWWHQUHFRUG D³7LFNHW´ RIDOODYLDWLRQIXHOVXSSOLHG WR D &)& DW WKH &XVWRPHU¶V IDFLOLW\  (DFK 7LFNHW ZLOO LQFOXGH WKHIROORZLQJLQIRUPDWLRQWKH&)&¶VQDPHWKHDXWKRUL]DWLRQQXPEHUSLORW¶VQDPH aircraft registration number; flight or ID number provided by the CFC if applicable, transaction date(s); and type and quantity of fuel products provided, as measured in U.S. gallons. In addition, if the Customer assigns to Avfuel the CFC Receivable for other products and services supplied by the Customer to the CFC, the Customer will include in the Ticket the type and quantity of such other products or services and the charges payable by the CFC for such other products or services. Any charges for such other products or services must be separately stated and clearly identified as fees charged by the Customer that are separate from and independent of the amounts charged by Avfuel for aviation fuel. The pilot or other responsible representative of the CFC shall sign and be given a copy of the completed Ticket. 11. The Ticket (or all information required to be shown on the Ticket) for each sale to a CFC shall be delivered to Avfuel by POS Transmission or facsimile within twenty-four (24) hours following the completion of that sale. The original Tickets shall be kept on file by Customer for a period of five (5) years from the invoice date and will be sent to Avfuel upon request. Avfuel will from time to time provide Customer with instructions for processing these transactions and may provide the forms for doing so. Avfuel reserves the right to change these procedures upon seven (7) days written notice to Customer. 12. The total amount due with respect to each Ticket shall be paid or credited to &XVWRPHU¶VE\$YIXHOZLWKLQGD\VIROORZLQJ$YIXHO¶VUHFHLSWRIWKH7LFNHW 13. Except as provided herein, all Tickets will be accepted by Avfuel without recourse. The exceptions are: a) Customer warrants the validity of all charges, and any charge that is disputed by the CFC, correctly or incorrectly, on grounds that the charge is invalid or inaccurate or that the aviation fuel, products or services supplied were unsatisfactory may be charged back to Customer at $YIXHO¶VRSWLRQE FKDUJHVQRWSUHYLRXVO\DXWKRUL]HGE\$YIXHOPD\EHFharged EDFN WR &XVWRPHU DW $YIXHO¶V RSWLRQ DQG F  DQ\ 7LFNHW WKDW LV LQFRPSOHWHLOOHJLEOHRULVRWKHUZLVHQRWSUHSDUHGLQDFFRUGDQFHZLWK$YIXHO¶VSURFHVVLQJ instructions may be charged back to Customer at Avfuel's option. 14. Avfuel reserves the right to amend, suspend, or terminate the CFD Program at any time. Customer may withdraw from the CFD Program at any time upon 60 days Notice to Avfuel. See Section 14 of the General Terms and Conditions UHJDUGLQJ 1RWLFHV  7HUPLQDWLRQ RI &XVWRPHU¶V SDUWLcipation in this Program VKDOOQRWEHFRQVWUXHGDVWHUPLQDWLQJWKH$JUHHPHQWRU&XVWRPHU¶VSDUWLFLSDWLRQ in any other Program. AVSURANCE PRIMARY COMMERCIAL INSURANCE PROGRAM: IF CUSTOMER HAS ELECTED TO PARTICIPATE IN THE AVSURANCE PRIMARY COMMERCIAL INSURANCE PROGRAM, THE FOLLOWING WILL APPLY. 1. Customer has been invited to, and has elected to, participate in the Avsurance Primary Commercial Insurance Program. 2. Customer agrees to file an application and request for a quote for all insurance policies related to its aviation business. All price quotes from Avsurance contain Avsurance proprietary information, are confidential, and may not be disclosed to any person other than employees and agents of Customer with a bona fide need to have such information and that have signed a non-disclosure agreement that is satisfactory to Avsurance. 3. Customer may accept or reject any quote for an individual policy, and the acceptance of any specific quote shall not be conditioned on the acceptance of any other quote. 4. 8SRQ&XVWRPHU¶VDFFHSWDQFH$YVXUDQFHZLOOELQGWKHFRYHUDJHDQGKDYHWKH policy issued in due course. 5. Avfuel reserves the right to amend, suspend, or terminate the program at any time. Termination of this Program shall not be construed as terminating the $JUHHPHQWRU&XVWRPHU¶VSDUWLFLSDWLRQLQDQ\RWKHU3URJUDP EQUIPMENT LEASE: ,)&86720(5+$6(/(&7('723$57,&,3$7(,1$9)8(/¶6 EQUIPMENT LEASING PROGRAM, THE FOLLOWING WILL APPLY. 