Airport Authority - April 10, 2018 Minutes

The Regular Meeting of the Municipal Airport Authority of the City of Fargo, North Dakota, was held Tuesday, April 10, 2018, at 8:00 a.m. in the Airport Boardroom.

The members present or absent were as follows:
Present: Linn, Blazek, Lind, Haugen, Clark
Absent: None
Others: Bossart
Chairman Clark presiding.

Approved the Minutes of the Regular Meeting of the Municipal Airport Authority Held February 27, 2018:
The minutes of the Regular Meeting of the Municipal Airport Authority held February 27, 2018, were approved without objection.

Chairman Clark welcomed newly appointed board member Mr. Erik Lind.

Approved the Airport Vouchers Totaling $128,060.71:
Mr. Blazek moved to approve the airport vouchers totaling $128,060.71.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Haugen, Clark voted aye.
No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to Northern Improvement Company:
Mr. Blazek moved to approve the individual voucher in the amount of $1,661.31 to Northern Improvement Company for Partial Payment Request #3 for construction of the Employee Parking Lot Reconstruction and Expansion.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Haugen, Clark voted aye.
No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to Northern Improvement Company:
Mr. Blazek moved to approve the individual voucher in the amount of $5,985.39 to Northern Improvement Company for Partial Payment Request #2 for construction of the North General Aviation Area Taxilane Extension.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Haugen, Clark voted aye.
No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to Northern Improvement Company:
Mr. Blazek moved to approve the individual voucher in the amount of $144,439.21 to Northern Improvement Company for construction of the Taxiway A and A1 Reconstruction Project, AIP47.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Haugen, Clark voted aye.
No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to TL Stroh Architects:
Mr. Blazek moved to approve the individual voucher in the amount of $420.00 to TL Stroh Architects for partial payment request for architectural services in connection with the Westside Terminal Exterior Metal Panel Replacement.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Haugen, Clark voted aye.
No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to TL Stroh Architects:
Mr. Blazek moved to approve the individual voucher in the amount of $475.00 to TL Stroh Architects for partial payment request for architectural services in connection with the Westside Terminal Exterior Metal Panel Replacement.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Haugen, Clark voted aye.
No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to TL Stroh Architects:
Mr. Blazek moved to approve the individual voucher in the amount of $29,165.35 to TL Stroh Architects for partial payment request for architectural and engineering services in connection with the Elevated Walkway.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Haugen, Clark voted aye.
No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to TL Stroh Architects:
Mr. Blazek moved to approve the individual voucher in the amount of $5,450.00 to TL Stroh Architects for partial payment request for architectural and engineering services in connection with the Elevated Walkway.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Haugen, Clark voted aye.
No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to Flint Communications:
Mr. Blazek moved to approve the individual voucher in the amount of $69,105.78 to Flint Communications for partial payment request for the 2018 Airport Marketing Program.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Haugen, Clark voted aye.
No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to Mead & Hunt:
Mr. Blazek moved to approve the individual voucher in the amount of $7,000.00 to Mead & Hunt for partial payment request for engineering services in connection with the Cargo Apron Expansion, Phase II.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Haugen, Clark voted aye.
No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to Mead & Hunt:
Mr. Blazek moved to approve the individual voucher in the amount of $15,810.24 to Mead & Hunt for partial payment request for engineering services in connection with the Taxiway A and A1 Reconstruction Project, AIP47.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Haugen, Clark voted aye.
No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to Flint Communications:
Mr. Blazek moved to approve the individual voucher in the amount of $22,501.58 to Flint Communications for partial payment request for 2018 Airport Marketing Program.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Haugen, Clark voted aye.
No member being absent and none voting nay the motion was declared carried.

Received CY2017 PFC Audit Report from EideBailly:
Mr. Dobberstein stated EideBailly conducted the annual audit of the PFC Program for CY2017. He stated the report shows the opinion that the airport complied, in all material respects, with the compliance requirements that could have a direct and material effect on the PFC Program for the year ended December 31, 2017.
The CY2017 PFC Audit Report from EideBailly was received and filed without objection.

Received Request for Split Hangar Ground Lease (Newman/Lammle/Blotsky):
The communications from Roxanne Newman/Greg Lammle and Jim and Twylah Blotsky were received and filed without objection.

Mr. Dobberstein stated a few years ago we entered into a ground lease with Pegasus Plains, LLC for the construction of a new hangar in the southeast general aviation area. Partners in this hangar were Roxanne Newman, Greg Lammle and Jim Blotsky. He stated the partners have now decided to separate the ground lease into two separate parcels. He stated they have already done the work required by the City of Fargo to change the parcel. He stated one parcel will be in the name of R.V. Newman Consulting LLP (Roxanne Newman and William Greg Lammle) and the other in the names of Jim and Twylah Blotsky. He stated any party wall agreement is up to the hangar owners. He added that the only quirk is that there is only one water meter and that is on the Newman side of the building. He stated the airport is not obligated to provide separate water meters.

