MUNICIPAL AIRPORT AUTHORITY
The Regular Meeting of the Municipal Airport Authority of the City of Fargo, North Dakota, was held Tuesday, September 24, 2019, at 8:00 a.m. in the Airport Boardroom.
The members present or absent were as follows:
Present: Linn, Engen, Lind, Haugen
Absent: Clark
Others: Bossart
Approved the Minutes of the Regular Meeting of the Municipal Airport Authority Held August 27, 2019:
The minutes of the Regular Meeting of the Municipal Airport Authority held August 27, 2019, were approved without objection.
Approved the Airport Vouchers Totaling $106,049.24:
Mr. Engen moved to approve the airport vouchers totaling $106.049.24. Second by Ms. Linn.
On the call of the roll, members Linn, Engen, Lind, Haugen voted aye, Absent and not voting: Clark
The motion was declared carried.
Approved the Individual Voucher to Butler Machinery:
Mr. Lind moved to approve the individual voucher in the amount of $325,000.00 to Butler Machinery for purchase of a 2019 Caterpillar motor grader (MAA approved 3/26/19).
Second by Mr. Engen.
On the call of the roll, members Linn, Engen, Lind, Haugen voted aye. Absent and not voting: Clark
The motion was declared carried.
Approved the Individual Voucher to TL Stroh Architects:
Mr. Lind moved to approve the individual voucher in the amount of $101,961.80 to TL Stroh Architects for partial payment request for architectural services in connection with the SRE Building Project.
Second by Mr. Engen.
On the call of the roll, members Linn, Engen, Lind, Haugen voted aye. Absent and not voting: Clark
The motion was declared carried.
Approved the Individual Voucher to Sixel LLC:
Mr. Lind moved to approve the individual voucher in the amount of $4,430.00 to Sixel LLC for August passenger enplanement fees, Frontier Airlines.
Second by Mr. Engen.
On the call of the roll, members Linn, Engen, Lind, Haugen voted aye. Absent and not voting: Clark
The motion was declared carried.
Approved the Individual Voucher to Flint Communications:
Mr. Lind moved to approve the individual voucher in the amount of $12,521.00 to Flint Communications for partial payment request for the 2019 Airport Marketing Program.
Second by Mr. Engen.
On the call of the roll, members Linn, Engen, Lind, Haugen voted aye. Absent and not voting: Clark
The motion was declared carried.
Approved the Individual Voucher to Mead & Hunt:
Mr. Lind moved to approve the individual voucher in the amount of $3,515.00 to Mead & Hunt for partial payment request for engineering services in connection with the Runway 36 CAT-II Feasibility Study.
Second by Mr. Engen.
On the call of the roll, members Linn, Engen, Lind, Haugen voted aye. Absent and not voting: Clark
The motion was declared carried.
Received Report Regarding the Scheduled Seats Available November 2019-April 2020:
The report from Sixel LLC regarding scheduled seats available November 2019-April 2020 was received and filed without objection.
Mr. Dobberstein stated this snapshot shows us the number of seats that will be available starting in November so we will be very busy. He stated this information is actually already out of date because just last week Frontier announced they would be extending their Denver service through the first part of January. He stated we will have a record number of seats so parking will be at a premium and we are working with SP Plus and our other concessionaires to be ready for the increase in traffic. He stated we are going to start looking at terminal expansion and will be having a preliminary planning meeting with Mead & Hunt on Thursday at 10:30 a.m. in the Boardroom. Mr. Dobberstein stated anyone is welcome to attend but after discussion it was determined that a quorum of board members would not be able to attend.
Received Special Assessment Notice from the City of Fargo for BN-18-G (Cass County 20):
The Special Assessment Notice dated 8/21/2019 from the City of Fargo was received and filed without objection.
