HomeMy WebLinkAboutRESOLUTION 1990-50Suggested by:
and Airport
City of Kenai
Manager
RESOLUTION NO. 90-50
A RESOLUTION OF THE COUNCIL OF THE CITY OF
AMENDMENT TO THE AIRPORT REGULATIONS.
ALASKA RATIFYING AN
WHEREAS, the Airport Manager recommends that Regulation
11.05.070, dealing with fuel flowage fees, amended to (1) increase
the Jet fuel tax by one-half cent per ~, (2) delete the five cent
per gallon aviation oil tax, and (3) make clear who shall pay the
tax, and
WHEREAS, the City Manager, in
amended the Airport Regulations as
with KMC 21.05.030, has
below.
NOW, THEREFORE, BE IT RESOLVED BY
ALASKA, that the Council ratifies
Airport Regulations:
couNcIL OF THE CITY OF KENAI,
following amendment to the
11.05.070 FUELING
DISTRIBUTOR OF ALL AVIATION
CENTS PER GALLON FOR ALL
CENTS PER GALLON FOR ALLJET
ALL AVIATION OIL DELIVERED
MUNICIPAL AIRPORT, PROVIDED
USED IN ANY TYPE OF ]
(A) THE WHOLESALE
SHALL PAY THE CITY A FEE OF T60 (2)
~SOLINg; OHE ~ O~-~ (Z ~/2)
~ FZ~ (~) ~S FEa ~N FO~
~ ~ FUELS ~ OrLS ~ TO BE
Fu~l ~lo~age Fee:
aviation fuel to the
of two cents for
Aviation fuel
connected to the
fees. "Aviation fuel
manufactured or
for
~son or that delivers
shall the a fee
allon of aviation fuel that it delivers.
as air and carried Ln tanks not
's is from the fuel
is or other
for the of used as a
'ines.
(b) The fee be paid on a regular monthly basis by the
de!ivergr and a list of the bulk gallonage delivered to
each individual forms supplied by the City along with a copy of the
invoice for delivery must be submitted.
(c)
are made to fuels sold to the United States
dispensing petroleum£or their agencies' use.
PASSED BY THE. COUNCIL OF THE CITY OF I~NAI, ALASKA, this 19th day of
September, 1990, to Be effeCtive on OctOber 1, 1990.
Carol L. Freas, City Clerk
Approved by Finance: ~?_~_
(9/13/90)
kl
TO:
~0~:
~ena~ C~t¥ CounC~
· oort COnlU~s~__. Secretary
septel~ber 24, 2990
~esO~$o~ Ho. 90-50
KENAI AIR
Mr. Randy Erns~ Airport
City of Kena£
210 Fidalgo
Kena£, Alaska 99611
INC.
Manager
Dear Mr. 'Ernst:
Thank you for you~ letter of September 14, 1990 concerning proposed
resolution No. 90 50 to simplify reportingand fees structure for
airport fuel £1owage.
As an operator of only turbine helicopters, the portion of this reso-
lution which causes us concern is the proposed fee increase on Jet
fuel, by one half (~) cent per gallon.
I am sure I do not need to point out to you what is happening daily to
fuel costs of which we have no control. Additionally, almost all of our
winter activity is in support of the offshore oil rigs in Cook Inlet,
conducted under wet (fuel included) contract terms leaving us.with no
means of recovering these cost increases.
As to the current fee differential between Jet fuel and aviation gasoline,
we expect it was set up this way due to the substantial fuel burn increase
by turbine aircraft versus that of piston aircraft of comparable size.
This is of course a trade off for turbine rel£ability, but the result in
this case is that two Kenai Airport based operators, Kenai Air and
SouthCentral Air, are being singled out to provide additional airport
operating revenue. However, with everything considered, I do not have
a serious problem with the proposed fee increase, but I would ask that
it's implementation be postponed until our revenue generating summer
months. I trust you will agree that this is a reasonable compromise--
Co an unexpected additional burden from a company which for over thirty
five years has been a continuous contributor and supporter of the air-
port and the city of Kenai.
Sincerely,
President
C L/v
CC:
Mr. Bill Brighton
Members of Kenai City
Council
155 GRANITE POINT COURT ' KENAI, ALASKA 99611
PHONE: (907) 283-7561-TELEX: 26507
SouthCentral Air,
September 18, 1990
Randy Ernst, Airport Manager
City of Kenai
210 Fidalqo
Kenai, Alaska 99611
Wi~h regard to resolution 90-50, which concerns airport fuel flowage
reporting and fees, SouthCentral Air certainly has no objections to
clarify£ng and simplif~fing the reporting process. However, this
resolution calls for an increase of $0.005 per gallon on Jet fuel,
and frankly, ~he timing couldn' t be worse.
As the principal user of Jet fuel on the Kenai Airport, SouthCentral
Air would carry most of the burden o~this increase. Within the
past six weeks we have experienced a~2~% increase in £uel costs
alone. Additionally, we are presently locked in a fa~e war 'witA~ two
companies that buy cheaper fuel in Anchorage. At ~resent, we have
no way of recovering these increases since we ca, not raise our fa~es.
~hile this fee increase is admittedly not a big ticket item in it-
self, the timing of its imposition should not penalize a locally
owned business that has been supporting the Kenai tax base for many
years. We respectfully request the council .postpone the imposition
of this fee increase 'until June 1991,
Very Truly Yours,
CC:
Mr. Bill Brighton
Members of Kenai City Council