Title
Settlement of City’s Claim Against Compass Airlines for Fuel Spill at Phoenix Sky Harbor International Airport
Description
Request to authorize the City Manager, or his designee, to enter into a settlement agreement with Compass Airlines and accept payment in the amount of $150,000 to remediate a fuel spill at Phoenix Sky Harbor International Airport, along with indemnification of Compass, its parent, and Delta Airlines for further liability related to the fuel spill. Further request to authorize the City Treasurer to accept all funds related to this item.
Report
Summary
Compass Airlines was flying regional routes for Delta Airlines from Phoenix Sky Harbor International Airport until April 1, 2020, when it ceased operations. On Feb. 14, 2019, Compass accidentally released 1,000 gallons of jet fuel due to a faulty fueling valve. The fuel spill damaged airfield pavement and contaminated subsurface soils. Under its contract with the City, Compass is liable for the fuel spill.
Compass Airlines has agreed to settle the matter by paying the City $150,000 for costs associated with removal and replacement of the pavement, and remediation of the soil contamination. The City will agree to release and indemnify Compass, its parent, and Delta Airlines for further liability for Compass’s fuel spill.
Financial Impact
Compass Airlines will pay the City $150,000 to settle the matter. The City will use this money to remove and replace the pavement and remediate the contaminated soil.
Location
Phoenix Sky Harbor International Airport - 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.