Title
Consider/Discuss/Act on an Ordinance of the City Council of the City of McKinney, Texas, Amending Appendix A, Entitled "Schedule of Fees", of the Code of Ordinances Relating to Fees, by Amending Section 30-205 Relative to FBO and Self-Fueling Operator Fees and Providing for an Effective Date
Summary
MEETING DATE: January 15, 2013
DEPARTMENT: Collin County Airport Development Corporation
CONTACT: John W. Wroten, Jr., Chairman
Kenneth F. Wiegand, A.A.E., Executive Director
RECOMMENDED CITY COUNCIL ACTION: N/A
ITEM SUMMARY:
· The Collin County Airport Development Corporation has determined that a new fee is required to off-set expenses of permitting a Self-Fueling Operation.
· The change proposed in this Ordinance will add a new fuel flowage fee for self-fueling operators while maintaining the fuel flowage fee for Fixed Base Operators (FBO).
BACKGROUND INFORMATION:
· Various business flight departments look for cost savings by purchasing and dispensing their own aviation fuels to their owned aircraft with their own employees and equipment.
· Their cost savings is the airport FBO's loss in retail profits.
· Our airport's FBO provides deep discounts to based business aircraft operators in an effort to discourage self-fueling operations.
· The proposed new fuel flowage fee will help deter self-fueling operations and enhance FBO services to the public.
· If approved, Collin County Regional Airport and Addison Airport will have identical and competitive fuel flowage fee rates.
FINANCIAL SUMMARY:
Fuel flowage fee:
· FBOs
. $ 0.12/gal
· Self-Fueling Operators
$ 0.20/gal
Fueling operators without a contract negotiated with the city for fuel farm fees, per tank per month .................$58.34
BOARD RECOMMENDATION: Approve the Ordinance.