MUNICIPAL AIRPORT AUTHORITY
The Regular Meeting of the Municipal Airport Authority of the City of Fargo, North Dakota, was held Tuesday, September 22, 2020, at 8:00 a.m. in the Airport Boardroom.
The members present or absent were as follows:
Present: Engen, Cosgriff (via zoom), Haugen, Linn (via zoom), Lind
Absent: None
Others: Bossart (via zoom), Strand
Vice Chairman Lind presiding. (Chairman Linn relinquished the chair to Vice Chairman Lind as she was attending via zoom and will not be available for the entire meeting.)
Approved the Minutes of the Regular Meeting of the Municipal Airport Authority Held September 8, 2020:
The minutes of the Regular Meeting of the Municipal Airport Authority held September 8, 2020, were approved without objection.
Approved the Airport Vouchers Totaling $135,931.68:
Mr. Engen moved to approve the airport vouchers totaling $135,931.68. Second by Gen. Haugen.
On the call of the roll, members Engen, Cosgriff, Haugen, Linn, Lind voted aye. No member being absent and none voting nay the motion was declared carried.
Approved the Individual Voucher to Sixel LLC:
Chairman Linn moved to approve the individual voucher in the amount of $486.00 to Sixel LLC for August passenger enplanement fees, Allegiant-Nashville.
Second by Mr. Engen.
On the call of the roll, members Engen, Cosgriff, Haugen, Linn, Lind voted aye. No member being absent and none voting nay the motion was declared carried.
Approved the Individual Voucher to Mead & Hunt:
Chairman Linn moved to approve the individual voucher in the amount of $51,966.69 to Mead & Hunt for Partial payment request for engineering services in connection with the Cargo Apron Expansion Project – Phase IV.
Second by Mr. Engen.
On the call of the roll, members Engen, Cosgriff, Haugen, Linn, Lind voted aye. No member being absent and none voting nay the motion was declared carried.
Approved the Individual Voucher to Mead & Hunt:
Chairman Linn moved to approve the individual voucher in the amount of $3,008.99 to Mead & Hunt for partial payment request for engineering services in connection with the Airfield Markings Project.
Second by Mr. Engen.
On the call of the roll, members Engen, Cosgriff, Haugen, Linn, Lind voted aye. No member being absent and none voting nay the motion was declared carried.
Approved the Individual Voucher to Northern Improvement Company:
Chairman Linn moved to approve the individual voucher in the amount of $850,685.86 to Northern Improvement Company for Partial Payment Request No. 2 for construction of the Cargo Apron Expansion Project – Phase IV (ASUP50).
Second by Mr. Engen.
On the call of the roll, members Engen, Cosgriff, Haugen, Linn, Lind voted aye. No member being absent and none voting nay the motion was declared carried.
Approved the Individual Voucher to Northern Improvement Company:
Chairman Linn moved to approve the individual voucher in the amount of $606,164.31 to Northern Improvement Company for Partial Payment Request #2 for construction of the Cargo Apron Expansion Project - Phase IV (AIP51).
Second by Mr. Engen.
On the call of the roll, members Engen, Cosgriff, Haugen, Linn, Lind voted aye. No member being absent and none voting nay the motion was declared carried.
Approved the Individual Voucher to Northern Improvement Company:
Chairman Linn moved to approve the individual voucher in the amount of $552,706.85 to Northern Improvement Company for payment request (full and final) for construction of the Car Rental Ready Lot Reconstruction Project.
Second by Mr. Engen.
On the call of the roll, members Engen, Cosgriff, Haugen, Linn, Lind voted aye. No member being absent and none voting nay the motion was declared carried.
NDPERS Update:
Vice Chairman Lind stated without objection we will move this item and the APEC item up on the agenda as Chairman Linn will need to leave the meeting early.
The communication from Attorney Bossart entitled MAA NDPERS Pension Plan Discussion was received and filed without objection.
Attorney Bossart was recognized (via zoom) and stated since this has been going on for as long as it has, following the September 6 meeting with MaryJo Anderson, NDPERS, and representatives of the MAA and the COF, she drafted this proposed language to amend the MOU to start discussion and hopefully get to a resolution. She stated in that meeting it was made clear by NDPERS representatives that the MAA, being an independent political subdivision, can move the MAA firefighters into a separate MAA NDPERS account.