Mr. Dobberstein stated we had a pre-notice of this assessment some months ago before this improvement was done (BN-18-G, storm sewer, PC concrete paving and incidentals). The area of this improvement was 40th Avenue and 33rd Street North, plus the intersection due to the new Guard Readiness Center being constructed. He stated the ND National Guard will receive a separate special assessment notice. He stated we will pay the full amount of the assessment, $75,256.85, to avoid paying interest.
Receive Passenger Survey from SP Plus:
The Summer 2019 Passenger Survey from SP Plus was received and filed without objection. Mr. Dobberstein stated SP Plus conducted another parking and transportation study July 10-11, 2019, surveying passengers departing those two days. He stated they were here from 3:00 am to 8:30 pm and were able to get participation and responses from about 50% of the total of 3,026 departing passengers those two days. He stated the information has not changed a lot over the Summer 2018 survey but this is good data to have.
Mr. Dobberstein stated the report shows results of the last four surveys as well. He stated SP Plus has found these surveys to be quite successful so they are using them in some of their other airports as well.
Received Lease Extension from Passur for Equipment Located at the Eastside Terminal:
Mr. Dobberstein stated Passur leases space on the roof of the Eastside Terminal Building on which they have antenna equipment located. He stated the lease expires September 30, 2019, and they have requested a five-year extension. He stated there will be the standard 3% per year escalator clause.
Attorney Bossart stated she reviewed the proposed lease extension and found some differences in provisions from the current lease so she is waiting to hear from Passur on those items.
Ms. Linn moved to approve a five-year lease extension as requested by Passur, subject to final review by Attorney Bossart.
Second by Mr. Lind.
All members present voted aye and the motion was declared carried.
Received Request from Meadowlark Logistics for Lease Extension in the Eastside Terminal:
The communication from Dave Lawson, Meadowlark Logistics, dated September 20, 2019, was received and filed without objection.
Mr. Dobberstein stated Meadowlark Logistics has been a tenant in the Eastside Terminal for a number of years and is requesting a two-year lease extension. He stated they are also interested in leasing the space currently occupied by UPS when they move to their new facility.
Ms. Linn moved to approve the request from Meadowlark Logistics for a two-year lease extension.
Second by Mr. Lind.
All members present voted aye and the motion was declared carried.
Receive Update on Flooring Replacement Project for a Portion of the Cafe Area:
Mr. Dobberstein stated the carpeted portion of the flooring in the restaurant on the pre-security side is in bad shape and in need of replacement. He stated CBM had initially requested new carpet but after discussion with Mr. Terry Northern, CBM, it was decided that a hard surface would be easier to maintain. He stated we agreed to split the cost of the replacement. He stated we contacted Fargo Linoleum and they recommended vinyl flooring tiles for the area. He stated the proposal is $12,134.37, plus some other additional charges for freight. He stated they should be able to do the project sometime in October.
Received Responses to Professional Employer Organization (PEO) Services Request for Proposals:
Mr. Dobberstein stated we ran a legal advertisement with a request for proposals for Professional Employer Organization services. He stated proposals were due September 16 and we received one proposal and that was from Pro Resources. He stated Kriss Burns, Business Consultant with Pro Resources, is at our meeting today. He stated Kriss and her team made a presentation to the board last year.
Mr. Dobberstein explained that pricing for their services is based on a payroll factor which is 12.84% for ARFF employees and 11.97% for all other airport employees. He stated we are currently paying for workers compensation insurance, FICA (Social Security/Medicare) and these percentages include those costs so the bottom line is that the fee would be 2.69% of gross payroll. He stated we are not currently paying a percentage of gross payroll for Federal Unemployment because the City of Fargo has an agreement with ND Job Service and we pay actual cost of a claim rather than a percentage. He stated we may be able to have the same arrangement with the state should we move forward with a change.
Mr. Dobberstein stated if we were to spend our entire 2020 payroll budget, overtime included, the cost would be approximately $56,465.49. He stated our budget does include some unfilled positions as well as overtime that may not all be used so the actual cost would probably be less than that. He stated using the figure of $56,465, $18,910 would be associated with ARFF staff, which is billed to the air carriers, and approximately $37,555 for the remainder of the employees.
