Airport Authority - November 27, 2018 Minutes
The Regular Meeting of the Municipal Airport Authority of the City of Fargo, North Dakota, was held Tuesday, November 27, 2018 at 8:00 a.m. in the Airport Boardroom.
The members present or absent were as follows:
Present: Linn, Blazek, Lind, Haugen
Absent: Clark
Others: Bossart
Vice Chairman Haugen presiding.
Approved the Minutes of the Regular Meeting of the Municipal Airport Authority Held October 24, 2018:
The minutes of the Regular Meeting of the Municipal Airport Authority held October 24, 2018, were approved as amended.
Approve the Airport Vouchers Totaling $122,920.03:
Ms. Linn moved to approve the airport vouchers totaling $122,920.03.
Second by Mr. Lind.
On the call of the roll, members Linn, Blazek, Lind, Haugen voted aye.
Absent and not voting: Clark
The motion was declared carried.
Approved the Individual Voucher to Sixel Consulting Group:
Mr. Blazek moved to approve the individual voucher in the amount of $3,978.00 to Sixel Consulting Group for Frontier Airlines passenger enplanement fees for October 2018.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Haugen voted aye.
Absent and not voting: Clark
The motion was declared carried.
Approved the Individual Voucher to TL Stroh Architects:
Mr. Blazek moved to approve the individual voucher in the amount of $70,850.00 to TL Stroh Architects for partial payment request for architectural/engineering services in connection with the
Elevated Walkway.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Haugen voted aye.
Absent and not voting: Clark
The motion was declared carried.
Approved the Individual Voucher to Mead & Hunt:
Mr. Blazek moved to approve the individual voucher in the amount of $9,459.12 to Mead & Hunt for partial payment request (Final) for engineering services in connection with the Taxiway A and A1 Reconstruction Project, AIP47.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Haugen voted aye.
Absent and not voting: Clark
The motion was declared carried.
Approved the Individual Voucher to Mead & Hunt:
Mr. Blazek moved to approve the individual voucher in the amount of $2,720.00 to Mead & Hunt for partial payment request for engineering services in connection with the PFC Application No. 8.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Haugen voted aye.
Absent and not voting: Clark
The motion was declared carried.
Approved the Individual Voucher to Flament Ulman:
Mr. Blazek moved to approve the individual voucher in the amount of $84,793.00 to Flament Ulman for payment request (full and final) for the ceiling panel replacement at the checkpoint.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Haugen voted aye.
Absent and not voting: Clark
The motion was declared carried.
Received Notice of Proposed Reconstruction of North University Drive (32nd Avenue to 40th
Avenue):
The communication dated November 5, 2018, from Apex Engineering Group was received and filed without objection.
Mr. Dobberstein stated the City of Fargo has selected Apex Engineering Group as the project engineer for the reconstruction of North University Drive from 32nd Avenue North to 40th Avenue North. He stated he and Mr. Jeff Klein, Mead & Hunt, met with representatives of Apex and the City of Fargo to go over some of the details that will be involved with the FAA requirements for working near the airport. He stated it is his understanding that Apex will be engaging the FAA to be involved in the process during design of the project. He stated Apex and the City of Fargo will be held to whatever FAA standards are required for environmental, runway protection zone clearances, and any other requirements. He stated we will continue to give updates to the board as the project progresses.
Vice Chairman Haugen stated we want to make certain that this road does not have issues like 19th Avenue being built too low.
Mr. Lind asked if the project is going to cause any problems for the approach end to Runway 27.
Mr. Dobberstein stated we do not believe so. He stated a lot of that will come down to height. He stated the FAA will hold the ultimate design of North University to what the ultimate design will be for the east/west runway, per the Airport Master Plan.
Vice Chairman Haugen stated we need to keep them apprised of the fact that 9/27 has the potential of being a longer runway, an instrument runway, and that the number of aircraft that are using it will increase. He stated we need to have the discussion that it might be time to have a bump-out of that road like there is on County 20 on the north side of the airport. He stated now would be the time to look at that.