1. &XVWRPHUKDVHOHFWHGWRSDUWLFLSDWHLQ$YIXHO¶V(TXLSPHQW/HDVH3URJUDP Accordingly, Avfuel, either for its own account or through one of its subsidiaries, agrees to deliver and lease the equipment identified in the Special 7HUPVDQG&RQGLWLRQV WKH³(TXLSPHQW´ DWWKHOHDVHUDWHVVKRZQLQWKH6SHFLDO Terms and Conditions to Customer for its sole use. All additional equipment or replacement equipment delivered to Customer but not listed in the Special Terms and Conditions shall also constitute Equipment subject to the provisions of this section. For example, Customer may lease POS equipment from Avfuel at the then current lease price. Customer hereby agrees to pay Avfuel in advance the monthly lease payments prorated for any partial month. Avfuel may increase the rent during the term of the Lease upon 30 days written notice. Customer shall be permitted to notify Avfuel within the first 15 days of that notice period of its intention to terminate the lease effective on the date that the increase goes into effect. If Avfuel rescinds the rate increase, the lease shall continue in effect at the then current rates. If it does not rescind the increase, the lease shall expire on the date the increase goes into effect. Unless otherwise agreed, the term of the OHDVHRIHDFKLWHPRI(TXLSPHQW D³/HDVH´ VKDOOFRUUHVSRQGWRWKHWHUPRIWKLV Agreement. 2. Customer shall inspect the Equipment and shall make a written note as to any defects that are observed. A copy of all such notes shall be faxed to Avfuel within forty eight (48) hours of delivery. Upon termination of a Lease, Customer shall return the Equipment, freight prepaid to Avfuel's place of business in Ann Arbor, Michigan in as good condition as when Customer received it, normal wear and tear accepted. Failure to return the Equipment shall be deemed a breach of this Agreement and Customer will be billed for necessary repairs and the replacement of missing equipment. 3. Avfuel warrants that it has all necessary rights to lease said Equipment to Customer. Further, the parties agree that as between themselves, Avfuel has title to the Equipment and Customer shall keep the Equipment free of liens and shall not do or permit anything to be done that will prejudice the title of Avfuel, or it's rights in the Equipment. Each item of Equipment shall bear a legend denoting it as the property of Avfuel and Customer shall not remove or deface that legend under any circumstances. Customer also agrees and understands that Avfuel may file such evidence of its ownership of the equipment as may be necessary in the state where the equipment is located. AVFUEL MAKES NO OTHER WARRANTY, EXPRESS OR IMPLIED, REGARDING DEFECTS IN MATERIAL, WORKMANSHIP, DESIGN, CAPACITY, MERCHANTABILITY OR FITNESS OF THE EQUIPMENT FOR ANY PURPOSE, OR WHICH EXTEND BEYOND THE DESCRIPTION OF THE EQUIPMENT THAT APPEARS IN THE SPECIAL TERMS AND CONDITIONS. 4. Any of the Equipment that is used to store or transport Products shall be used solely for storing or transporting Products supplied to Customer under this Agreement. The Equipment shall not be moved from the facility to which it was delivered nor operated on any public road without the prior written consent of Avfuel. Customer will comply with all laws, ordinances and regulations applicable to the possession, operation or use of the Equipment and will demonstrate compliance upon request. 5. The maintenance obligations with regard to the Equipment are as follows. 5.1. Except as set forth in Section 5.2 below, Customer will maintain the Equipment in as good a condition as it was on the day of delivery, normal wear and tear excepted. Customer shall, at its sole expense, provide all preventative maintenance (including but not limited to lubrication, oil and filter changes, etc.), repairs, and replacement parts as are necessary to preserve the Equipment in good operating condition and in compliance and in conformity with all laws, rules, regulation, and industry standards which are applicable to the operation of the Equipment. Customer shall also be responsible for all tire maintenance, repair, and replacement. CHANGING A TIRE ON A REFUELER TRUCK IS VERY DANGEROUS AND MUST NOT BE ATTEMPTED BY UNTRAINED PERSONNEL. CUSTOMER AGREES THAT IT WILL PERMIT TIRES TO BE CHANGED ONLY BY AN OUTSIDE CONTRACTOR WHO IS PROFESSIONALLY TRAINED TO DO SUCH WORK. Customer shall keep complete and accurate maintenance records and Avfuel is entitled to inspect the Equipment and the maintenance records at any WLPHGXULQJUHJXODUEXVLQHVVKRXUV$W$YIXHO¶VRSWLon, any item of repair or maintenance that would be the responsibility of Customer may be performed by Avfuel and billed back to Customer as additional rent. Customer shall not make any alterations or modifications to the Equipment of any kind including but not limited to painting, mounting of radios or antennas, applying decals or lettering without the prior express written consent of Avfuel. Attachment number 1 Page 10 of 11 Item # 9 FBO Aviation Fuel Supply Agreement Rev 4/10/08 &XVWRPHU¶V,QLWLDOV _________ Page 8 of 8 5.2 Avfuel shall be responsible for the following refueler truck repairs when, in its opinion, repair is necessary: overhauls or replacement