Mr. Dobberstein stated we did get assistance from Middaugh Associates regarding health insurance costs. He stated they provided estimated premiums from Blue Cross/Blue Shield, Medica and Sanford. He reviewed the premiums and annual cost comparison. He stated we have not yet received any information on health savings accounts. He stated information we have received from Pro Resources is that they would be able to find dental and vision coverage that would have lower costs and better coverage than the current plans. He stated we are waiting for the Airport Association of North Dakota to give on update on their plans to form a group of airports to purchase health insurance. He stated Mr. Dave Middaugh has even offered to assist them in this process.
Mr. Dobberstein stated this is an open and transparent process and all of the information he has received is available to anyone who wants to review it in greater detail.
Consider Four Resolutions for NDPERS:
Mr. Dobberstein stated he had a lengthy conversation with MaryJo Anderson, Retirement Plans Manager for NDPERS. He stated the City of Fargo sends a check each month to NDPERS and that is split out and deposited into each employees own PERS account. He stated she was surprised that since the Airport Authority is a separate political subdivision we should have always had our own separate PERS account. He stated she was going to look into that with their legal counsel and staff.
Mr. Dobberstein stated they do have some requirements for enrollments dates for the Defined Benefit Main Plan, Public Safety Defined Benefit Retirement Plan, Deferred Compensation plan and the Life Insurance Plan.
Mr. Dobberstein stated that she brought to our attention that five of our firefighters currently enrolled in PERS are eligible for the NDPERS Public Safety Defined Benefit Retirement Plan right now, regardless of any changes the Airport Authority may make. He stated apparently this is something new that became available after the last legislative session but this is the first we have heard of it. He stated this is something the firefighters are eligible for, regardless of any other changes that may or may not be made. He stated Ms. Anderson stated someone from NDPERS would be happy to come out and meet with those employees or give an explanation and answer questions on a conference call.
Ms. Linn asked if that is something that would have been offered to the employee by the City of Fargo.
Mr. Dobberstein stated he thinks it can be offered by the city but they have not yet communicated that it is available. He stated she went through all of the names of our firefighters and she identified five employees that were not eligible before but they are eligible now.
Mr. Dobberstein stated the Airport Authority would need to pass four resolutions in order to set the stage should we decide to set up our separate account. He stated nothing would change for the employee, they would just be in the Airport Authority's account rather than the City of Fargo's account.
Mr. Dobberstein stated if we would want benefits to start January 1, 2020, they would have to have the contract by October 13 and all documents completed and returned to PERS by November 15. He stated the State has date deadlines based on effective dates.
Mr. Dobberstein stated NDPERS would require a resolution for each of the four plans. He stated we can pass the resolutions today but not take any further action until we know what we are going to do.
Mr. Engen stated if any benefit is available now to an airport employee, whether city involvement or not, we immediately enact that benefit. Mr. Engen stated it would concern him if this benefit (NDPERS Public Safety Defined Benefit Plan) has been available to the firefighters over the past six to twelve months but they were not made aware of it. He stated if it was available by the City of Fargo and it was not afforded to them, he is concerned about that.
Mr. Dobberstein stated he does not recall getting any communication from the city regarding that. He stated he is not a member of NDPERS so he is not certain how members are advised of changes. He stated he thinks once an employee is signed up they have an account and provide information to receive notices.
Mr. Engen stated it is in our best interest for those employees to make sure they are educated immediately.
Chairman Haugen stated one of the major differences for safety employees is retirement age. He stated just because we are voting on these resolutions today does not mean we are taking any action. He stated we just need to have them in place due to timing requirements.
Adopted Resolution Joining NDPERS Defined Benefit Retirement Plan:
A motion was made by Mr. Engen for the Municipal Airport Authority of the City of Fargo to affirm to North Dakota Public Employees Retirement System that the Municipal Airport Authority is formed pursuant to N.D.C.C. § 2-06 and is neither a non-profit corporation nor a for-profit corporation, to join the NDPERS Defined Benefit Retirement Plan and offer the plan to all eligible employees of the Municipal Airport Authority.
