Title
2017 Annual Fuel Analysis Update
Body
Issue/Request:
2017 Annual Fuel Analysis Update
Key Issues:
2017 Annual Fuel Statistics Update Report
Background:
In 2014, Staff presented to the Board of Aeronautical Commissioners a Fuel Analysis of based customers purchasing fuel at the Lee's Summit Municipal Airport. At that time, out of a total customer number of 131, 27 customers were purchasing less than 100 gal and 37 were purchasing no fuel. Staff proposed and the Board recommended adoption by the City Council the Revenue Enhancement Program, which included adjustments to the fuel mark-up, volume discounts, minimum fuel purchase program, and hangar rental rate adjustments. City Council adopted the program on September 25, 2014 and the program was implemented November 1, 2014. The BOAC requested to receive periodic updates as to the performance of the program.
Impact/Analysis:
FY13: Initial Presentation
• 15 customers purchased 57% of 100LL sold to base customers
• 27 customers purchased less than 100 gallons
• 37 customers purchased no fuel
• 0 on waiting list for hangars
FY14: Program Implementation
• Implemented the Minimum Fuel Purchase Program
• Developed the Volume Discounts Program
• Changed the mark-up structure on fuel
• Adjusted hangar rates based on local market
FY15: Update
• 15 customers purchased 59% of 100LL sold to base customers
• 22 customers purchased less than 100 gal.
• 27 customers purchased no fuel
• 22 customers on a waiting list for hangars
FY16: Update
• 15 customers purchased 60% of 100LL sold to base customers
• 55 customers purchased less than 100 gal.
• 22 customers purchased no fuel
• 0 customers on waiting list for hangars
FY17: Update
• 15 customers purchased 56% of 100LL sold to base customers
• 50 customers purchased less than 100 gal.
• 16 customers purchased no fuel
• 4 customers on waiting list for hangars with deposits
Analysis of Minimum Fuel Purchase Program:
• Since FY13, the numbers of customers purchasing less than 100 gallons remains relatively unchanged (64 customers in FY13 verses 66 customers in FY17).
• In April 2016, there were initially 22 people who received assessments in the amount of $500 according to the Minimum Fuel Purchase Program. During the month of June, 10 people received adjustments after purchasing the minimum fuel amount.
• The number of customers who purchased no 100LL fuel has decreased from 37 in FY13 to 16 in FY17 YTD.
• In FY17, 9 of the 16 customers also received assessment letters in FY16
Presenter
Presenter: Joel Arrington, Assistant Airport Manager
Recommendation
Recommendation: In light of all the pavement construction happening at the airport coupled with several unknowns regarding hangar demolition and replacement staff recommends continuing and monitoring the Minimum Fuel Purchase Program.
Committee Recommendation: Board of Aeronautic Commissioners recommnends In light of all the pavement construction happening at the airport coupled with several unknowns regarding hangar demolition and replacement, continuing and monitoring the Minimum Fuel Purchase Program.