MUNICIPAL AIRPORT AUTHORITY

The Regular Meeting of the Municipal Airport Authority of the City of Fargo, North Dakota, was held Tuesday, December 17, 2019, at 8:00 a.m.

The members present or absent were as follows:
Present: Linn, Engen, Lind, Clark, Haugen
Absent: None
Others: Bossart

Chairman Haugen presiding.

Approved the Minutes of the Regular Meeting of the Municipal Airport Authority Held November 26, 2019:
Ms. Linn moved to approve the minutes of the Regular Meeting of the Municipal Airport Authority held November 26, 2019.
Second by Mr. Lind.
All members present voted aye and the motion was declared carried.
Mr. Engen asked if we have yet received a written response from the city on whether or not Mr. Piepkorn is still the city’s liaison to the Airport Authority.
Attorney Bossart stated she made a verbal inquiry but has not yet received a response.

Approved the Airport Vouchers Totaling $72,523.84:
Mr. Lind moved to approve the airport vouchers totaling $72,523.84.
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:
Mr. Engen moved to approve the individual voucher in the amount of $4,886.00 to Sixel LLC for November passenger enplanement fees - Frontier Airlines.
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 Cass County Finance:
Mr. Engen moved to approve the individual voucher in the amount of $21,743.76 to Cass County Finance for 2019 property taxes/drain assessments/special assessments.
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.

Received Communication from Dr. Tom Nagle to Extend South GA Hangar Ground Lease:
The communication from Dr. Tom Nagle dated November 27, 2019, was received and filed without objection.
Mr. Dobberstein stated Dr. Nagle is requesting a five year extension of his hangar ground lease in the south general aviation area. He stated Dr. Nagle has done some major improvements on the exterior siding of his hangar and he would recommend approving the extension.

Ms. Linn moved to approve the five-year extension requested by Dr. Tom Nagle. Second by Dr. Clark.
All members present voted aye and the motion was declared carried.

Received Communication from Riviera Nexus (formerly Cogi) to Extend Eastside Terminal Office Lease:
The communication dated December 3, 2019, from Riviera Nexus was received and filed without objection.
Mr. Dobberstein stated Riviera Nexus (formerly Cogi, Inc.) is a current tenant in the Eastside Terminal and they would like a one-year extension.

Mr. Lind moved to approve a one-year extension for Riviera Nexus. Second by Mr. Engen.
All members present voted aye and the motion was declared carried.

Received Communication from Northstar Insurance Regarding Renewal of Airport Liability Policy for 2020:
The communication from Northstar Aviation Insurance, Inc. dated December 12, 2019, was received and filed without objection.
Mr. Dobberstein stated Mr. Marc Lepage, Northstar Insurance, is our broker for our airport liability insurance coverage. He stated they are recommending remaining with the current carrier, AIG Aerospace. He stated the two options are a policy with no deductible for $63,509 or a $5,000 deductible per bodily injury/property damage occurrence with a $25,000 aggregate for $57,762. He added that there is an increase in premium over last year due to the enplanement activity and the harder market aviation entered over the last year. He stated he is recommending the option with the deductible.
Mr. Engen moved to approve the renewal of the airport liability insurance with AIG Aerospace for a premium of $57,762.

Second by Mr. Lind.
On the call of the roll, members Linn, Engen, Lind, Clark, Haugen voted aye.
Ms. Linn stated for the record she would like it noted that this is the premium the Airport Authority pays for its liability insurance.
Mr. Dobberstein stated that is correct. He stated the City of Fargo has absolutely no liability at the airport.

Presentation from the City of Fargo Engineering Department Regarding Proposed Flood Levy Project:
Mr. Roger Kluck, City of Fargo Engineering, was recognized and stated he is here today along with City Engineer Brenda Derrig, and Jody Bertrand, Engineering. He stated the reason they are here today is to present and get input from the Airport Authority on a flood control project north of County 20. He stated in 2016-2017 they worked with the FAA on environmental clearances for this project. He stated about that time the FM Diversion plan ran into some legal difficulties and was put on hold. He stated earlier this year the Diversion Authority was given the go ahead to move forward with their project. He stated they have had a number of visits with Mr. Dobberstein and the FAA on a proposed route for this project. He reviewed the proposed route starting from the west at the lagoons. He stated they tried to minimize the effects on the airport land rented to tenant farmers.