Chairman Linn thanked Attorney Bossart for doing that. She stated she was happy to see this in writing.
Attorney Bossart stated she did speak with COF Attorney Johnson yesterday and advised him that she was going to draft something. She stated she is not sure of the COF’s position but she knows the MAA wants to move this forward.
Vice Chairman Lind stated this has dragged on long enough. He stated he reviewed the proposed amendment and he thought it was a very good way forward to resolving the issue. He stated he would like to see some movement from the COF on this.
Attorney Johnson was recognized (via zoom) and stated it is quite true that the MAA firefighters and the NDPERS matter was included in the MOU as a discussion item. He stated certainly the COF has been actively involved in trying to figure out a way to optimize the pension coverage for the MAA firefighters. He stated the issue here is to the absolute core of this MOU, which is all about the employment relationship between the MAA employees and the COF and the MAA. He stated he thinks in order to work through it we need to work hard to gain a mutual understanding as to exactly what the elements are of that employment relationship because this is not a simple situation. He stated he does not see this as a situation where the COF is a mere vendor for the MAA and that the MAA can pick and choose whatever sort of benefits it wants. He stated that is why the MOU is structured the way it is. He stated in order for the MAA firefighters, and potentially the other MAA employees enrolled in NDPERS, to shift to a separate account in NDPERS that means that the MAA will be saying these employees are not COF employees they are MAA employees. He stated the conflict with that is simply that for all kinds of other purposes, as expressed in the agreement, MAA employee are COF employees. He stated the COF is on the hook for that employment relationship with entities such as the Wage and Hour Division, EEOC, Workers Comp. He stated he is not saying all of this to make an argument, he is just saying the COF’s position is they have to be COF employees for purposes of employment and these benefits and it can’t be sort of a pick and choose thing. He stated we do have an MAA/COF small group meeting coming up and this could be discussed at that meeting before diving into any kind of change to the MOU.
Mr. Engen asked Mr. Johnson if the COF is still making the payments on behalf of the MAA? Are they still doing the payroll and issuing those checks.
Mr. Johnson stated the answer is quite clearly yes.
Vice Chairman Lind stated the MAA is the one who pays the fees and it is MAA funds that are funneled into the COF's checking account to issue MAA employee paychecks. He stated this is exactly why we did not want to have our MAA employees considered COF employees because they are not getting the representation they deserve. He stated they are MAA employees but Mr. Johnson continues saying they are COF employees for the purposes of such and such. He stated this is the whole rub for why that MOU was crammed down our throat and we totally disagree with the idea that they are COF employees. He stated they are not getting the representation and the benefits they deserve in the NDPERS pool. He stated if we are not allowing our employees to get the entitlements they are due then we need to revisit the MOU and scrub these things out.
Mr. Strand was recognized and stated he is not going to use inflammatory language like "crammed down your throat."
Vice Chairman Lind stated that is his opinion.
Mr. Strand stated this information was asked for from Bismarck and we have now received that information. He stated it is time for our working group to sit around the table and listen to each other's concerns and see where it goes. He stated the MOU calls for us to discuss this. He stated we now have this information in hand and it has not been in hand before.
Chairman Linn was recognized and stated we have had this information for the last year but this is the first time we have seen anything in writing. She stated we should have been talking about this a long time ago. She stated she asked if the MAA should vote on this and then move it forward to that committee. She stated if we take a vote on this maybe it puts some onus on us and on them to actually work it out.
Gen. Haugen stated all of this appears to him to be about control. He stated it's who has control of these employees. He stated there is not one issue in here about what is best for the employees. He stated it is just about the city is in charge and they are going to stay in charge. He stated he read a summary of the meeting with NDPERS and clearly the State and NDPERS thinks we have not only the right but the responsibility to the employees to do what is right for them.
Mr. Engen asked Mr. Strand if the COF gets any less compensation if this shift happens.
Mr. Strand stated it is not about our compensation, it is about everybody. He stated he is not an HR expert but he is learning a lot on the Airport Position Evaluation Committee. He stated the MAA has some employees on the COF Pension Plan and you want to have it both ways. He stated we need to talk through the implications. He stated if the MAA moves its employees to its own NDPERS account and they are no longer COF employees, then those MAA employees on the COF Pension Plan no longer qualify potentially. He stated now we have the information from Bismarck and this is the first time it has been in front of us so why would the MAA rush the decision without a discussion. He stated the reasonable thing is to hear each other.