The motion was seconded by Ms. Linn.
The Board approved joining the NDPERS Defined Benefit Retirement Plan Effective (date to be determined).
Adopted Resolution Joining NDPERS Deferred Compensation Plan:
A motion was made by Mr. Lind for the Municipal Airport Authority of the City of Fargo to affirm to North Dakota Public Employees Retirement System that the Municipal Airport Authority is formed pursuant to N.D.C.C. § 2-06 and is neither a non-profit corporation nor a for-profit corporation, to join the NDPERS Deferred Compensation Plan and offer the plan to all eligible employees of the Municipal Airport Authority.
The motion was seconded by Mr. Engen.
The Board approved joining the NDPERS Deferred Compensation Plan effective (date to be determined).
Adopted Resolution Joining NDPERS Life Insurance Plan:
A motion was made by Mr. Lind for the Municipal Airport Authority of the City of Fargo to affirm to North Dakota Public Employees Retirement System that the Municipal Airport Authority is formed pursuant to N.D.C.C. § 2-06 and is neither a non-profit corporation nor a for-profit corporation, to join the NDPERS Life Insurance Plan and offer the plan to all eligible employees of the Municipal Airport Authority.
The motion was seconded by Ms. Linn.
The Board approved joining the NDPERS Life Insurance Plan effective (date to be determined).
Adopted Resolution Joining NDPERS Public Safety Defined Benefit Retirement Plan:
A motion was made by Ms. Linn for the Municipal Airport Authority of the City of Fargo to affirm to North Dakota Public Employees Retirement System that the Municipal Airport Authority is formed pursuant to N.D.C.C. § 2-06 and is neither a non-profit corporation nor a for-profit corporation, to join the NDPERS Public Safety Defined Benefit Retirement Plan and offer the plan to all eligible employees of the Municipal Airport Authority.
The motion was seconded by Mr. Engen.
The Board approved joining the NDPERS Public Safety Defined Benefit Retirement Plan effective (date to be determined).
SRE Building Update:
Mr. Terry Stroh, TL Stroh Architects, was recognized and stated they are continuing to meet with airport staff and moving ahead with SRE Building plans. He stated pending working out all of the funding details with the FAA, we hope to be ready to bid the project in December. He stated we are digging into details for the addition of a service bay to the existing building. He stated new FEMA rules for construction in Fargo require building based on elevations on the flood plain maps. He stated he has one project where a business is building an addition on to a facility that has never flooded, yet the addition has to be 10.5 inches higher than the existing structure. He stated fortunately the airport property is high enough that it should not require that the service bay addition be built higher than the existing structure.
Mr. Jeff Klein, Mead & Hunt, was recognized and stated that in order to make the building project eligible for FAA funding through the AIP program we need to go through an eligibility exercise. He stated this exercise is to determine what is eligible for federal funding, based on the size and number of pieces of equipment the airport currently has on hand and the number of pieces the airport could be eligible to purchase. He stated we feel right now around 90% of the planned building is eligible for federal funding. He stated the areas that are not eligible are breakrooms and offices.
Mr. Klein stated another part of the eligibility process for FAA funding is to do an Environment Assessment, which includes an archaeological survey and a wetland delineation. He stated we will also be researching any fuel spills due to the close proximity of the fuel farm. He stated there are some areas of dead grass in the area of the fuel farm that are a concern to FAA. He stated he has been working with Fargo Jet Center as far as any recorded fuel spills and there have not been any spills. He stated the FAA could conduct a record search.
Mr. Dobberstein stated we believe the dead grass is a result of glycol or possibly herbicide runoff which was used in the rock area to eliminate vegetation, as required.
Mr. Klein stated it is his hope that the FAA will accept any documentation from the Fargo Jet Center rather than having to do go through a record search. He stated even if that is the case it should not delay the bidding process.
