HomeMy WebLinkAboutRPT 3 FUEL STORAGE 04-07-86AGENDA
DATE: APRIL 1, 1986
REPORTS
NO. 3
4-7-86
Inter- Corn
TO:
FROM:
SUBJECT:
WILLIAM HUSTON, CITY MANAGER
BOB LEDENDECKER, DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
FUEL STORAGE AND DISPENSING FACILITIES AGREEMENT (INFORMATION REPORT)
At a previous City Council meeting, staff was requested to review the Fuel Storage
and Dispensing Facilities Agreement dated June 6, 1977 between the Tustin Unified
School District and the City with respect to each parties share of on-going
operational/administrative costs of the system. The following is a recap of the
various shared items as outlined in the Agreement:
1. Initial construction cost shared 50% by District and 50% by City.
2. District shall be responsible for payment to.City of City's direct cost
for fuel used by District.
Cost and expenses of maintenance, repair, utilities, cleaning and
replacement shall be shared by City and bistrict in the same proportion
as each has consumed fuel during the preceding twelve months prior to
expenditure for said costs and expenses.
e
Cost and expense of all losses and damage not resulting from the fault of
City or District, shall be paid by City and District in proportion to the
gallons of fuel consumed by each party within the preceding twelve
months.
The Agreement contains no provisions for the City to charge the District for
routine operational/administrative costs.
The term of the Agreement runs for twenty five years during which period neither
party may revoke or terminate the Agreement. After that time, either party may
terminate the Agreement by giving the other party 365 days' written notice.
Bob Led6ndecker
Director of Public Works/City Engineer
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