Airport Authority - August 28, 2018 Minutes
The Regular Meeting of the Municipal Airport Authority of the City of Fargo, North Dakota was held Tuesday, August 28, 2018, at 8:00 a.m. in the Airport Boardroom.
The members present or absent were as follows:
Present: Lind, Haugen, Clark
Absent: Linn, Blazek
Others: Bossart, Piepkorn
Chairman Clark presiding.
Approved the Minutes of the Regular Meeting of the Municipal Airport Authority Held July 26, 2018:
The minutes of the Regular Meeting of the Municipal Airport Authority held July 26, 2018, were approved without objection.
Approved the Airport Vouchers Totaling $53,690.79:
Gen. Haugen moved to approve the airport vouchers totaling $53,690.79.
Second by Mr. Lind.
On the call of the roll, members Lind, Haugen, Clark voted aye.
Absent and not voting: Linn, Blazek
The motion was declared carried.
Approved the Individual Voucher to Sixel Consulting Group:
Gen. Haugen moved to approve the individual voucher in the amount of $4,556.00 to Sixel Consulting Group for July Frontier passenger enplanement fees.
Second by Mr. Lind.
On the call of the roll, members Lind, Haugen, Clark voted aye.
Absent and not voting: Linn, Blazek
Approved the Individual Voucher to TL Stroh Architects:
Gen. Haugen moved to approve the individual voucher in the amount of $76,300.00 to TL Stroh Architects for partial payment request for architectural and engineering services in connection with the Elevated Walkway.
Second by Mr. Lind.
On the call of the roll, members Lind, Haugen, Clark voted aye.
Absent and not voting: Linn, Blazek
The motion was declared carried.
Approved the Individual Voucher to Flint Group:
Gen. Haugen moved to approve the individual voucher in the amount of $9,165.91 to Flint Group for partial payment request for 2018 Airport Marketing Program.
Second by Mr. Lind.
On the call of the roll, members Lind, Haugen, Clark voted aye.
Absent and not voting: Linn, Blazek
The motion was declared carried.
Approved the Individual Voucher to Moorhead Electric:
Gen. Haugen moved to approve the individual voucher in the amount of $85.00 to Moorhead Electric for utility locates for the Elevated Walkway Project.
Second by Mr. Lind.
On the call of the roll, members Lind, Haugen, Clark voted aye.
Absent and not voting: Linn, Blazek
The motion was declared carried.
Approved the Individual Voucher to Mead & Hunt:
Gen. Haugen moved to approve the individual voucher in the amount of $35,222.56 to Mead & Hunt for partial payment request for engineering services in connection with the Taxiway A and A1 Reconstruction Project, AIP47.
Second by Mr. Lind.
On the call of the roll, members Lind, Haugen, Clark voted aye.
Absent and not voting: Linn, Blazek
The motion was declared carried.
Approved the Individual Voucher to Mead & Hunt:
Gen. Haugen moved to approve the individual voucher in the amount of $1,673.00 to Mead & Hunt for partial payment request (Final) for engineering services in connection with the 2017 Cargo Apron Expansion Project.
Second by Mr. Lind.
On the call of the roll, members Lind, Haugen, Clark voted aye.
Absent and not voting: Linn, Blazek
The motion was declared carried.
Approved the Individual Voucher to Mead & Hunt:
Gen. Haugen moved to approve the individual voucher in the amount of $6,533.53 to Mead & Hunt for partial payment request (Final) for engineering services in connection with the Employee Parking Lot Reconstruction and Expansion Project.
Second by Mr. Lind.
On the call of the roll, members Lind, Haugen, Clark voted aye.
Absent and not voting: Linn, Blazek
The motion was declared carried.
Approved the Individual Voucher to Mead & Hunt:
Gen. Haugen moved to approve the individual voucher in the amount of $12,489.00 to Mead & Hunt for partial payment request for engineering services in connection with the Dakota Drive Pavement Rehabilitation Project, AIP48.
Second by Mr. Lind.
On the call of the roll, members Lind, Haugen, Clark voted aye.
Absent and not voting: Linn, Blazek
The motion was declared carried.
Approved the Individual Voucher to Mead & Hunt:
Gen. Haugen moved to approve the individual voucher in the amount of $7,830.00 to Mead & Hunt for partial payment request for engineering services in connection with the Dakota Drive Lighting Improvements Project, AIP48.
Second by Mr. Lind.
On the call of the roll, members Lind, Haugen, Clark voted aye.
Absent and not voting: Linn, Blazek
The motion was declared carried.
Approved the Individual Voucher to 3-D Specialties:
Gen. Haugen moved to approve the individual voucher in the amount of $139.44 to 3D Specialties for ADA signage for the Employee Parking Lot Reconstruction and Expansion Project.
Second by Mr. Lind.
On the call of the roll, members Lind, Haugen, Clark voted aye.
Absent and not voting: Linn, Blazek
The motion was declared carried.
