CITY AGREES TO LEASE SPACE TO AIR EVAC

The city has agreed to lease the municipal airport space occupied by Cape Central Airways to Air Evac EMS, Inc.

Air Evac wants to be the next fixed-base operator at the airport. The only snag: Cape Central Airways holds its spot at the airport while litigation between Central Airways and the city is pending.

Prestige Air Services, which is also in the running to become a fixed-base operator at the airport, met with city officials on Friday.

It submitted a plan to also become a fixed-based operator at the airport.

"They submitted their plans to us today," City Manager J. Ronald Fischer said Friday, "but the city staff hasn't had enough time to study the plans to put that on the agenda for the next meeting."

The Cape Girardeau Airport Advisory Board would also have to review Prestige Air Services' plans before the matter would go before the city council.

Fischer said the difference between Air Evac and Prestige Air Services is that Evac is farther along in presenting its plans and obtaining a license from the Federal Aviation Administration.

Because the airport is funded in part with federal money, the city and airport board must review all potential fixed-based operators.

Prestige has proposed to lease another area at the airport and has maintained that the airport could support two fixed-base operators.

Air Evac, however, has maintained that realistically only one fixed-base operator could thrive at the airport.

To execute the lease with Air Evac, the city must settle the legal dispute with Cape Central Airways. Thus, the city will ask the council to authorize Fischer to resolve the dispute with Cape Central Airways and end the litigation.

City Attorney Warren Wells said, "It is contemplated that the settlement agreement and the Air Evac lease would be executed simultaneously since the validity of one depends on the execution of the other."

Air Evac, meanwhile, has also been negotiating to purchase fixed-base operation of Central Airways.

Negotiations between the city and Air Evac have been under way since Air Evac's presentation at a joint meeting of the city council and Airport Advisory board Sept. 1.

The agreement would set minimum service requirements for a fixed-based operator and allow options for the operator to expand his facilities as the business develops.

"It also corrects some items which have been points of contention in the past," Assistant City Manager Doug Leslie said.

The lease was reviewed with the Airport Advisory Board at its Sept. 13 meeting and incorporates comments and recommendations from the Airport Board.

The Airport Board has recommended city council approve the lease with Air Evac.

Air Evac representatives will attend Monday's meeting to respond to council questions.

In another council matter, TCI Cable has filed papers with the FCC requesting a rate increase of 10 cents per month on the basic tier services.

FCC rules permit the city to secure additional time to consider the rate increase by filing an appropriate order with the FCC.

The city must also request FCC assistance in examining the proposal and in evaluation of TCI's submittal of information pertaining to its cost of service.

The resolution, if adopted, would approve an order of the Cape Girardeau City Council seeking an additional 150 days in which to examine the rate increase proposal. It would also authorize the staff to direct a request to the FCC for assistance in examining the proposal.

The rate increase proposal was submitted on Sept. 2, and the city has 30 days to respond or the rate will go into effect automatically.