Airport Construction and Security Update:
Mr. David Negron, Assistant Federal Security Director, TSA, was recognized and stated Fargo will be getting a significant upgrade to the Explosive Detection System (EDS) machines for baggage screening. He stated the project is starting today and should be finished next week. He stated this gives us some additional capability for objects that are able to be screened. He stated the TSA is expecting an update in their credential authentication technology yet this year. He stated long term, possibly next summer, we should be receiving the CT x-ray technology for the checkpoint, which is a massive upgrade in technology. He stated Fargo will be the first airport in the state to receive that technology.
Chairman Haugen stated there is a meeting on Thursday regarding terminal expansion. He asked Mr. Klein to explain how we are going to reconstruct the north ramp and still function during that process.
Mr. Jeff Klein, Mead & Hunt, was recognized and stated the terminal ramp pavement is in tough shape. He stated the pavement reports that came back from the ND Aeronautics Commission had a score of around 50%. He stated it is one of the most highly used pieces of pavement on the airfield. He stated the plan to reconstruct that is multi-faceted. He stated one of the things Mead & Hunt is working with the Airport Authority on is an initial meeting to kick off a Terminal Planning Study. He stated that would be a plan to expand the terminal ramp. He stated the reasons for that is to expand the ramp to handle improvements to the terminal and extra gates added to the terminal to the east. He stated once that is done then the plan would be to reconstruct the apron in a series of phases. He stated the challenge of all of this is multi-phase, multi-year, and the cost. He stated the terminal ramp itself is at least $10 million and he cannot estimate the cost of the terminal expansion but it would be at least $5 to $10 million. He stated it will be the building, boarding bridges, and the replacement of existing boarding bridges. He added that terminal buildings and ramps have a low priority with the FAA for discretionary funding.
Ms. Linn asked if there is any state funding available.
Mr. Klein stated the Prairie Dog funding becomes available starting in 2021.
Mr. Dobberstein stated the entire fund is only twenty some million dollars annually.
Discussed October Meeting Dates:
Mr. Dobberstein stated our next regular meeting date is October 8 but he will be at the AAAE National Airports Conference. He stated the next scheduled meeting is October 22. After discussion it was agreed that the next meeting, October 22, would be the only Regular Meeting in October.
Other Business:
Mr. Dobberstein stated we are advertising a request for proposals for banking services in the legals and proposals are due here on October 9 at 2:30 pm.
Mr. Dobberstein stated we are still working with the Retired Senior Volunteer Program (RSVP) on resuming oversight of our Airport Information Center.
Mr. Dobberstein stated we received an e-mail (copies provided to board members) from a resident north of the airport regarding the airport land being posted for "No Trespassing". He stated some of the airport land north of County 20 is in the city limits so no hunting would be allowed. He stated there was concern expressed by some other residents about hunting so close to homes. He stated people have probably hunted there for years but the reason we have now posted the land is for liability reasons. He stated having people harvest the geese and other wildlife is to our favor, but you still hear the stories of airports in other cities and issues with liability as a result of people hunting on their property. He stated if the board does not concur with posting the land we will remove the signs.
Ms. Linn stated people should be aware of this.
Mr. Dobberstein stated this person is aware of that and apparently has hunted there for years. He stated there is no doubt there are deer in the shelterbelts on airport property. He stated he will follow up with this individual.
Chairman Haugen asked if we could allow people to hunt if they signed a waiver or hold harmless agreement.
Attorney Bossart stated generally speaking waivers are about as good as the piece of paper on which they are written.
Chairman Haugen stated he knows state regulations do not allow shooting within 440 yards of occupied buildings, but he would not be concerned with bow hunting, as an arrow does not typically travel more than 40 yards. He stated they allow bow hunting in the city limits in the parks. He stated he would not like to blanket eliminate all hunting.
The meeting of the Municipal Airport Authority was adjourned until the next Regular Meeting to be held Tuesday, October 22, 2019.
Time at adjournment was 8:57 a.m.