Approved the Individual Voucher to Northern Improvement Company:
Gen. Haugen moved to approve the individual voucher in the amount of $178,186.56 to Northern Improvement Company for Partial Payment Request #6 (Final) for construction of the Employee Parking Lot Reconstruction Project.
Second by Mr. Lind.
On the call of the roll, members Lind, Haugen, Clark voted aye.
Absent and not voting: Linn, Blazek
The motion was declared carried.
Approved the Individual Voucher to Northern Improvement Company:
Gen. Haugen moved to approve the individual voucher in the amount of $105,363.64 to Northern Improvement Company for Partial Payment Request #5 for construction of the 2017 Cargo Apron Expansion Project.
Second by Mr. Lind.
On the call of the roll, members Lind, Haugen, Clark voted aye.
Absent and not voting: Linn, Blazek
The motion was declared carried.
Approved the Individual Voucher to Northern Improvement Company:
Gen. Haugen moved to approve the individual voucher in the amount of $9,350.00 to Northern Improvement Company for Partial Payment Request #7 for construction of the Taxiway A and A1 Reconstruction Project, AIP47.
Second by Mr. Lind.
On the call of the roll, members Lind, Haugen, Clark voted aye.
Absent and not voting: Linn, Blazek
The motion was declared carried.
Approved the Individual Voucher to Smithco:
Gen. Haugen moved to approve the individual voucher in the amount of $118,620.00 to Smithco for Partial Payment Request #1 for construction of the Westside Terminal Siding Replacement Project.
Second by Mr. Lind.
On the call of the roll, members Lind, Haugen, Clark voted aye.
Absent and not voting: Linn, Blazek
The motion was declared carried.
Received Communication from Fargo Jet Center Regarding Hangar Sublease Agreement (UPS):
The communication dated August 9, 2018, from Mr. James Sweeney, Fargo Jet Center, was received and filed without objection.
Mr. Dobberstein stated Fargo Jet Center leases Hangar #3 from the Airport Authority and a requirement in that lease is that the Airport Authority approve any sublease. He stated Fargo Jet Center is requesting approval of a sublease with United Parcel Services for a two-year period August 1, 2018 to July 31, 2020.
Mr. Lind moved to approve the request from Fargo Jet Center to sublease Hangar #3 to United Parcel Service for a two-year period effective August 1, 2018.
Second by Gen. Haugen.
All members present voted aye and the motion was declared carried.
Received Public Parking Concession Request for Proposals Document and Proposed Parking Concession Agreement:
The Public Parking Concession Request for Proposals and proposed Parking Concession Agreement were received and filed without objection.
Mr. Dobberstein stated the Request for Proposals will be advertised in The Forum for three weeks and we have also published an ad on the AAAE's website so the request will get national attention. He stated Sioux Falls is also going through the process at the same time.
Mr. Dobberstein stated this is a concession agreement so we have a minimum annual guarantee. He stated this proposed agreement calls for a $2.4 million minimum annual guarantee. He stated the agreement is pretty clear on who is responsible for what. He stated the time frame for the proposal process is included in the request. He stated proposals must be received by October 4 and our intention would be that the Chair would appoint a committee to evaluate the proposals. He stated we can conduct interviews if the board wishes, but we can award based on the proposal received. He stated it would be our plan to award the contract at our second meeting in October.
Mr. Dobberstein stated we have an opportunity to issue addendums in the event firms interested in the concession may approach us with questions and those would be posted on our website. He stated there was one local person who expressed interest in the contract some time ago and he was made aware of this request. He stated that Attorney Bossart has reviewed the documents.
In answer to a question from Mr. Piepkorn, Mr. Dobberstein stated the current agreement expires December 31, 2018 and the new agreement would be effective January 1, 2019 for a five-year term with one five-year option. He also stated that we wrote the RFP, which is a culmination of those from other airports in the region.
Mr. Lind asked why a concession agreement is preferred over a management contract.
Mr. Dobberstein stated with a management contract we would assume all of the risk whereas with a concession agreement all of the operating costs are the responsibility of the operator. He added that the guarantee is locked in and continues to go up based on the previous year's revenue.
Mr. Lind moved to approve the Request for Proposals and the proposed Parking Concession Agreement.
Second by Gen. Haugen.
All members present voted aye and the motion was declared carried.
Received Proposed Request for Qualifications for Engineering Services:
The proposed Request for Qualifications Statement for engineering services was received and filed without objection.
Mr. Dobberstein stated this is the final year of the current five-year agreement for engineering services, which is the maximum term allowed by the FAA. He stated Mead & Hunt has been our contract engineering firm for the past five years. He stated if the board concurs, we will start the Request for Qualifications process on September 10 and advertise for 21 days. Proposals would be due by October 4 and then the Chair can appoint a committee to evaluate those proposals and score them. He stated in the past we have had all five board members review the proposals and score them. He stated we can conduct interviews if the board wishes.
Mr. Dobberstein stated that each project is handled on a contract by contract basis and each of those contracts are reviewed. He stated this request includes terminal planning services so that we do not have to go through a separate process to select a qualified firm for terminal planning. He added that if we do have a terminal project we would still go through the process to request qualifications for architects.
