AGENDA MEMORANDUM

 

Meeting Date:           August 30, 2010

 

From:                          Doug Drymon, Deputy City Manager

 

Subject:                      Ordinance adopting a policy specifying minimum standards for permanent or semi-permanent aviation fuel storage and dispensing facilities located at the Leesburg International Airport

 

 

Staff Recommendation:

Staff recommends adoption of the proposed policy specifying minimum standards for permanent or semi-permanent aviation fuel storage and dispensing facilities located at the Leesburg International Airport.

 

Analysis: 

The attached fuel storage policy was prepared by City Attorney Fred Morrison and is intended to establish certain minimum standards which a tenant at the Leesburg International Airport must comply with in order to construct or operate permanent or semi-permanent fuel storage and dispensing equipment on their leased property.

 

Recent discussions involving the Villages application to install a 12,000 gallon fuel storage tank on their hanger property has focused attention on the fact that the City lacks a written policy covering the installation and operation of fuel storage and dispensing equipment at the airport.  The attached policy will rectify this situation.

 

Staff believes that the proposed policy will address concerns that are associated with airport tenants performing their own fueling operations from mobile fuel trucks or tanks.  Under these conditions, there is always a possibility that leakage or spills can occur in non-containment areas.  In addition to these potentially serious environmental impacts, there has also been a concern that frequent fueling from transport trucks could lead to a higher incidence of collisions with structures, aircraft, or other vehicles occurring on airport property.

 

Should conditions at some future date dictate the relocation of existing fuel storage tanks and dispensing equipment to another location on the airport property, a provision has been inserted into the policy which requires the owners of such equipment to do so at their own cost.

 


 

The Airport Advisory Board conducted a special-called meeting on August 26, 2010 to consider and discuss the proposed policy at length.  The five AAB members in attendance voted unanimously to forward the proposed policy to the City Commission with the Board’s recommendation that it be adopted with only a few minor changes (which have been incorporated into the document which is attached).

 

Options:

1.  Adopt proposed policy as submitted.

2.  Such alternative action as the Commission may deem appropriate

 

 

Fiscal Impact

No impacts are expected as a result of the City Commission adopting this policy.  The City of Leesburg will continue to receive required fuel flowage fees as outlined within the policy.

 

Submission Date and Time:    9/22/2010 5:06 PM____

 

Department: ______________________

Prepared by:  ______________________                     

Attachments:         Yes____   No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. _____JB___________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _________________

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________


 

 

ORDINANCE NO.                         

 

AN ORDINANCE OF THE CITY OF LEESBURG, FLORIDA, ADOPTING THE CITY OF LEESBURG, FLORIDA, LEESBURG INTERNATIONAL AIRPORT POLICY; CREATING SECTION 4-74 OF THE CODE OF ORDINANCES; SPECIFYING MINIMUM STANDARDS FOR AVIATION FUEL STORAGE AND DISPENSING FACILITIES; IMPOSING LIMITS AND STANDARDS REGULATING WHICH TENANTS AT LEESBURG INTERNATIONAL AIRPORT ARE ELIGIBLE TO INSTALL ON SITE FUEL STORAGE AND DISPENSING FACILITIES; PROVIDING FOR INSURANCE REQUIREMENTS PERTAINING TO TENANTS WHO INSTALL ON SITE FUEL STORAGE AND DISPENSING FACILITIES; IMPOSING FUEL FLOWAGE FEES ON SUCH TENANTS; PROVIDING FOR VARIANCES; PROVIDING FOR INSPECTION AND ENFORCEMENT; PRESERVING EXISTING CONTRACTUAL RIGHTS; PROVIDING A SEVERANCE CLAUSE; AND ESTABLISHING AN EFFECTIVE DATE.

 

BE IT ENACTED BY THE PEOPLE OF THE CITY OF LEESBURG, FLORIDA:

 

SECTION I.

 

The City of Leesburg, Florida, hereby adopts the following as its policy regulating the installation of on site fuel storage and dispensing facilities at Leesburg Regional Airport, to be codified as §4 – 74 of the Code of Ordinances of the City of Leesburg:

 

Sec. 4 – 74.     Standards for On Site Fuel Facilities

 

PURPOSE:

 

This Policy is intended to specify the minimum standards applicable to tenants at Leesburg International Airport (hereafter referred to as the “Airport”) who engage in or wish to engage in the storage and dispensing of aviation fuel other than storage of fuel within the tanks of individual aircraft at the Airport, and self fueling utilizing portable devices such as wheeled or motorized fuel tanks, hand carried fuel containers, and other non – permanent fuel transportation and dispensing devices. No owner or operator of any aircraft at the Airport, and no tenant at the Airport, shall be permitted to store or dispense aviation fuel (where that term is used in this Policy it shall refer to jet fuel, AVGAS, MOGAS and all other fuels) from permanent or semi – permanent tanks at the Airport unless in full compliance with this Policy, PROVIDED HOWEVER that this Policy shall not apply to any Fixed Base Operator at the Airport who is approved to operate in that capacity by the City Commission and who is authorized in its lease with the City to offer fuel sales to the general public as part of the services provided by the Fixed Base Operator.

