MUNICIPAL AIRPORT AUTHORITY

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

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

Chairman Linn presiding.

Approved the Minutes of the Regular Meeting of the Municipal Airport Authority Held June 23, 2020:
Gen. Haugen moved to approve the minutes of the Regular Meeting of the Municipal Airport Authority held June 23, 2020.
Second by Mr. Lind.
All members present voted aye and the motion was declared carried.

Approved the Airport Vouchers Totaling $33,001.57:
Mr. Engen moved to approve the airport vouchers totaling $33,001.57.
Second by Mr. Lind.
On the call of the roll, members Haugen, Engen, Cosgriff, Lind, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to The Cincinnati Insurance Company:
Gen. Haugen moved to approve the individual voucher in the amount of $8,044.00 to the Cincinnati Insurance Company for Builders Risk Insurance for the SRE Building Project.
Second by Mr. Engen.
On the call of the roll, members Haugen, Engen, Cosgriff, Lind, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to TL Stroh Architects:
Gen. Haugen moved to approve the individual voucher in the amount of $2,821.60 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 Haugen, Engen, Cosgriff, Lind, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to TL Stroh Architects:
Gen. Haugen moved to approve the individual voucher in the amount of $13,295.00 to TL Stroh Architects for partial payment request for architectural services (construction administration) in connection with the SRE Building Project.
Second by Mr. Engen.
On the call of the roll, members Haugen, Engen, Cosgriff, Lind, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to Sixel, LLC:
Gen. Haugen moved to approve the individual voucher in the amount of $828.00 to Sixel, LLC for June passenger enplanement fees (Allegiant/Nashville).
Second by Mr. Engen.
On the call of the roll, members Haugen, Engen, Cosgriff, Lind, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to Sixel, LLC:
Gen. Haugen moved to approve the individual voucher in the amount of $2,750.00 to Sixel, LLC for Q3 Data Subscription and Blog Sponsorship.
Second by Mr. Engen.
On the call of the roll, members Haugen, Engen, Cosgriff, Lind, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to Mead & Hunt:
Gen. Haugen moved to approve the individual voucher in the amount of $12,267.94 to Mead & Hunt for partial payment request for engineering services in connection with the Airfield Pavement Markings Project.
Second by Mr. Engen.
On the call of the roll, members Haugen, Engen, Cosgriff, Lind, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to Flint Communications:
Gen. Haugen moved to approve the individual voucher in the amount of $6,864.25 to Flint Communications for partial payment request for the 2020 Airport Marketing Program.
Second by Mr. Engen.
On the call of the roll, members Haugen, Engen, Cosgriff, Lind, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to Meinecke-Johnson:
Gen. Haugen moved to approve the individual voucher in the amount of $303,300.00 to Meinecke-Johnson for Partial Payment Request #1 for general construction of the SRE Building Project.
Second by Mr. Engen.
On the call of the roll, members Haugen, Engen, Cosgriff, Lind, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to Rickard Electric:
Gen. Haugen moved to approve the individual voucher in the amount of $8,442.00 to Rickard Electric for Partial Payment Request #1 for electrical construction of the SRE Building Project.
Second by Mr. Engen.
On the call of the roll, members Haugen, Engen, Cosgriff, Lind, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Received Salary Review/Compensation Study from ADK Consulting & Executive Search for Airport ARFF Employees:
The Salary Review/Compensation Study was received and filed without objection.
Chairman Linn introduced Linda Frankl, ADK, joining the meeting via zoom.
Ms. Frankl thanked the Airport Authority for the opportunity to conduct this review and provide this information on the ARFF personnel. She gave an overview of the history and qualifications of the staff of ADK. Research for this project was centered on market data of both airports of similar size and complexity as well as the local region’s talent pool for like positions. In consideration of current conditions and ADK’s interest to provide a recommendation that is acceptable to all parties based on salary data, ADK’s recommendations considered prior pay grade and range methodology utilized by FAR, thus providing two pay grade options to consider. One of the most significant contributing factors for salary range beyond duties is the job market demand and a candidate’s interest in similar positions that are accessible. It is believed that candidates attracted to the airport positions of Firefighter and Lead Firefighter/Captain are likely inclined to consider comparable positions with municipalities. For this reason, the salaries of municipalities became more of a factor when evaluating and calculating compensation ranges for these two positions. Salaries of airport comparables were weighted greater when calculating compensation ranges for the positions of ARFF Chief and Assistant Chief. Senior airport ARFF leaders may be more inclined to look at airport industry opportunities for growth and be willing to relocate. ADK is providing two independent salary recommendation options that reflect industry market conditions:

Option A - calculates comparables and does not have consistency in total range spread
Option B - uses data acquired and aligns with an existing City of Fargo pay range

Option B mimics the City of Fargo pay range structure and a 30% spread from minimum to maximum exists for each position.

