Parowan approves buyout of airport fuel operator after FAA audit prompts concern

Parowan — The Parowan City Council voted April 16 to terminate a third‑party contract for fuel operations at the municipal airport and to purchase the operator’s fuel inventory and documented improvements so the city can assume direct responsibility for airport fuel sales.

Staff described an FAA audit that identified items requiring corrective work, including daily fuel testing, signage and containment improvements. The third‑party operator, operating as Perin Aviation, told city staff that low volumes made daily oversight from his offsite base impractical. He offered to sell his remaining jet‑fuel inventory at his wholesale purchase price and be reimbursed for roughly $11,600 in improvements he had installed. City staff estimated total buyout costs — inventory plus reimbursement — at about $35,600.

Council approved terminating the agreement, accepting the operator’s offer to sell fuel at wholesale and reimburse installed improvements, and directed staff to carry out budget ratification to account for the purchase. City managers said the arrangement allows the city to avoid protracted legal or operational disruption, to take over operations while training an on‑site city employee, and to realize the retail margin going forward, which could materially improve airport finances compared with the minimal revenue share under the third‑party arrangement.

Staff noted some near‑term investments would be required (signage, internet/direct wiring for fuel systems and minor containment repairs) but said the city’s insurance posture already covers the exposure. Council members described the proposal as a practical solution that keeps the airport operational and transfers responsibility cleanly to the city.