MUNICIPAL AIRPORT AUTHORITY

The Regular Meeting of the Municipal Airport Authority of the City of Fargo, North Dakota, was held Tuesday, November 24, 2020, at 8:00 a.m. in the Airport Boardroom.

The members present or absent were as follows:

Present: Haugen, Engen (via zoom), Cosgriff (via zoom), Lind, Linn
Absent: None
Others: Bossart (via zoom)

Chairman Linn presiding.

Approved the Minutes of the Regular Meeting of the Municipal Airport Authority Held November 10,
2020:
The minutes of the Regular Meeting of the Municipal Airport Authority held November 10,
2020, were approved without objection.

Approved the Airport Vouchers Totaling $98,346.64:
Gen. Haugen moved to approve the airport vouchers totaling $98,346.64.
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 Mead & Hunt:
Mr. Engen moved to approve the individual voucher in the amount of $68,092.53 to Mead &
Hunt for partial payment request for engineering services in connection with the Cargo Apron
Expansion 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.

Approved the Individual Voucher to Northern Improvement Company:
Mr. Engen moved to approve the individual voucher in the amount of $1,041,877.24 to
Northern Improvement Company for Partial Payment Request #4 for construction of the Cargo Apron
Expansion Project – Phase IV (ASUP, AIP51).

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 Request from Riviera Nexus (Cogi) for Extension of Eastside Terminal Office Lease:
The communication from Mr. Mark Cromack, Riviera Nexus (Cogi), dated November 20,
2020, was received and filed without objection.

Mr. Dobberstein stated our existing tenant, Riviera Nexus (Cogi) is requesting a one year
extension to their lease effective December 1, 2020. He stated the standard 3% escalator
would apply.

Gen. Haugen moved to approve the one year lease extension for Riviera Nexus effective
December 1, 2020.
Second by Mr. Lind.
All members present voted aye and the motion was declared carried.

NDPERS Update:
Attorney Bossart was recognized (via zoom) and stated we had a small group meeting with
representatives of the COF yesterday and had a discussion on the differences between the NDPERS
Public Safety Plan and the Fargo Firefighters Pension Plan.

Mr. Dobberstein stated a plan comparison was provided by HR back in May and included
incorrect information that the NDPERS Public Safety Plan changed from a Rule of 85 to a Rule of 90
on January 1, 2020. He stated both he and Chief Bush confirmed with NDPERS that the Public
Safety Plan remains at a Rule of 85. He stated another major difference in comparing the two is that
the Fargo Firefighters do not pay into social security on their firefighter’s salary but with the NDPERS
Public Safety Plan those members also pay into social security and would be eligible for social
security benefits on their salary. He stated it would be good to do the math on that difference.

Gen. Haugen stated the recommendation that the airport firefighters join the COF Firefighter’s
Pension Plan is of great concern to him as it is his understanding that pension is underfunded and if
the airport were to join that pension plan the Airport Authority would incur a liability to help fund the
city’s plan. He stated this update is a permanent item on our agendas. He stated he would love to
be able to say this bureaucracy is moving at a glacial pace, but it is not even moving that fast. He
stated we are trying to take care of our firefighters and we need to get this done. He stated it seems
this has become an argumentative point for the city and he is not sure why. He stated this is
certainly showing no concern for the employees.

Chairman Linn stated we need to have more information on the funding situation of the COF
fire pension and what that would mean for the Airport Authority.

Mr. Cosgriff was recognized (via zoom) and stated the particulars on the Fargo Fire Pension
Plan would be included in the COF Comprehensive Annual Financial Report. He stated most
pension plans are underfunded. The COF would say the liability lies with the city and the full faith
and credit of the COF and its ability to tax for its funding.

Mr. Dobberstein stated for a number of years the Airport Authority has been paying an
actuarial adjustment each year for the COF main pension plan. He added that we would need to
flush out some of those facts, but with the difference in vesting requirements (three years vs. 10
years) he does not think any of our firefighters would be interested in the COF’s plan, but they would
have to speak for themselves.