Chairman Linn stated this survey mainly compares enplanements and operating budgets. She stated one of the unusual things about this airport is the amount of cargo that comes through here. She stated she would anticipate that with the high amount of cargo comes a higher amount of responsibility for firefighting.

Mr. Dobberstein stated for firefighters cargo means more potential for hazardous materials and dealing different types of aircraft. He stated the ARFF staff has to constantly monitor the type of aircraft coming in and continually updating and keeping current on training for those different types of aircraft.

Gen. Haugen stated we are comparing ARFF firefighters to city firefighters and in reality the jobs are quite different. He stated a city firefighter is by and large a structural firefighter and an airport firefighter is an airport rescue and crash fire fighter. He stated in an aircraft crash you have one minute in that fire then you are dead. He stated the amount of use we get out of our firefighters is much less than the city but the airport firefighters probably have more time spent training yet not used as much. He recommended the board members read the article on aircraft rescue and firefighting in the recent issue of Airport Business magazine. He stated he gets a little concerned when we compare an ARFF firefighter to a city firefighter. He stated in comparing the entry level to the city’s entry level he was surprised that the airport’s is lower. He does not think we are comparing apples to apples.

Gen. Haugen asked Chief Bush about his pool of applicants when there is a vacancy on the ARFF staff.

ARFF Chief David Bush was recognized (via zoom) and stated recently the average number of viable applicants has been four or five so it is not a large pool from which to draw. He stated this salary review should help in recruiting.

Mr. Cosgriff stated during his time as a City of Fargo commissioner, it was the city’s philosophy that as a tax payer supported entity you should not lead the market in compensation to employees. He stated the philosophy was to be competitive but not to lead the market.

Mr. Strand stated last year the city revisited the firefighters pay because they were having a problem with retention and recruitment.

Mr. Engen stated if a plane crashes at the airport in Fargo he wants that response to be perfect and that requires those people to know their job inside and out and to be perfect at it. He stated if that requires that we increase the pay to make them perfect he is in favor of that.

Gen. Haugen asked Chief Bush from where he gets most of his applicants.

Chief Bush stated originally most of the pool of applicants came from the Guard. He stated members of the military have the certification required. He stated in recent years our pool from the Guard has decreased. He stated it is a very small pool from which to draw nationwide.

Mr. Engen stated this is the first salary study he has been involved in as a member of the Authority. He stated understanding the COF’s pay grade process is important as well as the industry range.

Mr. Engen moved the Authority accept the consultant’s recommendation of for the change of grade (Option B) for the four classes of firefighters (Fire Chief, Assistant Chief, Lead Firefighter/Captain and Firefighter) effective July 1, 2020.
Second by Mr. Lind.

Mr. Engen asked Mr. Strand if this change would need to go before the Airport PEC or because it is a static grade would it just need board approval.
Mr. Strand stated he is still learning about the APEC. He stated at the recent roundtable meeting with the MAA and the COF it was discussed but is still not clear. He stated his sense is to have the MAA approve it and then bring it to the APEC.

Chairman Linn stated there was quite a bit of discussion on the APEC at that meeting and it is her understanding that if a change is not outside of the COF’s pay scales it does not need to go to the APEC.

Mr. Dobberstein stated all of these recommendations are within the current pay scale.

Mr. Strand stated he is fine either way but his sense is to err on the side of caution. He asked Mr. Mike Redlinger to comment.

Mr. Redlinger was recognized, via zoom, and stated it was his understanding that as long as the change was within budget and within the plan that the changes would not be heard by the APEC.

Mr. Dobberstein stated our ARFF department was formed in October 2014 so this review was due this year.

