HomeMy WebLinkAboutC-2786 - Helicopter Maintenance (See C-2845)CITY OF NEWPORT BEACH
OFFIF THE CITY. CLERK
P.O. BOX 1768, _ T BEACH, CA 92658 -8915
644-
TO: FINANCE DIRECTOR
7
FROM: CITY CLERK
DATE: December 27, 1989
SUBJECT: Contract No. C- 2786(A)
Description of Contract Aircraft Hangaring License Agreement
(hangar facilities) for Helicopter
Effective date of Contract December 14, 1989
Authorized by Minute Action, approved on December 11, 1989
Contract with South Coast Associates
Address 17702 Mitchell North Street
Irvine, CA 92714.
Amount of Contract (See Agreement)
6e Al�d4e
Wanda E. Raggio
City Clerk
WER:pm
Attachment
4-2211-1 DARRYL YOULE
. SERGEANT
POLICE DEPARTA4ENT
e70 SANTA 6ARGARA OR.. NEWPORT BEACH. CA 52660
(714) 644-3717
3300 Newport Boulevard, Newport Beach
CITY OF NEWPORT BEACH
OFFICE OF THE CITY ATTORNEY
P.O. BOX 1768, NEWPORT BEACH, CA 92659 -1768
(714) 644 -3131
May 8, 1990
San Diego Helicopter Service, Inc.
Attention: Michael Z. Zolezzi, President
7025 Manya Circle
San Diego, CA 92154
Re: Amendment to Helicopter Maintenance Agreement
Dear Mr. Zolezzi:
Enclosed please find a copy of the above - referenced Agreement.
I noticed that the date was not been filled in on our original and
I am assuming the date was not filled in on your original. Please
insert the date of April 25, 1990 on your original.
Thank you. If you have any questions, please do not hesitate
to contact me.
Very truly yours,
Maureen Lewis
Legal Secretary I
MLLJm
enclosure
cc: Wanda Raggio, City Clerk
Bill Brown, Risk Manager
3300 Newport Boulevard, Newport Beach
.' ' 9 c'-- 7 ,PL(A)
ADDENDUM TO HANGARING LICENSE
This Addendum is entered into between South Coast Associates
( "Licensor ") and the City of Newport Beach, a. California municipal
corporation, ( "Licensee ") with reference to the Aircraft Hangaring
License Agreement, effective the /yam of December, 1989, for
property described as Hangar #6 Lease Parcel #PM 1121 - 152.02 at
John Wayne Airport, ( "Premises ".)
By this Addendum the parties have agreed that the Aircraft
Hangaring License Agreement shall be aemded as follows:
1. Consent is hereby given by Licensor for Licensee to
construct and install improvements upon the premises in connection
with the hangaring of the Licensee's helicopters. Licensee agrees
that at such time as the Agreement is terminated and Licensee
vacates the premises, if requested by Licensor, Licensee will
remove all improvements or other structures as is necessary to
leave twenty feet (20') wide area in the center of the rear area
of the premises free of obstruction or improvements.
2. Helicopter maintenance and service shall not be limited to
performance by Licensee or its full -time employees. Licensee may
arrange for performance of helicopter maintenance and service
within the premises only upon aircraft identified in the
Agreement.
Except as otherwise provided'for in this Addendum, all other
terms and conditions of the Aircraft Hangaring License Agreement
remain in full force and effect.
IN WITNESS WHEREOF, Licensor and Licensee have executed this
instrument on this day of December, 1989.
ATTEST:
11471 0 V!/j � MF% "21. r4 =1 M
LICENSOR:
SOUTH COAST ASSOCIATES
Y:
LICENSEE:
CITY OF NEWPORT BEACH,
a municipal corporation
BY: Ma r
0 AMENDMENT TO
HELICOPTER MAINTENANCE AGREEMENT
Th 1S �Amendment Hel'copter Maintenance Agreement, dated as of
this � 5 — day of , 1990, is by and between the City
of Newport Beach, a municipal corporation ( "Newport ") , and San Diego
Helicopter Service, Inc., a California corporation ( "Contractor "), and
is made with reference to the following facts, the materiality and
existence of which is stipulated by the parties:
WHEREAS, Newport and Contractor entered into that certain
Helicopter Maintenance Agreement dated January 4, 1990 (the
"Agreement "), and
WHEREAS, paragraph VII. B.(2)(b) of the Agreement requires
Contractor to carry and maintain comprehensive general liability
insurance, including contractual liability and products /completed
operations liability, in the amount of not less than Five Million
Dollars ($5,000,000.00) per occurrence, combined single limit, no annual
aggregate, and
WHEREAS, Contractor has obtained the insurance required by the
Agreement, in the amount of Ten Million Dollars ($10,000,000.00), and
WHEREAS, Newport and Contractor desire to amend the Agreement,
NOW, THEREFORE, for valuable consideration, receipt of which is
hereby acknowledged, Newport and Contractor agree as follows:
1. That Paragraph VII. B.(2)(b) of said Agreement shall be modified
to read as follows:
"(b) Comprehensive General Liability insurance, including
Contractual Liability, and Products and Completed Operations
Liability, in an amount of not less than Ten Million Dollars
($10,000,000.00) bodily injury and property damage, combined each
occurrence, and in the aggregate for the policy term ".
