From
Jan Hill
Title
Private Fueling Agreement - Rodney DeBaun - Grand Prairie Municipal Airport
Presenter
Randy J. Byers, C.M.
Recommended Action
Approve
Analysis
Staggerwing Development #4, LLC has constructed nine hangars at the Grand Prairie Municipal Airport. Rodney DeBaun, one of the principals of Staggerwing Development #4, LLC occupies one of these hangars. His aircraft is used for his business as well as to transport patients and their families for medical treatment. He has requested a private fueling agreement to run concurrently with the master lease for the hangar. The term of the master lease runs through December 31, 2044.
Under the terms of the private fueling agreement, Mr. DeBaun will pay the cost of fuel to the City plus a fuel flowage fee of twenty percent (20%) of that cost based on the highest price paid by the City for the last three deliveries. It is estimated that Mr. Debaun will purchase approximately 1,500 gallons of fuel per month, but there is no established minimum or maximum. Mr. DeBaun may not sell fuel but he may pass through the actual cost of the fuel to his customers and business associates with no markup in price.
The fuel will be stored in an approved storage trailer in accordance with all City Fire Codes.
With appropriate approvals from the Airport and the City, Mr. DeBaun will be able to assign the fueling agreement to the new hangar tenant should he sell his leasehold to another party.
Financial Consideration
The average cost per gallon for jet fuel over the past two and one-half years is $2.684 per gallon. Twenty percent (20%) of that number would be $0.5368 per gallon. Estimated annual purchase of 18,000 gallons would result in approximately $9,662 in annual fuel flowage fees.