Vice Chairman Lind stated he is fine with letting the MAA/COF group discuss this first. Attorney Bossart stated the reason she drafted the document is that she knows the MAA has been looking forward to getting a decision made. She stated she did not necessarily put it forward expecting a vote. She stated she wanted to start the dialogue.
Mr. Engen stated the reason he asked his question about compensation was not meant to distract but if we are paying for a service and getting a service but need to redirect how some of those benefits get done, and it is not harming the COF, it is a valid question and it should be researched in depth. He stated it probably should have been dealt with in a timelier manner since the MOU was signed in January.
Mr. Strand stated we just got this information from Bismarck. He stated we did not have this information before.
Chairman Linn stated we have had the information from NDPERS for months. She stated there have been numerous conversations since last October about this and she stated she has asked consistently for at least six months that it be put it in writing, and this is the first time it has been in writing. She added that the fact that NDPERS would not put anything in writing as far as the MOU tells her they are more concerned about the MAA employees, as is the MAA board. She stated they are employees of the MAA and the MAA is paying them. She stated they are employees of the COF only for certain purposes.
Vice Chairman Lind stated we will continue the conversation after the MAA/COF group has met and discussed the matter.
Airport PEC Update:
Chairman Linn was recognized and stated the Airport PEC came to a consensus on the salary ranges for all of the ARFF employees. She stated Chairman Jane Pettinger put together a letter for the committee members to review before sending that on to the COF Human Resources Office for those changes to be implemented.
Chairman Linn stated she just received the report from ADK for the other six positions for which we contracted with them to complete salary reviews.
Mr. Engen stated he has watched a number of the APEC meetings and Mr. Strand has commented that the learning curve has been great but once the committee has gone through the process now he asked if the baseline and process has been established and has the process been simplified.
Mr. Strand stated he thinks it is a great process and for him it has been a learning curve. He stated the value he sees is that everyone on the committee ended up on the same page and after their decision the matter does not go on to anyone else. He stated the best part is that after their decision it is no longer an issue.
Chairman Linn stated Mr. Strand is right that it was a learning curve and she appreciates the commitment of the committee members. She stated that the ARFF positions were compared to COF fire department positions, but in this next group of positions we are going to find out that we don’t really have other positions within the COF with which to compare the positions at the airport, such as the Executive Director. She stated this process will be a bit different as we don’t have positions that match as closely. She stated the committee worked hard on the process and are willing to spend the time needed.
Vice Chairman Lind thanked those APEC members for their time on the committee.
Received Update from The Arts Partnership:
The communicated dated September 17, 2020, from Dayna Del Val, The Arts Partnership, was received and filed without objection.
Mr. Dobberstein stated this has been a great relationship over the past year. He stated the art work displayed in the terminal has been well received. He stated the pandemic did impact some of the performances scheduled but he thinks good things will be happening in the future.
Ms. Dayna Del Val was recognized (via zoom) and stated they have enjoyed a relationship with the Airport Authority over the last two years. She stated the first year was just the art displays but last year they added the musical performances. She stated they were able to complete six of the 12 promised performances this past year and are proposing to make up those six performances in the coming year if the program is continued, making a total of 18 performances. She stated they are proposing to continue the artwork and live performances for the coming 12 month period, October 1, 2020 through September 30, 2021 for the same amount of $5,000. She stated the engagement with the passengers and the employees at the airport has been great.
Gen. Haugen moved to approve the continuation of the public art display and public music performances in the terminal for the one year period of October 1, 2020 to September 30, 2021 at a cost of $5,000.
Second by Mr. Engen.
On the call of the roll, members Engen, Cosgriff, Haugen, Linn, Lind voted aye. No member being absent and none voting nay the motion was declared carried.
Received Communication from the City of Fargo Engineering Department Regarding Proposed North University Drive Reconstruction Alternate Option:
Mr. Jeremy Gordon, Engineering, City of Fargo, and Mr. Matt Kinsella, APEX Engineering Group, were recognized.
