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09-07-1988 Regular Meeting AIRPORT AUTHORITY MEETING MINUTES OF MEETING September 7, 1988 A regular meeting of the Airport Authority was held in the Municipal Building at 7:01 PM on September 7, 1988. Those members present were Mr. David Good, Mr. Ralph McDaniel, Ms. viki Brigham, Mr. Blaine Price, and Mr. John Dennis. Mr. Doug Warner, the attorney for the Authority, Mr. Marvin Fritz with Walker's Fuel Corporation and the City Engineer, Mr. Barry Amos were also in attendance. MINUTES ,......, , The minutes of the meeting of August 3, 1988 were reviewed. A motion was made by Mr. McDaniel, seconded by Mr. Dennis and was unanimously adopted to approve the minutes as written. The minutes of the special called meeting of August 31, 1988 were reviewed. A motion was made by Chairman Good, seconded b~ Mr. McDaniel and was unanimously adopted to approve the m1nutes as written. GRANT STATUS REPORT AND EQUITABLE CLOSING Chairman Good announced that the three outstanding items in the negotiations to purchase the Airport have been resolved with Peachtree city Development Corporation. The first item concerned collateralizing the note to purchase the hanger. The Authority can present Equitable with a letter of credit in addition to using the hanger as collateral. Peachtree City Development Corporation has accepted this as sufficient collateral. The second item concerned the Indemnification Clause which the Authorit~ would not agree to. Peachtree Cit~ Development Corporat1on has concurred with the Authority's dec1sion. The last item re~arded the Land Transfer. The Authority has agreed to enter 1nto a contract for purchasing twenty-four (24) acres of land at the time of the closin~, but cannot complete the purchase until the grant check arr1ves. The Authority agreed to enter into a separate agreement with Equitable that if they did not complete the land purchase, they would transfer the Airport back to Equitable. Regular Meeting September 7, 1988 Page 2 GRANT STATUS REPORT AND EQUITABLE CLOSING continued Mr. Warner announced that Peachtree city Development Co~oration would make their decision today, but that the final dec~sion from Equitable would not be before September 14, 1988. n ~ .1 I, CONSIDERATION OF LETTER OF CREDIT PROPOSALS Chairman Good informed the Authority that bid proposals had been received from three different banks for a letter of credit in the amount of $210,000.00. The three banks that submitted proposals were First Union, Peachtree National Bank and Citizens & Southern. Chairman Good informed the Authority that since he was a stockholder and director with one of the banks that had submitted a proposal, he had requested a legal opinion from the city Attorney regarding a possible conflict of interest over this matter. The City Attorne~ responded with the opinion that it would not be a conflict of ~nterest. A motion was made by Mr. Dennis, seconded by Mr. Price and was unanimously adopted to accept the credit proposal from Peachtree National Bank and authorized the Chairman to sign any notes with legal council approval. AEROSPEC Mr. James Holder, the owner of Aerospec and Mr. Steve Fanning, the attorney for Aerospec were in attendance to discuss the fuel farm status. Chairman Good felt that a few problems needed to be dealt one at a time. He felt that the old fuel tanks needed removed; the soil needed to be tested at the time of the tank removal; and the new temporary fuel tanks needed installed but not in the same area. with to be fuel to be r Regular Meeting September 7, 1988 Page 3 AEROSPEC continued The Chairman requested input from the other members on how they felt the the fuel leakage should be dealt with. Mr. Holder announced the scheduled date for removing the old tanks. Chairman Good stated that at that time, he would like to see how the results and clean up procedures would be dealt with. Mr. Holder stated that they had received proposals from different firms that showed an interest in the clean-up operation. The environmental firm that Mr. Holder would like to use is Richard Catlin and Associates. Aerospec would pay the entire cost of hiring Catlin and Associates. Chairman Good suggested to the Authority that they may want to consider choosing another com~any themselves and splitting the cost with Aerospec. Th~s way the Authority would have equal input from the company as far as the results. Mr. Holder asked if Aeros~ec would be able to install the temporary fuel tanks back ~nto the same hole after the clean-up operation is com~leted. All the Authority members stated that in past motions, ~t was decided that the above-ground type of tanks would be the only tanks allowed. The above-ground tanks would be easier to monitor than the others if the problem of fuel leakage occurred again. A motion was made by Mr. McDaniel, seconded by Mr. Dennis and was unanimousl~ ado~ted to prepare a resolution with the following cons~derat~ons: 1. The removal of two (2) existing tanks; 2. Allow Phase I temporar~ tank to be installed at the location proposed by Aerospec sUbJect to State and Local codes; 3. Environmental testing to be done by Richard Catlin and Associates before any further action is taken. Provide reports and testing to Airport Authority, Wilber Smith and Associates, Aerospec and Equitable Life; 4. Aerospec is responsible for any environmental mitigation necessary because of the leaking tanks; 5. Cooperate to the best of ability with Aerospec to resolve issues as they come up and for Aerospec to help resolve issues with the Airport Authority as they come up; 6. Document is to be signed by Airport Authority, Aerospec and Equitable Life; 7. Chairman David Good has the authority to sign all documents. r"'" , , r EXECUTIVE SESSION Regular Meeting September 7, 1988 Page 4 The Chairman recessed the meeting into Executive Session. No action was taken during Executive Session. Atto.t, ~ ~4<<d"" ~~~J C a~rman