HomeMy WebLinkAboutOrdinance No. 2303-2008Suggested by: Administration
CITY OF KENAI
ORDINANCE NO. 2303-2008
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ENACTING
KMC 21.05.085 ESTABLISHING A FUEL FLOWAGE FEE OF THREE CENTS ($0.03)
PER GALLON OF FUEL DELIVERED AT THE KENAI MUNICIPAL AIRPORT.
WHEREAS, the City of Kenai is the owner and operator of the Kenai Municipal Airport;
and,
WHEREAS, the Kenai Municipal Airport has been operating with a large deficit
consisting of: -$871,968 in Fiscal Year 2004; -$727,730 in Fiscal Year 2005; -
$685,702 in Fiscal Year 2006; and -$623,237 in Fiscal Year 2007; and,
WHEREAS, Federal Aviation Administration policies and grant assurances require the
Kenai Municipal Airport be self-sustaining financially through its rate and fee
structure; and,
WHEREAS, such large operating losses cannot be sustained indefinitely by the airport
budget reserves; and,
WHEREAS, fuel flowage fees are a nationally accepted standard method of raising
revenue for the operation and maintenance of airports; and,
WHEREAS, the revenue raised from the fuel flowage fee will only be used for the
operation, maintenance and improvement of the Kenai Municipal Airport.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that KMC 21.05.085 is enacted as follows:
21.05.085 Airgsort Fuel Flowage Fee
{a) Any person, firm or corporation who delivers aviation gasoline, motor vehicle
gasoline, diesel. fuel, kerosene, aviation iet fuel or like substance (hereafter
(b) On or before the fifteenth (15th) day of each month, each person, Firm, or
corporation delivering fuel as designated in this section shall deliver to the City
of Kenai Finance Department a statement showing the type of fuel, and the
number of gallons delivered in the previous month, to whom delivered, and the
amount due the City of Kenai under this section, and remit the statement with
the amount due. The City of Kenai shall prepare statement forms for reporting
and payment of fuel flowage fees.
Ordinance No. 2303-2008
Page 2 of 2
(c) Any person, firm or corporation deliyerin~ fuel to the Kenai Municipal Airport
shall furnish within ten (10) days of request by the Kenai Airport Manager all
delivery tickets, purchase invoices or other records necessary to conduct any
audit to determine compliance with the requirements of this section.
(d) The funds derived from fuel flowage fees shall be utilized solely for the
maintenance, operation and improvement of the Kenai Municipal Airport.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of May,
2008.
PAT PORTER, MAYOR
ATTEST:
j I
Carol L. Freas, City Clerk ~~
Introduced: May 7, 2008
Adopted: May 20, 2008
Effective: July I, 2008
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KENAI~ SKA
"Vclla9e wct~t a Past, Gc~ witti a FutuYe"
210 Fidalgo Avenue, Kenai, Alaska 99611-7794 „,~„~G„
Telephone: 907-283-7535 /FAX: 907-283-3014 I~I~I1
1592
MEMO:
TO: City Council
n/~~ FROM: Rick Koch
" DATE: May 13, 2008
SUBJECT: Ordinance 2303-2008 -Fuel Flowage Fee
The purpose of this correspondence is to recommend Council approval of the above
referenced ordinance.
Establishing a three cents per gallon fuel flowage fee is esthnated to produce revenues to
the Kenai Municipal Airport of approximately $ 65,000 per year. Fuel flowage fees are
common. at most airports of the class of our airport.
Below are the fuel flowage fees charged at other similar airports:
Airport Fuei Flowa e~ Fee per gallon
Ted Steven Anchorage Int'1 Airport $ 0.027
Fairbanks Int'1 Airport $ 0.030
Juneau Int'1 Airport $ 0.130
The Airport Commission considered this ordinance. Only four Commission Members
were in attendance at the meeting. The motion to accept the administrations
recommendation received three votes in the affirmative, and one vote in the negative. The
motion failed as a result of not having the support of the majority of the seven member
commission.
ThaiIlc you for your attention in this Matter.
~~
Niunicapal Aerpor$
' •
305 N. WILLOW ST. SUITE 200 KENAI, ALASFCA X3611
TEIJ=PHONE ~7-28:17551
FAX ~7-2833737
To: Rick R. Koch -City Manager
From: Mary L. Bondurant -Airport Manag
Date: May 11, 2008
Subject: Ordinance 2303-2008 -Fuel Flowage Fee
The above ordinance establishing a fuel flowage fee at the Kenai Municipal Airport was
discussed at the May 8, 2008 Airport Commission meeting.
The four (4) Commission members in attendance discussed whether to recommend Council's
passage of Ordinance 2303-2008. A motion was made "to accept Administrations
recommendation to adopt Ordinance 2303-2008." The vote was three (3) yes and one (1) no.
The motion failed.
www.ci.kenai.ak.us.