2. Nothing contained herein shall be deemed or construed to waive,
reduce, or diminish any of the other terms, conditions, or provisions of
said Agreement, or any rights of Newport or Contractor thereunder.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment
to Helicopter Maintenance Agreement to be executed on the dates set
forth below.
CITY OF NEWPORT BEACH SAN DIEGO HELICOPTER SERVICES, INC.
a Mu 'cipal corp tion a California corporatio
By �� V
Major P dent
"Newport" p "Contract '
Attest: Approvei as to form and content:
City Clerk C s• `p City Attorne
yJ
City of Newport Be C/Fa I
AIRCRAFT HANGARING LICENSE AGREEMENT
THIS AGREEMENT is entered into between SOUTH COAST ASSOCIATES
and
hereinafter calledi respectively, Licensor and Licensee.
Licensed Premises
Licensor grants to Licensee a license to occupy, for a period of one year, and to
use for aircraft storage only, the following described premises:
Hangar No. 6
of Lease Parcel 'IPM 1121 - 152.02 at John Wayne Airport, Orange County, California.
(19051 Airport Way South, Santa Ana, California) This license shall commence on
and shall continue until terminated as provided herein.
Rental Rate
Licensee shall pay in advance to Licensor or his order for this license $2,310.00
per month, on the first day of each month without prior notice for the term of this
Agreement. Payment for terms beginning other than on the first day of the calendar
month shall require advance payment on an apportioned daily basis to the first day
of the next calendar month.
Security Deposit.
Licensee shall pay in advance to Licensor for this license an amount equivalent to
one month's rent as a seeurity deposit, which shall be applied toward Licensee's
lost month's rent.
Holding Over
Any holding over after the expiration of the term stated in this Agreement, with the
consent of the Licensor, shall be construed to be a tenancy from month to month, at
a rental rate which may be increased depending on operational costs and property
taxes after the initial term has expired. Said rental will continue on a monthly
basis and shall otherwise be on the terms and conditions herein specified.
Use of the Premises
The premises shall be used for aircraft storage only and shall be kept clean and
orderly. No alterations may be made upon the premises without prior consent of .
Licensor, nor shall Licensee sublicense the premises or any part thereof without
the express written consent of Licensor. Licensee may not construct improvements
upon, cause signs to be posted, nor shall business be conducted from the licensed
premises, or any activity conducted in violation of this license or any statute,
regulation, order or ordinance of any governmental agency having jurisdiction
over the licensed premises. No storage of combustible material or spray painting
of aircraft is permitted. The only maintenance or service of aircraft allowed shall
be in accordance with Federal Aviation Regulations, Part 43, and Licensee shall
comply with oil applicable legislation, regulations, and ordinances of the County
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of Orange, the State of California, and John Wayne Airport. Aircraft mainten-
ance or service shall be performed only upon the aircraft identified in this Agree-
ment, and is limited to performance by the aircraft owner or his full -time employee.
License Subject to Master Lease
All provisions of the Master Lease entered into by Licensor and the County of
Orange are incorporated herein by this reference, and,. whenever applicable, are
binding upon Licensee. A copy of the Master Lease can be inspected at the offices
of the Licensor during normal business hours.
Utilities
Licensor shall pay al I charges incurred with respect to water, sewer and refuse re-
moval furnished in connection with the leased premises. Licensee shall pay prior
to delinquency all the charges for electricity for his premises (each unit being
metered separately), telephone and all similar charges which may accrue with
respect to the licensed premises during the term hereof.
Maintenance and Repairs
Licensor shall, at its own expense, do all things necessary to maintain the roof,
structural exterior walls, hangar doors and basic structural floors of the licensed
premises in good condition. Except as provided above in this paragraph, Licensor
shall not be obligated or required to make any changes, additions, alterations,
improvements, or repairs in,or about the licensed premises or any part thereof,
during the term of this license. At all times during the term hereof, Licensee shall
be obligated, at its own cost and expense, to provide normal janitorial service to
keep and maintain the interior of the licensed premises in good order and repair,
and in a clean, sanitary, orderly and attractive condition.
