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HomeMy WebLinkAbout2019-12-02 Airport Committee Minutes City of Bangor Airport Committee rd City Council Chambers 3 Floor December 2, 2019 Meeting Minutes The following City Councilors were in attendance: Airport Committee Chair Dan Tremble, Council Chair Clare Davitt, Councilors Rick Fournier, Susan Hawes, Angela Okafor and Laura Supica. Also in attendance were City Manager Cathy Conlow, Airport Director Tony Caruso and Airport Marketing Assistant Chelcie Shappy. Agenda and Discussion: 1. Aircraft hangar & tie down lease agreements Airport Director Caruso requested Committee approval for an Order authorizing the Airport Director to execute Agreements with Airport Tenants and Transient Customers for Aircraft Tie- down, Joint-Use and T-Hangar services at Bangor International Airport (BGR). These agreements, allowing planes to be parked or stored at BGR, are commonly executed by the Airport’s FBO. Given the frequency and volume of these requests, it would be inefficient to have the Council approve each agreement. Typically, agreement terms may range from a few days to several months to several years. Rates are charged based on the aircraft size, length of stay and any other additional services needed. Airport staff recently reviewed and updated the agreements. If approved, these agreements include the following:  Terms not to exceed 5 years  Customer tie-down and hangar responsibilities  Specific rules and regulations for operating on the airfield Motion made, seconded and approved. The lease agreements will be presented to the City Council for final approval. 2. Airport Concessions/Leases a. BAFS, Inc. Director Caruso requested Committee approval for an Order authorizing the City Manager to execute an Agreement with Bangor Airport Food Services, Inc. (BAFS) to lease Buildings #266 & #268 for the purposes of operating an airline in-flight kitchen at BGR. Operating an in-flight kitchen in an airport environment is highly complex given safety and security regulations and the unpredictable traffic flow as well as the significant investment in capital equipment required to properly perform services. Due to BGR’s modest size, this service would be very unlikely to generate interest from national airport in-flight kitchen vendors. In addition to a 5-year lease term, the agreement includes a financial investment by the Lessee. Motion made, seconded and approved. The lease agreement will be presented to the City Council for final approval. b. DMF, Inc. d/b/a Highlands Cafe Director Caruso requested Committee approval for an Order authorizing the City Manager to execute a Lease and Concession Agreement with DMF, Inc. at BGR. DMF operates The Highlands Café and a post-security restaurant. As the current agreement expires at the end of this calendar year and the airport is conducting a new Master Plan study, it is in the best interest of the City to execute a new agreement. DMF pays the airport a percentage of gross sales. In addition to a 5-year term, the agreement includes a financial investment by the Lessee. Motion made, seconded and approved. The lease agreement will be presented to the City Council for final approval. c. GAREDC, Inc. d/b/a The Grasshopper Shop Director Caruso requested Committee approval for an Order authorizing the City Manager to execute a Lease and Concession Agreement with GAREDC, Inc. at BGR. Stellar Partners (Bangor News & Gift) notified us earlier this year that they would not continue to operate once its current agreement expired on December 31, 2019. The airport is conducting a new Master Plan study through which locations for pre and post security concessions will be identified. Therefore, it is in the City’s best interest to enter into this agreement for gift shop concessions with GAREDC. They will pay the airport a percentage of gross sales. In addition to a 5-year term, the agreement includes a financial investment by the Lessee. Motion made, seconded and approved. The lease agreement will be presented to the City Council for final approval. 3. Airport Advertising & Marketing a. Airport Statistics – September, 2019 September passenger count up only .2% over 2018, but continues a 3-month trend of highest count in past 5 years. Calendar YTD count is nearly 4% higher than same time last year. Although American had 52% market share in Sept., we really don’t have a dominant carrier. Market share tends to fluctuate seasonally. Load Factors show number of seats filled; all Airlines over 80% in Sept. Total Operations are steady over last year. Fuel Sales are important to what we do. A big driver of fuel sales is the military sales. Monthly fuel sales were 17% higher than Sept. 2018 and are running 43% higher on a fiscal year basis. b. Review of new airport commercial Director Caruso showed the Committee a new commercial. The message expands on our current messaging plan showing BGR as our hometown Airport. c. Airport social media update Marketing Assistant Chelcie Shappy shared the November Facebook Engagement Review. This report will help us monitor trends about our audience, favorite posts, etc. Facebook has been our priority, but we are increasing our exposure on Twitter, Instagram and other social media platforms d. Wings-for-Autism event on Feb. 1, 2020 This national organization provides families the opportunity to practice entering the Airport, obtaining boarding passes, etc. all the way through sitting on the plane. BGR is the first airport north of Boston to offer this program. Allegiant has offered a plane for the event. TSA and Airport staff will also receive training the morning of the event. Meeting Adjourned.