of the engine, transmission, differential, or belly valve. Avfuel shall be permitted access to the Equipment at any reasonable time in order to perform the repairs and modifications, which are its obligation hereunder. Repairs and maintenance to be performed by Avfuel shall be completed within a reasonable time after it learns of the need for such repairs. Avfuel assumes no responsibility for loss of use or any other items of ancillary damage, which may be caused by, or result to Customer by reason of the fact that the Equipment becomes inoperable. If any such repair or maintenance is required as the result of intentional conduct, negligence, or failure to perform repair or maintenance on the part of Customer or any of Customer's agents or employees, Customer shall be liable for all costs associated with performing such repairs and/or maintenance. 6. Customer shall be responsible for all Federal, State, and Local taxes, fees, etc. that are assessed on the use or value of the Leased Equipment, including but not limited to, personal property, sales, and use taxes. 7. CUSTOMER AGREES TO INDEMNIFY AND HOLD AVFUEL AND/OR THE OWNER OF THE EQUIPMENT HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, LIABILITIES, LOSSES, EXPENSES (INCLUDING ATTORNEY'S FEES), OBLIGATIONS AND CAUSES OF ACTION FOR INJURY TO OR DEATH OF ANY AND ALL PERSONS, OR FOR DAMAGE TO OR DESTRUCTION OF ANY OR ALL PROPERTY ARISING OUT OF OR RESULTING FROM THE CONDITION, EXISTENCE, USE OR MAINTENANCE OF THE EQUIPMENT. Attachment number 1 Page 11 of 11 Item # 9 Attachment number 2 Page 1 of 1 Item # 9 Attachment number 3 Page 1 of 1 Item # 9 Attachment number 4 Page 1 of 1 Item # 9 December 29,2008 Ms. Geri A. Sams, Procurement Director 530 Green Street, Room 605 Augusta, Georgia 3090 1 Dear Geri, Subject: Recommendation for awarding Bid Item# 08-1744 Aviation Fuel Supplier for Augusta Regional Airport. An evaluation committee of personnel hm the Augusta Regional Airport at Bush Field and the Procurement Department has concluded the bid evaluation process for the selection of an Aviation Fuel Supplier for Augusta Regional Airport. The committee reviewed proposals from Avfuel Corporation, Conoco-Phillips, Eastern Aviation, and Western Pefroleum. Atter review of the compliant proposals, Avfuel Corporation received the most points as providing the most services for the best cost. Avfuel Corporation's bid was in compliance with the Augusta Georgia Procurement Department's bid requirements and fully met the airport's fuel supplier specifications without exceptions. The Augusta Aviation Commission approved the selection of AvfUel Corporation as the "p"'s fuel supplier on October 3om and ajproved Avfuel Co@on's contritct on Ikcember I I . The airport's legal counsel has approved the coniract. Therefore, I recommend that Ahel Cbqmlion be awarded the fuel supplier contract. Sincerely, / -- __-- C- --. Tammy S Interim Airport Director Augusta Regional Airport at Bush Field cc: Tim Weegar Bill Thompson Attachment number 5 Page 1 of 1 Item # 9 Attachment number 6 Page 1 of 2 Item # 9 Attachment number 6 Page 2 of 2 Item # 9 Attachment number 7 Page 1 of 1 Item # 9 Public Service Committee Meeting 1/12/2009 12:30 PM Exterior Painting at the Old Government House Department:Tom F. Beck, Director, Recreation and Parks Department Caption:Motion to approve Bid Item 08-159A, Exterior Painting at the Old Government House to Morris Insulation for $28,300. Background:Funding for improvements to the Old Government House have been approved and identified in SPLOST Phase V. Analysis:A total of 15 vendors were notified of this project. Four bids were received of which two (2) were deemed non-compliant by Procurement. Upon review, the low responsive bidder to meet spcifications (Morris Insulation) is being forwarded to the Commission for approval. Financial Impact:Funds are currently in place to cover the expenditures associated with this bid item. Alternatives:1. To Approve. 