Mr. Gordon stated Mr. Kinsella is the consulting engineer on the project doing all of the environment paperwork and design of the project. He stated the reason we are here today is the Runway Protection Zone (RPZ) for Runway 9/27. He stated they have been working on this reconstruction project for a couple of years. He stated it is a one mile segment from 32nd Avenue North to Cass County 20 (40th Avenue N). He stated they have been working with the MAA staff and the FAA and have come up with a couple of alternatives, but the FAA wants to keep the project within the existing street right of way, which is really tight, 33 feet on the west side of the road and 40 feet on the east side.
Mr. Gordon stated the FAA is not crazy about us having a road going through the RPZ but it does happen all over the country and there is a waiver process for that. He stated we are going to keep it a two lane road. He stated the main purpose of the project is to improve the road surface and to make a safe place for pedestrians. He stated the road will be a two lane concrete road with curb and gutter and a 10 foot shared use path on the west side. He stated the City Commission approved this design a couple of weeks ago and they are now asking the MAA to concur with the design decision. He stated this will allow them to send a waiver to the FAA and request they approve this design going through the RPZ.
Mr. Gordon stated this road will be higher than the adjacent ground so that the wind should keep the snow blowing across the road, not like the 19th Avenue project years ago.
Vice Chairman Lind asked if the shared use path will be the same height as the road and on the west side (runway side) of the road.
Mr. Gordon stated that is correct.
Mr. Engen stated there is no housing, residential or otherwise on the west side and asked if it would not be more appropriate to have the path on the east side which does have residential.
Mr. Gordon stated this is really just a pass through area and today there are walkers and bikers on the street. He stated it is nice to have the path continuous as you go through town and the path north of County 20 is on the west side. He stated the Riviera Heights mobile home park does have a path on the east side going up to the mobile home park.
Vice Chairman Lind stated he lives in Riverwood so he is very familiar with this. He asked about a crosswalk from the mobile home park on the eastside to the path on the west side.
Mr. Gordon stated it would be a normal ADA compliant crosswalk.
Mr. Kinsella added there would be no lighting within the RPZ.
Mr. Gordon stated they would like the MAA’s approval today as they would like to send the waiver request to the FAA as soon as possible as they meet only once a month on these requests.
Mr. Dobberstein stated the board could vote to concur with Alternative D as shown, subject to the review and concurrence of the FAA. He stated there were concerns expressed by the Bismarck and Minneapolis FAA offices about the MAA allowing this type of development within the RPZ, as part of our grant assurances. He stated obviously North University Drive has been there for many years but they still put that caution out there. He stated if the FAA were to come back and indicate that there is any jeopardy to future funding or that we were in violation of our grant assurances we would have to revisit this again. He stated the other part is that 36th Avenue North runs through the RPZ. He stated we were not assessed specials for 36th Avenue North nor will the FAA allow us to pay any special assessments for any part of this project that is within the RPZ.
Mr. Dobberstein stated Mr. Gordon also indicated they would be getting property appraisals for any easements that would be required for this project and a proposed roundabout on 40th Avenue.
Mr. Gordon stated they have not finalized plans on a roundabout and this project continues to have a four way stop at the intersection of North University Drive and 40th Avenue N. He stated they would get property appraisals for any easements that would be required.
Gen. Haugen stated he rides his bike a lot in this area. He stated a bike path on the east side of the road would actually connect much better than on the west side. He stated as a user he would much rather see it on the east side. He also stated the distance between the proposed path on the west side and the airport fence is very limited. He stated if snow is being blown off the bike path it will be pushed further to the west, putting snow up against the fence which becomes an issue with security as well as wear and tear on the fence. He stated everything that he sees points to having the path on the east side instead of the west side.
Vice Chairman Lind stated he would agree with Gen. Haugen.
Gen. Haugen stated for security you are always looking for some distance between a barrier and areas of activity. He stated as a user of that area he feels the bike path would be better on the east side.
Mr. Gordon asked Mr. Kinsella if it is possible to move the path to the east side.
Mr. Kinsella stated they did look at options for that but then the road would have to be shifted and to keep things within the existing right of way we would have a better chance of FAA approval. He stated they also ran into space issues in the area by the mobile home park.
Gen. Haugen asked if the FAA looks more favorably on something like this the further away from the airport it is located.