Mr. Engen asked when the COF firefighters received their adjustment.

Mr. Strand stated it was mid-year last year.

Chairman Linn called for a vote.
On the call of the roll, members Haugen, Engen, Cosgriff, Lind, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Received Proposal from ADK for Market-Based Salary Study:
The Proposal/Agreement from ADK Consulting, Inc. dated July 8, 2020, was received and filed without objection.
Ms. Linda Frankl, ADK, was recognized (via zoom) and stated one thing that is important for an organization to take into consideration when you are doing any type of salary survey is the parity and equality among the organization. She stated it is very difficult to adjust salaries for just a certain segment of the workforce. She stated it is important that there is some type of correlation with level of responsibilities and duties with the entire organization. She stated it is important to look at all positions periodically and at a specified time. She stated ADK was asked to prepare a proposal to look at six airport positions (Principal Office Associate, Airport Operations Specialist, Airport Operations Supervisor/Airside, Airport Operations Supervisor/Landside., Assistant Director, and Executive Director).

She stated before taking on the responsibility of determining which airports would be comparable, they reviewed a salary survey conducted by ACI (Airports Council International). She stated as a member of ACI, ADK has access to those salary surveys. She stated the airports included in this survey were not necessarily of similar governance, complexity or size to Fargo when they lump information together. She stated after their review of the ACI study they determined that there were a number airports grouped in the same category as FAR but they would not consider them comparable. She stated many of them were city or county operated, some of them did not have commercial service at all, some of them had very small budgets and were nowhere near the complexity of FAR.

Ms. Frankl stated in light of what they learned in the ARFF salary survey they will do something similar in that they will provide what the industry data suggests and also share how that matches the existing philosophy the COF has adopted with the current pay scale. She stated the cost of the study for those six positions is $5,900.
Chairman Linn stated this will be a much more expanded survey than the previous surveys for just the Executive Director and Assistant Director positions. She stated this survey will include 27 airports.

Mr. Dobberstein stated if this is approved today the only positions left to evaluate would be the Equipment Operator III and Building Attendants, which would be conducted next year.

Mr. Cosgriff asked if the COF is doing a similar study.

Mr. Redlinger stated they were scheduled to do that this summer, however that has been delayed due to budget reductions. He stated they will revisit that next year. He stated they are actually behind in doing the comprehensive organization wide survey. He stated they do not look at each individual position but are doing a comprehensive analysis across all job classes so it will be a rather large project.

Mr. Cosgriff asked if it would make sense to combine this with the city's effort.

Mr. Redlinger stated they could certainly look at accommodating that. He stated they have been looking at a lot of their equipment operator and tech positions as there is a lot of competition for them in the market.

Mr. Dobberstein stated we have done that in conjunction with the COF. He stated our Equip Tech was just adjusted this year.

Mr. Cosgriff stated he was thinking it wouldn’t make sense to have two different studies if the positions are common.

Chairman Linn stated the positions are not common with the COF. She stated we have to look at comparing with similar airports as well as complying with federal regulations such as the Sherman Antitrust Act. She stated Ms. Frankl referred to the ACI data, which was used previously by the COF HR Department, and pointed out that they were not going to use that data because the ACI study does not compare apples to apples. She stated some of those airports in that study do not even have commercial air service.

Mr. Engen stated the positions we are talking about in this study are unique from COF positions. He stated he thinks it is good to have a separate survey. He stated he would be glad to get any input from the COF but because of the uniqueness of the MAA and its operations we need to have a separate survey. He stated more data is better than less.

Mr. Cosgriff asked if the COF can comply with the Sherman Antitrust requirements.

Mr. Redlinger stated he is not sure, he would need to check with legal counsel.

Mr. Dobberstein stated some say the Sherman Antitrust Act applies to government entities some say it doesn’t, but when we sign our federal grant documents, etc., there is always reference to the Sherman Antitrust Act.

Gen. Haugen stated in looking at the list of airports ADK is proposing to use he is familiar with many of them and they are comparable to FAR. He stated just using commercial enplanements to compare it does not reflect everything an airport does. He asked if ADK identifies those airports which have special requirements and special things that those managers have to deal with regularly, or do they just look at the average.

