HomeMy WebLinkAboutOrdinance 2884 1983 JA/yr Op, RECO
4
ORDINANCE NO . 0 �F aA �l�ltr ; ro &
hCNA lfp CO4INr
C1RC(I1 Q�`�1161X I/�ARK
AN ORDINANCE REPEALING ORDINANCE N0 , 2874 TO Rte TATE
A ONE CENT PER GALLON FLOWAGE FEE FOR PETROLEUM PRODUCT
DISTRIBUTORS SUPPLY AVIATION OR AUTOMOTIVE FUEL AT THE
FAYETTEVILLE MUNICIPAL AIRPORT .
BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE , ARKANSAS :
Section 1 . That Ordinance No . 2874 is hereby repealed .
PASSED AND APPROVED this */ day of JR�I/J 19
APPROVED :
i•: Mayor
P
ATTEST ,. e f
By :
City Clerk
J x;72 88
a
CERTIFICATE OF RECORD
STATE OF ARKANSAS I SS.
Washington County
CircI , Alma L. KollmeYedo hereby certify t Clerk and
that thf�i o Rxed o4r ore-
Washington County, day
gain trument was filed�for recordin my office ont ed-
_1q!&aC1Qg1P'cloc�.M , O
of record mat pa,.e, 002
duly reco ed in �ly� day of —1
Witness my hand and seal .s —
Circuit Clerk and
' X.Opfffiiciioo Re{-ccorde
BY peputy Clerk
CERTIFICATE OF RECORD
State of Arkansas
.City of Fayattevi"e ( SS
I, S :zam e C. Ke t e 'y. Cif',' Clerk and
Er- :.'6:i•', rec o*lec f tae C'. ;y f ^ e 't,ville,
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11 . 01
.�' E�`��� FAYET'2'EVILLE , ArZ.KANSAS
AIRPORT DEPARTMENT P. O. DRAWER F (WI I5}1-47W 72701
M E M O R A N D U M
TO : Fayetteville Board of Directors
FROM : Ede P . Hogue , Airport Manager
SUBJECT : General aviation and gasoline tax charged to
the Fixed Base Operator at the Airport
DATE : December 27 , 1982
i
The Airport Committee at a meeting held December 13 , 1982 ,
approved the recommendation of the City Manager and the
airport management to increase the general aviation and gasoline
tax charged to Fayetteville Flying Service from three cents ( $ . 03 ) f
per gallon to five cents ( $ . 05 ) per gallon on all aviation fuel and
gasoline fuel delivered to Drake Field monthly as of January 1 , 1983 .
The Lease Agreement executed September 12 , 1981 , between the
City of Fayetteville , Arkansas , and Scheduled Skyways , Inc . ,
d/b/a Fayetteville Flying Service includes a general aviation
and gasoline tax equivalent to three cents ( $ . 03 ) per gallon
on all aviation fuel and gasoline fuel delivered to Drake Field
each month . The lease specifies that , " Said flowage fee may be
increased by Lessor after December 31 , 1982 , by written notice
to Lessee stating the amount of the increase and the effective
date thereof . " Therefore , the flowage fee paid to the City by.
Fayetteville Flying Service became a non- negotiable item in the
lease agreement signed by both parties .
In addition to the flowage fee charged the fixed base operator ,
the Citv has an ordinance which requires any petroleum product
distributor supplying aviation or automotive fuel at the Airport
to pay the City a flowage fee of one cent ( $ . 01 ) per gallon of
fuel supplied to Drake Field each month . It is estimated that
the total aviation fuel tax ( $ . 04 ) will generate approximately
$ 45 , 000 in 1982 . With the increase to five cents ( $ . 05 ) per
gallon that the airport management proposes to charge the fixed
base operator , we are projecting the aviation fuel tax to
generate approximately $ 67 , 500 during 1983 . That revenue projection
assumes zero ( 0 ) gro...th in number of gallons sold .
Attached for vour reference :
1 . Area survey of fuel flowage fees .
2 . Survey of retail fuel prices at other airports .
3 . The page in the lease agreement which addresses the
general aviation and gasoline tax .
11 . 02
►� '- "���'� . FAYETT,�VILLE , Ar'�.KANSAS
y � AIRPORT DEPARTMENT P. O. DRAWER F 15011 521-47W T2T01
AREA SL07EY
Fuel Flowage Fees
Fixed Base Operator Pctrole•an Sapplier
Little Rock $ . 05 $ . 01
Ft. Smith $ . 09 none
(The Airport sells all
fuel to the airlines) i
Hot Springs MA none y '
'Airport sells all fuel) I
Springda1 $ . 05 none
Joplin 3% or $ . 03 per gallon none
(Airlines contract for their on sales , whichever
fuel separately and pay the is higher
FBO to flow through his fuel
farm)
' I
Tulsa ants.-trust prohibits them none i
( 65% of all f7ael sold is sold from charging the FBO I
by the airport authority , they a flowage fee :
charge a $ . 05 flowage fee)) 1 . Lease to then
2 . Regulate than, to
an extent
3 . Compete with then
Fayetteville* $ . 05 $ . 01
* figures used for 1983 budgeting pu_poses
Fixed Base Operator lease agreement provides that the flowage fee may be '
increased by the Citv after December 31 , 1982 , by written notice to Lessee
stating the annunt of the increase and the effective date thereof .
