Procurement News Notice |
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| PNN | 7553 |
| Work Detail | Fuel sales at Ottumwa Industrial Airport are up significantly compared to 2015, a shift attributed in part to efforts to bring prices down. Archangel Services hit a snag at the start of its tenure as fixed base operator at the airport, but fuel sales rebounded strongly after it was remedied. Larry Merrill III presented the data to the city on Tuesday, comparing sales from March through August 2015 to the same months this year. “In March and April we ran into a slight quality issue with the fuel,” he said. “So that’s why it was kind of slow there in the beginning.” The fuel was replaced and customers have been satisfied with the product since. The rise has been significant, with the best month showing a 64.5 percent gain in Jet-A fuel sales. Those differences caught Councilman Marc Roe’s attention. “Is the fuel cost lower this year than last year?” he asked. Merrill said it is. Part of that is due to fuel market prices, but that doesn’t explain the entire difference. “One of our main goals was to get the price back down,” he said. “Yes, this year was considerably lower than last year.” Roe wanted to know if that was sustainable. Merrill said the answer largely depends on the market. If market prices rise, so will prices in Ottumwa. But so should most other suppliers, which could allow Ottumwa to remain competitive. Councilman Skip Stevens praised Archangel, saying it was “obvious that traffic has increased tremendously out there. Mike Bainbridge, the airport manager, said the picture should continue to improve. “Keep in mind we were getting five cents per gallon. In the new contract we’re getting eight cents per gallon,” Bainbridge said. “And next year we’ll get 12 cents per gallon.” In other business: • City Administrator Andy Morris recommended the council pursue a contract with Buxton, one of two companies that made presentations on their ability to help attract retail customers. He said the recommendation was based in part on Buxton’s use of actual credit and debit card transaction data, which he feels gives a more accurate representation of spending than the cell phone data used by the Retail Coach. “This is not cast in stone. This is my recommendation,” Morris said. • Police Chief Tom McAndrew received approval to change the department’s structure, terminating one police officer’s position and creating two new dispatchers’ positions. McAndrew said the door is not closed to bringing the officer’s position back, though that is dependent on funding sources. • Council members approved the terms of a fourth Beach renovations contract. It involves multiple improvements to the interior of the Beach’s main building, including replacement of the carpeting with slip-resistant tile, along with ceiling replacement and roof repairs. The contract will be awarded in October. |
| Country | United States , Northern America |
| Industry | Oil & Gas |
| Entry Date | 15 Oct 2016 |
| Source | http://www.ottumwacourier.com/news/fuel-sales-up-at-airport/article_1228a300-748e-11e6-8251-a35cf908096a.html |