Ms. Frankl stated they do ask what is unique about each airport and if there is something that is real specific or real unusual they take that into consideration. She stated the other thing they do take into consideration is the governance structure and whether or not it is an Airport Authority. She stated if it is an independent Airport Authority it has a broader scan of responsibility and authority than when working with a city or county. She stated in particular for an Executive Director’s position with an airport authority, that position has a greater span of responsibility and is quite a bit broader and greater in detail than when working with a city or county. She stated that is why they have a variety of comparables.
Mr. Cosgriff stated if the COF is able to comply with the federal requirements would it be more effective to combine with their comprehensive study. He stated there are indirect comparisons and one study agreed on by all parties would be more effective.

Mr. Engen stated he would disagree. He feels the more data we have the better. He stated he does not want to wait for the city. He stated the time the members on this board give is not very well paid and is precious. He stated the more information we have and the more time we have to digest it the better decisions we can make.

Chairman Linn stated there are not comparable positions within the COF and during the process of the MOU that is why the Airport PEC was formed.

Mr. Cosgriff stated he is not saying the positions are comparable but maybe they should be included in the comprehensive survey.

Mr. Dobberstein stated typically in the past when the COF has done surveys they contact cities regarding airport positions and some of those cities do not respond because they have nothing to do with the airport. He stated when they get the information back from cities with airports that may be comparable, there is no information on the airport because those cities have nothing to do with those airports, so the information the COF has gathered in the past has been totally lagging.

Mr. Cosgriff stated he does not disagree that could happen.

Mr. Dobberstein stated it happens over and over and over again and there is never any correction to it and that is the problem.

Mr. Cosgriff stated then if we do participate with the COF’s comprehensive study we can make certain the contractor doing the study is aware of those issues. He stated he doesn’t think we should simply throw away the process but see if there is a way to correct it.

Gen. Haugen stated these studies have been going on since he has been on the board and we have never used the results. He stated he thinks it is time ADK does this for us and we move on and review these positions again.

Chairman Linn stated the first ADK study we had conducted was at the request of the COF. She stated at a meeting June 10, 2019, with the MAA and the COF, the COF Human Resources staff made a presentation using data from ACI and we just heard Ms. Frankl tell us that ADK could not use that study because the data did not include airports comparable to FAR.

Mr. Lind stated the City of Fargo, in establishing the Municipal Airport Authority, has enabled this board to do this function so that they do not have to do it. He stated it complicates the process to bring in the COF. He stated we have tried using the COF’s help in the past and it has not worked. He stated we are just doing this survey and we will study the positions that are applicable just to the Airport Authority and it is not appropriate to involve the COF. He stated their comparisons have been apples and grapefruits.

Mr. Cosgriff stated he is looking at the economy and the commonality of doing the study in conjunction with the COF.

Mr. Engen stated he sat through that meeting last June and it was an embarrassment. He stated it was a rotten embarrassment. He stated the representation of the information they gave was disjointed and inaccurate and he is not in favor of going through that again. He stated he prefers a separate consultant to give us an opinion, we take that information, as well as any other we can get from outside sources, discuss it as a board and then deal with it here.

Mr. Lind stated and then we take that information to the Airport PEC. He stated that is the process that the MOU provided. He stated we gather the data, make recommended changes and run them through the APEC.

Mr. Engen moved to accept the proposal from ADK Consulting, Inc. and move forward with them provide a market-based salary study for the six positions listed.
Second by Gen. Haugen.

Mr. Engen stated he understand Mr. Cosgriff’s concerns. We don’t know the city’s timeframe but we know our timeframe. He stated we just dealt with ADK in a very good study that garnered a great deal of information that helped educate us in a timely fashion. He stated to him that is important.

Chairman Linn stated she will look at forwarding Mr. Cosgriff the video of that meeting last June so he can have the full breadth of what we can expect from the City.
Gen. Haugen stated he feels this board does a very efficient job of spending airport funds, whether they be property tax funds for airport improvements or user fees going toward the operation and maintenance of the airport. He stated the dragging our feet on this matter is the waste of money. He stated spending this money on this study now is the answer, not fooling around anymore.

Chairman Linn stated she did not mean to imply that $5,900 was not a lot of money. She stated she was just comparing it to previous surveys.