Mr. Kluck stated today they are looking for approval from the Airport Authority of the route and also to start discussions regarding the cost of the right of way on airport land, whether that be donated, a flat payment or purchase of land. He stated this would allow us to continue the process. He stated the goal is to get construction started in 2020. He stated they have had regular meetings via phone with the FAA and Corps of Engineers regarding this project. He stated they would also like the Airport Authority to request from the FAA a Section 163 Waiver, which is basically an environment waiver which would cut down on paper work for them, if the Authority approves the route.

Mr. Dobberstein stated the total acreage is 31.53 acres for the temporary easement during construction and the average cash rent per acre is $150.00 so the impact to cash rent during the first year would be approximately $4,700. He stated after construction the acreage for the permanent easement would be reduced to 18.23 acres so that impact would be $2,700 to $3,000 per year at the current average per acre.

Mr. Dobberstein stated the three options are: donate land for permanent flood protection, request appraisal to determine land value, or negotiate a value per acre for compensation for temporary construction and permanent flood control easement.

Mr. Engen moved to authorize the Executive Director to act on behalf of the Airport Authority in the best interest of the Airport Authority, the City of Fargo and the property owners, to move forward and work with the City Engineering Department to accommodate this project and to bring back to the board a recommendation for final approval.
Second by Ms. Linn.

Mr. Dobberstein stated he thinks it might be better for the board to understand the value of the property before making a decision. He added that we will have to work closely with the tenant farmers as they have to certify their acreage to the Farm Services Agency.

Mr. Lind stated he favors getting an appraisal on the land and not a donation situation. Chairman Haugen called for a vote on the motion.
All members present voted aye and the motion was declared carried.

Airport Construction and Security Update:
Mr. Jeff Klein, Mead & Hunt, was recognized and stated the plans and specifications for the SRE Building were submitted to the FAA a few weeks ago. He stated the eligibility analysis for federal funding was also submitted.

Mr. Klein stated there is not a lot of anything new to report on the Cargo Expansion Project. He stated they are continuing to work with the Fargo Wastewater Treatment Plant on an agreement for the glycol disposal.
Mr. Klein stated they are still awaiting feedback from FedEx on the Cat II Feasibility Study.

Mr. Dobberstein stated the TSA is expecting an update to their equipment at the checkpoint and we have submitted a request that when the new machine arrives, the current equipment stays in place and that we expand the checkpoint from two lanes to three lanes. He stated the checkpoint was designed so that the walls are moveable and the checkpoint area can be expanded. He stated we would have to get approval from the TSA.

Other Business:
Mr. Dobberstein stated American's seasonal non-stop service to Phoenix starts this week. He stated at times it will be extremely busy with those flights in addition to the Frontier and Allegiant flights within about a two hour window.
Mr. Dobberstein introduced Daren Byrum who is the interim Airfield Supervisor while Henry Swedberg is out on a medical leave. He stated our airfield crew has put in a lot of hours and have done a great job. He added that during snow events we are also fortunate to get help from some of our firefighters.
Mr. Dobberstein stated we took delivery on the new MB plow and spray truck, and are expecting our three pieces of Oshkosh equipment by the end of the year.

Chairman Haugen stated before we go into Executive Session he gave an update on negotiations with the City. He stated we are still in mediation. He stated we met yesterday and will have another mediation session later today.
Ms. Linn stated she wants to make certain the public knows that all of the negotiations are confidential.

Chairman Haugen read the following statement:

The Municipal Airport Authority of the City of Fargo, North Dakota will meet in Executive Session following the conclusion of the regular agenda to receive a status update as to the Mediation by and between the MAA and the City of Fargo scheduled to begin Monday, December 16, 2019 as it relates to the relationship between the Airport Authority and the City of Fargo for certain services provided to and paid for the Airport. Discussions will further occur as to whether or not the parties will require a further day of Mediation scheduled for Wednesday, December 18, 2019.
The Executive Session will provide for discussions related to negotiation strategy relative to the parties' position in Mediation. These discussions have financial implications and an open meeting of these discussions, strategy and direction to the Chairman and/or MAA's attorney, 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(9).

Ms. Linn moved to go into Executive Session.
Second by Mr. Engen.
All members present voted aye and the motion was declared carried.
The Regular Meeting was recessed at 8:28 a.m.

The Executive Session was called to order at 8:31 am.
Ms. Linn moved to adjourn the Executive Session at 10:00 a.m.
Second by Mr. Lind.
All members present voted aye and the motion was declared carried.
The Regular Meeting was reconvened at 10:02 am.
Mr. Engen moved to adjourn the Regular Meeting of the Municipal Airport Authority. Second by Dr. Clark.
Time at adjournment was 10:03 a.m.