Airport Self Fueling System New CIP
llir"'B~E
~<k~
MEMORANDUM
August4,2005
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: New CIP for Self Fueling system
The airport is concemed with General Aviation trends, specifically the diminished
transient low lead fuel market and decreased t-hanger occupancy. One of the issues
the airport has identified from the General Aviation Task Force is the fact that Dubuque
does not offer a self fueling system as many of the surrounding airports do. Offering a
self fueling system would reduce fueling costs since the price would be reduced due .to
very low or no labor costs involved with fueling an aircraft.
Andrew Perry, Airport Manager, with the approval of the Airport Commission
recommends purchasing a self fueling system for $56,445 to reverse the trend in fuel
sales and t-hanger occupancy. Recommended funding would come from additional
lOOT funds received and revenue from the trade-in of the Airport's 1985 GMC refueler.
Andrew Perry's request is to add an FY 2006 CIP in the first budget amendment for
$37,000 (lOOT funded) and request the trade-in/sale of one low lead fuel truck for the
balance. The project requires no new city funding only the sale of one truck which wiIJ
be replaced by the self fueling system.
I concur with the recommendation and respectfully request Mayor and City Council
approval. f7J ~~i
Michael C. Van Milligen - ----
MCVM/dll
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Dawn Lang, Budget Director
Andrew Perry, Airport Manager
,.
IQI~l
DUBUQUE REGIONAL AIRPORT
11000 Airport Road + Dubuque, Iowa 52003
Tel: 563-589-4128 Fax: 563-589-4108
www.j1ydbq.com
Airport Commissioners
Steve Accinelli Doug Brotherton Teri Goodmann Dan Nicholson Jim O'Neill
MEMORANDUM
To: Michael C. Van Milligen, City Manager
From: Andrew D. Perry, A.A.E., Airport Manager H
Airport Commission
Date: August 1, 2005
Subject: New CIP for Self Fueling system
Introduction:
As discussed with the Airport Commission and follow-up memorandums attached
to this memo the airport is very concerned with our General Aviation trends.
Transient low lead fuel market has diminished over the last couple of years and t-
hangar occupancy is down. One of the issues that we have identified from the
General Aviation Task Force is that Dubuque does not offer a self fueling system
where many of the surrounding airports do offer. The fuel price is significantly
reduced due to very low or no labor costs involved with fueling an aircraft. This is
the same concept as the vehicle gas stations.
Backaround:
/
We have received additional $29,000 of lOOT funding wt)ich was unexpected
and unaccounted for our 2006 CIP's. The Commission approved going out for
bid a self fueling system. The low bid was Bosserman Aviation Equipment
$56,445. Breakout below:
BUDGET IMPACT
Base Bid
Trade-In of 1985 GMC refueler (35%)
Balance is lOOT funds (65%)
$ 56,445
- $ 20,000
$ 36,445
"
To help reverse a trend in fuel sales and t-hangar occupancy we respectfully
request the City Council to add a FY-2006 CIP for $37,000 and request the
trade-in/sale of one low lead fuel truck for $20,000. This project requires no
new city funding only the sale of one low lead fuel truck which will be replaced by
the self fueling system.
,
rc}l~~
~~-
DUBUQUE REGIONAL AIRPORT
11000 Airport Road + Dubuque, Iowa 52003
Tel: 563-589-4128 Pax: 563-589-4108
www.j1ydbq.com
Airport Commissioners +
Steve Accinelli Doug Brotherton Teri Goodmann Dan Nicholson Jim O'Neill
June 3, 2005
TO: Airport Commission
FROM: Andrew 0 Perry, A.A.E. Airport Manager
SUBJECT: Self Fueler
Introduction
Airport staff has been aware of an alarming trend in our General Aviation (G.A.) t-hangar
occupancy and transient low lead market share. Currently we have ten t-hangar vacancies
and our transient low lead sales have been declining for the last three years.
Backaround
After analyzing the market, the recent downturn hinges on several factors. Dubuque has
lost several aircraft tenants due to retirement and/or age. Other loss of aircraft is due to
higher fuel cost in Dubuque versus other smaller surrounding airfields. Dubuque is
surrounded by lower cost airports, which provide self fueling facilities. These self fuelers
have an average cost of $2.85 per gallon versus Dubuque's cost of $3.35 per gallon (May
11, 2005 pricing).
After discussing these trends with the G.A. Taskforce, we concluded that Dubuque should
implement a self fueler immediately. This was the unanimous recommendation of the GA
Taskforce. Their reasoning is that with the higher fuel prices over the last 18+ months
pilots search for the lowest fuel prices along their route. With Dubuque having the highest
low lead price in a 50-mile radius they see the trend continuing.
Accordingly staff's research has shown that more self fuelers appear to be the new industry
trend. It would be in the best interest of the airport to begin this process now so we are
competitive with our neighbors and before other competing airports add self fueling stations.
Staff has been reluctant to pursue the self fueling as this reduces the revenue to the FBO.
However, at this time we believe that by providing this service it could reflect an overall
increase in revenue by increasing t-hangar tenants and increasing fuel sales long-term.
~ ~
IQIItd
DUBUQUE REGIONAL AIRPORT
Telephone :
Fax :
e-mail:
(583) 589-4233
(583) 589-4108
tdal.ing@cltyofdubuque.org
Memorandum
To:
From:
Date:
Subject:
Andrew Perry, A.A.E. Airport Manager
Gordy Vetsch, FBO Supervisor
July 28,2005
Aviation Self FLJelin9 System - Low Lead
INTRODUCTION
As discussed the 4000g. Low Lead self-fueling system will be located on the old south t-
hangar that is to be razed for this project. This project is designed to provide customers
the opportunity to fuel their own aircraft 24 hrs a day at a reduced cost. The customers
simply insert a credit card or account card to pump fuel.
Dubuque Jet Center will be more competitive and have the potential to gain additional
Low Lead fuel sales by providing lower priced fuel to current customers, transients and
cross country flyers. Installing this system will allow us more time to focus on the larger
JET A customers, potentially save labor costs and would remove a refueling truck from
the equipment replacement list.
BACKGROUND
With lOOT providing an additional $29,000 this year in unallocated funds to the airport it
has provided us with a portion of the funding for the self fueler project. The other
portion of the funding will come from the sale of one low le?ld fuel truck since manual
pumping of LL fuel will significantly drop. The Commission approved staffs
recommendation to go out for bids on the Self Fueling' System at their last meeting July
11th, 2005. . .
RECOMMENDATION
Staff recommends accepting the lowest base bid for a 4000g self-fueling system by
Bosserman Aviation Equipment pending approval of a new CIP by the City Council.
BUDGET IMPACT
Base Bid
Trade-In of 1985 GMC refueler (35%)
Balance is lOOT funds (65%)
$ 56,445
- $ 20.000
$ 36,445
ACTION TO BE TAKED
Approve the award of the bid to Bosserman pending new CIP council action.
Project 390964