Chairman Linn called for a vote on the motion.
On the call of the roll, members Haugen, Engen, Lind, Linn voted aye. Cosgriff voted no.
The motion was declared carried.

NDPERS Update for ARFF Employees:
There was no update.

Authorized Attendance at the AAAE National Airports Conference, September 27-29, 2020, Savannah, GA, and the NAFTZ Annual Conference, October 25-28, 2020, Denver, CO:
Mr. Lind moved to authorize attendance at the AAAE National Airports Conference, September 27-29, 2020, Savannah, GA, and the NAFTZ Annual Conference, October 25-28, 2020, Denver, CO.
Second by Gen. Haugen.
All members present voted aye and the motion was declared carried.

Received Change Order G-1 from Meinecke Johnson for SRE Building Project for an Increase of $2,861.00:
Mr. Dobberstein stated this change order to Meinecke Johnson is for a water main issue. He stated they were not able to isolate the tower and the terminal building so they had to do a wet tap to the water main. He stated the work had to be done to keep the project moving.

Mr. Lind moved to approve Change Order G-1 to Meinecke Johnson in the amount of $2,861.00 for the SRE Building Project.
Second by Gen. Haugen.
On the call of the roll, members Haugen, Engen, Cosgriff, Lind, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Received Change Order E-1 from Rickard Electric for SRE Building Project for an Increase of $10,611.01:
Mr. Dobberstein stated this change order includes electrical work to provide new underground feeder to light poles due to the fuel island removal and light pole feeder that goes with it. He stated this was discovered after the project was started as the actual feeder was different than shown on Xcel Energy’s plans.
Mr. Lind moved to approve Change Order E-1 to Rickard Electric for an increase of $10,611.01 for the SRE Building Project.
Second by Mr. Engen.
On the call of the roll, members Haugen, Engen, Cosgriff, Lind, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Received Communication from Mike Kempel, Flying K LLC, to Sublease North GA Hangar to Dakota Refrigeration, Inc.:
The communication from Mr. Mike Kempel dated June 23, 2020, was received and filed without objection.

Mr. Dobberstein stated Mr. Mike Kempel owns a hangar in the north general aviation area in the name of Flying K Properties. He is requesting the board acknowledge the sublease of the hangar from Flying K Properties to Dakota Refrigeration, Inc. He stated Mr. Kempel also owns Dakota Refrigeration so this is just an accounting matter for him. He added that it was brought to his attention that the lease did not include LLC in the Flying K Properties name so Attorney Bossart will draft an amendment to the lease making this change.

Mr. Engen moved approve the amendment to the Flying K Properties lease adding LLC, and that the board acknowledges the sublease of the hangar from Flying K Properties, LLC to Dakota Refrigeration, Inc.
Second by Gen. Haugen.
All members present voted aye and the motion was declared carried.

Construction and Security Update:
Mr. Terry Stroh, TL Stroh Architects, was recognized and stated the SRE Building project is moving along. The fuel tanks have been removed and temporary tanks are now in place. He stated they are working on the walls and should start interior plumbing soon and pouring the interior floor. He stated the project is on track.

Mr. Dobberstein stated the car rental ready lot reconstruction project has started. He stated the car rentals are using the short term parking during the project.

Mr. Jeff Klein, Mead & Hunt, was recognized and stated Northern Improvement started dirt work for the Cargo Ramp Expansion Project on July 6.

Mr. Cosgriff now absent.

Other Business:
Mr. Dobberstein stated he and Attorney Bossart accepted and signed our $10 million supplemental grant from the FAA for the Cargo Expansion Project. He stated we anticipate the other grants we are expecting soon.

Mr. Dobberstein stated June 2020 over June 2019 our passenger enplanements are down 77.5% so the numbers are improving over April and May.

Mr. Dobberstein stated we will be getting quotes on the large crane that will be in the SRE Building to hoist equipment and engines. He stated that is estimated to be $60,000.

Mr. Stroh stated the reason a large piece of equipment like that is not included in the general contract and is an owner responsibility is that there many different types of cranes and if the owner purchases that separate from the general contractor they do not have to pay any markup.

The meeting of the Municipal Airport Authority was adjourned until the next Regular Meeting to be held Tuesday, July 28, 2020 at 8:00 a.m.

Time at adjournment was 9:17 a.m.