MUNICIPAL AIRPORT AUTHORITY - February 26, 2019
The Regular Meeting of the Municipal Airport Authority of the City of Fargo, North Dakota, was held Tuesday, February 26, 2019, at 8:00 a.m. in the Airport Boardroom.
The members present or absent were as follows:
Present: Linn, Blazek, Lind, Clark, Haugen
Absent: None
Others: Bossart
Chairman Haugen presiding.
Chairman Haugen stated if there is no objection we will move Items 14 and 10 up in the agenda order. There was no objection.
Approved the Minutes of the Annual Meeting Held January 22, 2019:
The minutes of the Annual Meeting of the Municipal Airport Authority held January 22, 2019, were approved without objection.
Approved the Airport Vouchers Totaling $154,151.72;
Mr. Blazek moved to approve the airport vouchers totaling $154,151.72.
Second by Mr. Lind.
On the call of the roll, members Linn, Blazek, 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:
Mr. Blazek moved to approve the individual voucher in the amount of $2,500.00 to Sixel, LLC for quarterly airline reports.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, 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:
Mr. Blazek moved to approve the individual voucher in the amount of $3,224.00 to Sixel, LLC tor January passenger enplanement fees for Frontier Airlines.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Clark, Haugen voted aye.
No member being absent and none voting nay the motion was declared carried.
Approved the Individual Voucher to EideBailly:
Mr. Blazek moved to approve the individual voucher in the amount of $2,050.00 to EideBailly for accounting services for the CY2017 PFC audit.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, 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:
Mr. Blazek moved to approve the individual voucher in the amount of $204,920.00 to TL Stroh Architects for partial payment request for architectural and engineering services in connection with the Elevated Walkway.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, 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:
Mr. Blazek moved to approve the individual voucher in the amount of $10,447.89 to Mead & Hunt for partial payment request for engineering services in connection with the Dakota Drive Lighting Rehabilitation Project, AIP48.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Clark, Haugen voted aye.
No member being absent and none voting nay the motion was declared carried.
Approved the Individual Voucher to Flint Group - $15,024.19:
Mr. Blazek moved to approve the individual voucher in the amount of $15,024.19 to Flint Group for partial payment request for 2019 Airport Marketing Program.
Second by Ms. Linn.
On the call of the roll, members Linn, Blazek, Lind, Clark, Haugen voted aye.
No member being absent and none voting nay the motion was declared carried.
Continued Discussion Regarding CenturyLink Easement Request for South General Aviation Area (UPS):
Mr. Dobberstein stated this request from CenturyLink for an easement in the south general aviation area along the south side of 23rd Avenue North was tabled at a previous meeting. He stated since that meeting CenturyLink and UPS have worked out the details and UPS does want this fiber line installed. He stated there is not currently an easement in the south boulevard along 23rd Avenue North. He added that plans showing the actual location will be provided after the line is installed.
Mr. Blazek moved to approve the request from CenturyLink for an easement along the south boulevard of 23rd Avenue North.
Second by Dr. Clark.
All members present voted aye and the motion was declared carried.
Received Update on Proposed Skyway:
Chairman Haugen stated the Airport Authority met yesterday in a special meeting to discuss the Airport Capital Improvement Plan out to 2034 and had a power point presentation on the various funding sources for capital improvements. Chairman Haugen stated we were at the point of deciding whether or not to solicit bids for the skyway project. He stated the big question mark at this time is how much funding, if any, we will receive from the $12 million application we submitted for the federal transportation grant program to expand the cargo apron to accommodate the UPS operation. He stated he would like us to wait with a decision to move forward on the skyway until we have a determination from the FAA on the funding for the cargo apron expansion. He stated he would like to delay the decision at least one month.
Mr. Dobberstein stated our snow removal equipment needs total about $2.7 million. He stated that would include one chemical truck with a plow, one blower and two brooms.
Mr. Blazek stated he would agree with the Chairman’s assessment, however, he is not as optimistic that we would be able to delay the skyway for only a month. He would estimate more like a year. He stated after yesterday’s discussion he feels the Snow Renewal Equipment Building expansion is more important right now. He stated the design of the skyway was money well spent. He stated the TL Stroh team did a wonderful job on the design and we needed this information to move forward with any future parking structure.
Mr. Dobberstein stated we asked for $12 million for the cargo ramp expansion in this supplemental federal grant program and our application is in round #2 of consideration. He stated we have committed our $3 million in entitlement funds for the project so if we receive only $9 million we will have to commit two years of entitlement funds or $6 million. He stated that basically means that every project on our CIP plan gets moved down one year. He added in that case we would need to have adequate funds on hand to cover construction until we receive 2020 grant funds.
Mr. Lind stated he also agrees that we should shelve the skyway for a while. He stated it is a fantastic blueprint and it’s not like we are throwing it away. He stated the time is not right. He stated he would give the cargo ramp expansion and the SRE building and equipment a higher priority.
