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HomeMy WebLinkAbout08 201 Municipal Airport Service Agreement (Evans Aviation) By-Law e e e e THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE BY-LAW NO. 2008 - 201 BEING A BY-LAW TO AUTHORIZE THE SIGNING OF A SERVICE AGREEMENT WITH 1681777 ONTARIO INC. (EVANS AVIATION) FOR THE OPERATION OF THE MUNICIPAL AIRPORT WHEREAS Section 8 (1) of the Municipal Act, 2001, S.O. 2001, c. 25, as amended, provides that the powers of a municipality under this or any other Act shall be interpreted broadly so as to confer broad authority on the municipality to enable the municipality to govern its affairs as it considers appropriate and to enhance the municipality's ability to respond to municipal issues; AND WHEREAS pursuant to the said Municipal Act, Section 9 provides that a municipality has the capacity, rights, powers and privileges of a natural person for the purpose of exercising its authority under this or any other Act; AND WHEREAS Section 110 of the said Municipal Act, authorizes municipalities to enter into agreements for the provision of municipal capital facilities by any person; AND WHEREAS the Municipality of Kincardine is the owner of the Municipal Airport, located on the west side of Highway #21 in the Municipality of Kincardine; AND WHEREAS The Corporation of the Municipality of Kincardine deems it advisable to enter into a service agreement with 1681777 Ontario Inc. (Evans Aviation) for the operation of the Municipal Airport for a period of 3 years from the 1st day of January 2009 to the 31st day of December 2011; NOW THEREFORE the Council of The Corporation of the Municipality of Kincardine ENACTS as follows: 1. That The Corporation of the Municipality of Kincardine enter into a service agreement with 1681777 Ontario Inc. (Evans Aviation) for the operation of the Municipal Airport, in accordance with the terms and conditions outlined in the agreement attached hereto as Schedule 'A' and forming part of this by-law. 2. That the Mayor and CAO be authorized to sign, on behalf of The Corporation of the Municipality of Kincardine, the Agreement with 1681777 Ontario Inc. (Evans Aviation) attached to this by-law and to affix the corporate seal as and when required. 3. That this by-law shall come into full force and effect upon its final passage. 4. That this by-law may be cited as the "Municipal Airport Service Agreement (Evans Aviation) By-law". .../2 Page 2 Municipal Airport Service Agreement (Evans Aviation) By-law" By-law No. 2008 - 201 e READ a FIRST and SECOND time this 1ih day of December, 2008. e e e ~'i~oi.t Clerk Schedule 'A' to By-law No. 2008-201 Airport Service Provider's Contract This AGREEMENT made this Jr:'day of ~ 2008 . BETWEEN: THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE Hereinafter called the "Municipality" Of the Fi rst Part, -And- 1681777 Ontario Inc. ( Evans Aviation) Hereinafter called "Contractor" Of the Second Part WHEREAS the Municipality owns the Municipal Airport (hereinafter called the Airport) located on the west side of Highway #21 in the Municipality of Kincardine, and which consists of generally the following: runways, taxiway, apron, grassed area, hangar, terminal, navaid equipment and fuel facilities; AND WHEREAS the Municipality agrees to hire a Contractor to provide airport services at the Kincardine Airport and has directed that a Contract Agreement be enacted; NOW THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration of the premises and of the covenants and agreements hereinafter contained and other goods and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1.0 RESPONSIBILITIES OF THE CONTRACTOR 1.1 shall be responsible for all labour requirements of this Contract and complete maintenance, operation and services provided at the airport facility. 1.2 will provide fuel sales during the regular business day (hours to be determined on a seven day cycle) and make arrangements for after- hours sales. Contractor will deposit all fuel receipts directly with the Municipality and supply all information on fuels to the Finance Department. Contractor will maintain records of all fuel sales and inventory and conduct inspections as required under the Gasoline Handling Act of Ontario and/or other applicable Acts. 1.3 will be responsible for informing the respective Municipal Foreperson/Supervisor that the cutting of grass on the graded area along runways 13-31 and 05-23, the grass tie-down areas, the grass area in the vicinity of the terminal building and the hangar, is required. 1.4 will be responsible for informing the respective Municipal Foreperson/Supervisor that the removal of snow daily, throughout the week, from the driveway and from the entrance to the apron and general aviation area to the extent required for winter activities as required. 1.5 will ensure that the terminal building is cleaned and maintained. All cleaning & toilet supplies will be provided by the Contractor. 1.6 will ensure that the runways and other aircraft movement areas are maintained to Transport Canada and the Ministry of Transportation of Airport Service Provider's Contract Ontario standards; including, without limiting the generality of the foregoing, replacing burnt-out runway light bulbs, keeping the wind indicator in good repair, sign maintenance and runway markers. Contractor will maintain a supply of replacement items required. (Note the Municipality will provide these items). 