11/17/1986 Meeting - Laserfiche WebLink

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Mr. Gleason added that if the council authorizes a limited design package to start in December, and if the voters turn down the ballot in the March e election, the City would turn that money back into an obligation of the airport fund which would be paid for by airline expenses out in the future--the money would not come out of the operating account of the City. Mr. Rutan said the goals of the project are to better serve the traveling public, to get competitive airfares, to improve frequency and destination schedules. and to give a new face to the community. He said that the airport is operating on 1989 projected levels. Mr. Rutan discussed the City Council subcommittee IIRecommendations for Airport Expansion and Improvement Projectll which were distributed. He said the subcommittee recommended that the porte cochere and the 30 feet of the ticket lobby be added back into the project since the additional ticket lobby space is to provide for the fifth airline because experts have stated that Eugene is a five-airline community. He said the subcommittee felt it important to develop a plan for funding for the projects shown inTi er III. He said it was recommended to get bid alternatives on the roofing and carpeting. Mr. Rutan said that a general obligation bond appeared to be the most logical way to finance the project balance. He said a final project cost review will be done prior to January 1, 1987, to identify any further potential for project cost reduction. He said that new revenue sources will be exp 1 ored, including the toll booth, the car rental tax, and securing additional FAA money. e Mr. Rutan said the subcommittee has not yet defined where the up-front $400,000 will come from. He said the subcommittee has also not finalized the funding details of the $5.2 million; however, the subcommittee is confident that adequate community resources are available to service the debt if the City wanted to do so. Ms. Ehrman said the subcommittee felt it was very important to sell the project in March and that the City Council needs a plan on how to fund that debt service. Mr. Hansen said that it was agreed that the staff would proceed with the CIP program that was originally outlined and not look to the CIP to raise any money on this particular project. He said that the subcommittee did not intend to use the CIP and stop projects already planned. He said that the subcommittee believes that the prudent way to raise the money is on a revenue-based bond, but there is no airport revenue available. The subcommittee asked the councilors to accept the funding concept of the project and to allow the subcommittee additional time to prepare the funding specifics. Mr. Rutan said the Airport Commission made a recommendation on the tiers of project deletions and the subcommittee mostly agreed with the recommendation. He said that all of Tier I deletions are out of the project except for the porte cochere and the 30 feet of lobby space. He e MINUTES--Eugene City Council Dinner Session November 17, 1986 Page 5