Taxes
All real property taxes and assessments against the licensed premises (but not
against personal property or trade fixtures) shall be paid by Licensor. Licensee
shall pay prior to delinquency any and all taxes and assessments against all
personal property or fixtures in the licensed premises, and should licensee fail to
pay any such tax or assessment which may become a lien on Licensor's property,
Licensor shall have the right, without affecting any other rights of Licensor here-
under, to pay any or all such taxes or assessments, and the amount thereof so
paid by Licensor shall immediately become due by Licensee to Licensor as addi-
tional rent and shall bear interest at the maximum legal rate until paid.
Liability Insurance
Licensee agrees to provide and keep in full force and effect during the term of
this Agreement, a policy of Public Liability Insurance covering any and all claims
for injuries to persons or property arising out of its use of the premises with the
following minimum limits:
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E 25,000,000 for injury or death arising from any one accident
or occurrence; and
$ 25,000,000 for property damage. The Licensor is to be named
an oaditional insured, and the Certificate of insurance shall be forwarded to him
by Licensee. This insurance policy shall have a provision that such policy may
not be cancelled or materially changed or altered except upon notice to Licensor
in writing at least thirty -five days prior to cancellation or change.
Hold Harmless
Licensor shall not be liable or responsible in any way for injury to any person, or
for loss of, or damage to, any property of any person, and Licensee agrees to defend
and hold Licensor harmless from any claim or liability arising out of, during, or
connected with Licensee's use or occupancy of the premises.
Licensor's Right to Access
Licensee shall permit Licensor and /or its agents to enter into and upon said premises
with the purpose of inspecting the same or determining whether or not the agreements
herein contained are being complied with, or for the purpose of maintaining the
building in which said premises are situated, or for the purpose of making necessary
repairs or alterations, which Licensor may desire to make, or for the purpose of
showing the premises to prospective tenants, purchasers, mortgagees and /or bene-
ficiaries under deeds of trust.
Termination
Licensee may terminate this Agreement at any time without regard to payment
periods by giving written notice to Licensor thirty days prior to the termination
date .
Should Licensee fail to pay or cause to be paid any insurance premium, I ier,
claim, charge or demand herein provided to be paid or cause. to be paid by Licensee
at the times and in the manner herein provided; or should Licensee default in the
payment of any installment of rent or any other sum when due as herein provided; or
should Licensee default in the performance of or breach any other covenant, condi-
tion or restriction of this Agreement herein provided to be kept or performed by
Licensee; and if any such default or breach'sholl continue uncured for a period
of ten (10) days from and after service upon Licensee of written notice thereof by
Licensor, then, in any such event, Licensor may, at Licensoes option, without
further notice or demand, enter upon the licensed premises and take possession
thereof and remove all persons therefrom, with or without process of low, and
should Licensor elect to re -enter and take possession of said property, Licensor
may, at Licensors option, either terminate this Agreement and recover all damages
caused by the breach hereof, or Lieensor may re -let said premises. No re -entry of
said licensed premises by Licensor as herein provided shall be construed as an
election on Licensoes part to terminate this Agreement unless written notice to
that effect is given by Licensor.
Attorney's. Fees
In the event that any action sholI be instituted by Licensor for the enforcement of
its rights or remedies in and under this Agreement, Licensee agrees to pay to
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Licensor all costs incurred by Licensor in said action, including reasonable
attorneys' fees to be fixed by the Court therein.
waiver of Subrogation
Licensor and Licensee agree that insurance carried by either of them against
loss or damage by fire or other casualty shall contain a clause whereby the
insurer waives its rights to subrogation against the other party. Upon re-
quest, each party agrees to furnish evidence of such waiver to the other party.
Successors
This Agreement shall be binding upon and.inure to the benefit of the parties
hereto, their representatives, successors in interest, and assigns.
Notices
All notices under this license shall be in writing and shall be effective
upon personal delivery to Licensor or Licensee or upon being sent by registered
or certified mail, postage fully prepaid, and addressed to the respective parties
as follows:
To Licensor: South Coast Associates -
17702 Mitchell North Street
Irvine, California 92714
To Licensee: City;of Newport.B'each
Newport Beach Police Department
870 Santa Barbara Drive
Newport Beach, CA 92663
IN WITNESS WHEREOF, Licensor and Licensee have executed this instru-
ment as of the day and year first above written.
LICENSOR: SOUTH COAST ASSOCIATES
LICENSEE: ✓ CITY OF NEWPORT BEACH
By:
Its Mayor
McDonnell- Douglas 500D 5283C
Aircraft to McDonnell - Douglas 500E 374E
be Hangared: Hughes, 300 9627F
Make Model N *KNMW or serial number
PPP,OVED AS TO FORM:
City Attorney
CITY OF NEWPORT BEACH
OFFICE OF THE CITY CLERK
P.O. BOX 1768, NEWPORT BEACH, CA 92658 -8915
(714) 6443005
TO: FINANCE DIRECTOR
FROM: CITY CLERK (fy /j, (yGVyv�tJ
DATE: January 12, 1990
SUBJECT: Contract No. C -2786
Description of Contract Helicopter Maintenance Agreement
Effective date of Contract January 4. 1990
Authorized by Minute Action, approved on December 11, 1989
Contract with San Diego Helicopter Service, Inc.
