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HomeMy WebLinkAboutRESOLUTION 1990-66Suggested by: City ~anager and Airport Manager City of Kenai P~SOLUT~ON NO. 90-66 A RESOLUTION OF THE COUNCIL OF THE CITY OFKENAI, ALASKA RATIFYIN ~24ENDNENTS TO THE AIRpORT REGULATIONS. WHEREAS, the fuel flowage fees assessed in'Airport Regulations 11.05.070 are difficult to administer and apply equitably, and WHEREAS, the City Administration, after consultation with users of the. airport, believe that elimination of fuel flowage fees would be in the best interest of the City, and WHEREAS, the City Administration reconeuends an increase in landing fees, which would generate revenue approximately equivalent to the loss in revenue from fuel flowage fee el~mination. WHEREAS, the City Manager, in accordance with KMC 21.05.030, has amended the Airport Regulations as stated below. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF K~NAI, ALASKA, that the Council ratifies the following amendments to the Airport Regulations: . Sg.ct.i°n. !: Section 11.05.070, which levies fuel flowage fees, is repealed. S~ct,ion 2: Section 14.05.010 is amended as follows: 14.05.010 General: (a) There shall be a landing fee of [TWENTY (20)] twent¥~five .(25) cents per thousand pounds of weight on aircraft with a certification gross take-off weight of'4,000'pou'nds Or'over, payable monthly. (b) There is no landing fee for aircraft under 4,000 pounds certified gross take-off weight. PASSED BY THE COUNCIL OFT HE CITY OF KENAI, ALASKA, this 7th day of November, ATTEST: 1990, to be effective January_l, 1991. Approved by Finance:_~~ (10/23/90) kl 1781.IBB1 CITY OF KENA'I ~10 FIDAL.QO KENAI, ALASKA · TELEPHONE als. FAX g07-283~014 · HEHORAHD TO: FROM: DATE: RE: Kenai City Council Kenai Airport Commission~~' October 23, 1990 Resolution No. 90-66 At their meeting of October 11, 1990 the Airport CommisSion reviewed Resolution No. 90-66: A RESObUTION OFT HE CITY.OF · KENAI, ALASKA RATIFYING AMENDMENTS TO THE AIRPORT REGULATIONS, which proposes an increase in landing fees and eliminates fuel flowage fees. This Resolution was drafted after a--meeting on-September. 25th,- which was held to consider alternatives to fuel flowage'fees. Ail'air carriers and £uel handlers had been invited ~to ....... participate in the discussion. Ail air carriers and fuel handlers were also invited to the October 11th Airport Commission meeting where Resolution No. 90-66 was discussed. The Airport Commission took the following"actiOn on Proposed Resolution No. 90-66. Commissioner Garnett'moved for approval. Commissioner Ames seconded. The Resolution passed by unanimous consent. I?BI-IBB1 CITY OF KENAI FIDALGO KENAI, AI.A~KA gg~tl TEI. F. PNONE ~ · ~1~ FAX g07-283-3014 TO: FROM: DATE: WilliamS. Brighton City Manager Charles A. Brown, Finance Director Randy Ernst, Airport Manager~ September 25, 1990 SUBJECT: Airport Fuel Flowage Fee Today, we h~ld a meeting at City Hall regarding proposed resolution No. 90-50 (see attached), which was removed from the agenda at the September 19th council meeting. Ail air carriers and fuel handlers were invited. In attendance were: Charles A. Brown Randolph A. Ernst J~mDo¥1e Dan Pitts Dean Eichholz Vern Lofstedt Brian L. Shackleton Craig Lofstedt Robert Bielefeld City of Kenai City of Kenai Doyle's Fuel Kenai Aviation Fuel Service Kenai Aviation Fuel Service South Central Air Kenai Air Kenai Air Kenai Aviation After much discussion, the general consensus was that the fuel flowage fee has not been paid nor a~ministered consistently. It was felt that the revenue generated by the fuel fee (about $8,000 per year) probably does not Justify the administrative burden incurred by the City and the fuel distributors. Also, the Kenai Airport fuel fee is another economic disincentive toward purchasing fuel at the airport. Anchorage fuel is already about $.20 per gallon cheaper. All persons present at the meeting agreed that it would be preferable to increase the lending fees from $.20 to $.25 per thousand pounds of certified gross take-off weight, and to eliminate the fuel fees. This would raise about the same amount of revenue. A draft resolution is attached which accomplishes this. This memo and the ~raft resolution will be scheduled for the October 11, 1990 Airport Commission meeting. Notice of that meeting will be sent to air carriers. Then, perhaps the resolution can go to council on November 7, 1990. Suggested by: City Manager and Airport Manager City of Kenai RESO~ONNO. 90-50 A RESOLUTION OFT HE COUNCIL OF TH~ CITY OF KENAI. ALASKA RATIFYING AN AMENDMENT TO THE AIRPORT REGULATIONS. WHEREAS, the Airport Manager reconu~ends that Airport Regulation 11.05.070. dealtng with fuel flowage fees. be amended to (1) increase the ~et fuel tax by one-half cent per gallon. (2) delete the five cent per gallon aviation oil tax. and (3) make it clear who shall pay the tax. and WH~S, the City Manager, in accordance with 1~4C 21.05.030, has ~mended the Airport Regulations as stated below. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OFKENAI, ALASKA. that the Council ratifies the following amendment to the Airport Regulations: . 11.05.070 [FUELING DISTRIBUTORSHIP: (A) THE WHOLESALE DISTRIBUTOR OF ALLAVIATIONFUEL SHALL PAY THE CITY AFEE OF TW0 (2) CENTS PER GALLON FOR ALL AVIATION GASOLINE~ ONE AND ORE-HALF (1 1/2) CENTS PER GALLON FOR ALLJET FUEL~ AND FIVE (5) CENTS PER GALLON FOR ALL AVIATION 0IL DBLIVERF~OUTSIDE THE CITYFOR USE ON THE KENAI MUNICIPAL AIRPORT, PROVIDED THAT THEABOVE FUELS AND OILS ARE TO BE USED IN ANYTYPE OF AIRCRAFT.] Fuel Flowaqe Fee: (a) Everv Derson.pr.entit¥ that delivers aviation fuel t° the Kenai Munici al Ai orr Shall p~y the Ct~y"a fee of two (2) ce,~s,,..for every qa~On, of aviati~ ,fuel that,, it. delive~m Aviation fuel~..mantf~sted ;as.air.cargo-and carr.~.ed-~n t~.~ nOt c_onnected to the aircr~ft~s engine(s),,$S-ex~m__.nt.f~om, the fuel flowage fees; "Avtatlon.fu~l~..'is anvpet~Oleu~.id~St.~l~at~, or other'P~6d~ manufactured or disgense~..,for the purp0~e..of being u~ed a~ e propellant .for airc~af~..engines.. (b) The fee shall be paid on a regular monthly bast~ by the deliverer [WHOLESALER] and a list of the bulk gallonage delivered 'to each individual on forms supplied by the City along with a copy of the invoice for each deliverymustbe submitted. (c) Exceptions are made to fuels sold to the United States Government Agencies dispensing petroleum for their agencies' use. PASSEl) BY ,~I~COU~.C~.L OF ~ CZ~ 0F lq/:l~Z, AI~I~, this lVth day of September, -==v, to be e£fective on October 1, 1990. ATTEST: JOY, b/ j. WILLIAMS, I~IAYOR Carol L. Freas, City Clerk APl~=oved by Finance (9/13/90) kl