Ms. Linn stated reviewing the CIP through 2034 was a real eye-opener for her to look at all of the long term plans. She stated she did not understand the depth of the planning and the process that is involved with the airport so she doesn’t think the public really understands the depth. She stated when you look at the walkway and look at the other projects in the CIP, the walkway is really a want rather than a need. She stated there are some very important projects that need to be done in the next two to three years.
It was the consensus of the board to delay the skyway project.
Reviewed 2019 Airport Marketing Plan with Flint Communications:
Ms. Tara Olson, Flint Communications, was recognized and introduced other team members Kristen Rheault and Sadie Rudolph.
Ms. Olson reviewed the social media summary for 2018 and goals for 2019. She stated we saw an increase in the social media following of about 13.5% over 2017 and the goal for 2019 is to continue that growth. She stated they also plan to continue interacting with passengers, helping them with timely information and updates. She stated we are in Year #2 of the three-year creative campaign for which the theme is “Reasons to Fly FAR”.
Ms. Kristen Rheault was recognized and reviewed the budget spreadsheet for television, radio, print and online media. She stated the largest portion of the advertising goes to television with radio second. She stated they are proposing to pull some of the advertising out of radio and moving it to social media. She stated radio consists of mainly the 60 second live interactives.
Mr. Lind stated he is looking for our advertising and he is not finding it. He stated he sees something once in a while on television but he does not think the word on the complimentary shuttle service from the parking lot was getting out. He stated he would like to see more radio advertising and less television. He stated he would like to focus on the amenities at the airport rather than low fares. He added he would like to see the television spots take a different direction. He stated he think everyone knows that you can get anywhere in the world from Hector International Airport. He stated he wants to get passengers to park their cars at the airport. He stated he is not discounting what Flint is doing, he just would like to see the message shift a little.
Ms. Olson stated the ads we have were low budget purposely so they can be changed easily.
Ms. Rheault stated she thinks that shifting some of the budget from radio is a better idea than shifting from television. She stated we get fantastic rates on television and they are prime spots.
Ms. Linn now absent.
Ms. Sadie Rudolph reviewed the PR objectives for 2019.
After further discussion, Ms. Olson asked if the board would like them to go back and take a look at the media portion of the budget and evaluate the various types of media and see what changes can be made while keeping the budget amount the same.
Mr. Lind stated he would like to visit with Flint a little more on reallocation of some of the advertising dollars.
Mr. Blazek moved to approve the proposed 2019 program as presented by Flint, leaving the campaign mix up to the discretion of the Executive Director.
Second by Dr. Clark.
Mr. Blazek stated in the past we have had Flint make their presentation just once a year. He recommended they give us periodic updates at meetings. He commended the Flint staff on keeping up with the community happenings this past year.
Chairman Haugen called for a vote on the motion.
All members present voted aye and the motion was declared carried.
Received Request from Victor Gelking to Extend FBO Agreement with Vic’s Aircraft Sales, LLC:
The communication dated February 5, 2019 from Victor Gelking was received and filed without objection.
Mr. Dobberstein stated Mr. Gelking’s FBO Agreement with the Airport Authority expired October 31, 2018, and he is requesting a month-to-month extension as his hangar is for sale. He is requesting the extension until December 31, 2019 or until the hangar sells, whichever occurs first.
Mr. Blazek asked if the board has ever granted a month-to-month extension for an FBO agreement.
Mr. Dobberstein stated we have not but this is a unique situation as the business is for sale.
Mr. Blazek moved to approve the extension of the FBO Agreement with Vic’s Aircraft Sales, LLC as requested.
Second by Dr. Clark.
Mr. Lind asked if the agreement terminates upon sale of the hangar.
Mr. Dobberstein stated the agreement would terminate upon sale of the hangar.
Chairman Haugen called for a vote on the motion.
All members present voted aye and the motion was declared carried.
Receive Amended Legal Descriptions for Vic’s, ABHN, Fargo Air Museum:
Mr. Dobberstein stated when the Fargo Air Museum did their recent building expansion project it was discovered that the legal descriptions for the adjacent properties were not correct. He stated Mead & Hunt cleaned up those legal descriptions for us and the leases will be adjusted accordingly. He stated Mr. Gelking received authorization some years ago to install concrete in the area between his hangar and ABHN but at the time his lease was not adjusted so we will add that square footage to his lease. He stated the square footage for ABHN will remain the same but the location of the hangar was not correct, so that correction has been made.
Authorized Purchase of Replacement Equipment via Sourcewell Public Bid Consortium (Shulte Rotary Mower, John Deere Tractor, Toro Groundmaster Mower) and Authorize Sale of Equipment (John Deere Flail Mower, Ford Expedition, International Truck):
Mr. Dobberstein stated Sourcewell is a public bid consortium through which any government entity can purchase equipment. He stated we are replacing older mowing equipment and the older equipment will be sold at auction. He stated if we place our orders now we have a good chance of taking delivery before mowing season. He provided bid specification documents for the three pieces of equipment to be purchased.
