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Home My WebLink About1991-07-08 91-275 ORDERUu Date `1aflRAt U Item No. 91-2 5 Item/Subject: opri Authorbafng Bin W. Zie Lpsr, Airport. Dixettnr, W IEsntte Namreszhme of understanding with Delta Airlines Responsible Department: fit`' m Fesse need Lao Utrliza� of FbLd FamJft;3t¢ 2 A1rpo Commentary: Our Cuaent lease agreme it with Dallas A Lungse eapiread on Suly 10 1991. RTis a9iemen[ covered bots the rental fees to be Paid m ttaa Airport and er[mgmlams can; the vee of Hold Rmo/Gste 2. Haid Roces 2 wss tasdcally fully utd2r nibs ooyd l Of Deltas A LL[nna. Gwen slut we ere not cum Imv our lzwirul eguneim project will affect a¢ basic overlord mate, ce feel Uhtt a sor went with Delta NgcugW be, kept m a cava e r taw. mmia w111 give us; rive m develop an epproprinm cost baste fres which m r g t the a loxjer taw mntrect. In addition, Delta's ovmrol of Haid Rocm/Gate 2 and the jesbs.ayassoclaT i wish it has posai dtfficvltbes for the Airport to Ube past, ps.r`., a"ly adren Onit i Abrlines has hems using this gate older a su6vyement with Delta. 1Po ettaciad xamrardtnge of Uldervtasding basically brotasse Delta's rmrml mtees for Space by 259 and allow the City of Bsm r to xembn control of Feld Iden✓C>bte 2. I would tuvmad y approval of diose NBroLandta® of DMuetaldtng. 1, .a ce ne, Ilea Managers Comments: - Cily Maneyn Associated Iniodmation:. Order, P1emo from Hob Zbegelaar. Memo andud of Understanding re: Rental Rates Plemorandum of Underat Budget Approval: ryvvnm Rascal Legal Approved Qom,/ -coo✓'�9sapsiiar Inttrro/duced For IYJ Passage d First Rending pogo _ of— ❑Referral 91-273 AuignN to Cwucdm Bragg, July 8, 1991 CITY OF BANGOR N1CtorlaUg Brb W. Sie9elaaz Asspat Dixa:tnr, to Fite (TITLE.) barber,_ _ ._.____ , NsinrazWnre of 1*i,+e..'ana:.r; with Delta Airliras Pelarilg to Pees and the G Izatimt cf EtM Racer e 2 BY dw City Caaaedl of 04 MY OfSanpor. _ ORDERED, TEAT Bob W. zieq .,. Airpo Director, is hereby aut rival m emexte 19amcanAnoe of n..b.atand� with Delta air]Liee relatiig to metal rata , and the use of R d R=VGate 2. 91-275 ORDER IN CITY COUNCIL Title, July a. 1991 Passed Authorizing Bob W. 2legelaar, Airport Director. to Execute Memorandums of Understanding With CITY C�. Delta Airlines Relating to Pees acs] the •vtilY(pzJa��rlort of it®®ola atom/Darn 4 •moa maipedta Qo .......V ...... councilmann CITY OF MAINE a.seo.. Mare ouol BANGOR INTERNATIONAL AIRPORT- ooecwcezu Bob W. Zlepelaar, Airport Draw,b MORN .eas 6eve FAX MEMORANDUM S JUN 241 0� TO: Ed Barrett FROM: Bob Ziegelaar REFERENCE: Delta Air Lines DATE: June 21, 1991 Please find attached several pieces of correspondence with Delta, including two Memoranda of Understanding. During my recent negotiations with Delta, I was able to accomplish two major objectives: - Secure a commitment from Delta to surrender Moidroom/Gate 2. - Increase Delta's rental rates for space by 25%. Because I am not sure how our terminal project will affect r basic overhead costs, I Lave kept my initial agreement with Delta to aone-year term. This will give us time to develop an appropriate cost basis from which to negotiate. In general, 1 would recommend that we do not enter into any rate -fixing that would exceed one-year terms. Please let me know if you concur with the Memoranda as submitted. If Council approval should prove necessary, we should request it at the earliest possible time due to the expiration date of our current agreement (July 1, 1991). I have asked Erik Stumpfelto check the Memoranda from a legal perspective. BZ:cs cc: Erik Stumpfel CITY BANGOR INTERNATIONAL AIR ORT FeiA'eGna XH Bob W. Z legelem, ARoort DbMtor TLe 050007 FAX 94"990 June 21, 1991 Mr. Gerard Bernier Regional Manager Properties Delta Air Lines, Inc. 1030 Delta Blvd., Hartsfield Atlanta IntIl. Airport Atlanta, GA 30320 MEMORANDUM OF UMDRRSTANOING Whereas the City of Bangor, Maine, and Delta Air Lines, of Atlan- ta, Georgia, have been conducting business under the Terms and Conditions which have been set forth in a "Amendment Agreement" which became effective on July 1, 1988, and will expire on July 1, 1991, and, Whereas both parties to this Agreement wish to continue to adhere to the Terms and Conditions contained therein, the City Of Bangor and Delta Air Lines hereby agree to amend and extend the Agreement as follows: 1. The date of expiration shall become July 1, 1992. 