 


MINIMUM STANDARDS:

 

No aircraft owner, aircraft operator, tenant, or other person or entity at the Airport shall store or dispense aviation fuel from any source or facility which is permanent or semi – permanent (which activity is referred to hereafter as “Fuel Storage and Dispensing”), without complying in full with the following standards:

 

1.      Only a tenant lawfully in possession of a leasehold at the Airport, under a written lease from the City of Leesburg (hereafter referred to as the “City”), having a hangar or other building at the Airport with at least 13,000 square feet of enclosure in a single structure, shall engage in Fuel Storage and Dispensing.

 

2.      No tenant shall engage in Fuel Storage and Dispensing unless those activities are specifically authorized in the lease between the tenant and the City. To the extent of any conflict between the terms of any lease, and this Policy, the more restrictive of the two shall take precedence.

 

3.      The land area under lease shall be sufficient to contain all buildings and facilities required to engage in Fuel Storage and Dispensing, and to meet all applicable setbacks and other requirements imposed by this Policy or other applicable laws, rules and regulations. No facilities for Fuel Storage and Dispensing shall be located closer than 50 feet to any other buildings or structures, or closer than the setbacks imposed by any general land use regulations or any laws, rules and regulations of any level or agency of government specific to such activities, whichever distance is farthest.

 

4.      No facilities for Fuel Storage and Dispensing shall be located closer than 65.5 feet from the centerline of any taxiway, to allow for proper wing clearance of existing aircraft and proposed future use by larger aircraft at the Airport.

 

5.      If it becomes necessary or desirable for the utilization of the Airport in the best interests of the public, the owner of any facilities utilized for Fuel Storage and Dispensing shall relocate such facilities to another location on the Airport, such as but not limited to a common fuel farm, at the owner’s expense, and promptly following such relocation the owner shall, at the owner’s expense, restore the former location of the facilities to its original, undisturbed condition.  The City of Leesburg shall not require such relocation unless the presence of the tanks in their existing location presents regulatory obstacle to airport expansion or operational changes as approved by the City Commission.  In such case, the City shall document the conditions leading to the requirement of relocation and unless State or Federal regulations require otherwise, six months advance notice shall be given to the tank owner.  The foregoing notwithstanding, in the event the City establishes a central fuel farm and desires all tenant fuel tanks to be located therein, it shall provide a minimum of six months advance notice, and unless in conflict with Federal or State regulations, no such relocation shall be required within seven years of the date of adoption of this ordinance.  The City shall make every effort to provide a location for said tanks in the event relocation is required.

 


6.      All tanks utilized for Fuel Storage and Dispensing shall be above ground and surrounded by the proper containment facilities required by law; no underground tanks will be permitted under any circumstances. All tanks shall have a capacity of at least 10,000 gallons and any mobile refueler utilized in conjunction with the fixed tanks shall have a minimum capacity of 500 gallons.

 

7.      All self fueling operations shall be conducted in strict accordance with applicable federal, state, local and industry standard laws, ordinances, rules and regulations, now in effect or hereinafter enacted or amended.

 

8.      Anyone who engages in Fuel Storage and Dispensing must provide adequate paved aircraft parking apron space to accommodate those activities with sufficient space to maneuver aircraft into position for fueling without endangering existing buildings or improvements either on the leasehold of the person engaging in such activities or on any other land at the Airport.

 

9.      The facilities utilized for Fuel Storage and Dispensing must be manned at all times during operation by persons with proper training and certification to operate the fueling facilities. The tenant must submit to the City on an annual basis, through the Airport Manager, certifications for the training in safety and other applicable procedures for each person who will conduct Fuel Storage and Dispensing activities on the tenant’s premises.  Any dispute regarding the sufficiency of said training and certification shall be resolved by the City’s Fire Marshall.