2. Move no action, thus delaying the much needed improvement project identified by staff. Recommendation:1. To Approve Bid Item 08-159A to Morris Insulation for $28,300. Funds are Available in the Following Accounts: SPLOST V 325061110-208065030 REVIEWED AND APPROVED BY: Finance. Procurement. Law. Administrator. Clerk of Commission Cover Memo Item # 10 Attachment number 1 Page 1 of 1 Item # 10 Attachment number 2 Page 1 of 1 Item # 10 Attachment number 3 Page 1 of 3 Item # 10 Attachment number 3 Page 2 of 3 Item # 10 Attachment number 3 Page 3 of 3 Item # 10 Attachment number 4 Page 1 of 1 Item # 10 Public Service Committee Meeting 1/12/2009 12:30 PM Limelight Cafe Department:Clerk of Commission Caption:Discuss placing the Limelight Cafe on probation for violating the Sunday sales revenue percentages. (Requested by Commissioner Bowles) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Clerk of Commission Cover Memo Item # 11 Public Service Committee Meeting 1/12/2009 12:30 PM Otis Elevator Contract Department:Augusta Regional Airport Caption:Motion to approve the contract between Otis and Augusta Regional Airport for maintenance of the two elevators in the main terminal leading to airport administration. Background:The elevators in the main terminal leading up to the administration office were installed last year and are still under warranty until November 28, 2008. At that time we will need to have a maintenance contract to provide any annual inspections of the elevators and the equipment attached to them as required by law. This contract will also insure if anything was to happen we will have someone respond in a timely manner and repair the equipment. These elevators were purchased through Otis, which makes them a sole source for the contract. Analysis:This contract is for 5 years with automatic renewals every five years unless notified 90 – 120 days prior to expiration. Financial Impact:$425.00 per month to be paid annually ($5,100) Alternatives:Deny request. Recommendation:Approve Request. Funds are Available in the Following Accounts: 551/5223111 $425 for remainder of 2008 REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 12 Public Service Committee Meeting 1/12/2009 12:30 PM Transit Rural Grant 5311 Department: Caption:Motion to renew the Sec. 5311 Rural Transit grant application between the Georgia Department of Transportation (GDOT) and Augusta, Georgia from July 2009 to June 2010. Background:The Augusta-Richmond County Commission annually approves Augusta Public Transit’s Sec. 5311 Rural Transit grant application to providing rural transportation service to the citizens of Augusta-Richmond County. Analysis:The renewal of this contract will allow Augusta Public Transit to continue providing rural transportation service to the citizens of rural Augusta- Richmond County. Financial Impact:The Augusta-Richmond County share of the budget for 2009 and ½ of 2010 should be approximately $126,704. Alternatives:None. By not approving this application, citizens of rural Augusta- Richmond County will lose the only public transportation available to them. Recommendation:Approve the submission of the grant. Funds are Available in the Following Accounts: Rural Transit Budget for 2009 and ½ of 2010. REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 13 Attachment number 1 Page 1 of 1 Item # 13 Attachment number 2 Page 1 of 1 Item # 13 Attachment number 3 Page 1 of 1 Item # 13 Attachment number 4 Page 1 of 2 Item # 13 Attachment number 4 Page 2 of 2 Item # 13 Public Service Committee Meeting 1/12/2009 12:30 PM Transit Service Changes Department:Augusta Public Transit Caption:Motion to approve an increase in transit fares, elimination of transfers and elimination of Saturday service. Background:Augusta PublicTransit was mandated to increase revenue and decrease expenses by $1.5 million. Transit proposed to do this by the elimination of Saturday service, elimination of transfers and increase fares. When there is a call to increase fares, there is a mandate by the Federal Transit Administration that a public hearing be held. This hearing was held December 18, 2008 and approximately 225 people were in attendance. Analysis:There was an out cry to not eliminate Saturday service, or transfers. They were for the most okay with a fare increase. There has not been a fare increase since 2001. Financial Impact:Reduced expenses and increase fares. Alternatives:1. To maintain Transit services as is. 2. To modify the changes that was proposed. Recommendation:Approve the proposed changes. Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 14 Public Service Committee Meeting 1/12/2009 12:30 PM W. McKellar Logging Contract Department:Augusta Regional Airport Caption:Approve request for the approval of the contract between W. McKellar Logging and Augusta Regional Airport for the removal of trees impeding the view of the approach end of runway 26. Background:Several years ago the airport purchased land across from the river to protect the approach end of runway 26 from and development of high rise buildings etc. Since the purchase, the trees on the property have grown and have begun to impede the veiw of the aircraft landing on the runway from that direction. It was recommended that these trees be trimmed to a lower slope for safety purposes. The