MUNICIPAL AIRPORT AUTHORITY
The Regular Meeting of the Municipal Airport Authority of the City of Fargo, North Dakota, was held Tuesday, November 12, 2019, at 8:00 a.m. in the Airport Boardroom.
The members present or absent were as follows:
Present: Linn, Engen, Lind, Clark, Haugen
Abesnt: None
Others: Bossart
Chairman Haugen presiding.
Executive Session to follow the Regular Meeting.
Approved the Minutes of the Regular Meeting of the Municipal Airport Authority Held October 22, 2019:
Ms. Linn moved to approve the minutes of the Regular Meeting of the Municipal Airport Authority held October 22, 2019.
Second by Lind.
Mr. Engen stated at the last meeting he inquired as to whether Mr. Piepkorn’s statement of “I’m done”, as he walked out during the meeting, meant he was done as the City Commission’s liaison to the Airport Authority or if he was just done with that meeting.
Chairman Haugen stated he has not heard anything.
All members present voted aye and the motion was declared carried.
Approved the Airport Vouchers Totaling $96,728.24:
Mr. Engen moved to approve the airport vouchers totaling $96,728.24.
Second by Dr. Clark.
On the call of the roll, members Linn, Engen, Lind, Clark, Haugen voted aye. No member being absent and none voting nay the motion was declared carried.
Approved the Individual Voucher to Sixel LLC:
Dr. Clark moved to approve the individual voucher in the amount of $3,510.00 to Sixel LLC for Frontier passenger enplanement fees for October.
Second by Ms. Linn.
On the call of the roll, members Linn, Engen, Lind, Clark, Haugen voted aye. No member being absent and none voting nay the motion was declared carried.
Approved the Individual Voucher to TL Stroh Architects:
Dr. Clark moved to approve the individual voucher in the amount of $234,512.14 to TL Stroh Architects for partial payment request for architectural services in connection with the SRE Building Project.
Second by Ms. Linn.
On the call of the roll, members Linn, Engen, Lind, Clark, Haugen voted aye. No member being absent and none voting nay the motion was declared carried.
Approved the Individual Voucher to Flint Communications:
Dr. Clark moved to approve the individual voucher in the amount of $38,644.23 to Flint Communications for partial payment request for 2019 Airport Marketing Program.
Second by Ms. Linn.
On the call of the roll, members Linn, Engen, Lind, Clark, Haugen voted aye. No member being absent and none voting nay the motion was declared carried.
Authorized Attendance at the AAAE Aviation Issues Conference, Maui, Hawaii, January 5-9, 2020 (Registration only):
Mr. Dobberstein stated the AAAE Aviation Issues Conference is always held in Hawaii and as President of the Great Lakes Chapter of the AAAE, they will be paying for his airfare and hotel to attend this conference, as do the other chapters for their presidents. He stated he is required to pay the registration fee only.
Mr. Engen moved to authorize attendance at the AAAE Aviation Issues Conference, January 5-9, 2020, Maui, Hawaii.
Second by Ms. Linn.
All members present voted aye and the motion was declared carried.
Received Update on SRE Building Project:
Mr. Terry Stroh, TL Stroh Architects, was recognized and presented the 95% complete set of drawings for the SRE Building Project. He stated this is the set of plans that will be submitted to the FAA. He stated he hired TF Powers to do a cost estimate for the new SRE Building and an addition to the existing SRE Building so we can get a more accurate estimate.
Mr. Stroh showed the location of the new building and all of the area that would be paved. He stated the pavement is a big chunk of the estimate due to the strength of the concrete needed to accommodate the large machinery. He stated electrical engineer, Joel Kath, recommended putting the generator for the new building next to the transformer for the existing building and bore under the concrete to connect to the new building. He stated it will not be a real large generator because the building does not require much electrical load.