1.7 Will ensure that aircraft operating areas and other facilities are inspected in accordance with generally accepted practices as included in Schedule - A1 - to this Contract. Additional inspections will be made in poor weather conditions during winter months. Any hazards or deficiencies identified during these inspections will be either rectified or reported to the London Flight Service Station for issue of NOT AM. Contractor is responsible for all airport advisories which may be required to the airport. Will enforce and meet all requirements of the Aeronautics Act and Regulations and all other statutes as may apply or are deemed to apply. 1.8 will be responsible for directing aircraft to a suitable tie-down area and collecting fees. 1.9 will respond to telephone calls relating to runway conditions, communicate with incoming aircraft and respond to requests for service outside regular hours. 1.10 will supervise and control access of persons and vehicles to the airport property and will provide, at all times, an environment conducive to the safety and welfare of the flying and non-flying public. 1.11 will submit the following reports to the Chief Administrative Officer on a monthly basis regarding the operation of the airport: (a) fuel sales and inventory; (b) aircraft movements/activity for the previous month; (Commercial versus non-business aircraft movements) (c) master financial billing summary (d) monthly Service Provider's Compliance Report The Contractor will be required to attend the monthly Kincardine Airport Governance Committee meetings. 1.12 will provide and/or maintain a complete record or library of the following: (a) Airport Operation Manual for Transport Canada; (b) Airport Operating and Maintenance Manual; (c) As-constructed plans for the airport and any associated equipment. (Please note that these plans will be held in duplicate by both the Municipality of Kincardine and the Contractor); (d) An Emergency Procedures Manual in co-operation with the Emergency Planning Department and the local detachment of the Ontario Provincial Police, and other organizations as may be required. 1.13 will ensure a professional service and attitude at all times in dealing with and promoting the Airport with respect to the public. You will be a proponent of the airport communication strategy which will be developed in early 2009. Airport Service Provider's Contract 1.14 Contractor shall be responsible for all training activities for the Contractor's staff and costs associated with this Contract. 1.15 The Contractor will provide all tools required to facilitate the Airport's operations. 2.0 RESPONSIBILITIES OF THE MUNICIPALITY 2.1 The Municipality will determine the types and level of fees to be charged at the Airport with all receipts payable to the Municipality; 2.2 The Municipality will, at its cost, cut grass (adjacent to the runways) & remove snow from the runways, primary connecting taxiways, apron, and parking lot, in that order of priority, on the direction of the Ward Foreperson/Supervisor. Contractor remains responsible for all airport weather advisories with respect to snow removal activities and runway conditions; 2.3 The Municipality of Kincardine will provide both the Small Equipment Listing (Schedule - B -) and provide the Public Terminal Building Facilities. (Please see Schedule - C - for a list of building facilities). 2.4 The Contractor shall report to the Chief Administrative Officer of the Municipality of Kincardine on a day to day basis. 2.5 The Chief Administrative Officer, with the support of the Contractor, shall report to the Kincardine Airport Governance Committee on a monthly basis to ensure that the Committee fulfils its governance mandate as outlined in the attached Schedule - D -. 3.0 HOURS OF OPERATIONS. AIRPORT STAFFING. TRAINING 3.1 The Contractor shall provide properly trained staff to ensure that the following flexible operating schedule is maintained: 1) On a yearly basis the Contractor shall provide a minimum of 2,000 hours per year of service. Please note that upon the airport facility installing a credit card fueling system it retains the right to : a/ no sooner than 90 days after the new credit card system is installed to review the amount of time that is saved due to the new credit card fueling device b/ in the event that the new credit card fueling system saves significant time the municipality may renegotiate the hours that the contractor is allocated under this contract. c/ both parties agree that such negotiation shall be conducted with a view to ensure customer service and efficiency of operations at the Kincardine airport 2) A winter/summer schedule of hours to be created (to be in the best interest of the Airport customers) by the Kincardine Airport Governance Committee. The aforementioned 2,000 hours will be distributed throughout the winter/summer schedule. 3) The Contractor will be entitled to a call out rate for after hours services. Please note that pending changes to the fueling systems may reduce the requirements or limit the call outs for the Contractor. 4) The Contractor's schedule shall be designed to address known schedule flights with the onus on eliminating call out events for pre-scheduled flights. It is clearly understood that after hours callouts will only be authorized for emergency or unexpected conditions that arise from time to time. Airport Service Provider's Contract 3.2 Special attention and consideration shall be given to all commercial clients, such as Bruce Power, OPG or other key business travelers 3.3 Contractor shall be responsible for all training activities and costs associated with this contract. 