CCAA-AB Fuel Pricing (3) for 08-23-2010 meeting from LloydUpon reflecting on the Fuel Committee meeting on July 26, 2010, I feel that several additional factors need to be reviewed and a revised recommendation considered for Fletcher Flying
Service.
Advisory Board
The Advisory Board should set the policy for fuel pricing. It should be the responsibility of the Authority’s Executive Director to set fuel prices and negotiate
exceptions with the consent of the Advisory Board and the Airport Authority Board.
Fuel pricing policy
It would seem appropriate for the Advisory Board to recommend a fuel pricing
policy that is competitive with other area airports. For special events at our airports, discounts from the policy may be appropriate for marketing purposes. Also, when a major local
flying operator purchases exceptionally large quantities of fuel, such as Fletcher Flying Service, a special fuel pricing should be considered. This pricing should take into account
the fuel price that such operator can receive at other local airports and the cost of flying to these airports to take advantage of lower fuel prices.
Private self fueling
Some airport
tenants who use large quantities of fuel, such as Fletcher Flying Service, may feel that they will save significant fuel costs if they install at their cost their own fueling facilities.
The Advisory Board should consider such requests. Permitting issues and how a private self fueling operation fits into our IMM airport master plan would need to be considered. Naples
Municipal Airport’s present policy for private self fueling is to charge a $1,000 application fee and $.30 per gallon flowage fee.
Other comments
Our airports provide a valuable service
to owners and users of airplanes at a large cost to Collier County taxpayers. We do not have many options for recovering these costs. Our current main source of net revenue is through
mark ups on fuel sold. Relatively small amounts of net revenue come from hanger rental, sale of sod, and various services. Users of our facilities should be willing to pay a reasonable
fuel price for the privilege of using our airports.
Recommendation
I recommend that we wait for the new Executive Director to evaluate our fuel pricing policy. In the mean time
for Fletcher Flying Service, I recommend that we provide fuel at a competitive rate with La Belle Airport. Mr. Fletcher has informed us that he receives a $.25 gallon discount from
their regular fuel price. I recommend that we provide Fletcher a similar discount for fuel purchased at Immokalee. If Mr. Fletcher wants to pursue a private self fueling operation,
he should apply for this privilege.
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Lloyd A. Byerhof, August 5, 2010