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HomeMy WebLinkAbout2020-11-02 Airport Committee Minutes City of Bangor Airport Committee Virtual Meeting November 2, 2020 Meeting Minutes The following City Councilors attended: Airport Committee Chair Dan Tremble, Council Chair Clare Davitt, Rick Fournier, Susan Hawes and Laura Supica. Also in attendance were City Manager Cathy Conlow and Airport Director Tony Caruso. Agenda and Discussion: 1. TSA Law Enforcement Officer (LEO) Reimbursement Program Airport Director Tony Caruso asked for Committee approval for a Resolve ratifying the City Manager’s execution of the LEO Reimbursement Program Agreement between the Transportation Security Administration (TSA) and the City. The program reimburses the Airport for using Bangor Law Enforcement personnel support at the Airport checkpoint in accordance with current TSA Security Directives. At present, reimbursements are limited to actual costs, not to exceed $20/hr. The Agreement has a one-year base funding period. The TSA intends to provide two additional years of funding, and reserves the right to fund the program for up to five years in total. The reimbursement Agreement needed to be finally accepted by Nov. 2, 2020, so this Resolve will ratify the City Manager’s execution of the Agreement. Motion made, seconded and approved by unanimous roll call vote. The Order will be presented to the City Council for final approval. 2. Appropriation of reserve funds for building improvements for LifeFlight of Maine hangar lease Airport Director Caruso requested Committee approval for a Resolve authorizing the City Manager to appropriate funds, not to exceed $32,000, from the Airport Department’s Building Improvement reserves to complete improvements for additional office space that will be leased to LifeFlight of Maine. The funds from this reserve account will be used to fund the requested improvements, with the costs recovered in the additional lease payments. Through Order 20-328, the City Council recently approved a 2nd lease amendment for this purpose. The additional office space is necessary to support its newly created air carrier certificate program for its flight department, which will result in 7 additional employment opportunities. LifeFlight is currently in year 5 of a 15-year lease term, which also includes a 5-year extension option. Motion made, seconded and approved by unanimous roll call vote. The Order will be presented to the City Council for final approval. 3. WNC Bangor Company LLC (Four Points by Sheraton) – First Amendment to Lease Agreement Airport Director Caruso asked for Committee approval of an Order authorizing the City Manager to st execute a 1 Amendment to the Lease Agreement with WNC Bangor Company LLC. WNC currently leases land and operates the Four Points by Sheraton at the Airport. WNC is currently entering year 2 of a 20-year lease term. This company is experiencing significant financial impacts due to the COVID-19 pandemic. Through this amendment, the Parties mutually agree of a suspension of the annual ground rent totaling $84,000 for 2020. WNC shall repay the $84,000 in equal monthly installments of $1,750 per month for 48 months beginning in July 2021. In all other respects, the lease between the parties remains in full force and effect. Motion made, seconded and approved by unanimous roll call vote. The Order will be presented to the City Council for final approval. 4. Car Rentals – First amendments a. Alamo, Avis, Budget, Hertz & National: concession & lease amendments Airport Director Caruso asked for Committee approval of an Order authorizing the City Manager st to execute 1 Amendments to the Concession and Lease Agreements Between the City of Bangor and Alamo, Avis, Budget, Hertz and National Car Rentals at Bangor International Airport. In 2015, concession and lease agreement contracts were awarded to these five companies based upon their ability to provide the best and highest quality services for the airport and customer market, as well as providing the best financial return for the City and the airport. Revenue received by the airport comes from the leases and includes counter space, maintenance facilities, parking spaces, as well as a percentage of gross rental revenues. Given the uncertainty in the economy due to the COVID-19 pandemic, the Parties desire to exercise the option of a 1-year extension. Extending these agreements for an additional year will provide the City the ability to further evaluate and discuss additional considerations before preparing a new RFP. This extension period will also allow the ability to monitor the economic and financial situation specifically for this business market during the next 12 months. Through these amendments a new minimum annual guarantee (MAG) will be established, as well as a new minimum requirement for vehicle registrations. In all other respects, the terms and conditions of the agreements between the Parties remains in full force and effect. Motion made, seconded and approved by unanimous roll call vote. The Order will be presented to the City Council for final approval. b. Enterprise: off premises amendment Airport Director Caruso asked for Committee approval of an Order authorizing the City Manager st to execute a 1 Amendment to the Off-Premises Agreements Between the City of Bangor and Enterprise Rent-A-Car at Bangor International Airport. This Off-Premises Agreement outlines the procedures, parameters, and payment arrangements for off-airport rentals. In exchange for the right and opportunity to operate an off-airport rental operation, Enterprise will pay the Airport 7.5% of gross rental revenues derived from Airport activities. Given the uncertainty in the economy due to the COVID-19 pandemic, the Parties desire to exercise the option of a 1-year extension. In all other respects, the terms and conditions of the agreements between the Parties remains in full force and effect. Motion made, seconded and approved by unanimous roll call vote. The Order will be presented to the City Council for final approval. Meeting Adjourned