 

10.  No person engaged in Fuel Storage and Dispensing at the Airport shall provide fuel service to any aircraft other than aircraft owned by the tenant (or a parent or subsidiary company of the tenant) upon whose leasehold premises the fueling facilities are located, or aircraft under lease to such tenant for a term in excess of six months. Without limiting the generality of the foregoing, no aircraft borrowed by the tenant, in the possession of the tenant for any reason without ownership by the tenant or a valid lease for a term of six months or more, or owned, leased, borrowed by or in the possession of any employee or agent of a tenant, shall be provided fuel from the tenant’s Fuel Storage and Dispensing facilities. No fuel shall be sold or dispensed, whether or not for monetary or other consideration, to any other aircraft or to the public. Neither the fueling facilities nor any other portion of the tenant’s leasehold premises may be assigned, subleased, shared, traded or otherwise utilized by anyone other than the tenant, without the prior, written consent of the City issued after approval by a majority vote of the City Commission.

 

11.  All facilities utilized for Fuel Storage and Dispensing shall be constructed and maintained at the sole expense of the tenant, in strict compliance with all applicable laws, rules and regulations of each level and agency of government having jurisdiction over the activity. The City shall have the right to review and approve, in writing, all plans and specifications for the facilities before construction is commenced, including the architectural design and color scheme, and all necessary permits shall be obtained prior to commencement. Only qualified and licensed contractors shall be utilized for the construction and maintenance of the facilities. No signs or other verbiage, and no “corporate colors or other recognizable logo of any kind, which would constitute advertising, shall be painted on or in any manner affixed to or displayed on, any of the equipment or facilities utilized for Fuel Storage and Dispensing.

 

12.  Before utilization for Fuel Storage and Dispensing, the facilities intended for that purpose must be inspected and approved by the City, Lake County and Florida Department of Environmental Protection, and thereafter the facilities shall be inspected by those agencies as required by State or Federal regulations. The facilities must be licensed at all times by the Florida Department of Environmental Protection and such license shall be displayed prominently at the facility.

 

INSURANCE:

 

All who engage in Fuel Storage and Dispensing at the Airport shall provide a policy or policies of insurance providing the following coverage, or insurance coverage as required under the tenant’s lease with the City, whichever specifies the broadest coverage and highest limits:

1.      Commercial general liability insurance covering death or injury to persons, and damage to property, having a combined single limit of $2,000,000.00.  The policy must name the City of Leesburg as an additional insured.

 

2.      Pollution insurance with limits of not less than $1,000,000.00 providing coverage against any contamination and costs to abate, clean up and remediate any contamination caused by or emanating from the tenant’s Fuel Storage and Dispensing facilities.

 

3.      Any mobile fueling vehicle shall have commercial automotive liability insurance with a limit not less than $1,000,000.

 

4.      All such policies shall be issued by insurers licensed to do business in Florida having a rating of “A” or better from A.M. Best, require written notice from the insurer to the City at least 30 days prior to termination or expiration, and contain a waiver of subrogation in favor of the City.

 

5.      Proof of such insurance shall be provided prior to commencement of Fuel Storage and Dispensing, and thereafter either on an annual basis or at any time the policy is terminated, expires, lapses for nonpayment or otherwise becomes ineffective, whichever occurs soonest.

 

6.      Failure to have insurance in force in compliance with this Policy shall give the City the right to suspend the tenant’s privilege of engaging in Fuel Storage and Dispensing immediately, without prior notice or hearing, until insurance coverage is restored in full, provided that any tenant whose privileges are suspended under this subpart may request a hearing before the City Commission at its next regularly scheduled meeting to appeal the suspension by giving written notice requesting such a hearing to the City Manager no later than 10 days after the suspension takes effect.

 

FUEL FLOWAGE FEES:

In consideration of the privilege of engaging in Fuel Storage and Dispensing, any tenant doing so at the Airport shall remit to the City fuel flowage fees on a per – gallon basis for each gallon of fuel dispensed, in an amount established from time to time by resolution of the City Commission. All facilities used for Fuel Storage and Dispensing must have metering devices that maintain and produce accurate records of fuel dispensed and are calibrated and approved by the Florida Department of Agriculture and Consumer Services. Each metering device shall be inspected and certified to be correct at least annually by a person or company licensed and qualified to insure that the device is calibrated properly, and a written report shall be submitted to the City at least annually, within no more than 20 days from such inspection, certifying that the device is measuring accurately the volume of fuel being dispensed. Within 10 days of the close of each calendar month, the tenant shall provide the City with copies of the written records produced by the metering device along with payment of the fuel flowage fees due for the preceding month. If the fees are not paid by the 15th day of the month after the fuel is dispensed, a late fee in the amount of 5% of the total fees due for the preceding month shall be added to the amount due, and if the fees are not paid by the 25th of the month then the City may suspend the privilege of the tenant to engage in Fuel Storage and Dispensing until all past due amounts including late fees are paid in full. If any check tendered in payment of fuel flowage fees is returned unpaid, the City may impose a requirement that future fees be paid by wire transfer, cashier’s check or other certified and cleared funds.