Mr. Klein stated his understanding is that a lot of those issues will be flushed out in the
Runway Protection Zone Analysis.
Mr. Lind stated the only other issue is that almost all of the property adjacent to this section of North University is owned by the airport. He asked if the airport was going to be assessed the majority of the cost.
Mr. Dobberstein stated the FAA's policy on special assessments would apply. He stated since the property cannot be developed, a major road improvement such as is being proposed may not be an immediate benefit to the airport. He stated there is a benefit to the airport for having the road but the additional improvements such as bike trails might not meet FAA guidelines.
Received Communication from First International Bank Regarding Tenant Letter of Understanding:
The communication from First International Bank & Trust dated November 26, 2018, was received and filed without objection. Mr. Dobberstein stated our tenant, Fargo Jet Center is a customer of First International Bank and the bank is requesting a Letter of Understanding between the Airport Authority and First International that in the event of a default by Fargo Jet Center the Airport Authority would work with the bank to place a new entity in the fixed base operation. He stated this is a fairly standard request from a financial institution and he does not have a problem with it. He stated Attorney Bossart has reviewed the letter. He added that the Airport Authority would have final say in who would be operating the FBO.
Ms. Linn moved to approve the Letter of Understanding with First International Bank & Trust as it relates to airport tenant Fargo Jet Center.
Second by Mr. Lind.
On the call of the roll, members Linn, Lind, Haugen voted aye
Blazek abstained.
Absent and not voting: Clark
The motion was declared carried.
Authorized Attendance at the AAAE Great Lakes Chapter Winter Board Meeting, March 1-3, 2019, Evansville, IN:
Mr. Blazek moved to authorize attendance at the AAAE Great Lakes Chapter Winter Board Meeting, March 1-3, 2019, Evansville, IN.
Second by Ms. Linn.
All members present voted aye and the motion was declared carried.
Authorized Attendance at the AAAE/ACI Legislative Conference, March 19-20, 2019, Washington, DC:
Mr. Blazek moved to authorize attendance at the AAAE/ACI Legislative Conference, March 19-20, 2019, Washington, DC.
Second by Mr. Lind.
Mr. Dobberstein stated this conference usually always coincides with annual chapter meetings from across the country so the meetings at the AAAE National Conference will be held following the meetings on the 19th and 20th.
On the call of the roll, members Linn, Blazek, Lind, Haugen voted aye.
Absent and not voting: Clark
The motion was declared carried.
Airport Construction and Security Update:
Mr. David Negron, TSA, was recognized and stated the busy travel season has begun and they have gotten through the Thanksgiving holiday and also a number of cancellations due to weather in Chicago at the end of the weekend. He stated even with those cancellations the TSA processed 2.5 million passengers in one day. He stated they completed an infrastructure survey for potential future technology such as automated screening lanes, identification authentication technology. He stated sometime in 2019 they hope to receive the credential authentication technology. He stated this has proven to be highly effective in terms of identifying fraudulent identification.
Mr. Jeff Klein, Mead & Hunt, was recognized and stated we submitted a request to the FAA for a supplemental grant in the amount of $12.5 million for cargo apron expansion.
Mr. Dobberstein stated the ceiling panel replacement project at the checkpoint was completed. He stated we did the project on a time and material basis and the final amount came in under their estimate.
Mr. Terry Stroh, TL Stroh Architects, was recognized and stated they are about 90% complete with a detailed estimate for the skyway. He stated they hope to have it available to present at the next meeting. They are continuing to work on a plan for moving traffic during construction.
