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HomeMy WebLinkAboutOrdinance 11340 ORDINANCE NO /`~ AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE AIRPORT FUND IN THE AMOUNT OF $75,000 00 FOR THE PURPOSE OF FUNDING AN EMERGENCY PURCHASE AGREEMENT WITH TRITON FUEL GROUP, INC., FOR THE PURCHASE OF FUEL AND LEASE OF FUELING TRUCKS AT SPINKS AIRPORT, MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES AND REPEALING ALL PRIOR ORDINANCES IN CONFLICT HEREWITH, AND PROVIDING AN EFFECTIVE DATE. BE iT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS SECTION 1 That in addition to those amounts allocated to the various City departments for the Fiscal Year 1992-93 and in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Airport Fund in the amount of $75,000 00 for the purpose of funding an emergency purchase agreement with Triton Fuel Group, Inc., for the purchase of fuel and lease of fueling trucks at Spinks Airport. SECTION 2. Should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3 That this ordinance shall be cumulative of Ordinance No 11151 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed SECTION 4 This ordinance shall take effect and be in full force and effect from and after the date of its passage, and it is so ordained. APPROVED AS TO FORM AND LEGALITY City Attorney ~_i~~- ~3 Date i ~~ AdoptedC__~/!I'1.QJ ~~J / ~ 7 "/ Effective O~FIC`AC RECORD CITY SECRETARY ~'1, ~ORTi A, i~(. e§fER Fll~%1", 1~ ,~cOUNTINO 2 Cam, o f Fes- ~oy~-~ Teacas -RANSPORTATION~PUBLIC WORKi./ Ala or ~cn~d C;ou~-cil C unicati~~n erL-R AOMIIJIS7RATI ENGINEERING _ 1 AVIATION• uA~t A6/15/93 K~r~K~n~c 17U17DLR C-13875 `~`~ ~~~~~~ 55TRITON 1 of 3 MANAGE E % rg6$~pq;°~'10 SUPPLEMENTAL APPROPRIATION ORDINANCE TO RATIFY AN EMERGENCY PURCHASE AGREEMENT WITH TRITON FUEL GROUP, INC. FOR THE PURCHASE OF FUEL AND LEASE OF ~.~-~ FUELING TRUCKS AT SPINKS AIRPORT ~~ ~~.! RECOMMENDATION: It is recommended that the City Council: 1. Ratify the action taken by the City Manager to assume interim management and operation of the FBO services at Fort Worth Spinks Airport, and 2. Approve an ordinance increasing the estimated receipts and appropriations in the f the FBO rom Airport Fund in the amount of $75,000 00 from increased revenue operation at Fort Worth Spinks Airport, and 3. Approve the purchase of aviation fuels, supplies, an aircraft tow-bar and tug for $48,145.00 (estimated through September 30, 1993), and 4. Approve the monthly lease agreement for two (2) fuel dispensing trucks from Tri ton Fuel Group, Inc., for $4,140.00 (estimated through September 30, 1933), and 5. Approve the addition of four (4) SO-1 personnel to provide the FBO services. DISCUSSION: In August of 1992, following the contract termination with the previous Fixed Base Operator (FBO), Jim Webb, d/b/a Fort Worth Spinks Aviation Services, Inc., the City's Department of Aviation entered into an Interim Agreement with Allied Aviation, Inc., for fuel dispensing and aircraft servicing at Spinks Airport. Since the start of services on August 24, 1992, Allied Aviation, Inc., has been providing services on a month-to-month basis. According to the Interim Agreement, either party had the right to cancel by giving 30 days notice to the other. During the past nine months, Allied Aviation, Inc., has consistently been late with monthly rental and fee payments to the Department of Aviation. Due to the late payments, late charges (l00 of the monthly rent) amounting to $362.88 have accumulated to the Allied account which they have refused to pay. As a result of habitual delinquent payments to the City of Fort Worth, Allied Aviation, Inc., was notified that their Interim Agreement with the City of Fort Worth would be canceled effective June 1, 1993. Allied did not respond to the notice and chose to terminate operations at Spinks Airport, effective June 1, 1993. Prior to the cancellation of the Interim Agreement with Allied Aviation, Inc., the Department of Aviation sought out potential F80 fuelers to serve the flying public at Spinks Airport. Existing FBOs at Meacham Airport and some start-up proposals from new operators were considered. However, the various arrangements proposed by potential fuelers were not cost beneficial to the City. Each arrangement would have meant a substantial loss in operating revenue to the Department of Aviation. LrLeach case, the proposer wanted "all" or half of the total monthly hangar and office r~n~~~~~~~o~~~t~ ~~a e3 a ~~. ~' City of Fort Worth Texas