Mr. Dobberstein stated our goal would be to have the process completed and ready for award at our second meeting in October. He stated after the project is awarded we would negotiate rates with the successful firm. He stated the RFQ process cannot have anything to do with rates and charges, that is after the fact and on a contract by contract basis.
Gen. Haugen moved to approve the Request for Qualifications Statement for engineering services and the proposed timeline for the process.
Second by Mr. Lind.
All members present voted aye and the motion was declared carried.
Received Communication from FAA Real Estate Regarding Eastside Terminal Office Lease Extension:
The communication from Demetra Johnson, FAA Real Estate, dated December 12, 2017, was received and filed without objection.
Mr. Dobberstein stated the FAA currently leases space in the Eastside Terminal for their Tech Ops division, which expires September 30, 2018. He stated they have requested a five-year extension of their lease and they set an average rate, which contains the 3% per year escalator over the five-year term. He stated we should have the actual lease document for signature next week.
Gen. Haugen moved to approve the five-year extension of the lease with the FAA for their Tech Ops office in the Eastside Terminal effective October 1, 2018.
Second by Mr. Lind.
All members present voted aye and the motion was declared carried.
Received Proposed Construction Services Agreement with Mead & Hunt for the Dakota Drive Pavement Rehabilitation Project, AIP48, and the Dakota Drive Lighting Improvement Project, AIP48:
The proposed Construction Services Agreements with Mead & Hunt were received and filed without objection.
Mr. Dobberstein stated we will be receiving bids for these projects on September 5 and plan to award the construction contracts at our meeting on September 11. He stated the proposed agreements before us are for construction services for these projects. He stated the FAA requires that the contracts for the pavement rehabilitation and the electrical be separate contracts.
Mr. Dobberstein stated Mead & Hunt is proposing a maximum cost of $82,200.00 for the Pavement Rehabilitation along with a lump sum of $5,200.00 for the project closeout. He stated the proposed maximum cost for the electrical/lighting portion is $26,650.00. He stated the closeout amount covers both the pavement rehabilitation and the lighting as they are under the same AIP Grant.
Mr. Dobberstein stated we did receive preliminary word that the FAA awarded our AIP Grant for about $2.3 million. He stated these funds will go toward the cargo apron expansion and the North General Aviation Area taxilane extension, which were completed last year, as well as these two projects to rehabilitate Dakota Drive.
Mr. Jeff Klein, Mead & Hunt, was recognized and reviewed the pavement areas that will be rehabilitated, those that are eligible for AIP funding and those that are not eligible for federal funding. He stated the bid schedule will show those areas separately so that if funding is not available we will forego those non-eligible areas until a later date. He also reviewed the lighting improvements that were eligible and those that are not eligible for AIP funding.
Mr. Klein stated another pavement area that needs replacement but will be shown on a separate bid schedule is the road between the overhead gate and the fuel farm west of the terminal building. He stated the estimated cost of this is $500,000.00 so if funding is not available we will be getting a bid on rehab rather than replacement.
Mr. Klein reviewed a summary of project costs showing eligible and non-eligible costs as well as the total local share.
Mr. Dobberstein stated after October 1, we should have an idea of our 2019 entitlement funds, but this current grant was for our 2018 entitlement funds so it may be a while before we know how much we will have for 2019.
Mr. Dobberstein stated these proposed construction services contracts can be approved, subject to the awarding of the grant, which we intend to do on September 11.
Gen. Haugen moved to approve the proposed construction services contracts with Mead & Hunt for the Dakota Drive Pavement Rehabilitation Project and the Dakota Drive Lighting Improvements, AIP48, subject to the award of AIP Grant 48.
Second by Mr. Lind.
All members present voted aye and the motion was declared carried.
Airport Construction and Security Update:
Mr. Terry Stroh, TL Stroh Architects, was recognized and reported on the exterior panel replacement project on the east side of the terminal building. He stated the new panels are an insulated panel and they are replacing a metal panel that was not insulated. He stated the contractor did run into an issue where they did not use fire-treated plywood between the structure and the insulated metal panels, which did not meet city building code. He stated that after further investigation they found that the plywood was not required as the stud spacing is 16" and the panels can be attached to the studs. He stated they will be removing the new panels they have installed, remove the plywood and reinstall the new panels.
Mr. Stroh stated they are continuing to work on plans for the skyway and will have some updated renderings available for the second meeting in September.
Mr. Dobberstein stated we did receive a letter from Mr. Kevin Hoffman, UPS, informing us of their intention to construct an air package sort facility and probably a hangar. He stated what this letter does for us is give us justification with the FAA to move forward with an engineering contract to design the expansion of the cargo ramp. He stated we will probably move forward with that after the engineering selection process. He stated this is good news that UPS is expediting their plans.
The meeting of the Municipal Airport Authority was adjourned until the next Regular Meeting to be held September 11, 2018.
Time at adjournment was 8:37 a.m.