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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