Airport Authority - April 24, 2018 Minutes
The Regular Meeting of the Municipal Airport Authority of the City of Fargo, North Dakota, was held Tuesday, April 24, 2018 at 8:00 a.m. in the Airport Boardroom.
The members present or absent were as follows:
Present: Linn (via phone), Blazek, Lind, Haugen, Clark
Absent: None
Others: Gehrig
Chairman Clark presiding.
Approved the Minutes of the Regular Meeting of the Municipal Airport Authority Held April 10, 2018:
The minutes of the Regular Meeting of the Municipal Airport Authority held April 10, 2018, were approved without objection.
Approved the Airport Vouchers Totaling $38,133.96:
Mr. Blazek moved to approve the airport vouchers totaling $38,133.96.
Second by Gen. Haugen.
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 Foreign-Trade Zone Corporation:
Mr. Blazek moved to approve the individual voucher in the amount of $487.50 to the Foreign-Trade Zone Corporation for payment request for general consulting for Foreign-Trade Zone No. 257.
Second by Mr. Lind.
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 Communication from Francis Butler Requesting Extension to South General Aviation Area Hangar Ground Lease:
The communication dated April 10, 2018 from Francis Butler was received and filed without objection.
Mr. Dobberstein stated Mr. Butler is requesting a 10-year extension to his hangar ground lease. He stated we traditionally grant five-year extensions based on the aesthetic condition of the hangar. He stated the aesthetic condition of Mr. Butler's hangar is exceptional and he would recommend granting the 10-year extension requested.
Mr. Blazek moved to approve the request from Francis Butler for a 10-year extension to his hangar ground lease in the South General Aviation Area.
Second by Mr. Lind.
Ms. Lind asked if more hangar owners would be requesting 10-year extensions.
Mr. Dobberstein stated the board would have to make those decisions on a case-by-case basis.
Chairman Clark called for a vote on the motion.
All members present voted aye and the motion was declared carried.
Received Communication from the Fargo Air Museum Requesting an Extension of the Ground Lease for the Carousel Hangar:
The communication dated April 20, 2018 from Jackie Williams, Fargo Air Museum, was received and filed without objection.
Mr. Dobberstein stated the Fargo Air Museum owns the Carousel Hangar which they purchased from Mr. Victor Gelking. He stated this hangar has been in place since the 1970's. He stated the last time the lease was extended we required that the hangar be painted, which was done. He stated there are some issues with rust on the roof panels of the hangar. He stated he thinks the Air Museum plans to remove the hangar and repurpose the site for the museum.
Mr. Jim Sweeney, Chairman of the Board for the Fargo Air Museum, was recognized and stated they do not have any immediate plans for the hangar. He stated they would like a five-year extension as the hangar is in use and provides revenue for the museum.
Mr. Dobberstein stated he does not want to see aircraft owners displaced from the hangar and he is certain we can work with the museum board on addressing any aesthetic issues. He stated he thinks a five-year extension would be in order.
Ms. Linn moved to approve the request from the Fargo Air Museum for a five-year lease extension for the carousel hangar.
Second by Gen. Haugen.
All members present voted aye and the motion was declared carried.
Received Communication from City Finance Director, Kent Costin, Regarding Investment Fund:
The communication dated April 18, 2018, from Mr. Kent Costin, Director of Finance, City of Fargo, was received and filed without objection.
Mr. Dobberstein stated board member Linn attended a meeting last week with the mayor, City Administrator, Bruce Grubb, and Director of Finance, Kent Costin, and as part of that discussion it was mentioned that there may be a new financing option in which the airport can invest some of our reserve funds. He stated the previous option presented to this board in April 2017 by Mr. Costin was under an investment policy created by the City of Fargo under its home rule charter. He stated we were not able to use that option because the changes made under the home rule charter did not apply to political subdivisions such as the Municipal Airport Authority. He stated we could not take advantage of that investment opportunity as we have to follow the ND Century Code.
Mr. Dobberstein stated it now appears that there may be an investment vehicle in which we could invest some of our reserve funds. He stated he is going to meet with Mr. Costin and Attorney Bossart to make certain it would met the requirements of the ND Century Code. He stated he will report back to the board at the next meeting.
Mr. Dobberstein stated the last time the airport did a bond issue in 2007, the consultant, Mr. David MacGillivray, Springsted Incorporated, recommended an airport of our size have at least $12-$15 million in a reserve fund.
Ms. Linn stated since the last recommendation for a reserve was in 2007, she asked if there would be any change in the recommended amount of reserve today.
Mr. Dobberstein stated he would contact Mr. MacGillivray and get his input.
Received Update on the Status of PFC Application #9:
Mr. Dobberstein stated a few months ago the FAA approved PFC Application #8, which contained a number of projects to recover eligible costs. He stated right now our collection authority is carried out through 2020, based on our current collection rate. He stated during the pre-application process of the application that was approved, the FAA requested that we drop a number of the projects from the application due to the length of time it was taking to review the projects. He stated we did this with the agreement that we would immediately begin the application project for PFC #9.
Mr. Jeff Klein, Mead & Hunt, was recognized and stated we started the PFC #8 application process about a year and a half ago and we had about 60 projects for which we wanted to recover costs. He stated the FAA dialed that back to 18 projects and we submitted a 370-page application. He stated the total of these projects in this application was roughly $2.9 million. He stated the reason this application process was so involved was because at the time, the airport was classified as a small hub but that has now changed and the airport is classified as a non-hub airport. He stated the new application (#9) will be more streamlined, unless the airport changes back to a small hub.
Mr. Klein gave a timeline moving forward for Application #9; we will have the draft application to the FAA by June of this year with plans to have the final application submitted in September of this year. He stated that will set us up for a comment period of October or November with approval by the end of the year.
Airport Construction and Security Update:
Mr. Terry Stroh, TL Stroh Architects, was recognized and stated they hope to have Smithco start on the Westside Terminal exterior metal panel replacement project in June.
Mr. David Negron, TSA, was recognized and thanked the Airport Authority for its part in the baggage conveyor improvement project in the TSA baggage screening room. He stated the purpose of this project was to abate ergonomic hazards identified. He stated without the board's participation the project could not have taken place. He stated the project went well and was actually completed ahead of time.
Mr. Negron stated the enhanced screening program at airport checkpoints has been implemented across the country and as we expected there has been a normalization in that process. He stated we are not seeing the delays we saw initially when the program was being implemented. He stated the program is working well and as intended.
Other Business:
Mr. Dobberstein stated he and Gen. Haugen attended the AAAE Annual Conference in San Diego, April 13-18, and both gave brief comments on the highlights of the conference.
Mr. Dobberstein stated Frontier will move into their space on May 1 with the first flight on May 15th.
The meeting of the Municipal Airport Authority was adjourned until the next Regular Meeting to be held Tuesday, May 8, 2018 at 8:00 a.m.
Time at adjournment was 8:33 a.m.