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Stevensville approves temporary tank lease and fuel‑supply deal to restore airport fuel sales
Summary
Council approved two agreements with City Services/Valcon to lease an existing tank and resume fuel sales at the airport while the town pursues a permanent tank. The agreements include an $1,000/month tank lease and an initial 5,000‑gallon purchase; staff said the plan would be cash‑neutral and restore service for pilots.
The Stevensville Town Council approved a short‑term lease of an existing aircraft fuel tank and a fuel‑supply contract with City Services (Valcon/Belcon LLC) to restore fuel sales at the local airport.
Brian, a town representative on the airport project, told the council City Services has purchased the existing tank and will place and supply fuel to it while Stevensville pursues a permanent replacement tank later this year. Brian said the typical fill will be about 5,000 gallons and that a delivered price on the day referenced in the packet was roughly $4.046 per gallon (taxes and delivery included). He told the council the town expected to pay about $22,300 for a 5,000‑gallon load at that rate and then resell fuel at a modest markup to rebuild the airport account.
The lease term on the vendor’s tank is eight months, billed at $1,000 per month; the language allows flexibility if the town’s permanent tank is installed sooner or later. Brian described the arrangement as a temporary, service‑restoration measure: “This is really a temporary situation here just to get fuel back at the airport for the summer,” he said.
Councilors asked about insurance and operational standards. Staff said a branded FBO arrangement would require the town to maintain a $1,000,000 policy and that City Services agreed to cover training costs for up to three town employees (about $66 per employee) as part of the branded service. Brian noted the branded FBO relationship also requires more frequent inspections and daily checks; staff confirmed the town’s existing insurance and inspection practices would be sufficient under the proposed arrangement.
Finance questions focused on cash flow. Robert, the finance officer, said the airport does not have an appropriation for the planned first fuel purchase in the current fiscal year; he said council action would require a budget amendment or reprioritization so the initial purchase could be made. Brian and staff explained the model: the town buys the initial load, sells fuel at a modest markup (staff cited roughly $1 per gallon margin at the sample price), and uses proceeds to restock future loads. That model, if realized, would allow the airport to recover the initial purchase and maintain supply without a long‑term town subsidy.
Council approved both items — the fuel supply contract (City Services/Valcon LLC) and the aviation and police (lease/brand) agreement — by 3‑0 votes. Council and staff said the town will monitor sales, adjust retail pricing if wholesale costs rise, and return with any required budget amendments.