aiprort put out an RFP to have the trees removed from this. The Augusta Aviation Commission at their August 28, 2008 meeting approved W. McKellar Logging as the company to remove the trees. Analysis:The removal of these trees will remove any visible obstructions from the pilots on their approach and satisfy the FAA's safety requirements. Financial Impact:The cost of the tree removal is $40,000 of which the airport will apply for a grant to cover 95%. Alternatives:Deny request. Recommendation:Approve request. Funds are Available in the Following Accounts: 551 08 1301-5412110 REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Cover Memo Item # 15 &w&bPage AGREEMENT FOR SERVICE THIS AGREEMENT FOR SERVICE (this "Agreement") dated this 12th day of August, 2008 BETWEEN City of Augusta/ Augusta Regional Airport Richmond County Georgia Accounting Department-Room 105 City-Municipal Building 530 Green St, Augusta, Georgia, 30901 (the "Customer") OF THE FIRST PART -AND- William McKellar of 5151 Hwy 220 West, Lincolnton, Georgia, 30817 (the "Service Provider") OF THE SECOND PART BACKGROUND: A. The Customer is of the opinion that the Service Provider has the necessary qualifications, experience and abilities to provide services to the Customer. B. The Service Provider is agreeable to providing such services to the Customer on the terms and conditions set out in this Agreement. IN CONSIDERATION OF the matters described above and of the mutual benefits and obligations set forth in this Agreement, the receipt and sufficiency of which consideration is hereby acknowledged, the parties to this Agreement agree as follows: Services Provided 1. The Customer hereby agrees to engage the Service Provider to provide the Customer with services (the "Services") consisting of Cut down and remove several hundred of trees on airport property located on the South Carolina side on the Savannah River and cut down and remove dozens of trees on the Georgia side of the Savannah River ( apporach end of Runway 26 ). The Services will also include any other tasks which the parties may agree on. The Service Provider hereby agrees to provide such Services to the Customer. Term of Agreement 2. The term of this Agreement will begin on the date of this Agreement and will remain in full force and effect until the completion of the Services, subject to earlier termination as provided in this Agreement, with the said term being capable of extension by mutual written agreement of the parties. Performance 3. The parties agree to do everything necessary to ensure that the terms of this Agreement take effect. Compensation 4. For the services rendered by the Service Provider as required by this Agreement, the Customer will pay to &u& Attachment number 1 Page 1 of 4 Item # 15 &w&bPage the Service Provider compensation amounting to $40000.00. 5. This compensation will be payable upon completion of the agreed to services. 6. The Customer is entitled to deduct from the Service Provider's compensation any applicable deductions and remittances as required by law. Confidentiality 7. The Service Provider agrees that they will not disclose, divulge, reveal, report or use, for any purpose, any confidential information with respect to the business of the Customer, which the Service Provider has obtained, except as may be necessary or desirable to further the business interests of the Customer. This obligation will survive indefinitely upon termination of this Agreement. Non-Competition 8. Other than with the express written consent of the Customer, which will not be unreasonably withheld, the Service Provider will not, during the continuance of this Agreement, be directly or indirectly involved with a business which is in direct competition with the particular business line of the Customer, divert or attempt to divert from the Customer any business the Customer has enjoyed, solicited, or attempted to solicit, from other individuals or corporations, prior to termination of this Agreement. Non-Solicitation 9. Any attempt on the part of the Service Provider to induce to leave the Customer's employ, or any effort by the Service Provider to interfere with the Customer's relationship with its employees or other service providers would be harmful and damaging to the Customer. Ownership of Materials 10. All materials developed, produced, or in the process of being so under this Agreement, will be the property of the Service Provider. 