HomeMy WebLinkAboutSafran - Amendment to agreement - 01.01.23o May,2023
14 Mar,2023
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SAFRAN
HELICOPTER ENGINES
AMENDMENT TO Support By the How- AGREEMENT
This amendment to the Support By the Hour Agreement dated as of the Nov. 30`^ 2007, is by and between Safran
Helicopter Engines USA, Inc., a Delaware Corporation ("SafranHE USA") and City of Fresno a California municipal
corporation ("Customer"). SafranHE USA and Customer are parties to a Support By the Hour (SBH) Maintenance
Contract, Agreement NO.C260307PPL.
All Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the
Agreement.
Effective Bate: January 1", 2023, the parties agree to amend the Agreement as follows:
Article 3 — Duration
The term of this agreement shall commence as of the date hereof, set forth in the initial paragraph of this amendment
(the "effective date") and shall remain in effect for three (3) years until Dec. 31n 2025 unless terminated earlier in
written accordance with terms of the Agreement. The Agreement will be subject to additional one (1) year extensions
at the agreement of both parties.
Article 10-1nsuranee
10.5.1. CUSTOMER shall take out and maintain in force at least the following insurances and amounts:
Workers' Compensation and Employers Liability insurance
For all its employees engaged in performing obligations under this Agreement, workers'
compensation and employers' liability insurance or similar insurance in accordance with
applicable law, which may be applicable to those employees.
Aircraft Third Party Liability Insurance
City of Fresno Police Department Air Support Unit shall maintain comprehensive
aircraft third party liability insurance for an amount of not less than one million US
dollars (1,000,000.00 USD) per aircrafts operated by City of Fresno Police Department
Air Support Unit for any one occurrence and aggregate per year.
Hangar Keeper's Liability Insurance or Property on Care or Custody Insurance
City of Fresno Police Department Air Support Unit shall effect and maintain Hangar
Keeper's Liability Insurance or Property on Care or Custody Insurance. The amount of
such insurance cover shall at least be equal to the full replacement value of all SafranHE
USA Owned Equipment under the custody and care of City of Fresno Police Department
Air Support Unit.
SafranHE USA and its affiliates must be added as additional insured and shall receive at
least thirty (30) Days' prior notice in the event of cancellation or modification to the
policy limits. The policies shall be primary in the event of loss and a provision must be
made indicating that where there is more than one insured the policy shall respond as if
each were separately insured.
10.5.2 Upon request by Safi-anHE USA, City of Fresno Police Department Air Support Unit shall provide
certificates of insurance as per the above Articles.
10.5.3 The Parties further agree that the minimum insurance requirements as set forth above shall not
limit or waive a Party's legal or contractual responsibilities to the other Party or others.
City of Fresno Police Department
SafranHE USA
Agreement N° C206307PPLA03
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14 Mar,2023
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HELICOPTER ENGINES
SAFRAN
10.5.4 Insurance obligations in case of Leasing
1) Insurance in Transit. City of Fresno Police Department Air Support Unit agrees to
provide and maintain ALL RISK PHYSICAL DAMAGE INSURANCE in the amount of
full replacement value for all SafranHE USA Owned Equipment or supplies while in the
custody of City of Fresno Police Department Air Support Unit or in transit to SafranHE
USA. Such insurance is to take effect at the time and place of shipment to SafranHE USA
and shall remain in effect until delivery of said property to SafranHE USA.
2) Insurance In Use. City of Fresno Police Department Air Support Unit further agrees that
during such time any SafranHE USA Owned Equipment or supplies are installed in City of
Fresno Police Department Air Support Unit's aircraft. City of Fresno Police Department
Air Support Unit shall maintain the following:
(a) ALL RISK GROUND AND FLIGHT HULL INSURANCE thereon in an
amount sufficient so that SafranHE USA will recover fully the amount of any loss
of said Equipment or supplies; and
(b) City of Fresno Police Department Air Support Unit shall also maintain at all times
Aircraft and BODILY INJURY AND PROPERTY DAMAGE INSURANCE,
including Passengers, in an amount of at least five million US Dollars (5,000,000.00
USD) for CUSTOMER operating up to five (5) aircrafts Combined Single Limit.
