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HomeMy WebLinkAboutOrdinance No. 2427-2009Eheu of KENALALASKA CITY OF KENAI ORDINANCE NO. 2427 -2009 Suggested by: Council AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC 2105.085 AMENDING THE FUEL FLOWAGE FEE TO EXCLUDE FUEL DELIVERED TO THE AIRPORT SOLELY FOR TRANSPORT OFF THE AIRPORT FOR DELIVERY OR RESALE TO ANOTHER ENTITY. WHEREAS, the City of Kenai is the owner and operator of the Kenai Municipal Airport; and, WHEREAS, the City of Kenai has adopted a fuel flowage fee of $0.02 per gallon for fuel delivered to the airport; and, WHEREAS, fuel flowage fees are a common user fee to raise money for airports to be as self-sustaining as possible as required under 49 USC ##47107; and, WHEREAS, a significant portion of the fuel delivered to the Kenai Municipal Airport is for transport outside of the airport rather than used by aircraft taking off from the airport; and, WHEREAS, unlike Kenai, most airports do not have a significant portion of the fuel delivered to the airport intended for delivery off the airport for resale or delivery to another entity; and, WHEREAS, the fuel flowage fee should not be charged for fuel delivered to the airport solely for delivery off the airport to be delivered or resold to another entity; and, WHEREAS, it is in the best interest of the citizens of the City of Kenai and the Kenai Municipal Airport to exclude such fuel from the fuel flowage fee. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that Kenai Municipal Code 21.05.085 is hereby amended as follows: 21.05.085 Fuel Flowage Fee (a) Any person, firm or corporation who delivers aviation gasoline, motor vehicle gasoline, diesel fuel, kerosene, aviation jet fuel or like substance (hereafter referred to as "fuel to any person, firm or corporation at the Kenai Municipal Airport shall pay a fuel flowage fee of two cents (S0.02) for each gallon of fuel; provided that fuel delivered to the airport solely for transport off the airport for delivery or resale to another entity is not subject to the fuel flowage fee. (a) Any person, firm or corporation who delivers aviation gasoline, motor vehicle gasoline, diesel fuel, kerosene, aviation jet fuel or like substance (hereafter referred to New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2427 -2009 Page 2 of 2 as fuel) to any person, firm or corporation at the Kenai Municipal Airport shall pay a fuel flowage fee of two cents ($0.02) for each gallon of fuel. (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. (c) Any person, firm or corporation delivering 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 19th. day August, 2009. ATTEST: Carol L. Freas, City Clerk PAT PORTER, MAYOR New Text Underlined; [DELETED TEXT BRACKETED] Introduced: August 5, 2009 Adopted: August 19, 2009 Effective: October 1, 2009