Agenda 07/09/2013 Item #16G2 7/9/2013 16.G.2.
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners, acting in its capacity as the Collier
County Airport Authority, approve and authorize the Airport Authority's Executive Director to
execute the attached Letters of Understanding with Phillips 66 for the airports to be included, free
of charge,in the Phillips 66-Branded Airport Dealers Excess Liability Insurance Program.
OBJECTIVE: To complete documentation necessary to continue receiving contractor provided
insurance coverage from Airport Authority fuel purchase and delivery contractor.
CONSIDERATIONS: Under aviation fuel purchase and delivery contract #11-5642, the Airport
Authority is provided certain insurance coverage by its fuel purchase and delivery contractor, Ascent
Aviation Group, Inc., formerly the Hiller Group, a subsidiary of World Fuel Services Network. In the
past, Ascent provided the airports with Chevron fuel, and this insurance coverage was provided by
Chevron. Chevron has exited this market, and Ascent has replaced Chevron with Phillips 66.
The insurance coverage previously provided by Chevron will now be provided by Phillips 66. The
attached Letter of Understanding (LOU) is required, for each airport, to facilitate this transition from the
Chevron-branded insurance program to the Phillips 66-Branded Airport Dealers Excess Liability
Insurance Program.
Once properly enrolled in the Program, the Airport Authority will automatically be re-enrolled in the
program effective April 1 of each year, from year to year thereafter as long as it meets the Program
requirements.
The LOU has been reviewed by Collier County Risk Management and the County Attorney's Office.
FISCAL IMPACT: None.
GROWTH MANAGEMENT IMPACT: None.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to
form and legality, and requires majority vote for approval. -JAK
RECOMMENDATION: That the Board of County Commissioners, in its capacity as the Collier County
Airport Authority, approves and authorizes the Airport Authority's Executive Director to execute, the
attached Letters of Understanding with Phillips 66 for the airports to be included, free of charge, in the
Phillips 66-Branded Airport Dealers Excess Liability Insurance Program.
PREPARED BY: Chris Curry, Airport Authority Executive Director
Packet Page -1303-
7/9/2013 16.G.2.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.G.16.G.2.
Item Summary: Recommendation that the Board of County Commissioners, acting in its
capacity as the Collier County Airport Authority, approve and authorize the Airport Authority's
Executive Director to execute the attached Letters of Understanding with Phillips 66 for the
airports to be included, free of charge, in the Phillips 66-Branded Airport Dealers Excess Liability
Insurance Program.
Meeting Date: 7/9/2013
Prepared By
Name: BrueggemanDebra
Title: Operations Coordinator, Airport Authority
6/26/2013 10:34:04 AM
Submitted by
Title: Executive Director-Airport Authority,Airport Aut
Name: Curry Chris
6/26/2013 10:34:07 AM
Approved By
Name: BrueggemanDebra
Title: Operations Coordinator, Airport Authority
Date: 6/26/2013 4:26:25 PM
Name: KlatzkowJeff
Title: County Attorney
Date: 6/28/2013 9:02:49 AM
Name: GreenwaldRandy
Title:Management/Budget Analyst,Office of Management&B
Date: 6/28/2013 10:52:11 AM
Name: KlatzkowJeff
Title: County Attorney
Packet Page-1304-
7/9/2013 16.G.2.
Date: 6/28/2013 11:52:31 AM
Name: OchsLeo
Title: County Manager
Date: 6/30/2013 3:46:47 PM
Packet Page-1305-
7/9/2013 16.G.2.
�vx.',3uirs���
To: Phillips 66-Branded FBO
Subject: Invitation to Enroll in the
Phillips 66-Branded Airport Dealers Excess Liability Insurance Program
You are invited to enroll (free of charge) in the Phillips 66-Branded Airport Dealers Excess Liability Insurance Program
("Program"). Enclosed is the Letter of Understanding ("LOU")explaining the Program.
Once properly enrolled, you will be automatically re-enrolled in the Program effective April 1 of each year, from year to
year.provided you are a Phillips 66-branded FBO and continue to meet the Program requirements.
To enroll in the Program, please complete the LOU, sign it, date it, and return it by mail, email, or fax to the contract analyst
shown at the bottom of this page.
Providing that all of the Program requirements are met, your coverage in the Program will take effect when your fully
executed LOU is received by Phillips 66 Company. When we have confirmed your acceptance into the Program, we will
return a copy of your completed and verified LOU form to you for your files as confirmation that you are enrolled in the
Program.