Shulte Rotary Mower - $22,448.53
John Deere Tractor - $140,398.08
Toro Groundmaster - $85,076.26
Mr. Lind moved to approve the purchase of the three pieces of mowing equipment via Sourcewell and authorized the sale of the John Deere fail mower, 1998 Ford Expedition and International Truck.
Second by Dr. Clark.
All members present voted aye and the motion was declared carried.
Received CY2018 PFC Audit Report from EideBailly:
Mr. Dobberstein stated EideBailly conducted the audit on the PFC Program for CY2018. He stated their findings were that the airport complied, in all material respects, with the compliance requirements that could have a direct and material effect on the PFC Program for the year ended December 31, 2018.
The audit report was received and filed without objection.
Received Update from ND National Guard Regarding 2019 Building Project:
Col. Clark Johnson, ND National Guard, was recognized and stated he would like to update the Airport Authority on the Guard’s Fargo Readiness Center which will be starting construction this spring. He stated they currently have 25 acres on the airport under lease and have an additional 15 acres reserved for future aviation facilities. He distributed copies of the site plan and architectural rendering of the 100,000 square foot facility as well as an unheated storage building to the west.
Col. Johnson stated he has been working with Mr. Dobberstein to finalize the lease agreement and provide a legal description. He stated the facility will eventually have its own perimeter fence and will be outside of the airport fence. He stated there will be a period of time where we will be working within the airport fence during construction. He stated the project has been delayed more than they had hoped but they plan to advertise for bids in late March or early April. The project is planned to be done early in the summer of 2021. He stated he will continue to keep Mr. Dobberstein updated.
Col. Johnson stated not related to this project, they have had some concerns about traffic on the south general aviation area since UPS moved next to their hangar facility. He stated he has been working with Mr. Dobberstein and his staff about addressing these concerns and so far they have made it work. He stated the relocation of their aviation facilities is a number of years away.
Received Preliminary CY2018 Airport Improvement Fund Statement:
The CY2018 Airport Improvement Fund Statement was received and filed without objection.
Received Preliminary CY2018 Statement of Operations:
The Preliminary CY2018 Statement of Operations was received and filed without objection. He stated this statement is preliminary and will be finalized after the City of Fargo has completed their annual audit.
Received Proposed Contract With Mead & Hunt for Runway 36 Special Authorization CAT II Approach Justification Study:
Mr. Dobberstein stated at our meeting yesterday we discussed the Runway 36 Special Authorization CAT II Approach project which is on our Capital Improvement Plan. He stated we will work with the airlines and the FAA to find a way to get FAA approval of this project. He stated the contract with Mead & Hunt for the study is for a lump sum not to exceed $70,300. He stated the study would be eligible for state funding and would be eligible for reimbursement from the FAA should the project move forward.
Mr. Blazek moved to approve the proposed contract with Mead & Hunt for the Runway 36 Special Authorization CAT II Approach Justification Study for a fee not to exceed $70,300.
Second by Mr. Lind.
All members present voted aye and the motion was declared carried.
Airport Construction and Security Update:
Mr. Dobberstein stated we continue to wait for word on our supplemental federal grant application to fund the cargo ramp expansion.
Mr. Dobberstein stated last week Fargo had a visit from Mr. Darby LaJoye, Assistant Administrator of the Office of Security Operations for the TSA, which is the No. 3 position in the organization. He stated he and Darren Anderson met with Mr. LaJoye and had about half an hour to discuss the TSA operations in Fargo.
Other Business:
Mr. Dobberstein stated January was a record month at the airport with 37,000 passengers. He stated it has been a challenging couple of months for travel with winter weather across the country resulting in delays and cancellations.
Dr. Clark asked what Delta and United are doing about their staffing in Fargo.
Mr. Dobberstein stated DGS has had their regional manager here and they are in the process of hiring a new station manager for Fargo. He stated they have hired a number of new employees who are doing their training and have had some TDY staff from other airports assisting in Fargo. He stated it has been a work in progress and has been extremely frustrating. He stated the Regional Manager for Delta who oversees all of the Delta stations in this region, Becky Lawless, plans to be at our next meeting on March 12.
Mr. Lind stated if Ms. Lawless is not able to be here we should make certain another Delta representative will attend.
Chairman Haugen stated the unfortunate thing is that DGS handles the operations for Delta, United and Frontier, so their lack of staff and poor management affects multiple airlines. He stated it is a bad situation when the public gets bad information and the airport gets blamed for deficiencies in functions that are airlines responsibilities such as baggage handling, de-icing, etc.
Mr. Dobberstein stated he will do his best to have a representative at our next meeting. He stated we cannot force them to attend but he will extend the invitation.
The meeting of the Municipal Airport Authority was adjourned until the next regular meeting to be held Tuesday, March 12, 2019, at 8:00 a.m.
Time at adjournment was 9:18 a.m.