Address 7025 Manya Circle
San Diego, CA 92154
Attn: Michael A. Zolezzi
Amount of Contract (See Agreement)
6e 4e
Wanda E. Raggio
City Clerk
WER:pm
Attachment
3300 Newport Boulevard, Newport E
0 0 c - 2-7Z
1 HELICOPTER MAINTENANCE AGRFJOEE T
2
3 THIS AGREEMENT, dated, for purposes of identification
only, this day of t
�
5 1990 , by and between the
4
ity of Newport Beach, a municipal corporation, ( "Newport "), and
6 an Diego Helicopter Service, Inc., a California Corporation,
7 ( "Contractor "), is made with reference to the following facts,
8 he materiality and existence of which is stipulated by the
parties.
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10 A. Newport, during the term of this Agreement, will use
it two (2) helicopters in connection with its police and law
nforcement activities; and
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13 B. Newport desires to have its helicopters serviced,
14 maintained and inspected in accordance with Federal Aviation
15 dministration (FAA) regulations and McDonnell Douglas
16 elicopter Corporation (MDHC) Maintenance Instruction
requirements; and
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18 C. Contractor is equipped to perform the services
19 required of it pursuant to this Agreement and possesses a
20 License, in good standing, as a Federal Aviation Administration
21 elicopter Repair Station.
22 NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
23
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25 TERM
26 The term of this Agreement shall be for one (1) year
27 ommencing December 19, 1989 and terminating December 18, 1990.
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II.
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SERVICES TO BE PROVIDED BY CONTRACTOR
A. General:
Contractor will provide Newport with routine and
emergency inspection, maintenance, and service required to keep
two (2) helicopters airworthy and ready to fly at all times.
Each aircraft is estimated to log approximately sixteen hundred
(1600) annual flight hours. All necessary and required service,
maintenance and inspections shall be performed in accordance
with MDHC recommendations and in compliance with FAA
egulations. Contractor will provide in -field repairs as
B. Facilities /Eauioment:
(1) Newport will provide facilities for Contractor
vices at 19051 Airport Way South, Hangar #6, Santa Ana,
ifornia. All costs pertaining to the facility, such as
lities, upkeep, maintenance and janitorial services shall be
ne by Newport.
(2) Newport shall provide, for Contractor's use,
following equipment: Chadwick, battery machine, cleaning
hine, compressor washer, engine stand, large compressor,
st for helicopters, ladder stands, jacks for helicopter, ban
, drill press, bearing press and vice. This equipment will
ain the property of Newport.
C. arts:
(1) Contractor shall maintain an inventory of
horized parts adequate to support day -to -day maintenance.
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19 (3) Notwithstanding (a) and (b) above, Contractor
20 3hall have mechanics available, on a call out basis, for
21 3cheduled and unscheduled maintenance, service and repair
22 twenty-four (24) hours day, seven (7) days a week, including
23 iolidays, with a response time of no longer than one (1) hour.
24 E. Contractor Tools:
25 Except as provided in subsection B(2), Contractor
hall be equipped with all tools necessary to perform all
nspection, servicing, maintenance and repair procedures in
(2) Replacement parts may be purchased from
ontractor upon Newport's prior approval. All parts purchased
y Newport from Contractor shall be billed at Contractor's cost
lus ten percent (10 %).
(3) Contractor will act as Newport's agent for
iscussions or negotiations with the manufacturer of parts
urchased through Contractor with respect to warranties and
elated matters.
D. Manpower:
(1) Contractor will make a mechanic available, on-
ite, eight (8) hours a day from approximately 8:00 a.m. to 5:00
.m., five (5) days per week. All personnel shall be properly
rained, acceptable to Newport, and possess all required
licenses.
(2) Contractor will make one (1) additional
nic available on an as needed basis for up to eight (8)
a day from approximately 8:00 a.m, to 5:00 p.m. five (5)
per week.
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1 ccordance with the MDHC directives and recommendations and FAA
2 regulations.
3 F. Extent of Service:
4 Contractor shall service and maintain all components
5 f the helicopter except communications equipment.
7 III.
8 COMPENSATION
9 Newport will compensate Contractor as follows:
10 A. Forty -Five Dollars ($45.00) per hour for the on -site
11 mechanic available forty (40) hours per week.
12 B. Forty Dollars ($40.00) per hour for the additional
13 mechanic available, as needed, for on -site maintenance.