Mayor and Council Communication Y ~ Y' 06/15/93 'C-13875 55TRITON I 2 of 3 SUBJECT SUPPLEMENTAL APPROPRIATION ORDINANCE TO RATIFY AN EMERGENCY PURCHASE AGREEMENT WITH TRITON FUEL GROUP, INC. FOR THE PURCHASE OF FUEL AND LEASE OF __ FUELING TRUCKS AT SPINKS AIRPORT received by the City which totals $2,325.00 monthly. Our last potential fueler did not reject the arrangement until 6:30 p.m. on May 31, 1993; therefore, effective June 1, 1993, it became necessary for the City to assume responsibility for the management and operation of the FBO services on an emergency basis. Our primary users at Spinks Airport are American Air Ambulance, (Teddy Bear Air/Cook Children's Hospital) which requires 24 hour service to maintain their air ambulance service, and the tenants of the Oak Grove Area. The Department of Aviation will issue a request for proposal to solicit vendors to manage the FBO beginning October 1, 1993. Additionally, the department will accumulate data for the City Council to compare and approve either an independent FBO or In-House operation. During the 1993-94 Budget Cycle, a program improvement decision package for continued City operation of the FBO services will be submitted to City Council for consideration. The revenues and expenditures anticipated during the four month interim period are as follows: REVENUES EXPENDITURES $75,000.00 Personnel $16,987.00 (fuel/misc. sales) Supplies 2,000.00 Supplies, Fuel & Truck Leasing 44,145.00 Used Equipment 4,000.00 $75,000.00 Total $67,132.00 The initial purchase of fuel amounted to $15,570.00. We estimate total cost of fuel purchases until the end of the current fiscal year to be $44,145.00 based on current fuel flowage records, and we will need the two existing fuel dispensing trucks at a lease fee of $1,035.00 monthly which is included in the $44,145.00 figure. We will also need to acquire an aircraft tow-bar and a used aircraft tug to operate the FBO. These items will cost $4,000.00: Personnel costs are estimated at $16,987.00 with miscellaneous supplies to cost $2,000.00. The estimated revenue is based on past average monthly fuel deliveries of 6,667 gallons of 100LL Avgas and 5,997 gallons of Jet-A. The estimated sales revenue was developed using an average fuel sale price of $1.701/Gal. for 100LL Avgas and $1.656/Gal. for Jet-A with a respective current fuel supplier purchase .price of $1.095/Gal°. and $0.835/Gal. The resulting $75,000 generated in revenue is an estimate which is ,adjusted down to reflect the expected fluctuation in the market prices. Fuel prices to the flying public will be adjusted on a monthly basis dependent on the change in price of fuel provided by Triton, the fuel supplier, and the need to maintain t~ Printed on recycled paper . ° °~ City of Fort Worth, Texas Mayor and Council ~.C,ommunicatiari DATE REFERENCE NUMBER LOG NAME PAGE f 3 3 06/15/93 C-13875 55TRITON o SUBJECT SUPPLEMENTAL APPROPRIATION ORDINANCE TO RATIFY AN EMERGENCY PURCHASE AGREEMENT WITH TRITON FUEL GROUP, INC. FOR THE PURCHASE OF FUEL AND LEASE OF FUELING TRUCKS AT SPINKS AIRPORT a positive cash flow in the FBO operation. Our mark-up will range from 25% to 50% above cost, dependent on market conditions. In addition to being the fuel supplier, Triton will provide two dispensing trucks to the City under a monthly lease agreement. Four of the five fueler certified personnel necessary t o perform the fueling service will need to be transferred from their former employer, Allied Aviation, Inc., to the City of Fort Worth Department of Aviation effective June 1, 1993. These personnel will work as Temporary SO-1's until a decision on the permane nt status of the FBO operation is made by City Council during the .1993-94 Budget process. FISCAL INFORMATION/CERTIFICATION: The Director of Fiscal Services certifies that upon approval of the supplemental appropriation ordinance funds will be avai]able in the current operating budget, as appropriated, of the Airport Fund. RG:a ,. OFFiCIAI RECORD CITY SECRETARY FT. WORTH, TES Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by to PE40 512210 0556002 16,987 0 PE 0 22030 0556002 2, 000 0 APPROVED Ramon Guajardo 6143 PE 0' 5221 0 0556002 44,14 0 CITY C 0 U NCIL Originating Department Head PE40 539120 0556002 7,868 0 PE40 541360 0556002 4,000 0 JUN ~~ .~OQ~ PE40 469182 0556002 75,000 0 A M Rivera 540 from ~~~ Secratary of the Cit For Add i t i ona 1 Information y City ai Fort Worth, 4exas Contact Adopted Ordinance No~~~ ~~- Printed on recycled paper