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Council approves termination and buyout of airport fuel contract; city to assume operations
Summary
Parowan agreed to terminate its third‑party fuel contract with Parowan Aviation and authorized purchase of the operator's inventory and improvements (approx. $35,600 total) so the city can manage fuel operations directly and address FAA audit requirements.
The Parowan City Council approved terminating the third‑party contract for airport fuel operations with Parowan Aviation and authorized a buyout plan to acquire the existing fuel inventory and improvements. City staff described FAA audit findings that required contingency improvements (containment, signage, daily testing) and noted the current contractor cited operational difficulties and distance as reasons to turn the operation back to the city.
City Manager Dan explained negotiated terms: reimbursement for improvements (about $11,600) plus the purchase of remaining Avgas/Jet A inventory (roughly 3,407 gallons) at the seller's wholesale cost for an estimated total near $35,600. Staff said purchasing the inventory and equipment allows the city to sell fuel at current retail rates and recover the buyout cost over time; an on‑site employee and improved internet connection for the point‑of‑sale system will support city management. Council unanimously approved termination and budget ratification, and staff will prepare a budget amendment and implement operations, including training for staff who will perform daily fuel checks.