14 C. Eighty Dollars ($80.00) per hour for each mechanic
15 called out after 7:00 p.m., on weekdays and on weekends and
16 holidays.
17 D. The minimum time charge for each call out shall be
18 Dne (1) hour.
19 E. Contractor will bill Newport monthly. Payment will
20 be due within thirty (30) days after receipt of an invoice
21 letailing all charges.
22 F. Eighty dollars ($80.00) for all overtime labor -hours
23 after 7:00 p.m., weekdays, weekends and holidays.
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25 IV.
26 RECORDREEPING AND INVOICING
27 Maintenance records shall be of sufficient detail to
28 ermit evaluation of services and any charges with respect to
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s, costs and expenses that are related to the performance of
ices under this Agreement. The records shall be available
inspection and audit by Newport during regular business
s. Contractor agrees to retain all such records for a
od of not less than three (3) years.
V.
Newport and Contractor shall each have the right to terminate
is Agreement, without cause, by giving the other thirty (30)
ys' written notice of its intent to do so. In the event of a
terial breach, the nonbreaching party, in addition to the
medies provided by law, shall have the right to terminate this
reement, and a demand to cure the default if, after ten (10)
ys' written notice of the breach, the party in default fails
remedy the breach.
VI.
INDEPENDENT CONTRACTOR
Contractor is an independent contractor and shall not, in
way, be considered an officer, agent or employee of Newport.
civil service status or other right of employment will be
uired by virtue of Contractor's services. None of the
efits provided by Newport to its employees, including, but
limited to, unemployment insurance, workers' compensation,
ation and sick leave are available to Contractor, its
or agents.
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VII.
AND INSURANCE
3 A. Indemnity:
4 Contractor agrees to indemnify, defend and hold
5 harmless Newport, its City Council, boards, commissions,
6 officers and employees, for damage to property and injury to or
7 leath of any person, and from all claims, demands, purported
8 liability, or consequential damages of any kind or nature
9 arising out of or in any way related to the services provided by
10 ontractor with respect to this Agreement.
11 B. Insurance:
12 (1) Contractor shall carry and maintain during the
13 ourse of this Agreement the following insurance coverage with
14 limits as specified for each type of insurance:
15 (2) Insurance: Worker's Compensation Insurance as
16 required by State of California statutes;
17 (b) Comprehensive General Liability including
18 ontractual Liability, and Products /Completed Operations
19 iability in the amount of not less than Five Million Dollars
20 $5,000,000.00) per occurrence, combined single limit, no annual
21 ggregate;
22 (3) Newport shall provide hangar keepers insurance
23 overage for its heliport and related facilities in the minimum
24 imount of five hundred thousand dollars ($500,000.00) per
25 iircraft and two million dollars ($2,000,000.00) per occurrence
26 C. Proof of Insurance:
27 (1) Contractor: Prior to commencing any work
28 nder this Agreement, Contractor shall deliver to Newport a
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1 Certificate of Insurance confirming the coverage required by
2 this Agreement and providing a thirty (30) days' notice, to
3 Newport, of cancellation or termination. The City of Newport
4 Beach, its officers, agents, and employees, shall be named as
5 additional insureds on the above - referred comprehensive general
6 liability coverage. The endorsement(s) shall be signed by an
authorized representative of the insurance company and shall be
$ delivered to Newport within thirty (30) days of the execution
9 late of this Agreement.
10 (2) Prior to commencing any work under this
11 greement, Newport shall deliver to Contractor a Certificate of
12 insurance confirming the coverage required by this Agreement and
13 providing a Thirty (30) Day Notice of Cancellation or
14 rermination. Also, by endorsement, San Diego Helicopter, Inc.,
15 Its officers, agents and employees shall be named as additional
16 insureds in the above - referenced coverage. The endorsements(s)
17 shall be signed by an authorized representative of the insurance
18 ompany and shall be delivered to Contractor within thirty (30)
19 ays of the execution date of this Agreement.
20
21 VIII.
22 AMENDMENT
23 The terms of this Agreement can only be amended by
24 #ritten Agreement between the parties hereto.
25 IX.
26 GOVERNING LAW
27 This Agreement shall be governed by the laws of the
28 tate of California. If any portion of this Agreement is held
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under any applicable statute or rule of law, then such
only shall be deemed invalid.
X.
ENTIRE AGREEMENT
This Agreement constitutes the entire Agreement and
rstanding between the parties hereto, and supersedes all
osals, oral or written, and all other communications between
parties with respect to the subject matter of this
XI.
CONTRACTOR QUALIFICATIONS
Contractor will obtain and maintain during the term of
is Agreement and any extension, all appropriate permits,
censes and certificates that may be required in connection
th the performance of services under this Agreement.