11. The Service Provider may retain use of the said materials and will be responsible for damages resulting from their use for work other than services contracted for in this Agreement. Return of Property 12. Upon the expiry or termination of this Agreement, the Service Provider will return to the Customer any property, documentation, records, or confidential information which is the property of the Customer. Assignment 13. The Service Provider will not voluntarily or by operation of law assign or otherwise transfer its obligations under this Agreement without the prior written consent of the Customer. Capacity/Independent Contractor 14. It is expressly agreed that the Service Provider is acting as an independent contractor and not as an employee in providing the Services under this Agreement. The Service Provider and the Customer acknowledge that this Agreement does not create a partnership or joint venture between them, and is exclusively a contract for service. Modification of Agreement &u& Attachment number 1 Page 2 of 4 Item # 15 &w&bPage 15. Any amendment or modification of this Agreement or additional obligation assumed by either party in connection with this Agreement will only be binding if evidenced in writing signed by each party or an authorized representative of each party. Notice 16. All notices, requests, demands or other communications required or permitted by the terms of this Agreement will be given in writing and delivered to the parties of this Agreement as follows: a. City of Augusta/ Augusta Regional Airport Richmond County Georgia Accounting Department-Room 105 City-Municipal Building 530 Green St, Augusta, Georgia, 30901 b. William McKellar 5151 Hwy 220 West, Lincolnton, Georgia, 30817 Fax Number: 706-359-1259 Email: shrnbryn@yahoo.com or to such other address as to which any Party may from time to time notify the other. Costs and Legal Expenses 17. In the event that legal action is brought to enforce or interpret any term of this Agreement,both parties will each be responsible for their own costs and fees associated with the action. Time of the Essence 18. Time is of the essence in this Agreement. No extension or variation of this Agreement will operate as a waiver of this provision. Entire Agreement 19. It is agreed that there is no representation, warranty, collateral agreement or condition affecting this Agreement except as expressly provided in this Agreement. Limitation of Liability 20. It is understood and agreed that the Service Provider will have liability to the Customer or any other party for any loss or damage (whether direct, indirect, or consequential) which may arise from the provision of the Services. Indemnification 21. The Service Provider will indemnify and hold the Customer harmless from any claims against the Customer by any other party, arising directly or indirectly out of the provision of the Services by the Service Provider. Enurement 22. This Agreement will enure to the benefit of and be binding on the parties and their respective heirs, executors, administrators, successors and permitted assigns. &u& Attachment number 1 Page 3 of 4 Item # 15 &w&bPage Currency 23. Except as otherwise provided in this Agreement, all monetary amounts referred to in this Agreement are in United States dollars. Titles/Headings 24. Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement. Gender 25. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa. Governing Law 26. It is the intention of the parties to this Agreement that this Agreement and the performance under this Agreement, and all suits and special proceedings under this Agreement, be construed in accordance and overned to the exclusion of the law of an other forum b the laws of the State of Georia wit It s the intention of the parties to this Agreement that this Agreement and the performance under this Agreement, and all suits and special proceedings under this Agreement, be construed in accordance with and governed, to the exclusion of the law of any other forum, by the laws of the State of Georgia, withou regard to the jurisdiction in which any action or special proceeding may be instituted. Severabilit 27. In the event that any of the provisions of this Agreement are held to be invalid or unenforceable in whole or in part, all other provisions will nevertheless continue to be valid and enforceable with the invalid or unenforceable parts severed from the remainder of this Agreement. Waiver 28. The waiver by either party of a breach, default, delay or omission of any of the provisions of this Agreement by the other party will not be construed as a waiver of any subsequent breach of the same or other provisions. IN WITNESS WHEREOF the parties have duly executed this Service Agreement this 1 1th day of December, 2008. SIGNED, SEALED AND DELIVERED in the presence of Qr\ J\ft .Ui Witness O William