Article 17—Confidentiality
Data Protection. The Parties, as non joint controller, exchange contact details of the persons in charge of the
management of their business relationship and of the monitoring of the services. Both Parties undertake to comply
with the national and European regulations regarding data protection and in particular to only use personal data for
the purpose of performing the Services, to implement ell the necessary measures of security and confidentiality in
order to protect this type ofdata, to ensure the compliance of potential transfer outside the European Union, to delete
said data at the expiry of the retention period agreed between the Parties or any deadline provided by law and to reply
to any request from data subjects. Furthermore, each Party undertakes to give notification to the otherParty in case of
any security breach that may have consequences on the data processing.
Article I1— Pricing conditions
APPENDIX F URLY RATE APPLICABLE TO THIS AGREEMENT
The hourly rate applicable in year 2023 at 2023 economic conditions, is set at $246.44 USD (Two hundred and forty
six dollars and forty four cents), VAT not included, per Operating Hour.
The cycle rate applicable in year 2023 at 2023 economic conditions, is set at $1 1.41 USD (Eleven dollars and forty
one cents), VAT not included, per Operating Hour
City of Fresno Police Department
SafranHE USA
Agreement N° C206307PPLA03
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14 Mar,2023
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SAFRAN
HELICOPTER ENGINES
Pursuant to article l l of the Agreement, the above rate(s) shall be escalated as follow:
- Capped Escalation formula:
P - P x (1+Rn%)
n rr 1
Pn = Applicable price for year n
Kn = Formula result, which represents the yearly prices escalation, before application of minimum/maximum
level (as described hereunder), from year N-1 to year N, based on cost environment and expressed in percentage.
Rn = yearly prices escalation based on Formula, after application of minimum/maximum level, applicable from
year N-1 to year N and expressed in percentage.
Indexes of reference (n-3): Indexes computed as an average of the values of the 12 months from January n-3 to
December n-3
Indexes of revision (n-2): Indexes computed as an average of the values of the 12 months from January n-2 to
December n-2
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Application of minimum/maximum levels as follows:
Parties agree that escalation shall be in the window between a minimum of three percent (3%) and a maximum of
five percent (5%). Should the formula result (Kn) be below or above these caps, the differential will be shared
equally (50%/50%) between the Parties.
Should the result of the escalation formula be lower than zero, then zero (0) shall apply to calculate the share. i.e: no
escalation below one point five percent (1.5%) is applicable.
City of Fresno Police Department
SafranHE USA
Agreement N° C206307PPLA03
Page 3 of 4
FPD
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14 Mar,2023
SAFRAN
Ka M
Kn < 3
3<Kn<5
Kn>5
C? - Coni,den;jal
Rn (o/o)
i.-_ .
3—(3-Kn)/2
Kn
5+(Kn-5)/2
All other terms and conditions of the Agreement apply.
AGREED TO:
City of Fresno Police Department
Air Support [:�
Signatur
Printed:
Title:
Date:
Attest:
Todd Stermer, CMC
City Clerk
By:�L 6—I^ZD2�
Deputy
Approved as to form:
Andrew Janz
City Attorne
By:
Dep y i ttor ey
City of Fresno Police Department
SafranHE USA
Agreement N° C206307PPLA03
HELICOPTER ENGINES
Safran Helicopter Engines USA, Inc.
Signature: 4111r,
Printed: Thierry Derrien
Title: President and CEO
Date: 7" � 2: d
Safran Helicopter ng SA,. Inc.
Printe off y Basset— Chercot
Title: Chief Financial Office (CFO)
f�
Date:. 3o a
43
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