ARFF Chief David Bush was recognized (via zoom) and stated having done research on the
NDPERS Main Plan and the NDPERS Public Safety Plan he feels our best plan moving forward
would be the NDPERS Public Safety Plan, both for the employees and the airport in general. He
stated he feels there would be pushback from the COF Firefighter’s Union on the airport firefighters
joining their plan. He stated reading ND Century Code it is almost an assumption that the MAA
firefighters would be in the NDPERS Public Safety Plan.

Chairman Linn asked Attorney Bossart and Mr. Cosgriff to have further discussions on this
and get back to the board at the next meeting.

Airport Construction and Security Update:
Mr. Terry Stroh, TL Stroh Architects, was recognized (via zoom) and gave an update on the
SRE Building Project. He stated the overhead doors for the new building should be arriving
December 1. He stated the generator has been delivered and the fuel tanks are operational. He
stated they have also completed the lighting updates in the existing shop.

Mr. Jeff Klein, Mead & Hunt, was recognized (via zoom) and stated construction is pretty
much wrapped up for the year.

Mr. Klein stated as we have discussed previously, the FAA is encouraging us to conduct a
complete airport environmental review which will streamline the process in the future for requests we
get for projects such as building a new hangar. He stated Mead & Hunt was able to complete some
of the field work this past October so that is complete. He stated soon they will bring a proposal
before the Airport Authority.

Mr. Dobberstein stated what this will mean is if someone comes before the board this winter
and proposes to build a hangar they would be able to get started right away in the spring.

Continued Discussion Regarding ADK Report and Associated Airport Employee Job Description
Ratings:
Chairman Linn stated the revised job descriptions were approved by the board at the last
meeting. She stated she and Vice Chairman Lind have reviewed the description for the Executive
Director and completed the DBM scoring process.

Mr. Cosgriff stated we had this conversation at the last meeting and to him the process
seems inverted. He stated he would want the APEC to make recommendations to the MAA and rely
on the expertise of the APEC members.

Chairman Linn stated the APEC has the final say. She stated she agrees it seems
backwards and micromanagement, but we are trying to follow what was negotiated for the MOU.
Mr. Cosgriff stated you have to put your faith in the consistency and application of the
algorithm by the APEC and the system as a whole. He stated the system doesn’t work if you just
pull one position out. He stated you have to look at it as a whole. He added it just seems weird that
the MAA would make a recommendation and then the APEC would say thanks for the
recommendation but here’s where we are going.

Mr. Dobberstein stated he would not disagree with Mr. Cosgriff at all. He stated he thinks
there is probably an amendment to the MOU coming forth to clarify this process. He stated his
interpretation is that if what the MAA proposes is within the pay plan it is final. He stated that is what
we did with the firefighters and the COF rejected it so it was sent to the APEC.

Attorney Bossart was recognized (via zoom) and stated this was a way to remove the city
commission from being the final determining entity as to salaries of airport employees. She stated in
observing the APEC go through the first round with the firefighters we should probably revisit the
APEC portion of the MOU so it can be better clarified. She stated in mediation the point was to get
the parties to agree to the separate APEC.

Chairman Linn stated the chairman of the APEC, Jane Pettinger, specifically asked us to do
this for the four positions and that she and Vice Chairman Lind go through the process for the
Executive Director. She stated the process the APEC had to go through to do these DBM
evaluations for the firefighters was painful (since the committee members did not have that much
knowledge of the positions and that is the reason the committee later sought the input of the
Executive Director and the ARFF Chief).

Attorney Bossart stated during mediation the COF wanted every airport position to go to the
APEC, but the MOU is very clear that if the position falls within the COF pay scale the APEC does
not have to review at all.

Mr. Dobberstein recapped the positions after the DBM reviews completed:

Principal Office Associate to Airport Office Manager
DBM: 272 to 321
Grade 11 to Grade 14

Airport Operations Specialist
DBM: 283 to 301
Grade 12 to Grade 13

Airport Operations Supervisor (Airside and Landside)
DBM: 290 to 353
Grade 12 to Grade 15

Airport Assistant Director
DBM: 428 to 526
Grade 18 to Grade 20

Mr. Dobberstein stated he would recommend the board approve the changes as presented.