Construction cost estimates for the new building will be as follows:
General $ 2,995,500
Mechanical $ 756,000
Electrical $ 446,268
Civil $ 1,240,000
Replacement tanks $ 75,000
TOTAL $ 5,512,768
Addition to the existing SRE Building (Alternates) totaling $1,172,480 were reviewed and Alternate C-1 for repaving estimated at $1,700,000. Mr. Stroh stated re-roofing the existing building is estimated to cost $182,000, which would not be eligible for FAA funding as it is a maintenance item.
Mr. Jeff Klein, Mead & Hunt, was recognized and stated last summer when we did pavement repair and replacement on Dakota Drive, we had some quantity built into the project to address the pavement around the SRE Building, but then the board decided to move ahead with the new SRE Building Project. He stated the logical thing to do was to take that work out of that project until we knew the plan for the SRE Building Project. He stated the $1.7 million estimate is based on a complete reconstruction of the pavement around the existing building which is high. He stated right now they are working on evaluating the pavement in that area and determining if there are some sections that are salvageable and not in need of complete replacement. He stated if we just have to replace certain sections that number will come down and the funds can be used for other needs on the airport. He stated the pavement is not going to fall apart tomorrow but it needs to be addressed.
Mr. Stroh reviewed the other soft costs listed totaling $750,816.
Mr. Stroh stated the relighting alternate for the existing building is extensive and would include the whole building. The lighting replacements would be LED and would be a big improvement of the entire lighting system.
Mr. Stroh stated it is our plan to bid the project January or February which is an ideal time to bid a project.
Mr. Dobberstein stated during the last terminal expansion project we bought Builder’s Risk Insurance on the project.
Mr. Stroh stated it is actually cheaper for the owner to take out that coverage rather than the contractor.
Received Contract Amendment from TL Stroh Architects for SRE Building Roof Replacement Non-AIP Eligible:
Mr. Dobberstein stated since the roof replacement on the existing SRE Building is not eligible for FAA funding, Mr. Stroh drafted an amendment to his contract which has already been approved by the MAA, for the architectural fees of $7,000.00 in connection with that item.
Ms. Linn moved to approve the contract amendment from TL Stroh Architects for the SRE Building Roof Replacement for an additional fee of $7,000.00.
Second by Dr. Clark.
All members present voted aye and the motion was declared carried.
Received Update on Air Cargo Apron Expansion Project:
Mr. Jeff Klein, Mead & Hunt, was recognized and stated they have been working on the glycol capture and disposal portion of the Air Cargo Apron Expansion Project. He stated we sent a proposal to the Fargo WasteWater Treatment Plant laying out the preferred option to get their official approval on it and determine a rate structure for the treatment of the glycol fluid, which will ultimately go up to the sewage lagoons. He stated at this point we have not yet received a response from them. He stated once we receive approval from them we can finish the design of the project and bid the project in the February-March time frame for a spring construction start.
Mr. Klein stated ultimately we will need to have a glycol force main from the cargo site up to the lagoons. He stated Mr. Dobberstein brought it to our attention that the City of Fargo is constructing its own force main between the wastewater treatment plant and the lagoons. He stated we will look into some type of partnership capability to utilize that existing infrastructure and have it be a win win for both sides.
Mr. Klein stated part of the treatment plan is to be able to capture large flows into a 200,000 gallon storage tank until it can be pumped to the lagoons. He stated that is not part of the original scope of work so they will have an amendment to the engineering contract in the near future.
Received Update on Proposed Terminal Expansion Study:
Mr. Jeff Klein, Mead & Hunt, was recognized and stated about a month ago he, Mr. Dobberstein and Mr. Darren Anderson met with some architects from their Minneapolis office to go over a Terminal Area Study. He stated that is basically a study to look at expansion of the existing terminal building to address the growing enplanements. He stated the FAA requires this study to lay out the groundwork for ultimately a design project. He stated they discussed the deficiencies in the existing building and the primary focus will be expanding gates to the east. He stated we will also be looking at expanded post security services. He stated another component of this is both the FAA and ND State Aeronautics Commission representatives would like to see a financial analysis of the plan and proposed funding as we are looking at a project that will cost probably $35 million for the building expansion and $15 million for expansion of the ramp. He stated projects of this type have a low ranking on the FAA priority scale for funding. He stated we are still waiting for clarification on this, but terminal projects for small hub airports are not eligible for discretionary funding. He stated non-hub airports would be eligible for discretionary funding and right now this airport is in between the non-hub and small hub classification so timing is crucial and we will need to work diligently over the next year on this process. He added that there is a definite need for expansion.
