HomeMy WebLinkAbout1993-01-07 Airport Committee MinutesWk
AIRPORT COMMITTEE MINUTES
JANUARY J, 1993 - 12 PM
AIRPORT MANAGERtS OFFICE
Present: William Shubert, Chairman
Richard Stone, Member
Bob Ziegelaar, Airport Director
Edward Barrett, City Manager
Erik Stumpfel, City Attorney
Bruce Shibles, Assistant City Attorney
ABSENT: William Cohen
1. Tour Airport Facilities.
Chairman Shubert, Councilor Stone, City Manager Barrett, and
Airport Manager Ziegelaar toured the terminal areas under'
construction.
2. Airport Signage.
Mr. Ziagelaar briefed the new Committee about the effort that
is underway to select a design consultant to develop a compre-
hensive signage plan for both access roads and terminal areas.
An RFP has been floated. Funding will need to be established
separately when the selection process is completed. Total
cost should range in the $50,000 - $60,000 range. A new logo
would be included in the project.
3. BAC Lease (Coffee Shop).
The Committee was further briefed about the plans provided by
the BAC Corporation to re -construct the coffee shops in both
terminals. Plans call for an investment of $100,000 - $150,000.
BAC has indicated it wants to renew its lease (it has a 5 -year
option) and requests an additional 3 -year option to allow for
financing of its proposed improvements. The Committee indicated
a favorable response and asked Mr. Ziegelaar to develop the
necessary details, including standards of service levels.
4. Jet Fuel Tax Issue.
Mr. Ziegelaar next briefed the Committee about the potential
danger posed by possible attempts by the State Legislature
to impose taxes on fuel sold to international airlines.
This fuel has been traditionally exempt from both federal
and state taxes.
Minutes Continued
S. Fuel Farm Upgrade - Exxon
The Airport Director asked formal approval for an agreement
ached with Exxon U.S.A. for a gradual pay-off of the cityfs
share (50%) of the large scale upgrade of the Fuel Farm and
distribution system. The original estimate had been $900,000
of which the Airport Department had paid its $450,000 share.
Final cost came in at $1,600,000 (est), as a result of change
orders and DEP related issues. Mr. Ziegelaar negotiated an
agreement to pay off the additional city's share of $350,000
at the rate of 1 cent per gallon of jet fuel sold. After
several questions about the details of the agreement, the
Committee agreed.
6. Hotel Expansion.
The owners of the Marriott Hotel have requested the Airport's
assistance in the reconstruction of the ninth floor (top)
of the airport hotel. The proposed agreement would have the
airport forego rent collections from the hotel for the period
of one year. It would start paying the withheld rent on
January 1, 1994, with interest over a period of 36 months.
Mr. Ziegelaar endorsed the arrangement as it provides the
airport with increased rental revenues as a result of increased
room sales as well as a better interest rate than the airport
can normally secure its cash holdings. Furthermore, it
defers income to future years the airport can afford to do
at this point. Councilor Stone wanted to be sure that the
interest changes would start as of January 1, 1993, to which
Mr. Ziegelaar responded in the affirmative. Mr. Stone also
indicated that a "prime plus" rate would probably be preferable
to a fixed rate and Mr. Ziegelaar responded that he would
submit a final proposal for Committee endorsement at a future
meeting. The Committee voted to endorse the concept in principle.
J. Cabral Company/Lease.
City Attorney Stumpfel requested that the Cabral lease issue
be deferred tp a future meeting, which was agreed upon by the
Committee.
The meeting was adjourned at 2 PM