Mr. Dobberstein stated we all heard that in our meetings with the FAA.
Mr. Gordon stated ideally a path would be two feet off the property line. He stated they originally proposed the path be two feet from the airport fence but they heard a “no thank you” from the FAA more than once. He stated they have pulled it back from the fence as far as possible to still make the road work.
Mr. Kinsella stated they have had a lot of conversations with the FAA and MAA staff and leaving the road where it is right now might receive a more favorable opinion from the FAA. He stated he would have concerns with moving the road closer to the airport.
Chairman Linn now absent.
Mr. Cosgriff moved to support Alternative D, concurrent with the City of Fargo’s request, and move that option forward with the FAA to request a waiver, subject to the review and concurrence of the FAA.
Motion failed for lack of a second.
Vice Chairman Lind asked if there is a way forward and asked the board members for any suggestions.
Mr. Engen stated Gen. Haugen’s concerns are noted and the fact that there is an alternative bike path that people use now he is concerned about incorporating a path closer to the airport.
Vice Chairman stated for now the motion does not pass.
Later in the meeting Mr. Dobberstein stated he would like to board to revisit the North University Drive project. He stated without the MAA’s concurrence this project is dead in the water. He stated we have come a long way on this project.
Mr. Cosgriff asked the board to reconsider the project and again moved to support Alternative D, concurrent with the City of Fargo’s request, and move that option forward with the FAA to request a waiver, subject to the review and concurrence of the FAA.
Second by Mr. Engen.
Mr. Engen asked about Options A-C.
Mr. Dobberstein stated Option D was the only option the FAA indicated they would even consider. He stated that forced the city and the state to bring Option D forward. He stated there is still a chance the FAA will not support the waiver. He stated he understands the concerns about the bike path and the snow removal concerns, but we will have to work with the City of Fargo and the Fargo Park District with how the snow is removed.
Mr. Engen asked if the bike path is necessary along that stretch.
Vice Chairman Lind stated that area is a gaping hole in between 19th Avenue and 40th Avenue without a path. He stated he drives it every day and there is a fair amount of bike and foot traffic on that busy two lane road with vehicle traffic at 40-45 mph. He stated he thinks it is not the ideal situation having it on the west side but if that’s what it has to be, that’s what it has to be. He stated he does see it as a gaping hole in being able to transit back and forth.
Mr. Gordon stated it is a missing gap in our metro pedestrian/bicycle plan. He stated that is one of the main reasons for the project.
Vice Chairman Lind called for a vote on the motion. Members Engen, Cosgriff, Lind voted aye. Haugen voted no.
Absent and not voting: Linn
The motion was declared carried.
Receive Communication from Group VI Regarding Interest in Leasing South General Aviation Area Hangars 1748/1756 23rd Avenue North:
The communication from Mr. Kevin Breitbach, Group VI, dated September 16, 2020, was received and filed without objection.
Mr. Dobberstein stated Group VI is expressing their interest in leasing the MAA hangars in the south general aviation area which are currently leased to Fargo Jet Center. He stated these hangars are adjacent to the Group VI hangars. He stated the hangars are currently subleased to UPS for their temporary sort facility and the other to the ND Army National Guard Helicopter Unit. He stated this is just to put their request on the public record that when the leases expire that they be allowed to place a bid. He stated one of the complications he sees, and Mr. Breitbach is aware if it, is that there is not currently another location on the airport for the helicopter unit. He stated no action by the board is needed today. He stated the leases expire February 28, 2023 so we will advertise for bids to lease the hangars prior to that date.
Discussed Status of Seasonal Shuttle Service for the Parking Lot:
Mr. Dobberstein stated he has had discussions with representatives of SP Plus regarding shuttle service for the upcoming winter season. He stated SP Plus has expressed significant concern about providing the shuttle service due to the pandemic. He stated the shuttle operations at their other airports around the country have ceased. He stated they have found the passengers want to avoid being within those confines of a shuttle bus. He stated the cost of additional sanitizing processes would not be conducive to the service being affordable.
Mr. Dobberstein stated this is just informational at this time but if the board concurs we will not proceed with the shuttle service for the upcoming season. He added that the cost would be $60,000-$80,000 for the season.