VARIANCES:

Since this Policy is enacted to protect the public health, safety and welfare, to ensure to the greatest degree possible the safe operation of facilities for Fuel Storage and Dispensing, to minimize the possibility of fire, spills, contamination or other casualty arising from Fuel Storage and Dispensing, and to provide financial protection to the City and the public through adequate insurance coverage, no requests for variances from any provision of this Policy shall be accepted or considered by the City.

INSPECTION AND ENFORCEMENT:

By electing to engage in Fuel Storage and Dispensing, the tenant consents to the inspection of the leasehold premises in general, and the facilities for Fuel Storage and Dispensing in particular, by personnel of the City, at any time without prior notice, for the purpose of ensuring compliance with this Policy and applicable law. If any inspection reveals, or the City otherwise becomes aware of the existence of, any violation of this Policy, the following shall apply:

1.      If the violation is determined by the City Fire Marshall in the exercise of his reasoned discretion to present an immediate hazard to the health, safety or welfare of the general public or others at the Airport, or to the environment, the privilege of engaging in Fuel Storage and Dispensing may be suspended immediately without prior notice or hearing, provided that any tenant whose privileges are suspended may request a hearing before the City Commission at its next regularly scheduled meeting to appeal the suspension by giving written notice requesting such a hearing to the City Manager no later than 10 days after the suspension takes effect.

2.      If the violation does not present an immediate hazard to the health, safety or welfare of the general public or others at the Airport, or to the environment, the tenant shall be given written notice specifying the violation and providing the tenant a reasonable time, under the circumstances of the violation, to effect a cure. If the violation is not remedied within the time specified in the notice, a hearing shall be scheduled before the City Commission to hear evidence from the City and the tenant concerning the violation, determine if in fact a violation exists, and issue an appropriate order which may include, but is not required to be limited to, suspension of the privilege of Fuel Storage and Dispensing until the violation is remedied, placing limits on the privilege until the violation is remedied, and imposing a monetary penalty not to exceed $250.00 for each day the violation remains outstanding.

 

3.      If the violation is not remedied within 30 days after adjudication of the violation at the hearing required in subpart 2 above, and all fines accrued have not been paid, the privilege of engaging in Fuel Storage and Dispensing shall be suspended automatically until the violation is cured and all fines and penalties are paid in full.

 

4.      If a tenant is adjudicated to be in violation of this Policy more than twice in any two year period, the City may revoke permanently the privilege of engaging in Fuel Storage and Dispensing, or may suspend that privilege for a period not less than 180 days nor more than 365 days. If any tenant whose privilege to engage in Fuel Storage and Dispensing has been suspended under this Policy is found to have engaged in such activities during the period of the suspension, then the privilege shall be revoked permanently.

 

APPLICABILITY OF POLICY:

This Policy shall apply to all facilities at the Airport utilized for Fuel Storage and Dispensing, whether in existence on the date this Policy is adopted, or constructed after adoption of this Policy, excepting only those facilities specifically exempted from this Policy, PROVIDED HOWEVER that nothing in this Policy shall be construed so as to impair any pre – existing obligation of contract in violation of the Florida or United States Constitutions. Despite this proviso, this Policy shall be construed as broadly as possible to effectuate its stated purposes without running afoul of the constitutional prohibition against impairment of contract.

SECTION II.

 

All ordinances or part of ordinances which are in conflict with this Ordinance are hereby repealed, to the extent necessary to alleviate the conflict, but shall continue in effect insofar as they are not in conflict herewith, unless repeal of the conflicting portion destroys the overall intent and effect of any of the conflicting ordinance, in which case those ordinances so affected shall be hereby repealed in their entirety.

 


 

SECTION III.

 

If any portion of this Ordinance is declared invalid or unenforceable, and to the extent that it is possible to do so without destroying the overall intent and effect of this Ordinance, the portion deemed invalid or unenforceable shall be severed herefrom and the remainder of the ordinance shall continue in full force and effect as if it were enacted without including the portion found to be invalid or unenforceable.

 

SECTION IV.

 

This Ordinance shall become effective upon its passage and adoption according to law.

 

PASSED AND ADOPTED at the regular meeting of the City Commission of the City of Leesburg, Florida, held on the                   day of                                                 , 2010.

 

 

 

                                                                                    THE CITY OF LEESBURG, FLORIDA

 

 

 

 

                                                                                    BY:                                                                 

                                                                                                MAYOR

 

 

 

Attest:                                                                        

            CITY CLERK