Please feel free to share photocopies of this letter and the LOU with your insurance carrier in order to ensure that your
primary coverage meets the requirements for the Program. The LOU contains a detailed description of the Program
requirements that must be met to be enrolled in the Program. Below is a summary of the main Program requirements:
❑ Must be either (i) a Phillips 66 Branded FBO with a current, active, fully executed Phillips 66 branded aviation supply
agreement on file with Phillips 66 Company, or (ii) a Phillips 66-Branded FBO serviced through a Phillips 66 Company
marketer.
❑ Must maintain in effect primary liability insurance (which includes Products Liability and Completed Operations Liability)
of minimum limits of$1,000,000 any one occurrence.
❑ As respects Products Liability and Completed Operations coverage, a minimum of$1,000,000 in the aggregate should
be maintained.
❑ "Per person"or"per passenger" sub limits cannot be less than $1,000,000.
❑ Must complete, date, sign and return the LOU form to Phillips 66 Company.
In the event that Phillips 66 Company requests a Certificate of Insurance, the certificate should be a valid original. If a
Certificate is requested, the Certificate Holder must be shown as: Phillips 66 Company; Aviation Insurance; 970-02 Adams
Bldg.; 411 S. Keeler Ave.; Bartlesville, OK 74004. (Please do not send a Certificate unless and until requested by
Phillips 66 Company.)
Once approved, you are enrolled in the Program as long as you meet all of the Program requirements. Your enrollment and
coverage in the Program will be changed without notice should your coverage expire or should you be in noncompliance with
any Program requirement at any time. Furthermore, the Program may be changed or modified at any time by Phillips 66
Company or it may be terminated by Phillips 66 Company at the end of any Program anniversary date for any reason at its
sole and absolute discretion. Written notice will be given of any such change, modification or termination.
Colleen McCarty, Contract Analyst
970-02 Adams Bldg.
411 S. Keeler Ave
Bartlesville, OK 74004
colleen.mccarty @p66.com
Fax#: 918-661-4975
Cover Letter-Excess LiabilityInsurance
Packet Page -1306- Rev 5-2-12
7/9/2013 16.G.2.
PIMPS
Ir,cfch
RETURN COMPLETED FORM TO: colleen.mccarty @p66.com
or Fax#: 918-661-4975
Phillips 66-Branded Airport Dealers Excess Liability Insurance Program-LETTER OF UNDERSTANDING
I hereby request to be included (free of charge) in the Phillips 66-Branded Airport Dealers Excess Liability Insurance Program
("Program"). Once properly enrolled, I will be automatically re-enrolled in the Program effective April 1 of each year,from year to
year thereafter,so long as I:
(1) am a Phillips 66-branded fixed base operator ("FBO") pursuant to a Phillips 66 branded aviation supply agreement
directly with Phillips 66 Company('Phillips 66")or through a Phillips 66 marketer, and,
(2)meet the Program requirements.
As of April 1, 2008, the Program provides excess liability coverage in the amount of $50,000,000 per occurrence and in the
aggregate for sums which I am legally obligated to pay due to a covered occurrence during the policy period when Phillips 66-
branded fuels and lubricants are used, and arising from the activities listed below. It should be understood that the Program is
specifically linked to and only meant to respond to Phillips 66' business as a supplier of branded aviation products, and is limited
to the following activities:
a. Aviation fuel into plane services relating to sale, service, storage and supply of Phillips 66-branded aviation fuel and lubricant
products, including fueling and defueling operations.
b. Aviation fuel tank facilities relating to the storage of fuel and operation of fuel tank facilities.
c. Operation of fueling trucks and other vehicles within airport premises.
I further understand that if I have a fuel supply agreement directly with Phillips 66 or with a Phillips 66 marketer, and if I carry
primary contractual liability insurance covering my liability under that agreement, then the Airport Dealers Excess Liability
Insurance will, in addition to the coverage explained above, also provide contractual liability coverage to the same extent, subject - -
to policy exclusions.
11. To participate in the Program, I understand that I must maintain in effect primary liability insurance (including Products
Liability and Completed Operations Liability)in the following amounts:
a. Not less than the amounts carried at the time I received knowledge of this excess liability coverage, but
b. In any event no less than $1,000,000 combined single limit for each occurrence and in the annual aggregate with
respect to Products Liability and Completed Operations coverage. Evidence of coverage must specifically include
limits of $1.000.000 in the aggregate for Products Liability and Completed Operations coverage. Any sublimits
below$1,000,000 on a"per person"or"per passenger"basis will disqualify me from the Program.
