MUNICIPAL AIRPORT AUTHORITY

The Regular Meeting of the Municipal Airport Authority of the City of Fargo, North Dakota, was held Tuesday, January 14, 2020, at 8:00 a.m.in the Airport Boardroom.

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

Chairman Haugen presiding.

Mr. Dobberstein stated Allegiant Air has announced today the largest service expansion in company history with three new cities and 44 non-stop routes. He stated the new destinations for Allegiant are Boston, Chicago and Houston. He stated Fargo's portion of the expansion is seasonal non-stop service to Nashville starting June 4, 2020 and that will operate through November 15. He stated the flights will be on Thursdays and Sundays.

Approved the Minutes of the Regular Meeting Held December 17, 2019:

The minutes of the Regular Meeting of the Municipal Airport Authority held December 17, 2019, were approved without objection.

Approved the Airport Vouchers Totaling $150,200.99:
Dr. Clark moved to approve the airport vouchers totaling $150,200.99.
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.

Approved the Individual Voucher to Mead & Hunt:
Dr. Clark moved to approve the individual voucher in the amount of $16,720.00 to Mead & Hunt for partial payment request for engineering services in connection with the Cargo Apron Expansion 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 Mead & Hunt:
Dr. Clark moved to approve the individual voucher in the amount of $2,110.00 to Mead & Hunt for partial payment request for engineering services in connection with the Car Rental Lot Reconstruction 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 M-B Companies:
Dr. Clark moved to approve the individual voucher in the amount of $518,501.00 to M-B Companies for the purchase of a 2019 MB2 Heavy Duty Plow Chassis w/De-Icer.
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 Oshkosh Corporation:
Dr. Clark moved to approve the individual voucher in the amount of $615,713.50 to Oshkosh Corporation for the purchase of a 2020 Oshkosh Model HB2726-XF18 Snow Broom (#1 of 2).
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 Oshkosh Corporation:
Dr. Clark moved to approve the individual voucher in the amount of $615,713.50 to Oshkosh Corporation for the purchase of a 2020 Oshkosh Model HB2726-XF18 Snow Broom (#2 of 2).
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 Oshkosh Corporation:
Dr. Clark moved to approve the individual voucher in the amount of $735,396.00 to Oshkosh Corporation for the purchase of a 2020 Oshkosh Model H2726B Snow Blower.
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 Sixel LLC:
Dr. Clark moved to approve the individual voucher in the amount of $2,750.00 to Sixel LLC for quarterly airline data.
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 $34,412.11 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 Sixel LLC:
Dr. Clark moved to approve the individual voucher in the amount of $6,224.00 to Sixel LLC for December passenger enplanement fees for Frontier Airlines (Denver and Phoenix).
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 Sixel LLC:
Dr. Clark moved to approve the individual voucher in the amount of $2,672.00 to Sixel LLC for December passenger enplanement fees, American Airlines (Phoenix).
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 $8,340.84 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.

Approved the Individual Voucher to Cass County Finance:
Dr. Clark moved to approve the individual voucher in the amount of $26,161.74 to Cass County Finance for partial payment of 2019 property taxes/drain assessments/special assessments.
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.

Received Communication from Sixel LLC for Renewal of Air Service Development Contract:
The proposed agreement from Sixel LLC was received and filed without objection.
Mr. Dobberstein stated Sixel LLC (Mark Sixel) has been our air service consultant since 2005 and we were one of his first clients. He stated our current contract expires at the end of February and he is proposing a new agreement with a four-year term of March 1, 2020 through February 28, 2023. He stated the services provided are listed. He stated the success fee starts on the first day of new service and Sixel would receive $2.00 per Fargo enplaned passenger on new or expanded service for a period of 24 months from the initiation of service, capped at $80,000 per new airline or new route. He stated basically there is no charge until there is success. Mr. Dobberstein stated Mr. Sixel has done an extremely great job for us.
Ms. Linn asked if this is a typical arrangement for this type of service.
Mr. Dobberstein stated it is somewhat unique as there is no fee unless there is success. Chairman Haugen stated our association with Sixel has made possible announcements like we had from Allegiant today.
Ms. Linn moved to approve the contract with Sixel, LLC for the four-year term of March 1, 2020 through February 28, 2023.
Second by Mr. Engen.
All members present voted aye and the motion was declared carried.