Contractor agrees to immediately advise Newport of the
piration, suspension or termination of any license required to
rform the services required of this Agreement.
21 XII.
22 ASSIGNMENT
23
24 Neither Contractor nor Newport may assign or transfer
25 his Agreement, or any part hereof, without the written consent
26 f the other party.
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XIII.
REPRESENTATIVE OF NEWPORT
The Police Chief, or his designated representative,
11 represent Newport in all matters pertaining to the service
be rendered under this Agreement and shall be responsible for
oversight and administration of this Agreement.
XIV.
LIENS
Contractor recognizes that Newport's helicopters are
d in police investigation, surveillance, patrol, and pursuit
ivities and are thereby vital to the health and safety of
port and its citizens. Contractor therefore specifically
ves, releases, relinquishes, and agrees not to claim or
ert any lien rights or claims Contractor may enjoy under any
, state or federal, in Newport's helicopters, parts or any
port property. Contractor further agrees at any time
ediately upon demand of Newport to deliver to Newport any and
of Newport's property including the helicopters, parts and
equipment in possession of Contractor and /or Contractor's
contractors. Newport does not consent to the creation of any
n rights in Newport's property which may arise in favor of
tractor or any other person or entity.
I XV.
2 FEES
•
3 If legal action is necessary to enforce or interpret any
4 provision of this Agreement, the prevailing party shall be
5 antitled to all costs and expenses, including attorneys' fees,
6 is a court may adjudge to be reasonable.
7
8 xVI.
9 NOTICES
10 All notices, demands, requests or approvals to be given
11 inder this Agreement shall be given in writing and shall be
12 leemed served when delivered, personally or on the third
13 usiness day after deposit in the U.s. Mail, postage prepaid,
14 addressed as follows:
15 EWPORT:
16 ity of Newport Beach
ttention: Chief of Police
17 370 Santa Barbara Drive
ewport Beach, CA 92663
18
ONTRACTOR:
19
an Diego Helicopter Service, Inc.
20 7025 Manya Circle
an Diego, CA 92154
21 ttention: Michael A. Zolezzi
22
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24 XVII.
25 EFFECTIVE DATE
26
27 23. The effective date of this Agreement shall be the
28 . tatest date of execution hereinafter set forth opposite the
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es of the signator(s) hereto. In the event Contractor fails
set forth a date of execution opposite the name(s) of
.tractor's signator(s) as the date said Agreement, as executed
Contractor, is received by Newport.
IN WITNESS WHEREOF, the parties hereto have caused this
-eement to be executed on the dates hereinafter respectively
forth.
/ -9�-ya
OF NEWPORT
PROVED AS TO FORM:
PY A ORNEY:
"Newport"
CITY OF NEWPORT BEACH,
a municipal corporation
BY: a 1 Lw�
MAYOR
"CONTRACTOR"
SAN DIEGO HELICOPTER SERVICES, INC.,
a California �corporation
�
TITLE: �/�S( htt
11
i
FREDRIC J. GREENBLATT
BRENTON L HORNER
CHRISTINE C. LVDEN
MARK S. BLACKMAN
January 8, 1990
GREENBLATT AND HORNER•
ATTORNEYS AT LAW
22151 VENTURA BOULEVARD, SUITE 2DO
WOODLAND HILLS, CALIFORNIA 91369 -1600
Robert H. Burnham, City Attorney
City of Newport Beach
P. 0. Box 1768
Newport Beach, California 92659 -1768
RE: Helicopter Maintenance Agreement
By and Between San Diego Helicopter
Service. Inc. and City of Newport Beach
Dear Mr. Burnham:
TELEPHONE: (818)992 -1188
TELECOPIER: (818) 992 -7687
FILE NUMBER:
S40215
,�Ei£1YED �
�lTY Aif331"EY
i i .
i 9990+
CITY OF C
NE4' 7; G '.K C`
Consistent with our agreement, I am enclosing an original
executed Helicopter Maintenance Agreement.
Please obtain the signatures of the Mayor, City Clerk and
yourself and return a fully executed copy to me for my files.
Thank you for your continuing courtesy and cooperation.
Very truly yours,
GREENBLATT AND O R
Attor �Ws t w
DRIC GREENBLATT
FJG /pap
Enclosure
S40215- 3.LTR /C5
cc: Mr. Michael A. Zolezzi
San Diego Helicopter Service Inc.
•
CITY OF NEWPORT BEACH
POLICE DEPARTMENT
December 1, 1989
TO: City Manager
FROM: Police Department
SUBJECT: HELICOPTER MAINTENANCE CONTRACT
• o3
COUNCR AGENDA
N0. F -3(c)
CY F' "•IiY i:OUNCIL
DEC 111989
7S9 ;? 7,6 (A)
This is to recommend that the City terminate the helicopter maintenance contract
with Tallmantz Aviation on December 18, 1989, and enter into a contract with San
Diego Helicopter (maintenance) and South Coast Hangar (hangar facilities). Our
present contract with Tallmantz is due to terminate on December 18, 1989.
