07/08/1985 Meeting (2) - Laserfiche WebLink

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Responding to a question from Mayor Obie, Ms. Cherry said the council's e action will be conveyed to the congressional committee considering the bill and the entire Oregon congressional delegation. V. RESOLUTION CONCERNING FINANCING OF AIRPORT TERMINAL DESIGN (memo, resolution distributed) City Manager Micheal Gleason introduced the agenda item. Bob Shel by, Director of Aviation at Mahlon Sweet Field, gave the staff report. He said the expansion of the airport can be expedited if the working drawings are begun now. He requested a $503,000 interfund loan. The Federal Aviation Administration (FAA) will grant the City $107,000 for the drawings. The $503,000 will come from an equipment replacement fund. It will be repayed by funds generated for the Eugene Agenda or from airport revenue funds. When the current paving construction contract is completed, the City will have invested $2.2 million of Federal and airport funds in the project to da te . Answering a question from Mr. Holmer, Finance Director Warren Wong said interest is paid on an interfund loan. Responding to a question from Ms. Ehrman, Mr. Wong said the full value of an interfund loan must be repaid in a year. The loan can then be re-issued for another year. If new income is not found, the loan for the design of the airport expansion will be repaid in five to seven years. The Emergency e Medical Services fund has been financed the same way for four years and has been reduced from $310,000 to $90,000. Ms. Wooten said approval of the resolution will commit the council to finding some new financing for the airport expansion. Mr. Hansen said approval will be prudent. For each month the project is delayed after June 1986, $122,000 will be added to the cost. He said the expansion is necessary to attract airlines. He supports the resolution. Ms. Ehrman said she supports the expansion of the airport, but she is not comfortable with such a large interfund loan. She felt the loan application should have been considered by the Budget Committee. Approval of the loan is a gamble. If the Eugene Agenda financing is not approved, the City will be in a "tough spot. II She was also not in favor of setting a precedent. Mr. Miller favored the resolution because the airport expansion is an important project. He favored expediting its construction. He emphasized that the expansion should should cost no more than $17.1 million. Mr. Gleason said the interfund loan will provide the design development for the airport expansion. In the next phase, architects will prepare the bid documents. Approval of the interfund loan involves the City deeply in the project. - MINUTES--Eugene City Council July 8, 1985 Page 10