Vice Chairman Lind stated there is the fiduciary responsibility for us to do the right thing and unless there is a sharp uptick in travel, passengers should not have any problem parking closer to the terminal. He stated if there is that sharp uptick he would like to revisit the matter. He added that he wants to see the board continue to discuss long range parking plans.
Airport Property Update, Mathern Interest, Appraisal:
The communication and appraisal from RM Hoefs & Associates, Inc. dated September 1, 2020, were received and filed without objection.
Mr. Dobberstein stated the parcel in question is the small piece of property gifted to the MAA by Mr. Jacque Stockman, which is adjacent to land owned by Terry and Patricia Mathern. He stated the Matherns have requested to purchase the property so the MAA authorized an appraisal of the property. He stated he was a little shocked at the appraisal amount of $38,000 for the two plus acres.
Attorney Bossart was recognized (via zoom) and stated the Matherns have made an offer of $5,000 for the parcel so she was also surprised at the $38,000 appraisal. She stated the board could accept the offer, counter the offer, or reject it altogether. She stated the property really does not have any value to anyone other than the Matherns as it is adjacent to their home and nothing can be built on the property.
Mr. Engen stated he was also shocked at the appraisal. He stated the Matherns have been good stewards of the property and while we don’t directly owe them anything we do have to deal with their offer.
Mr. Cosgriff (via zoom) asked if the property has been offered or listed for sale other than this offer.
Mr. Dobberstein stated it has not.
Mr. Cosgriff stated he would recommend listing the property for a short period of time and see if we have any other offers and then deal with the offer we have.
After further discussion, Mr. Dobberstein stated he would work with Attorney Bossart to run a legal ad for the sale of the property in the legal section of The Forum. He stated we can also post it on our website.
Mr. Cosgriff stated we are not likely to have any interest but we need to make it available via public disclosure.
Attorney Bossart stated she will communicate with the Matherns and advise them that the property will be advertised for sale.
Received Change Order #2 to Rickard Electric for a Deduct of $4,971.89 for the SRE Building Project:
Mr. Dobberstein stated Change Order #2 to Rickard Electric for a deduct of $4,971.89 is the savings for going with PVC conduit between the existing SRE building and the new building.
Mr. Engen moved to approve Change Order #2 to Rickard Electric for SRE Building Project resulting in a deduction of $4,971.89.
Second by Gen. Haugen.
On the call of the roll, members Engen, Cosgriff, Haugen, Lind voted aye. Absent and not voting: Linn
The motion was declared carried.
Authorized Attendance at the UAS Summit & Expo, October 13-14, 2020, Grand Forks, ND:
Mr. Engen moved to authorize attendance at the UAS Summit & Expo, October 13-14, 2020, Grand Forks, ND.
Second by Gen. Haugen.
On the call of the roll, members Engen, Cosgriff, Haugen, Lind voted aye. Absent and not voting: Linn
The motion was declared carried.
Airport Construction and Security Update:
Mr. Jeff Klein, Mead & Hunt, was recognized (via zoom) and stated last week Northern Improvement completed the paving on 31st Street North, which is the access road on the north side of the project site. He stated they also spent all of last week doing the cement treated subgrade. He stated this week they are going to begin installation of the drain tile and then begin hauling all of the recycled crushed concrete aggregate base for the apron. He stated the underground concrete tank for the glycol capture is scheduled to be complete toward the middle of October if all goes well. He added that all of the walls on the tank are in place.
Mr. Darren Anderson stated the floor has been poured for the SRE Building. He stated yesterday the crane went up to start putting beams up. He stated they have also started digging the foundation for the addition to the existing SRE building.
Other Business:
Mr. Dobberstein stated August passenger traffic 2020 vs. 2019 is down 52%. He stated he didn’t think we would be doing this well until the holiday travel season so it is moving in the right direction. He stated congress is working on a payroll support program for the airlines but if it is does not pass we could see some very abrupt cancellations in service. He stated we do not yet know how we will be affected.
Mr. Dobberstein stated at the last meeting we discussed a reimbursement agreement with US Customs regarding technology upgrades. He stated we received the agreement but it still contains a clause for reimbursement for past costs associated with the phone system so that is still pending. He stated he is continuing to work with US Customs on that and will report back.
The meeting of the Municipal Airport Authority was adjourned until the next Regular Meeting to be held Tuesday, October 13, 2020.