Mr. Dobberstein stated Attorney Bossart has drafted the two new lease agreements. He stated the terms will remain the same.
Ms. Linn moved to approve the requests from the parties of Pegasus Plains, LLC to separate the ground lease into two leases in the names of R.V. Newman Consulting LLP and Jim and Twylah Blotsky, with the terms remaining the same as the original lease.
Second by Gen. Haugen.
All members present voted aye and the motion was declared carried.

Received Communication from Sanford Regarding Eastside Terminal Lease Agreement:
The communication from Mike Christianson, Sanford Air Transportation, dated April 5, 2018, was received and filed without objection.
Mr. Dobberstein stated last year Sanford requested their lease be allowed to continue on a month to month basis and that was approved by the board. He stated they are now advising that they will be vacating the space effective June 30, 2018. He stated the lease has a May 1 anniversary date so the 3% increase will apply to the months of May and June.

Received Request from Men's Hair Company to Extend Their Eastside Terminal Lease:
The communication from Mr. Troy Rinehardt, Men's Hair Company, dated March 22, 2018, was received and filed without objection.
Mr. Dobberstein stated Men's Hair Company is a tenant on the second floor of the Eastside Terminal and their lease expires at the end of April He stated they are requesting a three year extension.

Gen. Haugen moved to approve the request from Men's Hair Company for a three year extension to their lease in the Eastside Terminal.
Second by Mr. Blazek.
All members present voted aye and the motion was declared carried.

Considered Five-Year Extension to Airline Operating Agreement and Terminal Building Lease, January 1, 2019 - December 31, 2023:
Mr. Dobberstein stated after the terminal building expansion project was completed in 2008, we entered into a new five-year lease and operating agreement with the airlines effective January 1, 2009 and expiring December 31, 2013. He stated mid-year 2013 we offered the air carriers a series of five (5) one-year extensions of that same agreement effective January 1, 2014 and those expire December 31, 2018. He stated he is proposing to offer them another five (5) one-year extensions effective January 1, 2019 through December 31, 2023. He stated we will be executing an agreement with Frontier Airlines effective May 1 and that will be good through December 31, 2018.

Mr. Dobberstein stated the terms of this agreement requires that the air carriers need to let us know by June 1 of this year if they are going to operate the following calendar year. He stated once an airline agrees to operate in the next fiscal year, if they terminate service anytime during that fiscal year they are obligated to pay rent only through the end of the fiscal year. Mr. Dobberstein stated our rates and charges are always subject to increase.

Mr. Dobberstein stated with the board's concurrence we will draw up an offer to the airlines to extend the lease term.

Mr. Blazek moved to approve a five-year extension offer to the air carriers serving Fargo.
Second by Ms. Linn.
All members present voted aye and the motion was declared carried.

Adopted Resolution of Appreciation to Mr. Don Kilander:
Ms. Linn offered the following resolution of appreciation to Mr. Don Kilander and moved its adoption:

WHEREAS, Mr. Don Kilander has served as a member of the Municipal Airport Authority for more than 17 years, since October 2000, and
WHEREAS, Mr. Kilander has labored diligently and given unsparingly of his time and efforts over those years, playing a key role in the steady forward movement and constant improvements to Hector International Airport in its service to commercial aviation, general aviation, and military aviation, and
WHEREAS, Mr. Kilander leaves behind a track record of serving with great distinction, making countless contributions and his presence on the board will be greatly missed, and
WHEREAS, it is the desire of the members of the Municipal Airport Authority and its staff that Mr. Kilander continue his interest in and regard for Hector International Airport and remain involved by maintaining a relationship with the board and being willing to continue to offer input in the future.
NOW, THEREFORE, BE IT RESOLVED, That the members of the Municipal Airport Authority hereby convey their thanks and deep gratitude for the many years of dedicated service from Mr.
Don Kilander and wish him the best in his future endeavors and community service.
BE IT FURTHER RESOLVED, That this resolution be inscribed upon the permanent minutes of the Municipal Airport Authority and a certified copy of the herein resolution be forwarded to Mr. Don Kilander.
Second by Mr. Lind.

All members present voted aye and the resolution was declared to have been duly passed and adopted.