2. The Landing Fee shall be $.45 3. The Rental Rates shall be as follows: - - Ticket Counter: 270 sq It @ $20 sq ft/yr: $ 5,400.00 - Office Area: 1366 sq it @ $12.25 sq ft/yr 16,733.50 - Hold ROOM I: 2127 sq it @ $10.35sq Pt/yr 22.,014.45 - Hold ROOM II: 1520 sq Pt @ $10.35 sq ft/y: 15,814.80 - Air Cargo Room: 3099 sq ft @ $8.25 sq ft/r: 25,566.75 - Common Use Area: based on 832 sq it @ $15/yr (Rate is further based on agreed upon formula which pro- rates usage according to passenger enplanement levels.) Signed: signed: Bob WBob ZDirector Airport Director City of Bangor Delta Air Lines, Inc Date: Date: CITY OF _„%L 07 Me BANGOR INTERNATIONAL AIRPORT EL.0mu a' xew SPTBob W. Ziemehn. Airport Dimoor TLX 950007 June 21, 1991 Mr. Gerard Bernier Regional Manager Properties Delta Air Lines, Inc. 1030 Delta Blvd., Hartsfield Atlanta Intl. Airprt Atlanta, GA 30320 MEMORANDUM OF UNDERSTANDING Whereas the City of Bangor, Maine, and Delta Air Lines, of Atlan- ta, Georgia, have agreed to continue to conduct business until July 1, 1992, in acordance with the Terms and Conditions which have been set forth in an "Amendment Agreement" which became effective on July 1, 1980, both parties wish to hereby define in mare.specific detail their mutual understanding and agreement concerning the use of Hold Room II, during the twelve month period followingJuly 1, 1991. The City of Bangor and Delta Air Lines hereby agree to the fol- lowing additional conditions: 1. The exclusive use of Hold Room/Gate 2 by Delta Air Lines shall cease on July 1, 1992. 2. Until July 1, 1992, Delta shall permit the use of Hold Room/ Gate 2 by other customer airlines of the City of Bangor, providing that such use shall not interfere Withthe timely arrival and departure of the United Airlines aircraft as per their current ent published schedules. The City of Bangor agrees to credit Delta and United Airlines at a rate of $25 each for each use of Hold Room/Gate 2 by third carriers. 3. Delta Air Lines shall have the right to schedule aircraft at Hold Room/Gate 2, providing that it shall make every reasonable effort to schedule such aircraft for Hold Room/Gate 1 if other aircraft, operated by scheduled carriers serving Bangor, had been previously scheduled at Hold Room/Gate 2 at conflicting times. 4. The City of Bangor shall have the right to install, at any time of its own choosing, a new loading bridge at Hold Room/ Gate 2. The expense of removal and/or disposal of the exist- ing bridge would be borne by the City of Bangor, however, Delta Air Lines would be entitled to take possession of the removed bridge or of any components thereof. S. In case the City of Bangor should install anew loading bridge prior to July 1, 1992, it shall be due appropriate compensation from either Delta Air Lines or United Air Lines on a 'aper use^ basis. 6. The City of Bangor agrees to grant priority to both Delta Air Lines and United Airlines for the use of Hold Room/ Gate 2, as specified below: - Delta Air Lines shall receive priority for scheduled operations when these operations could not be reasonably accommodated at Hold Room/Gate 1. - United Airlines shall receive priority for its scheduled operations as per its published time schedule on July 1, 1992. This priority will supersede that of any other car- - The priority access to Hold Room/Gate 2 by Delta Air Lines and United Airlines shall remain in effect until July 1, 1994. Signed: Signed: Bob W. Ziegelaar Airport Director City of Bangor Date: Date: Delta Air Lines