Received Update on DOT Small Community Air Service Development Grant Extension:
Mr. Dobberstein stated a few days ago the US Department of Transportation allowed the second extension of the grant that was awarded to us in 2015. He stated this is a $500,000 federal grant through the Small Community Air Service Development Program. He stated we partnered in that grant with the Greater FM EDC and the FM CVB to come up with a $325,000 local match. He stated the primary use of the grant would be for Seattle service on Alaska Airlines. He stated although progress has been slow, the DOT decided there is enough interest on behalf of the carrier to allow the extension of the grant through this time next year. He stated we have been invited to meet with Alaska Airlines and Microsoft at their headquarters in Seattle in the next 45-60 days.

Received Communication from Mr. Joel Nike Regarding Possible North GA Hangar Location:
The communication from Mr. Joel Nikle dated December 26, 2019, was received and filed without objection.
Mr. Dobberstein stated Mr. Nikle contacted him recently regarding his interest in constructing a new hangar. He stated Mr. Nikle is interested in reserving the site between the Hamilton hangar and the Kempel hangar. He stated the hangar would be similar in size to those two hangars. He stated water and sewer service is available to the area. He stated he will need to go through the entire process, FAA airspace review, etc., and his goal is to be in the ground in the spring. He stated he thinks Mr. Nikle has reached out to Mead & Hunt for engineering assistance. He added that he would be responsible for the concrete from his hangar to the taxi lane.
Mr. Dobberstein stated Mr. Nikle is requesting the site be reserved for now. There was no objection.

Received Communication from Voxtelesys Regarding Eastside Terminal Office Space:
The communication from Mr. Bruce Burke, Voxtelesys, dated November 27, 2019 was received and filed without objection.
Mr. Dobberstein stated Voxtelesys has seen their business grow and are in need of additional space. He stated they have purchased a building on 25th Avenue North and are in the process of making improvements to that building. He stated they are requesting to terminate their lease with no penalty, effective when their new building is complete (March 31) and are also requesting $5,000 back from their portion of the remodeling costs to their space in the Eastside Terminal.
Mr. Dobberstein stated we believe there are other parties interested in the space and Mr. Flacksbarth should be able to fill the space easily. He stated all of the improvements will be left so he doesn’t really have a problem with the request.
Mr. Rick Flacksbarth, Cityscapes Development, was recognized and stated the space has been drastically improved since Voxtelesys did the remodeling. He stated they probably did above and beyond what you would normally see, including a kitchen area with granite countertops. He stated they did a nice job and the Airport Authority will be able to keep all of those improvements.
Mr. Lind asked if it was anything that would be such a specialty that it would not be of use to another tenant.
Mr. Flacksbarth indicated no it was not that specialized. He stated the space was definitely improved so he does not see it staying empty long.
Chairman Haugen stated the improvements should benefit the airport.
Mr. Engen asked if we would be setting a precedent by allowing a tenant to move out early and recoup some of their improvements.
Mr. Dobberstein stated the other tenant we have that made a significant investment in improvements is Spectrum Aeromed and they are still a tenant.
Ms. Linn moved to approve the request from Voxtelesys to terminate their lease early (March 31, 2020) and that they receive $5,000 reimbursement of their improvements to the space.
Second by Dr. Clark.
Mr. Engen stated he would request that the motion be amended to say that if the space is not rented within three months there would be no refund.
Mr. Lind stated with his rental property he would not allow an early termination and a refund. Ms. Linn moved to amend her motion to add that if the space is not rented within three months there would be no refund for the improvements.
Second by Mr. Lind.
All members present voted aye on the amendment to the motion. Chairman Haugen called for a vote on the amended motion.
All members present voted aye and the motion was declared carried.