Other Business:
Vice Chairman Haugen stated he would like to update the board on the recent City Commission meeting, which he, Erik Lind and Tammy Linn attended. He stated the commission had discussion on whether the employees at the airport are employees of the Municipal Airport Authority or employees of the City of Fargo. He stated one of the documents referenced was the agreement between the City of Fargo and the Municipal Airport Authority from 1969, which established the Airport Authority. He stated airport authorities came into being when the ND Legislature passed a law which allowed political subdivisions to establish airport authorities. He stated in North Dakota, almost all airports are governed by airport authorities. He stated all of the laws that govern the state statute list the responsibilities and duties that can and should be done by an airport authority. He stated there have been updates to the law in both 2015 and 2018, and the members of this board follow the ND law and even sign an oath to follow the constitution of the United States.
Vice Chairman Haugen stated the real question was with regard to the original agreement establishing the Municipal Airport Authority and the fact that the agreement stated it was for a ten year period, expiring in 1979. Vice Chairman Haugen stated Mr. Dobberstein brought to our attention an amendment (No. 1) to the original agreement between the City of Fargo and the Municipal Airport Authority, signed in 1970 that rescinds and repeals the expiration date of the original agreement, so the original agreement is still in effect and has no expiration. Vice Chairman Haugen stated that is not to say that we should not review and update the document.
Vice Chairman Haugen stated another comment made by a member of the City Commission was that the Airport Authority is not accountable to anyone. He stated Mr. Dobberstein has a list of agencies/entities to which the Airport Authority is accountable and have some form of oversight over operations, spending, and funding at the airport and that list exceeds 25 organizations. He stated the airport probably has more oversight than most government entities so that comment missed the mark.
Vice Chairman Haugen stated he thinks it is good that we talked about updating the agreement. He asked Mr. Dobberstein the status of the request from the City of Fargo to increase the annual fee from $50,000 to $90,000 for administrative services performed by the City of Fargo for the Airport Authority.
Mr. Dobberstein stated he is not aware that the City has engaged the FAA office in Bismarck to review the rationale for the increase from $50,000 to $90,000. He stated the Airport Authority approved the increased amount in July 2016, subject to the review and concurrence of the FAA.
Ms. Linn stated then it is the City's responsibility to justify the increase to the FAA and asked if the City is aware of that.
Mr. Dobberstein stated that is correct and they have been made aware of that multiple times in the past. He stated in 1986 when the Airport Authority agreed to increase the annual fee from $30,000 to $50,000 there should have been an Amendment No. 2 to the agreement but it was just increased with board action and the action is reflected in the minutes.
Ms. Linn stated she thinks right now it is not so much the intent but the paper trail that is so important. She asked if we could make certain, in writing, that the City of Fargo knows that it is the responsibility of the City of Fargo Finance Department to provide this justification for the increase to the FAA office in Bismarck.
Mr. Dobberstein stated it has been in writing and in discussions at city hall so it is not a secret but he can remind them. He stated there is plenty of oversight and accountability of this board. He stated there always has been and that will continue. He stated we go through multiple audits each year, plus an FAA audit, tenant audits, the airlines review our minutes, expenses, etc. He stated any of the entities on that list could confirm the oversight and accountability.
Vice Chairman Haugen stated he was around in 1969 when the Airport Authority was formed and he remembers the goal around the state was to have board members with a variety of backgrounds in the community. He stated not all needed to have an aviation background but some with a business background and various other backgrounds. He stated if you look at the make-up of this board, now and in the past, it has had members with various areas of experience and expertise.
Vice Chairman Haugen stated we will be meeting with city officials to update the agreement.
Mr. Dobberstein stated we did get a final list of tenants from the City of Fargo that will be receiving a monthly invoice for a storm water fee starting January 2019.
Vice Chairman Haugen brought attention to the news article on the 2018 Airsho and the funds the Airsho Committee were able to donate to charitable organizations. He stated the airshows are a lot of work and thanked everyone involved.
The meeting of the Municipal Airport Authority was adjourned until the next Regular Meeting to be held Tuesday, December 11, 2018.
Time at adjournment was 8:35 a.m.