AGENDA CAPTION:
Title
Consider approval of Resolution 2018-94R, approving the change of the Fuel Flowage Fee rate for the San Marcos Regional Airport from 4% of the cost of fuel delivered to $0.09 per gallon of fuel delivered; and declaring an effective date.
Body
Meeting date: June 5, 2018
Department: San Marcos Regional Airport
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
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☒ Economic Development - Promote & Support Potential of San Marcos Municipal Airport
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Background Information:
The current adopted fuel flowage fee for the airport is 4% of the cost of fuel delivered to FBOs (Fixed Base Operators - commercial operators who sell aviation fuel to the public). Both fuel providers, Berry Aviation and Redbird Skyport, have requested the rate be changed to a flat fee to be more consistent with other airports in Texas. Texas Aviation Partners reviewed fuel flowage fees at surrounding airports and determined that $0.09 per gallon of fuel delivered was an appropriate rate. (For reference, Austin Bergstrom's fee is $0.10 per gallon and New Braunfels' fee is $0.07 per gallon.)
A flat fee allows an FBO to more accurately predict future costs and allows San Marcos Regional Airport to be more competitive with nearby airports.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Texas Aviation Partners recommends approval.