HomeMy WebLinkAbout1993-01-25 93-128 ORDERwn
Mate 01-25,93
Item No. 93-128
CR�r 1YanGfes i Fanda within tle A=p� rare.r.im•t
Item/Subject:
F ace
Responsible Department -
Commentary:
44re Atcport Dep+.e.p.w has an amt to share costa
fo� upgoa3Lg tlna fiml
ayetan at the Aixpnrt. F.xxpn ccotxacied fox itis ingavuamnts
and is in Lne
poocso s of im xog the City for its shae of the costa. mF Aiij m is
sagotiating all costs claimed by IDwm. 'MIs origd appropriation tea
$450,000. 9iese adUorel £undo will he adisd w the
$450,000 bringing the
total appropriation to $800,000.
npo.tmc xoe
Manager's Comments:
ghi hes been discussed and appm by the Arr
CmmitT . Sam attached
m trs.
City Maregn
Associated Information:
Omer, N ntco
Budget Approval:
Finance Diwcmr
Legal Approval:
Ciysol"imr
Introduced For
Q Passage
Fent Reading Par _of _
Referral
93-128
4 Biped to Councilor Cohen January 25, 1993
CITY OF BANGOR
(TITLE.) (orbery ALLpw -mom t
By 04 camas oft citx of Da .'
ORDERED,
TEAT
$3,`0,000 is i fe fxw account 85-01-07.05 (Airport
P�avtistiatl�t - Tcar�sfer m lKh?r Flatle) m AlP Jj 85-86 (Sworn
Fltel NGdificaT Sye ).
IN CITY COUNCIL
Senaury 25, 1993
Passed
CI LPHR
93-128
ORDER
Title,
C
Transferring Funds within the Alrpore
......................................
Department
A/ gnggnsdd to
Councilmen "
Minutes continued
5. Fuel Farm Upgrade - Exxon.
The Airport Director asked formal approval for an agreement
reached with Exxon O.S.A. for a gradual pay-off of the City's
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
s
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
n normally secure on its cash holdings. Furthermore, it
defers income to future years the airport can
afford to do
at this point. Councilor Stone wanted t0 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 IPprime 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
7. 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