Since 1971, the City has contracted with Tallmantz Aviation for helicopter
maintenance. Until recently, the police department has been largely satisfied
with the quality and timeliness of the maintenance.
In February of this year, Tallmantz filed for bankruptcy. There have been a
series of contract violations and parts availability problems that have had
negative impact on our helicopter program. In addition, Tallmantz Aviation
entered into bankruptcy (Chapter 11) in February and is now in Chapter 7.
The above recommended change will provide the City with a viable service, in-
cluding a contract and cost savings superior to our contract with Tallmantz.
The City helicopters fly an average of 3,200 hours a year. If Tallmantz were to
continue to provide services, their fee for the 1990 -91 fiscal year would cost
$538,112.00. The cost for contracting with San Diego Helicopter /South Coast
Hangar for the same period would be $468,152.00. This is a net savings of
approximately $70,000.00 annually.
The 1989 -90 fiscal year helicopter budget is $490,000.00, with a present balance
of $231,476.00. The projected cost for remaining with Tallmantz through this
fiscal year is $203,000.00. The projection for contracts with San Diego
Helicopter /South Coast for the same period is $198,687.00. This would include
the purchase of the necessary tools and equipment to set up the maintenance shop
within the hangar as well as the purchase of a portable office module. The
tools, equipment, and office module would be the property of the City.
The $198,687.00 cost breakdown is approximated as follows: Tallmantz billings
December 1st through 18th - $13,500.00; South Coast Hangar rental - $16,170.00;
electric bill - $700.00; fuel and oil- $39,998.00; scheduled parts replacement -
$12,646.00; maintenance contract - $63,873.00; shop tools and equipment - $35,000.00;
portable office module - $15,000.00.
Page 2 •
City Manager
HELICOPTER CONTRACT
The South Coast Hangar is located near Campus and Bristol at the southeast
quadrant of the Orange County Airport. The hangar was constructed eight years
ago and is in excellent condition. The City will be the sole tenant, and only
City owned aircraft will be housed and maintained at the hangar. San Diego Heli-
copter will do all the maintenance at the hangar. The company mechanics have
many years of experience in working on the type of helicopters the City uses.
San Diego Helicopter is fully insured and maintains an excellent reputation
within the industry.
The proposed change will result in improved service to the City, in addition to
an annual cost savings.
A. Villa, Captain
Patrol Division Commander
L
I
„EW�oRr NEWPORT BEACH POLICE DEPARTMENT
o� • P.O. BOX 7000, NEWPORT BEACH, CA 92658 -7000
j (714) 644 -3724
r
C1 (,FpgNh
October 18, 1989
Mr. Charles C. Seven
President, Tallmantz Aviation
John Wayne Airport
19461 Airport Way South
Santa Ana, CA 92707 -5288
Re: Helicopter Maintenance Agreement - Notice of Termination
Dear Mr. Seven,
APB CAMPBELL
Chief of Police
This letter constitutes written notice of the City's intention to terminate the Heli-
copter Maintenance Agreement on November 18, 1989. This notice is given pursuant to
the provisions of Paragraph 5 of the Helicopter Maintenance Agreement and should not
be considered a waiver of any right to terminate the Agreement in the event of a
material breach occurring prior to the effective date of termination.
The Helicopter Maintenance Agreement requires the City to pay Tallmantz for actual
work performed prior to the date of termination and requires Tallmantz to return "all
parts purchased and money set aside for engine overhaul and replacement of limited
life items that have not been committed as of the date of termination...” The City
intends to comply with the spirit and letter of this provision. We expect Tallmantz
to do the same. We are in the process of computing the "TBO" monies that should have
been set aside pursuant to the Agreement and will provide you with those figures as
soon as available.
The City is also evaluating the extent to which TBO funds should have been paid to the
City when helicopters crashed and were replaced by new equipment. In our opinion, TBO
funds accumulated in anticipation of major repairs to airships destroyed in crashes
should have been paid to the City or, at the very least, shown as a credit against the
cost of repair of the replacement helicopter. Again, we will provide you with figures
once they are available.
We regret the need to take this action and appreciate the service you have provided
over the years.