Adopted Resolution of Appreciation to Kevin Anderson:
Ms. Linn offered the following resolution of congratulations to Mr. Kevin Anderson.
WHEREAS, Airport Firefighter Kevin Anderson has completed his last shift as an airport firefighter at Hector International Airport, and
WHEREAS, Kevin Anderson has served as a firefighter at Hector Airport for 35 years, first serving with the ND Air National Guard Fire Department and then with the Airport Fire Department providing valuable experience during the transition in 2014, and
WHEREAS, Kevin Anderson has been a dedicated and valued employee on the airport, being an important asset to the fire department and his service has been greatly appreciated and will be missed.
NOW THEREFORE, BE IT RESOLVED, That the Municipal Airport Authority thanks Mr. Kevin Anderson for his many years of service and extends its best wishes in his retirement and his future endeavors.
Second by Gen. Haugen.
All members present voted aye and the resolution was declared to have been duly passed and adopted.

Airport Construction and Security Update:
Chairman Clark introduced Mr. Andy Platz, President of Mead & Hunt.

Mr. Platz was recognized and stated it has been five years since speaking before the Airport Authority. He stated the purpose of his visit today is to make certain that Mead & Hunt has kept the promises it made to the board five years ago. He stated one of those promises was to establish a Fargo office and within a week of the board selecting Mead & Hunt they opened their office in Fargo with two local staff members, Jon Scraper and Jeff Klein, and today have a staff of about 15 working in the Fargo office serving clients in North Dakota and Minnesota. He stated they also promised to deliver quality work and only the board and staff can answer if they have kept that promise. He stated he is not here to ask for anything today but just to say thank you.
Mr. Dobberstein stated we have had an excellent working relationship with Mead & Hunt. He stated they have done a great job and we appreciate it.

Mr. Dobberstein stated late this summer we will begin the process to advertise a request for proposals for engineering services for a five-year term for projects beginning January 1, 2019.
Mr. Darren Anderson was recognized and stated the baggage conveyor system renovation project was started yesterday and it should be completed by Friday with minimal impact to the screening operations.

Other Business:
Chairman Clark stated she has asked Attorney Bossart to update the board on our options as far as an attorney general's opinion.

Attorney Bossart was recognized and stated she has had an opportunity to speak with an Assistant Attorney General Tara Brandner, as well as Kyle Wanner, Executive Director of the North Dakota Aeronautics Commission. She stated she also did a lot of legislation research on the bill to make the changes to NDCC 2-06. She stated it is very clear in those discussions and in doing the research that this was simply clean up and that has been done. She stated she spoke with Attorney Brandner about sending an informal letter just to confirm that and stated she has drafted a letter. Attorney Bossart stated that would be her recommended approach.

Ms. Linn moved to proceed with Attorney Bossart's recommendation to submit an informal request for clarification from the ND Attorney General.
Second by Gen. Haugen.

Mr. Dobberstein stated there were some changes in the last legislative session and this informal request will affirm that nothing has changed in terms of the independent autonomy of airport authorities.

Gen. Haugen stated he discussed this matter with Cindy Schreiber-Beck who is a legislator but also serves on the North Dakota Aeronautics Commission. He stated her comment was that the legislature's intent was simply to clean it up and modernize it. He stated it changes nothing with regard to airport authorities.

On the call of the roll, members Linn, Blazek, Haugen, Clark voted aye.
Lind abstained.

The motion was declared carried.

Mr. Lind explained that the reason he did not vote on this motion is because this is his first meeting and he would need to become more informed on the matter.

Airport Fire Chief, David Bush, was recognized and briefed the board on the airport's response to a request for assistance from the West Fargo Fire Department during the fuel tank fire at the fuel terminal in West Fargo on February 18, 2018. He stated the original request was just for our foam but about an hour and a half later the request changed and they asked for one of our trucks to respond. He stated two of our firefighters responded and were on the scene for a total of about eight hours. He stated the first five hours were used by the others involved to assess the situation and devise a plan. He stated with the other parties not knowing our capabilities, it took them a while to compile the resources they felt they needed. He stated once our crew was put in place and started to extinguish the fire; it was out in less than ten minutes. He stated our apparatus and the crew that responded exceeded even his expectations. He stated the fuel tank involved was the largest tank on the site but it was also in the most accessible location so that worked in our favor.

Mr. Dobberstein stated we are in the process of working on matters dealing with responding to off airport events, both aviation related and non-aviation related, as those relate to mutual aid agreements, liability insurance, etc. He stated he foresees now that the capabilities of our equipment are more widely known we will probably see increased requests for aid.

The meeting of the Municipal Airport Authority was adjourned until the next Regular Meeting to be held Tuesday, April 24, 2018.

Time at adjournment was 8:33 a.m.