Discussed Proposals for Depository and Banking Services:
Chairman Haugen stated we received proposals from four banks for depository and banking services.
Ms. Linn stated she reviewed the proposals and looked at what we currently have in our accounts. She stated technically the FAA requires that airport funds be separate and not be co-mingled with any City of Fargo funds, which is currently the case. She stated of the four proposals, two of them rose to the top immediately because of the interest rates. She stated one of those proposals was inclusive of a lot of the fees and the other was not. She stated after that review one of those rose to the top. She stated all of the proposals were very thorough and very well done.
Mr. Lind stated representatives from First International Bank are here and asked if they would like to speak.
Mr. Steve Blazek, First International Bank, was recognized and stated they are just here to help and serve in any way they can. He stated they would look forward to providing additional service to the Airport Authority. He stated they have had a wonderful relationship with the Airport Authority for a number of years and would look forward to expanding that.
Ms. Linn stated she was in the banking industry for a number of years and she stated she would like to see us keep the money local. She stated that would be a real positive. She stated possibly three but at least two of the proposals would keep the money local.
Chairman Haugen stated in his discussions with the FAA there have been comments about how we are currently handling the airport money through the City of Fargo. He stated the FAA would like to see a little more delineation of the airport funds.
Dr. Clark asked when we need to make a decision on the banking services.
Mr. Dobberstein stated it should be done today.
Chairman Haugen stated we could certainly make that decision today if everyone is comfortable with that.
Mr. Lind indicated he was not ready to make that decision today but would be ready at the next meeting.
Chairman Haugen stated the next meeting is in two weeks, November 26, and the board members should be ready to make a decision at that meeting.
Discussed Proposals for IT and Communication Services:
Mr. Darren Anderson, Assistant Director, was recognized and stated we received proposals from four IT firms. He stated they were all very similar. He stated right now we are in the process of clarifying security backup issues. He stated we have roughly 10-12 PC’s. He stated nothing is complex. He stated we are looking at putting a file server on airport property and then all of our files will back up to that. He stated we are also looking at a cloud backup. He stated as far as telephones we would use our existing phones and run that off our new file server. He stated we have only eight phone lines coming into the airport that we monitor. He stated all of the tenants have their own phone systems. He stated again it is not a complex system and we are looking at probably about $8,000 to set up a file server on the airport and about $7,000-$8,000 to get everything configured as it is now onto that new server.
Mr. Dobberstein stated we are getting a statement about cyber security from each of the companies. He stated contrary to comments made on local talk radio shows we don't have anything to do with the computer systems for the airlines so social security numbers and ticket information are not at risk because we have nothing to do with that and there is no tie whatsoever. He stated that false accusation can be alleviated.
Chairman Haugen stated there is a lot of misinformation flying around.
Ms. Linn stated she was glad to see that it is very cost effective. She stated as a business we want to make sure we cross the T's and dot the I's but also make it cost effective.
Mr. Engen asked if these were all local vendors.
Mr. Dobberstein stated these companies are all well-know and well-respected, especially locally, and some do business all over the country.
Mr. Anderson stated the four companies are Corporate Technologies, S&L, Network Center and Highpoint.
Mr. Lind stated he would be hesitant to enter into another contract with any outside services until our mediation session with the City is completed.
Chairman Haugen stated we don't necessarily need to enter into contracts but could make the selections without signing contracts. He stated neither IT nor banking services should need a long lead time.