V trul urs,
Arb Campbell
Chief of Police
®R
870 Santo Barbaro Drive, Newport PANn ►h
NEWPOR -REACH POLICE DEPARTIENT C - Z 133
P.O. BOX 7000, NeNPORT BEACH, CA 92658 -7000 ARB CAMPBELL
(714) 644 -3701 Chlef of Police
Mr. Charles C. Seven
President, Tallmantz Aviation
John Wayne Airport
19461 Airport Way South
Santa Ana, CA 92707 -5288
November 17, 1989
Re: Extension of Termination Date for Helicopter Maintenance
Agreement
Dear Mr. Seven:
By this letter reference is made to the 1988 Helicopter
Maintenance Agreement between Tallmantz Aviation, Inc. and the
City of Newport Beach for the storage, service, maintenance and
inspection of the City's helicopters, (the "Agreement ".)
Pursuant to that Agreement, the City, through its Chief of Police,
gave Notice on October 18, 1989 of its intent to terminate the
Agreement effective November 18, 1989.
Due to changed circumstances, the City wishes to continue to
store its helicopters and receive service and maintenance from
Tallmantz for an additional thirty (30) days. You have agreed to
the thirty (30) day extension. This letter will serve to
memorialize your agreement that the effective date of termination
of the Helicopter Maintenance Agreement is extended an additional
thirty (30) days to and including December 18, 1989. The
extension shall be pursuant to the terms and conditions of the
Agreement and by this extension the City has not waived its rights
under the Agreement including the need for an evaluation and
accounting of "TBO Monies."
If you agree to the foregoing, please indicate such agreement
in the signature block indicated below.
%Helic 4rSeac urs,
e
io n Sergeant
DJY /mll � rrrr����n /
The undersigned, on this � day of November, 1989, agrees to
the foregoing.
TALLMANTZ AVIATION, INC.
harles C. v i, President
®R
870 Santa Barbara Drive, Newport Beach
CASt.E ADDRESS "GVSANCO^
TEr.sx. 340863 GTTTANCO SPO
0 0
E. E. GUT-MANN & CO.
INSURwx(:E ANn RS.II` SXTRANCE
LLoyn'8. LONDON 0011RE51PONDENTS
CITY OF NEWPORT BEACH
TO: 870 SANTA BARBRA DR
NEWPORT BEACH, CA 92663
ATTEN: CHEIF OF POLICE CERTIFICATE OF INSURANCE
CERTIFICATE NO. 2
444 MARKET STREL^t
SAN FRANCISCO. CALIF. 94111
TS<.SPBoN 4415) 781 -7755
FEBRUARY 16, 1990
THIS IS TO CERTIFY that the Assured [tamed below is at this date insured (subject to all the terms, conditions and warranties
of the Certificate) by NATIONAL UNION FIRE INSURANCE COMPANY
under the Cen:ficate described below:
ASSURED: SAN DIEGO HELICOPTER SERVICE, INC.
7025 MANYO CIRCLE
OF: SAN DIEGO, CA 92154
CERTIFICATE NO.: AP538 -8570
BRIEF DESCRIPTION OF COVERAGE: COMPREHENSIVE GENERAL LIABILITY, INCLUDING
CONTRACTUAL LIABILITY AND PRODUCTS AND COMPLETED
LIMIT OF LLABII.I'I7': OPERATIONS LIABILITY.
$5,000,000.00 BODILY INJURY AND PROPERTY DAMAGE COMBINED EACH OCCURRENCE,
AND IN THE AGGREGATE FOR THE POLICY TERM.
SPECIAL PROVISIONS: AGREE TO INCLUDE CITY OF NEWPORT BEACH ITS OFFICERS, AGENTS AND
EMPLOYEES AS ADDITIONAL ASSUREDS HEREUNERD WITH THIRTY (30) DAYS
NOTICE IN EVENT.OF CANCEL:.ATION OR TERMINATION.
EFFECTIVE: JANUARY 4, 1990 TO OCTOBER 18, 1990
Nothing contained in the above Certificate of Insurance shall be deemed to extend coverage beyond the terms and provisions of
the above numbered Certificate, referred to therein, nor is the said Certificate of Insurance to be deemed as creating any liability
whatsoever upon the undersigned or upon B. E. Gutman .@ Co. You are referred to the above Certificate for details, terms,
conditions and limitations is said coverage.
This
r.ce tnf es nnttanaouf cat�� inn• niter the ct',vc ntran Vin' ^ att' Y
the Se,ticas tfdted herein. iiut:a ilh <;::nciing car.: req'M. en:ca. :_••'1,
. ..:,,,.� car map
nr coc nine a(:ni eo:.tnmt c: -other dncn:ncrt :•ith rt.'.Z`�t "'r: rich
this eert�ti.:::, .,r rera�e:,;i:,:, �r i„�.,r:,n�� ,:,:,: i;•: ,_. B. R GcTSf�w & CO.
this cn, the ir.::urance :afordcd. by the policies uescni>;;: ^ereia is
«abject to all the term,, ezciusiu,vi and ambitions of such ppii::iel.
By
FORM t:9 Norman L. White