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TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Services Officer
DATE: July 31, 2014
SUBJECT:
Request approval to amend Chapter 5 (Airports and Aircraft) Article IV (Flow Flowage Charge) to require that each operator that is authorized to sell aviation fuel at the Aurora Airport sell their fuel for at least 25% above what they paid for it.
PURPOSE:
The proposed amendment is meant to protect Fixed Base Operator (FBO) tenants at the airport from unreasonable and unfair competition. A Fixed Base Operator is a provider of airport and airplane services including but not limited to selling and dispensing fuel, providing tie-down services, flight training and other general aviation services.
BACKGROUND:
There are currently two FBO tenants at the Aurora Municipal Airport Lumanair Aviation Services and JA Air Center. As the city continues its marketing efforts for new businesses at the airport, and existing businesses strive for more general aviation business, the need for the services provided by these operators, including fueling services, should continue to increase.
DISCUSSION:
Providing a level playing field in terms of minimum fuel charges will protect current FBO's from unreasonable and unfair competition, and provides a better choice for those desiring to purchase aviation fuel.
IMPACT STATEMENT:
There should be no impact from this request on the community. The fuel flowing charge collected by the City from aviation fuel sales is a per-gallon charge and not tied to the actual cost of the fuel.
RECOMMENDATIONS:
It is requested that the amendment to Chapter 5 Article IV of the City Code of Ordinances be approve.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
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An Ordinance Amending Chapter 5, Article IV of the City of Aurora Code of Ordinances Entitled "Fuel Flowage Charge"
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City deems it necessary and appropriate to amend Chapter 5, Article IV of the City of Aurora Code of Ordinances entitled "Fuel Flowage Charge" in order to protect airport FBO tenants from unreasonable and unfair competition.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
Section One: That Chapter 5, Article II entitled "Municipal Airport Advisory Board" shall be amended as follows:
Sec. 5-56. Charge imposed.
Effective January 1, 1990, each operator authorized to sell aviation fuel at the Aurora Municipal Airport shall pay to the City of Aurora a fuel flowage charge of five cents ($0.05) for each gallon of aviation fuel delivered to the operator at the Aurora Municipal Airport. For purposes of this article, the term "aviation fuel" shall include all fuel used to power aircraft.
Effective September 1, 2014, each operator authorized to sell aviation fuel at the Aurora Municipal Airport must sell such aviation fuel at least twenty five percent (25%) above the purchase price such operator paid to purchase said aviation fuel.
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Section Two: That this Ordinance shall be in full force and effect, and shall be controlling immediately upon passage and approval.
Section Three: That all ordinances or parts of ordinances thereof in conflict herewith are hereby repealed to the extent of any such conflict.
Section Four: That any Section or provision of this Ordinance that is construed to be invalid or void shall not affect the remaining sections or provisions which shall remain in full force and effect thereafter.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
ATTEST:
____________________________ __________________________
City Clerk Mayor
Attachment: Chapter 5 of Aurora Municipal Code (Airports and Aircraft)