4 11 . 03
( a ) A sum equivalent to $ 5 . 80 per square foot per
year for those premises designated in paragraph 1 ( a ) of
.. this lease plus two percent ( 2%) of gross sales per
month or $ 2 , 000 . 00 per year , whichever is greater . The
term " gross sales " shall include , but shall not be
limited to , sundry sales , oil and lubricants , aircraft
charter and taxi service , aircraft engine , airframe and
accessory sales and maintenance , aircraft rental ,
flight training , aircraft storage , and specialized
services ; provided , the term "gross sales " shall not
include the sale of fuel or new and used aircraft . All
sums payable hereunder shall be paid in monthly installments .
( b ) $ 600 . 00 per month for the old wooden hangar
described in paragraph 1 ( b ) .
( c ) For the privilege of serving as a Fixed Base
Operator at the Airport , the sum of $ 400 . 00 per month
_plus a general aviation and gasoline tax equivalent to
three cents per gallon on all aviation fuel and gasoline
' fuel delivered to Drake Field each month . Said flowage
fee may be increased by Lessor after December 31 , 1982
[c
11 . 04
� AIRPORT DEPARTMENT P. O. DRAWER F ISOt1321-050 ]]]Ol
RETAIL FUEL PRICES
as of
December 29 , 1982
Location Av- gas Jet A
( without tax ) ( without tax )
Favetteville $ 1 . 79 $ 1 . 66
Springdale 1 . 77 1 . 48
Tulsa 1 . 90 1 . 74
Oklahoma City 2 . 14 1 . 81
Springfield 1 . 87 1 . 54
Little Rock
Central Flying Service 1 . 84 1 . 67
j
Stewart Aviation Service 1 . 67 1 . 71
Little Rock Air Center 2 . 00 1 . 70
Memphis 1 . 93 1 . 67
St . Louis 1 . 91 1 . 72
Houston 1 . 90 1 . 66
STATE of ARKANSAS 1
JS eB.
County of Washington
I, 9 � hereby certify that I
ORDNNANCE NO. 78" am the publisher of THE NORTHWEST ARKANSAS TIMES, a daily newspaper
N ORDINANCE REPEAL
ING ORDINANCE NO. 2874TO having a second class mailing privilege, and being not less than four pages es of
REINSTATE A ONE CENT five columns each, published at a fixed place of business and at a fixed (daily)
PER GALLON FLOWAGE intervals continuously in the City of Fayetteville, County of Washington, Arkansas
FEE FOR PETROLEUM
PRODUCT DISTRIrOLTORS for more than a period of twelve months, circulated and distributed from an
SU PPL V- AV AT It O R established place of business to subscribers and readers generally of all classes
AUTOMOTIVE FUEL AT THE In the City and County for a definite price for each copy, or a fixed price per
F A v E T VE v I L L E annum, which price was fixed at what is considered the value of the publication,
MUNICIPAL ORDARPu n the news value and service value It contains, that at least fifty B6 CI ORDAINEDDB BV THE based Po ypercent
BOARD OF DIRECTORS OF of the subscribers thereto have paid cash for their subscriptions to the newspaper
THE CITY O F F A V E T or its agents or through recognized news dealers over a period of at least six
T "LLE. ARKANSAS'
Section 1. That Ord'.nance months; and that the Said newspaper publishes an average of more than forty
No. 2874 +s hereby repealed. percent news matter.
PASSED AND APPROVED
this nth day of January. 1%2.
APPROVED: I further certify that the legal notice hereto attached In the matter of
By : Paul R. Noland
Mavor
ATTEST : tt
Seal i[ _�OA'✓J / .� i
e yOI W la A. Kelly --1
City Clerk __- .__
was published In the regular dally Issue of said newspaper for
consecutive insertions as follows:
The first insertion on the cx� day ofS—. L • 19 S>�
the second Insertion on the day of U 19
the third insertion on the day of 19
and the fourth insertion otu , y At9
( U
worn to and subscribed before me on thls day of
OZ
Notary ublic
My Commission Expires: 3
Fees for Printing — $ f d • t� o
Cost of Proof S / /
Total $ 1s5 �,e �