Received Request from Altig for Extension of Eastside Terminal Office Lease:
The communication from Altig dated January 7, 2020, was received and filed without objection.
Mr. Dobberstein stated Altig is a current tenant on the second floor of the Eastside Terminal and they are requesting a one-year extension of their lease.
Mr. Engen moved to approve the one-year extension as requested by Altig. Second by Mr. Lind.
All members present voted aye and the motion was declared carried.

Considered Request from ND Aviation Council to Sponsor the Upper Midwest Aviation Symposium, March 1-3, 2020, Minot, ND:
The communication from the ND Aviation Council was received and filed without objection. Mr. Dobberstein stated it has been our practice in the past to be a sponsor of the Upper Midwest Aviation Symposium. He stated this year it is in Minot and when it is held in a city other than Fargo we have sponsored at the $2,000 level.
Ms. Linn moved to approve the sponsorship of the Upper Midwest Aviation Symposium, March 1-3, Minot, ND, at an amount not to exceed $2,000.
Second by Mr. Lind.
All members present voted aye and the motion was declared carried.

Authorize Attendance at Various Conferences:
Mr. Dobberstein stated there are a number of conferences upcoming and reviewed the list:
- 2020 ARFF Leadership Conference, February 11-14, 2020, Las Vegas, NV.
- GLC AAAE Winter Board Meeting, Dubuque, IA, February 28-March 1, 2020
- Upper Midwest Aviation Symposium, March 1-3, 2020, Minot, ND
- AAAE Chapter Officer Meeting and AAAE Legislative Conference, March 3-6, 2020, Washington, DC.
- Industrial Aviation & Military Operations Workshop, March 3-5, 2020, Colorado Springs, CO

Dr. Clark moved to authorize attendance at the conferences listed. Second by Ms. Linn.
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 stated they are waiting for approval from the FAA on the drawings for the SRE Building.
Mr. Jeff Klein, Mead & Hunt, was recognized and stated he received the FAA’s eligibility report for the SRE Building but has not had time to review it yet. He stated they are also working with the airport on PFC Application #9. He stated our goal is to have our 90% submittal to the FAA at the end of this month or early February. He stated we have a meeting with UPS in Fargo on February 4 along with their architect for their building.
Mr. Dobberstein stated we have also had some discussions with one of the UPS feeders that is also interested in building a hangar.

Other Business:
Mr. Dobberstein stated 2019 was a record year for passengers at the airport. He stated it surpassed the previous record year of 2014. He stated 2019 say an 11.6% increase over 2018.
Chairman Haugen stated the Municipal Airport Authority of the City of Fargo, North Dakota will meet in Executive Session to receive a status update as to the Mediation by and between the MAA and the City of Fargo 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. The Executive Session will review the status of what the parties have discussed and the proposed draft Memorandum of Understanding. 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).

Mr. Engen moved the Airport Authority move into Executive Session. Second by Dr. Clark.
Time at recess was 8:30 a.m.
The Executive Session began at 8:35 a.m. and ended at 9:52 a.m. The Regular Meeting reconvened at 9:57 a.m.

Mr. Engen moved the Municipal Airport Authority accept the mediated MOU already voted on by the Fargo City Commission, with one exception to one section of the proposed MOU, for which the MOU may need a counter offer to the City of Fargo.
Second by Dr. Clark.
On the call of the roll, members Engen, Clark and Haugen voted aye. Linn and Lind voted no.
The motion was declared carried.

Chairman Haugen stated if we are going to counter the MOU we will need a motion to extend mediation.
Mr. Engen moved to extend mediation between the MAA and the City of Fargo. Second by Ms. Linn.
All members present voted aye and the motion was declared carried.

Chairman Haugen stated before we adjourn he would like to say that we have worked on this, not just in the past few weeks, but for three years. He stated this has been a long, drawn out process that has taken a lot of work and has included a lot of angst in this process. He stated he wanted to thank the board members who have hung in there. He thanked Dr. Clark and Mr. Engen for being involved in the mediation, and for Attorney Bossart’s work. He stated, once again, it has been a long process. He stated we are not yet there but we are close to the finish line.
The meeting of the Municipal Airport Authority was adjourned until the Annual Meeting to be held Tuesday, January 28, 2020.
Time at adjournment was 10:00 a.m.