CC Minutes - 12/01/03 Mtg - Laserfiche WebLink

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travel, "activity breeds activity" and it had been observed that there was more traffic on the other air carriers when there was more competition. He commented that the airport was in the business of increasing options for the community with both incumbent carriers and new ones. Councilor Papd, seconded by Councilor Nathanson, moved to adopt Resolution 4781 adopting a Supplemental Budget; making appropriations for the City of Eugene for the Fiscal Year beginning July 1, 2003, and ending June 30, 2004. Councilor Pap~ questioned the inclusion of the airline incentives in the supplemental budget discussion. He wondered if it could be considered separately. City Manager Taylor explained that the council was authorizing the expenditure of funds that would allow the City to complete the deal negotiated with Delta Airlines. Mayor Torrey asked if it would be appropriate to move to delete the item from the supplemental budget and then revisit it when the rest of the budget had been considered. City Attorney Jerry Lidz suggested that it be treated as a separate item and consider it after the budget was decided. He noted that the budget was the authorization to spend and not the expenditure itself. City Manager Taylor stressed that, based on the information from the Public Works Director, the Airport Manager, and the people involved in the negotiations, should a motion to delete the item from the budget pass, it would effectively "kill the deal" that had been negotiated with Delta Airlines. He urged the council to pass the budget recommendation. Councilor Bettman asked if this was a "last gasp" attempt to bring in a new air carrier. She likened it to spending the whole budget in one place. Mr. Noble replied that the original purpose of the fund was not just for marketing, but for any endeavor that would affect recruitment and enhancement of the air service program. He stressed that the revenue guarantee was a possible way, should it not be used, to have a balance in the fund at the end of the year. He said the City's air service program had been the result of these sorts of agreements with carriers. He stated that both America West and Horizon Air had been partners with the City and expressed hope that the new partnership with Delta Airlines would be sustain- able. He noted that the additional service would increase the number of destinations out of the airport to nine. Councilor Bettman averred that the success of the carrier was predicated on attracting customers back from the Portland Airport to the local airport and this was predicated on ticket price. She felt it would be built-in failure should there be no parity. Mr. Noble replied that increased competition would provide for fare parity, but tickets out of Eugene would likely always cost more than fares out of Portland due to the capacity of the larger airport. Councilor Meisner, seconded by Councilor Pap~, moved to delete from Supplemental Budget 1 the interfund loan transfers recommended for the property purchase on Gar- field Street. Councilor Meisner said he did not wish to delete this permanently, but to obtain more information regarding the purchase. He expressed concern about the purchase price, the appraisal on which it was based, the liability of the City as the property holder, and who was responsible for maintenance. He declared it a MINUTES--Eugene City Council December 1, 2003 Page 13 Regular Meeting