Received Update on Pro Resources Transition:
Mr. Dobberstein stated Chairman Haugen did sign the contract with Pro Resources following our last meeting. He stated there are some things they need completed to set up the ND Workforce Safety and Attorney Bossart has been working on those. He stated the process has been great so far.
Chairman Haugen stated there are a great deal more services we will get from them than we are receiving currently.
Airport Construction and Security Update:
Mr. Dobberstein stated Sun Electric has been working on the lighting upgrade on the south general aviation area and should be done soon. He stated it has made a huge difference already.
Mr. Dobberstein stated we are still anticipating technology changes at the TSA checkpoint in 2020.
Discussed December Meeting Dates:
After discussion, it was the consensus that the board will meeting Tuesday, November 26, Tuesday, December 3 and Tuesday, December 17.
Other Business:
Chairman Haugen thanked the tenants and stakeholders who attended the City Commission meeting on November 4th, and also thanked those who spoke on behalf of the Airport Authority. He stated the board appreciates their support.
Chairman Haugen stated the Municipal Airport Authority of the City of Fargo, North Dakota will meet in Executive Session following the Regular Meeting of the Authority. In Executive Session, the Authority will review a Motion made at the last meeting of the City Commission of the City of Fargo regarding a proposed mediation by and between the Airport Authority and the City as it relates to the current vendor agreement between the Airport Authority and the City of Fargo for certain services provided by the City to the Airport for which the Airport pays the City.
This session will provide negotiating instruction in preparation for possible mediation with the City. With respect to said negotiations, these have financial implications and an open meeting discussion of the negotiations, strategy and direction to Authority members designated to attend the proposed mediation, would create an adverse fiscal effect on the bargaining position of the MAA.
This Executive Session has been authorized pursuant to ND Century Code § 44-04-19.1(9).
It was the consensus of the board to have a recess of the Regular Meeting in order to go into Executive Session.
The Regular Meeting was recessed at 8:44 a.m.
The Executive Session was convened at 8:52 a.m. and adjourned at 10:17 a.m.
The Regular Meeting reconvened at 10:18 a.m.
Chairman Haugen stated the discussion in the Executive Session was relative to the negotiation with the City of Fargo and their motion made at the City Commission meeting on November 4, 2019.
The motion made by Commissioner Strand was:
I move that the city enter into mediated negotiations with the Fargo Municipal Airport Authority with the intent of mutually agreeing to an updated Memorandum of Understanding that essentially mirrors the spirit and terms of the original 1969 MOU as later amended, and that if not mutually agreed to in a period not to exceed 45 days, the Fargo City Commission will immediately move forward with an orderly dissolution of the Municipal Airport Authority as allowed per state law and in compliance with the FAA, said mediation to occur by selection of a single individual to serve as a non-binding mediator to assist such negotiations, said selection to occur by agreement of each party’s negotiate or negotiators; Additionally, under the mediation process, the negotiators are tasked with bringing up to date and contemporizing the terms and agreements established by our forefathers five decades ago, and delivering a 2020 memorandum of Understanding that also predetermines future timeless so as to assure continued future operation of the airport under terms reflective of our shared city and community leaders’ vision when they established the Municipal Airport Authority and, in their combined wisdom, defined a working relationship intended to go forwards well into the future.
Dr. Clark moved the Municipal Airport Authority agree to mediation with the City of Fargo on December 16, at a neutral location with the designated mediator, but that the Municipal Airport Authority objects to the portion of the motion stating the Commission will immediately move forward with an orderly dissolution of the Municipal Airport Authority if mediation fails, as we do not support dissolution. Two members of the Municipal Airport Authority will attend the mediation along with MAA legal counsel.
Second by Mr. Lind.
On the call of the roll, members Linn, Engen, Lind, Clark, Haugen voted aye. No member being absent and none voting nay the motion was declared carried.
The meeting of the Municipal Airport Authority was adjourned until the Regular Meeting to be held Tuesday, November 26, 2019.
Time at adjournment was 10:19 a.m.