4.0 INDEMNITY AND INSURANCE 4.1 Insurance The Contractor shall put in effect and maintain in its name, at its expense, all the necessary insurance that would be considered appropriate for a prudent contractor undertaking this type of operation for the period during which the Agreement is in effect with insurers acceptable to the Municipality, including: (a) Commercial General Liability Insurance, for third party bodily injury, personal injury and property damage to an inclusive limit of not less than Two Million Dollars ($2,000,000.00) per occurrence. The policy shall include: (b) The Corporation of the Municipality of Kincardine as an additional insured; (c) Cross liability (d) Contractual liability; (e) Contractor's Legal Liability (f) A thirty (30) day written notice of cancellation (g) The Contractor shall provide the Municipality with a valid Certificate of Insurance as evidence of the above coverage's upon signing the agreement. The Contractor shall provide the Municipality with any renewal replacement certificates as may be necessary during the term of the Agreement. Indemnity The Contractor agrees to fully indemnify and hold harmless the Municipality from and against all suits, judgments, claims, demands, expenses, actions, causes of action and losses of any kind and for any and all liability for damages to property and injury to persons (including death) which the Municipality may incur, sustain or suffer as a result of, arising out of or in any way related to the matters addressed in this Agreement, unless such losses are caused solely by the Municipality's own gross negligence or willful misconduct. 5.0 FINANCIAL OBLIGATIONS 5.1.1 The Contractor shall be paid $68,535 plus G.S.T per year for the contractual services contained in this contract. Payments shall be made in 12 equal monthly installments. The contract is based upon the following standards a/labour rate of $25.88 per hour b/ call out rate of $25.88 per hour The yearly charge shall change in accordance with the annual C.P.1. as published by the Federal government. Airport Service Provider's Contract 5.2 All call outs for fuel supply/emergency maintenance issues after hours will be based on a set price per call out. Please note that changing technology in fuel services will limit future call outs. Call out Activities bv the Contractor The Contractor will forward his cell phone number, on which the airport customers will call him to provide immediate service. The monthly charge for the phone will be paid by the Contractor. 5.3 The Contractor is responsible for all Revenue Canada statutory obligations 5.4 The Contractor is responsible for all WSIB obligations 5.5 The Contractor is responsible for the profit and loss potential to the labour requirements of this contract 6.0 DURATION OF AGREEMENT 6.1 This Agreement shall be divided into two Phases: Phase I will be a one year contract commencing January 1, 2009 to December 31, 2009 and shall be subject to probation; Phase II will be a two year extension from January 1, 2010 to December 31,2011. Please note that this extension is subject to mutual agreement between both parties. Due to service obligations, this Contract may be extended on a month to month basis. 6.2 Either party may terminate this Contract Agreement upon ninety (90) days notice by mailing a notice of termination by registered or certified mail to the other party. Serious infractions to this contract may result in immediate termination. 7.0 ASSIGNMENTS This Agreement is not assignable by either party without the written permission of the other party. SIGNED, SEALED AND DELIVERED In the presence of t.~.~~ Witn s THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE ) ) ) ) ) ) ) .-=. 'J n! ) -De~<.> '-- ~ "- "" <.n)--'.N'- ....A.' / ) CAO - John deRosenroll ) ) ) ) ) ) ) ) ) ) ) Date: T)r C illcq ~;;;:::f -7 77 Ontario Date: ~ ~ /:.// /!?:J;?>. Airport Service Provider's Contract SCHEDULE - A 1 - Accepted Practices Schedule The operation of the Kincardine Municipal Airport to meet Transport Canada standards. ITEM Beacon NDB Wind Indicator Radios ARCAl Terminal Furnishings Generator Airport Service Provider's Contract SCHEDULE - B - Small Equipment Schedule ITEM House Hangar Terminal Runway 31/13 Runway OS/23 Maneuvering Area Fuelling System Airport Service Provider's Contract SCHEDULE - C - Buildinq Facilitv Schedule Airport Service Provider's Contract SCHEDULE - D - Kincardine Airport Governance Committee KINCARDINE AIRPORT GOVERNANCE COMMITTEE (KAGC) Terms of Reference 1. Goal By means of sound governance practices, ensure that the Kincardine Airport is positioned to provide a quality service to both the public and business flight sector and ensure conditions for future economic growth. 