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 $75,000 00 for the purpose of funding an emergency purchase
agreement with Triton Fuel Group, Inc., for the purchase of fuel and lease of fueling trucks at Spinks
Airport.
SECTION 2.
Should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for
any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair
the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions
shall be and remain in full force and effect.
SECTION 3
That this ordinance shall be cumulative of Ordinance No 11151 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance are in
direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions
of said prior ordinances and appropriations are hereby expressly repealed
SECTION 4
This ordinance shall take effect and be in full force and effect from and after the date of its passage, and it
is so ordained.
APPROVED AS TO FORM AND LEGALITY
City Attorney
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Date
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AdoptedC__~/!I'1.QJ ~~J / ~ 7 "/
Effective
O~FIC`AC RECORD
CITY SECRETARY
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% rg6$~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~
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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~~~
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