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Forms SI-1085, 'Confidential Statement of Employment and Financial Interests,' for Calendar Year 1984," from which the Committee agreed that the financial reporting procedures for those key staff who must report have functioned in accordance with established guidelines.

[[underlined]] Report of the ad hoc Committee on Food Services [[/underlined]]

Senator Sasser reported that the [[underlined]] ad hoc [[/underlined]] committee on food services met on December 12, 1985. Smithsonian staff, Messrs. Jameson, Clarke, and Hobbins, reported on current crowding at the Air and Space Museum restaurant, the status of current food service contracts, and future proposals for the construction and operation of modernized restaurant facilities, principally at the Air and Space Museum.

As a result of its deliberations, the [[underlined]] ad hoc [[/underlined]] committee offered the following findings and recommendations for consideration by the Board of Regents:

1.  The current restaurant facilities at the Air and Space Museum are clearly outmoded and are not providing suitable food services for the many thousands of visitors who frequent the facility daily. The Board should proceed with a decision to authorize construction of a new terrace restaurant at the Museum and to authorize new Requests for Proposals (RFPs) to be issued to serve as the basis for the selection of a food service contractor.

2.  The [[underlined]] ad hoc [[/underlined]] committee, taking due note of the past history of the original request for proposal, expects that such history will not prejudice any decision by the Smithsonian with respect to any application from the Marriott Corporation or any other vendor in response to any forthcoming RFP.

3.  The [[underlined]] ad hoc [[/underlined]] committee believes that serious consideration should be given to the financing of the new restaurant facilities at the National Air and Space Museum from internal borrowing by the Smithsonian or, especially in light of favorable interest rate considerations, borrowing that may be forthcoming from local financial institutions. The Board of Regents should carefully examine the decision to finance this project on the basis of internal borrowing to insure that no undue future liability over and beyond that which would be covered by new income generated by the facility would accrue to the Smithsonian from this arrangement. The committee noted that the Marriott-LeRoy Corporation continues to contend that it would be far more advantageous to the Smithsonian to finance restaurant operations using the borrowing power of an outside contractor. Finally, the [[underlined]] ad hoc [[/underlined]] committee recommends that the Smithsonian staff periodically apprise the Regents and the Congressional Committees with oversight over the Smithsonian of the progress of this project.

In discussion it was pointed out that the use of a concessionaire's capital for construction would create a large potential liability to the Institution should such a contract need to be severed. After further discussion, it was
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