2. Mandate The Municipality of Kincardine's Airport Governance Committee is an advisory body that: . provides information and advice to the Municipality on emerging issues that affect the Kincardine Airport . advises and assists the Municipality of Kincardine's Corporate Services Committee and other Departments on aviation issues . provides governance oversight of the management of the Kincardine Airport . encourages public awareness of the Airport, through communication and educational opportunities. . liaises with both the public and business sector to support flight issues. . liaises with the government sector for aeronautical purposes . reviews and/or provides input on any plans, documents or proposals such as the Official Plan, the Strategic Plan, Environmental Assessments, from an Airport perspective and provide feedback to the respective parties. . serves the community to resolve any potential aeronautical issues or problems that may have an impact on the community Airport. 4. Composition The Committee shall be comprised of no more than 6 individuals, of which two are Councillors, who are qualified electors of the Municipality of Kincardine and are appointed by the Council of the Municipality of Kincardine. All members are regarded as private citizens and do not represent any particular organization in their capacity as a member of the Committee. Community members shall be appointed by the Council of the Municipality of Kincardine for the term of Councilor for such other term as Council may determine from time to time. The Committee shall be a diverse group, with members drawn with various backgrounds including community interest, academic or technical qualifications, experience, or availability and who may have an interest or background in general aviation. 5. Administration The Committee shall be known as the "Kincardine Airport Governance Committee" (KAGC). As a Committee of Council, KAGC shall report to the Corporate Services Committee via the Chair or by means of a staff report. At the first meeting of the year, the Committee shall: . elect a Chair and Vice Chair" . establish dates and times for regular meetings throughout the year . review Terms of Reference "In the Chair's absence, the Vice Chair shall assume all rights and responsibilities of the Chair During the first year of the Committee, the following documents shall be created/reviewed by KAGC: Airport Service Provider's Contract . Terms of Reference . KAGC Strategic Plan . KAGC Business Plan . Provide Council with an update every six months A meeting quorum shall be a majority of the Committee voting members. Minutes of the meetings will be recorded. Meeting minutes will be amended as necessary and adopted at the following meeting and then posted on the Municipality of Kincardine website. Staff Liaison shall be responsible for taking minutes and distributing them to members for review and approval at the next meeting. Meetings shall be conducted with an agenda. Staff Liaison shall prepare an agenda and review with the Chair. Members are encouraged to submit agenda topics at least 1 week prior to the meeting to the Staff Liaison. For consistency of message, media inquiries should be directed to the Board Chairperson. Media updates on factual issues are dealt with by the Chief Administrative Officer. 6. Municipal Staff Support The KAGC will be provided with the following staff, who are responsible for the following duties: Secretarial Staff: Provide complete secretarial duties as required and provide support to ensure that the KAGC Minutes are completed. Airport Services Provider: Provides day to day Airport Services. as set out in the Contract. Provide technical aviation advice to the KAGC. Chief Administrative Officer: Provides management services to the Kincardine Airport. Provides management support to the KAGC. 7. BudClet The budget creation is a collaborative process between the KAGC and municipal staff. A draft budget will be created by the Chief Administrative Officer who will in turn present to the KAGC for review and changes as required. The final budget to be submitted to Council for approval. 8. Committee Meetinas The Committee shall follow the Municipality of Kincardine's Procedure By-law. except as provided herein. Meetings will be open to the public. Public delegations will be welcomed. Delegations are required to notify the Staff Liaison or Chair one week in advance to ensure they are placed on the agenda. If a delegation wishes to address the Committee but has not reserved an opportunity. they may do so at the discretion of the Committee. The Committee may not respond immediately to the presentations by the delegations. Time will be taken to consider the points raised. to solicit other points of view or data. and to formulate advice/recommendations for discussions at a future meeting. If the Committee is concerned a subject matter under the consideration cannot be dealt with in an open forum. advice of the Chief Administrative Officer may be sought before the matter is discussed. Airport Service Provider's Contract 9. Committee Procedures All motions properly put before the Committee shall be voted upon. All members will have one vote and a simple majority carries the motion. A tie vote is lost. As a full member, the Chair is entitled to vote on any motion. 10. Communication to Corporate Services Committee and Staff a) All Committee Minutes shall be forwarded to the Corporate Services Committee for their information. b) Any request by the Committee for information or action by Staff shall be directed to the Chief Administrative Officer. 11. Pecuniarv Interest Members having a pecuniary interest in any issue under consideration by the Committee shall declare the pecuniary interest to the Chair at the beginning of the meeting or at the earliest time known and shall not discuss or vote on the issue.