06/13/1977 Meeting - Laserfiche WebLink

Home Browse Search

--- . for Eugene which eventually resulted in the negotiated contracts and leases being approved. He said several features distinguished these new contracts from previous agreements, including a built-in formula for setting rates and charges based upon the costs of pro- viding airfield services; recognition of current inflationary trends by implementing new rates three years earlier than previously agreed; and for the first time recognition that the airport needs several substantial airline-capital improvement projects. He noted these projects include upgrading the runways, taxiways, and terminal parking apron, as well as improving the airport's sewer system, acquiring the remainder of the land in the clear zones, and completion of the perimeter fencing project. The new agreements provide additional rate adjustments to permit debt ser- vice for these new projects to be paid from operating revenues in- stead of from the general fund as has been the practice at most small--hub airports. The benefits of the new contracts to the community and the carriers serving it are substantial. The improved runway/ taxi system will permit introduction of Boeing 7 7 service by 1979 or 1980. Accomo- dating the larger aircraft will assure more seats available through Eugene on any given date. Mr. Shelby said the new structure of rates and charges will also enable the city to take advantage of 90-percent funding from the FAA's Airport Development Aid Program, e thereby lessening net costs to the city and assuring reasonable fees to the carriers. He said the new lease agreements mark a major milestone in the airport's future and constitutes the turning point in its ability to assure that Mahlon Sweet Field truly keeps pace with the community's transportation needs. He acknowledged appreciation for assistance and guidance from the Airport Commission, the Finance Department, the City Attorney's office, the work of the City's consultant H. A. Parry Associates, and the cooperation of the facility's directors for Hughes Airwest and United Airlines. Mr. Shelby then introduced the following persons: Dr. Glenn Gordon, Chairman of the Airport Commission; Mr. Sam Sherer, United Airlines; Mr. John Sedell, United Airlines~ and Mr. Juan Sparhawk from Hughes Airwest. Mr. Sherer thanked the Council for inviting the group to partici- pate in the happy occasion, noting he felt the signing of the agreements for the new lease demonstrated faith on the part of the air carriers in their desire to see better service for the city of Eugene. Mr. Sparhawk expressed appreciation for being able to renegotiate the lease, saying that Eugene had been very good to Hughes Airwest. Dr. Gordon expressed appreciation for the finali- zation of the leases, saying the Commission members had been very active in bringing pressure to bear in getting the leases to this final point. He expressed appreciation to Mr. Shelby for his work e Lf3g 6/13/77 -- 19