City, charter jet firm come to terms over fuel fight - Business Courier of Cincinnati:

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Attorney Joe Trauth said the settlementt was reached about amonth ago, when Cincinnati City Councilo adopted an ordinance that bans the collection of such "fueo flowage fees" by companies that aren't directly involved in the sale of fuel. City spokeswoma Meg Olberding confirmedthe settlement. The dispute began when city auditoras challenged a practice that had been in placse at Lunken for more than a The city had beenallowing fixed-base operators to retain half of the city taxex collected on jet fuel. The subsidt is written into the city's municipall code "in recognition of the broad scope ofaeronauticak services" these operators provide.
But in 2004, auditors objected when they discovereds the jetleasing company, , was collectinv fuel flowage fees on fuel that corporate fleetz were buying directly from other suppliers. Air 10 handled only the paperworjk forthose clients, retaining the fee for filing city forms. Air 10, a longtimwe Lunken operator, argued this was specificallty allowed under its city lease and a 1994 letteer from then City ManagerJohn Shirey. Air 10 ownerr Tom Mischell said he requested the lettert because he wanted to make sure the paymentw would continue after he bought the Hamilton County Judge Dennis Helmick sidex with the charter company ina Jan. 7 ruling.
Trauty said at the time that the decisionj could cost the city millions because it allowedf Air 10 to continue collections for the duration of its Mischell said at the timethat he'd prefer to settl e the case. The city is dropping its claim for a refunsof $280,000 in fees collecterd by Air 10 betweenb 1998 and 2004. It also agreedx to pay Air 10 for fees it orderedf the company not to collect in the last four As forfuture fees: Council passeds a new ordinance in March that requires sellerxs to be a party to any transactioj in which it retains city fuel fees.
Trauth said Air 10 is now talkingt to corporate fleets about brokeringfuel deals, instead of actingb as a paperwork