The Bismarck City Commission made it official Tuesday: It's getting out of the airplane fueling business, turning operations over to Aircraft Management Services.

The details of the final agreement still have to be worked out, but airport manager Greg Haug said he expects to have the terms ready for the commission to sign off on at its next meeting.

The city is selling AMS all of its equipment, dissolving its flight line department and turning over the fuel farm on a lease-to-purchase option.

The five full-time employees making up the flight line department will be offered jobs with the airport through reorganization of the flight line as the operations department.

Haug indicated that the employees might not all return; it's their decision. But should they stay with the airport, they won't have to go through the hiring process. Haug said he also is expecting to hire at least one new employee.

The city also will lease AMS hangar 5. In the Request for Proposals, the city indicated it wanted to delay leasing the hangar until after it moved the big blue hangar belonging to Executive Air. There are concerns that, should AMS have hangar 5 before the move of Executive Air's hangar is complete, AMS will have an unfair advantage and perhaps steal some of Executive Air's clients.

AMS president Bob Simmers told commissioners the revenues derived from hangar space rentals is crucial to the business plan for the fueling operation. City attorney Charlie Whitman suggested that the terms for the hangar include that AMS be allowed to only serve hangar 5's clients until the Executive Air hangar is relocated. AMS also can lease a portion of hangar 5 to Executive Air.

Commissioner Sandi Tabor asked if the turning over of fueling operations was financially viable for the city.

"If we agree to drop the fueling and award AMS the operation, and approve the recommendation to bring existing employees aboard to do other functions, how will it impact the budget?"Tabor asked.

Finance director Sheila Hillman said the airport budget has a balance of $4.2 million, and even at the highest estimate of $400,000 to make the changes, the airport was well within its means. There is anticipation of $76,000 in revenue from the change, meaning the airport must come up with a maximum of about $325,000.

"Greg (Haug), do you want to get rid of fueling?" Tabor asked point-blank.

Haug said he has tried to remain neutral, but if that is what the city wants, "sure."

The commission unanimously approved ending fueling operations and dissolving the flight line, offering to rehire the five full-time employees through reorganization.

Haug was directed to negotiate a starting date and all the necessary contracts, bringing them back for commission consideration at its next meeting.

(Reach reporter Gordon Weixel at 250-8255 or gordon.weixel@bismarcktribune.com.)