MUNICIPAL AIRPORT AUTHORITY

The Regular Meeting of the Municipal Airport Authority of the City of Fargo, North Dakota, was held Tuesday, April 14, 2020 in the Airport Boardroom.

The members present or absent were as follows:
Present: Engen, Cosgriff, Haugen, Lind (via ZOOM), Linn
Absent: None
Others: Bossart (via ZOOM)

Chairman Linn presiding.

Chairman Linn welcomed the newly appointed board member, Mr. John Cosgriff.

Approved the Minutes of the Regular Meeting Held March 24, 2020:
The minutes of the Regular Meeting of the Municipal Airport Authority held March 24, 2020, were approved without objection.

Approved the Airport Vouchers Totaling $36,639.21:
Mr. Engen moved to approve the airport vouchers totaling $36,639.21. Second by Gen. Haugen.
On the call of the roll, members Engen, Cosgriff, Haugen, Linn. Absent and not voting: Lind

Approved the Individual Voucher to Sixel LLC:
Mr. Engen moved to approve the individual voucher in the amount of $4,658.00 to Sixel LLC for March passenger enplanement fees (American/Phoenix - $2,812.00 and Frontier/Phoenix - $1,846.00).
Second by Gen. Haugen.
On the call of the roll, members Engen, Cosgriff, Haugen, Linn voted aye. Absent and not voting: Lind
The motion was declared carried.

Approved the Individual Voucher to Sixel LLC:
Mr. Engen moved to approve the individual voucher in the amount of $2,750.00 to Sixel LLC for the quarterly report, report sponsor.
Second by Gen. Haugen.
On the call of the roll, members Engen, Cosgriff, Haugen, Linn voted aye. Absent and not voting: Lind
The motion was declared carried.

Approved the Individual Voucher to Flint Communications:
Mr. Engen moved to approve the individual voucher in the amount of $29,101.385 to Flint Communications for partial payment request for the 2020 Airport Marketing Program.
Second by Gen. Haugen.
On the call of the roll, members Engen, Cosgriff, Haugen, Linn voted aye. Absent and not voting: Lind
The motion was declared carried.

Approved the Individual Voucher to TL Stroh Architects:
Mr. Engen moved to approve the individual voucher in the amount of $30,588.54 to TL Stroh Architects for partial payment request for architectural services in connection with the SRE Building Project.
Second by Gen. Haugen.
On the call of the roll, members Engen, Cosgriff, Haugen, Linn voted aye. Absent and not voting: Lind
The motion was declared carried.

Approved the Individual Voucher to Mead & Hunt:
Mr. Engen 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 CAT-II Feasibility Study.
Second by Gen. Haugen.
On the call of the roll, members Engen, Cosgriff, Haugen, Linn voted aye. Absent and not voting: Lind
The motion was declared carried.

Adopted Resolution of Appreciation to Dr. Virginia Clark Johnson:
Gen. Haugen offered the following resolution of appreciation to outgoing member Dr. Virginia Clark Johnson and moved its adoption:
WHEREAS, Dr. Virginia Clark Johnson has just reached the expiration of her fifth term as a member of the Municipal Airport Authority, joining the board in September 1999, and
WHEREAS, Dr. Clark has served as a dedicated and very valuable member of the Airport Authority, leading the board as Chairman multiple times, and
WHEREAS, Hector International Airport has seen many changes over Dr. Clark’s tenure, including challenging times, continuous growth, improvement and expansion of facilities and air service, and
WHEREAS, Dr. Clark has always displayed dedication to the passengers and stakeholders the airport serves, as well as the airport staff and fellow board members.
NOW, THEREFORE, BE IT RESOLVED, That the members of the Municipal Airport Authority hereby convey their thanks and deep gratitude for the many years of exemplary service from Dr. Virginia Clark Johnson
BE IT FURTHER RESOLVED, That this resolution be inscribed upon the permanent minutes of the Municipal Airport Authority and a certified copy of the herein resolution be forwarded to Dr. Virginia Clark Johnson.
Second by Mr. Engen.
All members present voted aye and the resolution was declared to have been duly passed and adopted.

