Council approves temporary lease and fuel‑supply contracts to restore fuel service at airport
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
The council approved an agreement to lease an existing fuel tank and a fuel‑supply contract with City Services/Belcon LLC to return aviation fuel to the Stevensville airport while the town pursues a permanent tank through a grant.
Stevensville’s Town Council approved two measures to restore fuel sales at the municipal airport: a temporary fuel‑supply contract with City Services/Belcon LLC and a short‑term lease to use an existing tank purchased by that company.
The contracts are temporary steps while the town pursues a grant for a new permanent tank. Brian (an airport staff member) explained the short‑term plan: the leased tank will be refilled about every 5,000 gallons and is expected to sustain summer operations; the town plans to price fuel to recoup costs and earn roughly $1 per gallon as operating revenue. Council members and staff discussed insurance limits, branded‑FBO requirements, training for staff, and how the airport will manage cashflow while the temporary arrangement is in place.
Nut graf: Restoring fuel sales is intended to return a modest revenue stream to the airport; staff said the arrangement is intended to break even or generate a small net each delivery until the town’s permanent tank is installed.
In discussion, staff said the delivered fuel price at the time of discussion was about $4.46 per gallon (including delivery and taxes) and that a 5,000‑gallon load would cost roughly $22,300. Council finance staff said the airport has funds but would need a budget amendment to authorize the purchase this fiscal year. The contracts were described as flexible: the short‑term tank lease is eight months but may be shortened or extended, depending on the new tank’s delivery schedule.
Speakers also reviewed exhibit language for a branded FBO arrangement and noted the vendor will pay for some staff training up to three employees per year. Councilors asked about daily inspection responsibilities, point‑of‑sale compatibility, and how retail prices would be adjusted if market prices swing. Staff said the town will monitor costs and adjust retail prices if needed.
Ending: The motion to approve the fuel‑supply contract and the aviation/police agreement passed 3‑0. Councilors directed staff to proceed and to prepare any needed budget amendments to authorize fuel purchases for the temporary load schedule.