01/15/1986 Meeting - Laserfiche WebLink

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e e e Referring to the potential cost reductions, Mr. Miller said apparently things costing $3 million could be changed without jeopardizing the basic design of the expansion, but $1.5 million of those cuts would affect the income producing areas. Ms. Ehrman pointed out passenger user fees are not legal and are not included in any of the revenue projections for the expansion. Answering her questions, Mr. Shelby said it makes sense to have the same business operate the restau- rant and the snack bar. He said County Road Funds might be used for improve- ments to the County road that leads to the airport, but those were not included in the expansion design. The road improvements included in the expansion are only those on City property. He said airport costs are only about 2 percent of the airlines' budgets; consequently, the increased fees being requested from the airlines will not increase ticket prices very much. He said airline ridership from the airport was lower in 1985 than in 1984 because of the United Airline strike and a fare war in Portland. Ms. Bascom reconfirmed that the Airport Commission recommends no cuts in the expansion design now. Mr. Shelby also noted that the Eugene Area Chamber of Commerce Aviation Committee has agreed to seek private funds for the public meeting spaces in the design for the expansion. Answering questions from Mr. Holmer, Mr. Shelby said increased operating costs that will be caused by the expansion are included in the projections of increased revenues. He said the negotiations with the airlines will be completed in late March or early April. He said airline representatives were consulted when the expansion was designed. The airport fees are now below average and, therefore, it is reasonable to expect the increase being requested. Mr. Gleason said the airlines will not "pick up" the $3 million than is needed from the community. Ms. Wooten said the $3 million in potential cost reductions is about the same as the amount needed from the community. She wondered if some of the cost reductions could be implemented to reduce the amount needed from the com- munity. Mr. Shelby responded that the potential cost reductions will reduc:e the quality of the airport. Mayor Obie responded that the airport service providers have indicated that they want the community to support the expansion financially. Answering a question from Ms. Wooten about seeking funds for the airport from outside the city of Eugene, Mr. Chase said the airport is a regional one now and serves many areas outside Eugene. The Airport Commission did not have enough data to make a decision about the legal issues involved if funds are sought from other jurisdictions. The Commission was told the project would be delayed if funds are sought from other jurisdictions. Mr. Shelby said the staff is studying regional financing options for the airport and that staff report will be available this week. Ms. Schue received confirmation that the Airport Commissioners do not want to make cuts in the proposal because the things that would be cut are attractive to the users who are being asked to increase the fees they pay. MINUTES--Eugene City Council January 15, 1986 Page 4