Received Proposed Deferral Agreement with the City of Fargo Related to BN-16-C and Improvement District 5130:
Mr. Dobberstein stated this agreement has been quite some time in the making. He stated Project BN-16-C was for the installation of utilities that occurred north of County Road 20 along 25th Street North. He stated the special assessments in question are being charged against airport property that cannot be developed. He stated the property is in the runway clear zone. He stated the FAA’s policy is that if there is no immediate benefit to the airport property the FAA will not allow the airport to pay the special assessments. He stated the City’s Finance Committee did approve the deferral of the specials early in 2019 and the agreement for the deferral of the specials has been sitting there for quite some time. He stated Attorney Bossart has been working with Asst. City Attorney Nancy Morris on this agreement. He stated the agreement also includes Improvement District 5130 which was a water main project from 15 years ago. He stated at the time that project was done, Attorney Gary Stewart worked with City Engineer Mark Bittner and they agreed there was no immediate benefit to the airport so the specials were deferred for ten years. He stated the 10 year agreement came up for renewal in 2016 and a ten year extension was approved but no one can find the agreement. He stated the agreement before the board today will defer the assessments on both of these project.
Mr. Dobberstein stated the reason this came up again is that Cass County continues to send us past due notices on the assessments. He stated we can get this agreement approved and signed today and then we can forward it to the City for their signature and to have it recorded.
Chairman Linn thanked Mr. Dobberstein and Attorney Bossart for their work on this and also Commissioner Strand for anything he did to move the process forward as this matter has taken too long to resolve.
Mr. Engen moved to accept the consolidated agreements to defer special assessments and let the Executive Director, Attorney Bossart, and the City Attorney handle the closing of the agreement.
Second by Haugen.
All members present voted aye and the motion was declared carried.
Gen. Haugen asked if the term of the agreement would be effective when it is signed or retroactive to when it was approved by the COF Finance Committee.
Attorney Bossart stated the agreement would be for 10 years as of the date it is signed.

Received Bid Tabulation from TL Stroh Architects for Proposed SRE Building and Modifications, and Consider Recommendation of Award for Each Contract:
Mr. Dobberstein stated the board members received the bid tabulation for the SRE Building for bids that were received April 7 for the general, mechanical, electrical and fuel dispensing storage system. He stated a number of the contractors did not follow the instructions in Addendum #2, which were crystal clear on what had to be included in the envelope on the outside of the bid package, so their bids were not opened. He stated we received only one bid for the fuel dispensing and storage system but we could not open that one because of the incorrect forms so we will advertise and rebid that portion of the project for award at our next meeting.
Mr. Terry Stroh, TL Stroh Architects, (via phone) was recognized and stated the total of all of the bids (base bid and alternates) received came in under the estimate by about $1 million.
Mr. Stroh stated he has talked with all of the low bid contractors and we all feel good about the pricing and are ready to get going on the project. He stated he would recommend award of the base bid and all of the alternates to the low bid contractors.
Chairman Linn asked if the contractors whose bids were not opened understand why their bids were not opened.
Mr. Stroh stated he has talked with each of them and they are aware of the reason the bids were not opened.

Gen. Haugen moved to award the bids for the SRE Building as follows:
General Meinecke-Johnson
Base bid: $2,987,000.00
Alt G1: 455,700.00
Alt G2: 137,000.00
Alt C1: 291,000.00

Mechanical: Norther Plains Mechanical
Base bid: $591,823.00
Alt M1: 249,098.00

Electrical: Rickard Electric
Base Bid: $323,900.00
Alt E1: 42,185.00
Alt E2: 61,875.00

Second by Mr. Engen.
Mr. Dobberstein stated this is a federal project so all of the AIP guidelines for contractors will have to be followed. He stated all of the contractors agree the number one priority is to get the new building up before starting on the renovations to the existing building.
Mr. Stroh asked the contractors to make certain there were no delays to the new building due to any issues they may run into with the renovations to the existing building.
Chairman Linn called for a vote on the motion.
On the call of the roll, members Engen, Cosgriff, Lind, Haugen, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Received Proposal from Mead & Hunt for Construction Services Associated with the Cargo Apron Expansion Project:
Mr. Jeff Klein, Mead & Hunt, was recognized (via phone) and stated he does not have a final proposal for the board to act on today as they are still waiting for a cost on quality assurance testing. He stated this agreement is for Mead & Hunt to provide all of the construction services for the Cargo Apron Expansion Project. He stated this includes all of the construction services, which is comprised of grant administration as far as applications, drawdowns, payment requests, change orders, reviewing DBE participation, etc. He stated it will also include construction inspections, having staff out in the field, making certain contractor is following FAA specifications, construction staking, providing project closeout reports, etc. He stated it includes quite an extensive work scope. He stated the FAA requires an independent fee review and the airport has used Mr. Wes Schon to conduct those reviews. He stated they should have the document ready for the board by the next meeting on April 28.

