During their Regular Council meeting of March 12, Flagstaff County Council approved a motion to support the replacement of the fuel tank at the Flagstaff Regional Airport.
Council heard that the existing cardlock fueling system does not meet current safe storage, handling, and dispensing of aviation fuels standards and as a result, that Flagstaff County had ceased fuel sales at the airport.
A temporary mobile fueling system has been sourced to allow Iron Creek Flying Club members and other airport users access to aviation fuel.
The County retained fuel expert consultants WSP to provide a report assessing the existing system and making recommendations for a replacement system that meets aviation standards.
The consultant’s recommendation to remediate the existing system’s issues and to continue to offer aviation fuel for sale at the airport in the most cost-effective manner would be to purchase a packaged refueling system, placed on a concrete pad capable of accommodating a fuel spill, also at a new location at the airport.
The estimated cost of removing the existing fuel system, building a new structural concrete pad, and supplying a new packaged refueling system was estimated at $585,600, including a 20 per cent contingency. Council heard that there was a potential cost saving if in-house resources were used for some of the items.
Council voted to proceed with the procurement of a new aviation fuel system with a budget of $585,600 to be funded by Airport Reserves, MSI Capital Grant, and or Taxes.
Also during that meeting, Council considered a request from Poker Chip Explorations to waive tax penalties on tax arrears on six properties previously owned by Pismo Energy Ltd, which were acquired by Poker Chip in 2022.
Council heard that the tax arrears are from six different tax rolls, from 2017 to 2024.
The total tax levy is $55,290.88 with a total penalty due of $146,286.55, for a total outstanding of $201,577.
Poker Chip Explorations has advised the county that it was unaware of the unpaid taxes, and has agreed to pay the principal levy of $55,290.88 within 30 days; also asking Flagstaff County to waive the penalties.
Council has considered similar requests in the past, and in its favour, Poker Chip Exploration was offering to pay taxes from 2017, preceeding its ownership of the properties in 2022. Council noted that the transfer of these rolls to a more solvent company continues to provide future tax revenue.
After consideration, Council voted to cancel the penalties, subject to the condition that payment in full of the outstanding 2017-2024 tax levies be received in full.
A second request to waive tax penalties, for a landowner who paid their taxes in person at the County Administration office but failed to bring tax notices, or legal land descriptions of all rolls, was denied. Taxes for three quarters of land were missed, and not paid, and as a result a request to waive the penalty was made.
In this instance, Council respectfully denied the request to cancel the penalties, which totalled $486.16. In the past, Council has made similar decisions consistent with this outcome.
Leslie Cholowsky
Editor