Mr. Engen moved to approve the pay grades as revised by the Executive Director and
forward them to the City of Fargo to make these grade changes effective January 1, 2021, with the
understanding they may kick this back to the APEC.
Second by Mr. Lind.

Gen. Haugen stated that Attorney Bossart stated that if a proposed pay grade falls within the
COF’s pay scale it does not need to go to the APEC.

Attorney Bossart stated that is how she interprets the MOU. She stated it was her
understanding that after the APEC went through the process for the ARFF positions that would not
be the same process for all positions going forward.

Mr. Engen moved to amend his motion to accept the upgraded pay grades for the four
positions and move it directly to the APEC for review.
Mr. Lind seconded the amendment to the motion.
All members present voted aye and the motion was declared amended.

Chairman Linn called for a vote on the amended motion by Mr. Engen to approve the pay
grades as revised by the Executive Director and forward them to the Airport Position Evaluation
Committee for their review, with the changes to be effective January 1, 2021.
All members present voted aye and the motion was declared carried.

Chairman Linn stated she and Vice Chairman Lind went through the DBM process for the
position of Airport Executive Director. She stated there is not a comparable position within the City
of Fargo. She stated the current DBM score is 621 (Grade 25) and she stated she came up with a
score of 800 (Grade 26). She stated the salary recommended by the ADK study would be Grade
27.

Mr. Engen stated in a previous salary adjustment for the Executive Director the automobile
and phone allowances were taken away. He stated he would like those reinstated. He stated he
also wants to consider a separate bonus structure that should be in place for our ability to retain key
employees.

Chairman Linn stated she agrees and when the COF adjusted the salary for the Executive
Director they took away the equal amount when taking away the auto and phone allowance. She
stated the ADK study showed the Executive Directors at the airports included in the study receive
much higher allowances that we were providing previously.

Mr. Engen stated the COF did not grant an increase in salary to the Executive Director, it was
a bargaining chip the COF was using at the time and Mr. Dobberstein did not want to be part of that
bargaining while we were dealing with the MOU, and he gives him credit for that.

Chairman Linn stated she agrees.

Mr. Cosgriff stated he thinks this is building benefits into the pay scale now and that might get
confusing. He stated that would be a decision for the paying entity and the APEC may not need to
consider that.

Chairman Linn stated the APEC had recommended that bonuses should probably be
considered as well as salary.

Mr. Engen stated again, this is about retaining key employees.

Mr. Engen moved to accept the revised grade for the position of Executive Director to 27, with
the understanding that as it goes to the APEC there are additional conversations regarding auto and
phone allowance, as well as the possibility of a bonus structure.
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.

Other Business:
Mr. Dobberstein stated this year rather than an in-person annual Part 139 Inspection from the
FAA, the certification inspection was virtual. He stated the inspection has been completed and the
inspector gave us a clean bill of health. He stated the credit goes to Darren, Jordan, the airfield staff
and the ARFF staff. He stated the inspector also commented that Chief Bush’s records are some of
the best ARFF records he has seen in a long time. He stated at one time the FAA had even looked
at using his system as a model for all airports.

Gen. Haugen stated he received a comment from a North Fargo resident who uses 19th
Avenue regularly and how happy they were to see Mr. Rick Flacksbarth’s work on the clean-up of
the site at the corner of 19th Avenue and Dakota Drive. He stated the public has noticed.
Mr. Dobberstein added that we were also able to remove the “Tom Williams Fence” which
was in place to divide the two properties and block at least some of the view. He stated Tom
Williams was a former MAA board member.

The meeting of the Municipal Airport Authority was adjourned until the next Regular Meeting
to be held Tuesday, December 8, 2020, at 8:00 a.m.
Time at adjournment was 9:10 a.m.