Receive and Approve Ground Lease with United Parcel Service, Subject to Completion of a Legal Description:
Mr. Dobberstein stated Attorney Bossart has been working with UPS on the ground lease and ran into a little difficulty with the formatting of the document so we do not have a final document today. He stated they will continue to work on that document. He stated the intent is to have the ground lease effective May 1, 2020. He stated UPS has awarded the contract to Olaf Anderson for the construction of their facility. He stated UPS hired Mead & Hunt to get a total meets and bounds legal description of the property for the lease agreement. He stated the lease rate is 25 cents per square foot per year, subject to change every five years based on CPI. He stated this is the first gateway city facility UPS has opened in the last 19 years so they don’t do this very often. He stated bids for our ramp project will be opened on April 30, and will have a completion date of September 2021. He stated we do not intend to pour any concrete in 2020. He stated UPS believes they will be ready to occupy their facility late summer or early fall of 2021. He stated UPS needs this ground lease to move to the next step in their project. He added that the language of this lease is the same as the lease we have with MDC, who leases the property and facilities to FedEx.
Attorney Bossart stated the total term of the lease, with extensions, is 35 years. She stated there is just one issue with regard to a title commitment vs. a title opinion. She stated she will work with Mr. Jeff Klein and UPS on this issue.
Mr. Engen moved to approve the subsequent lease with UPS after all parameters have been agreed upon by all parties, including the meets and bounds description, square footage cost and terms.
Second by Haugen.
Chairman Linn stated a lot of people don’t realize the magnitude of this project and it took decades of work by our Executive Director to bring this relationship to where we are today. She stated we would not be in this position if it were not for his tenacity and the relationships that he has built. She stated she would also like to compliment all of the current and previous board members who have had a hand in this. She stated this is a big boost to our economy and the airport.
Chairman Linn called for a vote on the motion.
On the call of the roll, members Engen, Cosgriff, Lind, Haugen, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Air Service Update:
Mr. Dobberstein updated the board on air service. He stated the TSA screened 25 passengers this morning when we normally have 500-600 passengers during the morning rush. He stated on April 12 the TSA screened 90,510 passengers nationwide compared to 2,446,801 the same day in 2019. He stated we are well over a 90-95% drop in air travel. He stated we will have some busier flights with snowbirds coming back from Arizona later this month.
Mr. Dobberstein stated about a week ago the Department of Transportation approved minimum service levels at airports across the country. He stated at FAR our minimum service level is 19 flights per week. He stated this is a requirement in order for airlines to qualify for any federal funding. He stated a number of carriers have filed continuation of air service exemptions. He stated Frontier was the first airline to do that last week and they are requesting to be exempt from providing service from April 13-June 10, 2020 in 35 cities, and Fargo is one of those. He stated the language in the CARES Act does not take into consideration those leisure and seasonal carriers with less than daily service.
Mr. Dobberstein stated we have received the most recent information from the FAA on the CARES Act and the funding that will be available to airports. He stated there is a nationwide phone call with the FAA Administrator at 10:45 this morning to review the funding. He stated funding will be distributed to airports based on their 2018 enplanements. He stated we will learn more on how the funds can be spent and once we know the amount we can discuss how those funds should be used. He stated the funding process will be the same as our FAA projects.
Mr. Dobberstein stated at our last meeting the board decided to defer the payments for the airlines for April, May and June, which may be subject to review again. He stated the amounts due for those three months will be divided into six payments and starting in July those payments will start to be due for the last six months of the year. He stated the FAA gives us the option to charge to Treasury note interest rate or no interest. He stated we also waived the minimum annual guarantee for SP Plus. He stated the car rental agencies should not have any problem meeting their MAGs. He stated those are our only tenants with minimum annual guarantees.
Mr. Dobberstein stated he and Darren Anderson have been in discussions with UPS regarding the ARFF fees, which are based on percentage of landed aircraft weight. He stated since the airline traffic is down considerably this would leave FedEx and UPS with a greater percentage of the landed weight. He stated we are looking at freezing their percentages at the average monthly percentage from 2019. He stated the cargo carriers paid about 38-39% of ARFF services in 2019. He stated we may carry the excess charges and either eat those or use some of the federal funding that will be available to us. He stated we will continue to discuss this.

Other Business:
Chairman Linn asked for an update on the NDPERS issue with the City of Fargo for the Airport Firefighters (Public Safety Pension Plan).
Attorney Bossart was recognized and stated COF Attorney Erik Johnson is also on this call and he may need to weigh in on this matter. She stated the MAA takes the position that if this is available to these firefighters it either needs to be made available through the COF or the MAA activates its own NDPERS account.
Mr. Dobberstein explained that the City of Fargo police and fire departments have their own pension plans. He stated our firefighters are on the NDPERS plan. He stated more than a year ago the ND Legislature adopted a new public safety NDPERS option for firefighters. He stated our firefighters qualify for that but the COF does not offer that. He stated either the COF has to offer it or we need to activate our own NDPERS account. He stated we have had that set up and ready to go since October 2019. He stated this has gone on long enough and is getting ridiculous. He conveyed to Attorney Johnson that he needs to get this done.
Mr. Johnson was recognized (via phone) and stated he was not in this meeting for this matter but he would be happy to respond. He stated he has not gotten a report back on this. He stated he knows Jill Minette and Mike Redlinger were working on it.
Chairman Linn asked for a report status at our next meeting on April 28. Mr. Johnson stated he will arrange for that.
Mr. Dobberstein stated we are done with the excuses.

The meeting of the Municipal Airport Authority was adjourned until the next Regular Meeting to be held Tuesday, April 28, 2020.