Stevensville approves additional aviation-fuel purchase and accepts FAA grant offer for new tank

The Stevensville Town Council on Aug. 7 approved the purchase of an additional 5,000 gallons of aviation gasoline for the Stevensville Airport and accepted a Federal Aviation Administration grant offer to fund a new on-site fuel tank, town staff said.

Town staff explained the purchases were prompted by faster-than-expected sales: "From July 1 to through Tuesday, we've sold 3,217 of those 4,000 gallons," said Brian Mayer, airport staff, and asked the council to approve a split-load purchase of 5,000 gallons. Mayer said the vendor quoted $4.51 per gallon as of the day before the meeting and estimated the purchase would run about $22,005.50, subject to daily price changes.

The council was also presented an FAA grant offer to replace the airport's leased fuel tank. "This is a grant offer from the FAA for the new tank, $537,035, whatever, which is the 95% of the $5.65 number, and that balance is paid completely by MBT," Mayer said. He told the council the new tank would be 16 weeks from contract award to delivery and that the existing leased tank would be removed by the lessor within 60 days after transfer, although the old concrete foundation would remain.

Why it matters: Council members said the purchases and the replacement tank would affect airport operations and revenue. Mayer said the leased tank arrangement had produced little profit to date and the new tank would eliminate lease fees and allow the town to retain a greater share of fuel revenue once installed.

Council members asked about insurance and safety. Council member Brown questioned whether a $1 million liability policy was adequate at an airport. Mayer answered that because the town is using branded fuel supplied through the vendor, certain fuel liabilities are covered by Phillips 66 and the fuel supplier (City Service), while the town maintains a one-million-dollar liability policy for incidental events. "So what our insurance coverage really carries or ... what that million dollar policy is covering is any incidental as a result of the fuel service being there," Mayer said. He added that if an individual caused an accident while fueling, that person's insurance would typically be primary.

On the immediate purchase, Council member Smith moved to approve the fuel purchase; Council member Bright seconded. The roll call as recorded in the transcript included Councilor Barker (Aye), Councilor Brown (Aye) and Councilor Bragg (Aye). The motion carried; the transcript records the motion as passing. For the FAA grant offer, Council member Braddock moved to open discussion and advance acceptance; Council member Smith seconded. The roll call recorded in the transcript was Councilor Parker (Aye), Councilor Brown (No), Councilor Ray (Aye) and Council member Smith (Aye); the clerk announced the motion passed, "3 0 1."

Next steps: Mayer said if the council approves the grant offer and the town executes a construction contract, the town will award a contract at a subsequent meeting, proceed with site grading and foundation work, and then wait for the 16-week tank delivery window. Mayer also said the new tank will require new electrical and data service, a concrete and asphalt extension adjacent to the taxi lane, and startup commissioning and calibration once installed.

No additional council direction or conditions on the purchase or grant were recorded in the transcript.