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feasibility of air service to the coast, and the key ingredient to success/sustainability was having interline baggage and ticketing agreements in place. He added that the city entered into a contract with a vendor, and part of that contract requires these two agreements. He asked Council to protect the taxpayers and citizens of Newport and get something back for it.

Craford stated that SeaPort has never stopped pursuing an interline ticketing agreement or the necessary technology. He added that SeaPort is not asking for elimination of the requirement, but an extension. He stated that SeaPort would purchase a 121 reservation system and implement it immediately, providing Council acts favorably on the modification to the agreement.

Bertuleit stated that the counter is supposed to be open during certain hours, and that it is not always staffed. He asked when the next edition of the SeaPort magazine will be issued. Craford stated that he is not on speaking terms with the airport manager, and that he had found out, yesterday, through a notem, that the runway will be closed. He noted that there is no communication from staff to staff.

Walter Sherman asked whether SeaPort has had discussions with airlines on interline agreements. Craford reported that SeaPort has had preliminary discussions with domestic 121 carriers.

Kilbride asked whether termination is the alternative. Patrick asked whether there are any provisions in the Connect Oregon II grant regarding failure to comply with contract provisions. Bain stated that Council needs to find ways to make this contract work. McCarthy noted that there are many considerations, including the impact on Astoria’s service, and possible breach of contract. She added that Newport felt strongly that the vendor should perform. She reported that the Port of Astoria and the Oregon Department of Aviation were much quicker to recommend modification. McConnell noted that everyone concurred about the interline baggage. Kilbride stated that he does not see much choice, and that the city cannot terminate unilaterally without consulting Astoria. He added that this is not perfect and not exactly what we agreed to, but he noted that there is no viable alternative. Joan Stanton asked whether Council was going to agree because there is no choice. Schulz suggested returning some of the subsidy. He added that he believes Council has another option, and that is to leave the contract as stands. Colin Owen stated that he is a satisfied customer. Ray Emerick spoke in support of SeaPort. MOTION was made by Brusselback, seconded by McConnell, to follow the recommendations of the staff and Air Service Consortium board and approve the modifications to the contract by eliminating the interline baggage agreement, and extending the time for acquiring an interline ticketing agreement until March 15, 2010. The motion carried in a voice vote with Patrick voting no.


Bertuleit asked that the city manager direct staff to look into the Joyce Gaffin issue.

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