McKellar City of Augusta/ Augusta Regional Airport Per: (Corp seal) Witness ©2002-2008 LawDepot™ &u& Attachment number 1 Page 4 of 4 Item # 15 4 Regional Airport Augusta Aviation Commission August 28,2008 Minutes Commission: Mr. Cedric Johnson, Mr. Frank Bowman, Ms. Lourdes Coleman, Mr. Lowell Dom, Rev. Karlton Howard, Mr. Jim Jatho, and Mr. Bernard Silverstein Absent: Ms. Venus Cain, Mr. Brad Kyzer, Ms. Jacinda Norvell, and Mr. Joe L. Scott Staff: Ms. Tamrny Strange, Mr. Tim Weegar, Ms. Diane Johnston, Ms. Vishakha Vyas, Mr. Tommy Story, Sgt. Steve Johnson, Mr. Bill Thompson, and Ms. Julie Orwen Others: Ms. Stephanie Jones, Attorney; Ms. Bonnie Cox, CB&H; Mr. Jack Mayfield, Campbell & Paris; Mr. Don Blessing, Airport Consultant; Mr. Michael Rorick, Columbia County Airport Authority/LEPC Committee; Mr. George Eskola, News 6 WJBF Mr. Johnson opened the meeting at 10: 10 a.m. with Rev. Howard saying prayer. Mr. Johnson asked if there was any additions or deletions to August 28, 2008 Meeting Agenda and requested the audit report by Ms. Bonnie Cox of Cherry Bekaert & Holland, LLP, a Memorandum of Agreement regarding Global Medic, and the US Department of Energy Contract - Option One be added. Motion: Motion made by Mr. Silverstein and seconded by Mr. Jatho to approve the August 28, 2008 Aviation Commission Meeting Agenda with the addition of the audit report by Ms. Bonnie Cox of CB&H, a Memorandum of Agreement regarding Global Medic, and the US Department of Energy Contract - Option One was approved. Attachment number 2 Page 1 of 4 Item # 15 Augusta Aviation Commission ~&utes of August 28,2008 Page 2 of 4 1. Consent Agenda Mr. Johnson asked for any additions or deletions to the August 28, 2008 Aviation Commission Consent Agenda. Motion: Motion made by Mr. Silverstein and seconded by Rev. Howard to approve the August 28, 2008 Aviation Commission Consent Agenda, items 1A through 1E and authorize the Chairman to sign the minutes of their July 3 1,2008 Meeting was approved. Ms. Bonnie Cox presented the 2007 Audit Report stating that the airport staff was doing a great job handling the finances. The operating revenues, which are controlled by the increase or decrease in fuel sales, are up almost $400,000. 2. Terminal Construction Project Update, Mr. Don Blessing Mr. Blessing updated the Commission on the progress of the terminal stating Phase 3 was 98% complete and Phase 4 90%, including the gardens and electrical issues. It wil.1 be approximately three to four weeks until they are completely done which includes the punch list. The biggest delays are ordering the necessary items to complete the project. Fuel costs have minimized shipping. 3. July 2008 Financial Statements Ms. Vyas briefed the Commission regarding the July 2008 financials stating that the operations are doing well with enplanements up 25.5% and total passengers up 26% from July 2007. Enplanements are up 11% over last year. Operating income YTD is approximately $2,284,000, almost $19,000 higher than last year at this time. YTD net income is approximately $2,491,000, with net income hm the sale of he1 approximately $2,061,000. Capital expenses paid YTD is approximately $1,831,000. Aged receivables are up to date. Motion: Motion made by Mr. Jatho and seconded by Ms. Coleman to accept the July 2008 Financial Statements as presented by Vishakha Vyas was approved. 4. Airfield Signage Rehabilitation Project Contract This contract was awarded to Walker & Whiteside, Inc. by the Augusta Aviation Commission at their June 26, 2008 meeting with the recommendation that it be brought back before the Commission after legal review and approval. The total cost of the project is $282,286.00 and has been programmed for 95% funding by the FAA, 2.5 % by the GDOT, and 2.5% by the airport. Attachment number 2 Page 2 of 4 Item # 15 Attachment number 2 Page 3 of 4 Item # 15 Augusta Aviation Commission Minutes of August 28,2008 Page 4 of 4 It was requested that Mr. Weegar check for grants to assist with the cost of the project and Ms. Strange set a meeting up (date, time, and location) with Mr. Fred Russell, City Administrator to discuss the issue and determine what can actually be done considering the season is upon us again. Ms. Strange also informed the Commission that the Operations Center is now up and running. 9. Other Business - Aviation Commission Chairman, Cedric Johnson With no other business, the meeting was adjourned at 11:03 a.m. Motion: Motion made by Mr. Silverstein seconded by Mr. Jatho to adjourn the meeting was approved. (A Q& Chairperson, ~u6sta Aviation Commission ~/a~~/aod < Date Attachment number 2 Page 4 of 4 Item # 15