Airport director flags procurement, grant constraints and councilors weigh airport commission

Airport Director Jose Seddra told the Business & Economic Development Committee that recent January–February passenger figures "show a track that is similar to what we've seen" historically but were affected by weather and a four‑day January closure, and he said airlines are starting seasonal routes earlier than in past years.

Seddra used a broader report to highlight structural constraints he says hinder the airport’s responsiveness. He said the city’s procurement policy, written in 1994 and revised intermittently, appears focused on Federal Transit Administration projects and leaves many other city procurements unaddressed. At a $25,000 bidding threshold, Seddra said, purchases that once used purchase orders now require formal bids, ‘‘which has ballooned’’ administrative work for an airport with an operating budget he described as close to $27 million.

Seddra also summarized federal funding considerations: FAA grants fall into entitlements and competitive awards, but both require city approvals to apply and accept. He warned internal processing delays have previously risked timely grant completion. On federal grant assurances, he said the airport accepted land in 1968 from the Department of Defense under conditions to operate an international airport; accepting federal funds brings roughly 40 associated assurances covering land use, civil rights and other requirements that can reset on each new award and constrain future land dispositions.

Councilors responded by exploring governance options. Councilor Carson said she would "eventually ask you to do the exercise of designing your perfect airport commission" and expressed support for opening a discussion on structural change while also pursuing immediate fixes. Councilor Fish urged staff to identify specific procedural changes that would let the airport act more nimbly for urgent procurements.

The city manager and staff recommended using outside consultants to scope a commission or governance change so the Airport Director would not be diverted from existing large capital projects. The manager said many procurement challenges Seddra described are citywide and could be addressed to benefit multiple departments.

Committee members asked staff to return with a focused work plan, including an orientation for new councilors, a narrower list of immediate reforms to procurement and contracting, and a scope for any outside review. Seddra said the decisions the council makes about the airport should reflect whether the community wants the airport primarily as an economic engine and what level of private‑sector service expectations the city intends to meet.

The committee did not take a formal vote on governance changes at the meeting; members instead directed staff to draft follow‑up options and to schedule a Banair (airport corporation) update on a future agenda.

The committee’s attention to procurement thresholds, federal grant assurances and governance options is the next step in a broader conversation about balancing public ownership with private‑sector service levels at Bangor International Airport.