I understand that this excess liability coverage will be afforded to me only to the extent that I maintain insurance to
comply with the above primary insurance requirements. I further understand that the Phillips 66-Branded Airport
Dealers Excess Liability insurance coverage will change without notice should my coverage expire or should the
amounts of my primary liability insurance be reduced below $1,000,000 (except in the event of a claim depleting the
underlying limit).
A properly completed Letter of Understanding is required from me in order to be covered under the Program. Once I am
enrolled in the Program, I will be automatically re-enrolled thereafter for twelve month periods effective each April 1 pursuant to
the current terms and conditions of the Program. Phillips 66 will forward a revised Letter of Understanding if there are changes to
the Program (e.g. changes in the renewal dates or policy limits). Written notice will be given in the event the Program is
terminated.
I agree and am in compliance with the above primary insurance requirements.
III. Coverage Issues and Exclusions
a. It is important to understand that this Program is considered "following form"which means that the coverage provided under
the Program will follow the same policy terms, conditions, exclusions and limitations as my primary insurance affords to my
fuel/fueling related coverage. Coverage will not"follow form" and will be more restrictive if I no longer carry $1,000,000 of
commercial underlying insurance.
b. War Risks, Hijacking and other similar perils are specifically excluded under this Program, regardless of my primary policy
coverage.
I of 2 Phillips 66 Excess Liability LOU
Packet Page-1307-1 5-2-12
7/9/2013 16.G.2.
c. Regardless of the underlying coverage, Environmental Disturbance and Pollution are not covered.
d. No coverage is afforded to expenses related to a product recall.
e. No coverage is afforded for Nuclear, Date Recognition or Asbestos exposures.
f. The Program will not respond if I carry insurance limits of$250,000,000 or more.
g. The$50,000,000 aggregate limit is the total limit available to me. If there is a"catastrophic"loss that erodes the aggregate to
$0, there will be no further coverage for me under the Program. I will consider this possibility when deciding on the limits of
liability I purchase under my primary insurance program.
IV. I understand it is my responsibility to report any incident involving the use of Phillips 66-branded aviation fuels and/or lubricants
that involves bodily injury to third parties and/or damage to property of others, even if such a potential claim is not expected to
exceed the limits of my primary insurance. When an incident is reported, a copy of an accident report with the details of the
incident should be faxed to Phillips 66 General Aviation Technical Support at 918-662-6085 within 72 hours of the incident.
V. DIRECT DEALERS ONLY- I understand that as a direct dealer who is obtaining aviation fuel directly from Phillips 66(rather than
through a Phillips 66 marketer), I must have a current, active, and fully executed Phillips 66 branded aviation supply agreement
on file with Phillips 66 to be included in the Program.
VI. I UNDERSTAND THAT UPON RECEIPT BY PHILLIPS 66 OF THIS COMPLETED, SIGNED, AND DATED LETTER OF
UNDERSTANDING, MY COVERAGE UNDER THE PHILLIPS 66-BRANDED AIRPORT DEALERS EXCESS LIABILITY
INSURANCE PROGRAM WILL COMMENCE AND BE IN EFFECT THROUGH THE PREVIOUSLY IDENTIFIED POLICY
PERIOD, AND WILL BE AUTOMATICALLY RENEWED FROM YEAR TO YEAR THEREAFTER AS LONG AS I MEET THE
PROGRAM REQUIREMENTS. NO COVERAGE IS PROVIDED UNLESS A COMPLETED LETTER OF UNDERSTANDING
HAS BEEN RECEIVED AND CONFIRMED BY PHILLIPS 66,AND PROVIDED THE STATED REQUIREMENTS ARE MET.
(Please PRINT clearly):
30 Name 1 Airport ID
Mailing Address I Airport Name
City, State,ZIP I Airport City, State
For Marketer-supplied FBOs: name of the Marketer who supplies my Phillips 66-branded aviation fuel:
Marketer Name
As evidenced by my signature below, I understand, agree to, and am in compliance with this Letter of Understanding in order to
be included in the Phillips 66-Branded Aviation Airport Dealers Excess Liability Insurance Program:
FBO DEALER:
Signed By:
(on behalf of the FBO)
Name Printed:
Title:
(This box to be completed by Phillips 66 Company)
Date
ENROLLMENT CONFIRMATION
Enrollment Confirmed by:
Date Confirmed by P66: —
of 2 Phillips 66 Excess Liability LOU
Packet Page -1308-a Rev 5-2-12