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MUNICIPAL AIRPORT AUTHORITY

The Regular Meeting of the Municipal Airport Authority of the City of Fargo, North Dakota, was held Tuesday, June 23, 2020, at 8:00 a.m. in the Airport Boardroom.

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

Chairman Linn presiding.

Approved the Minutes of the Regular Meeting of the Municipal Airport Authority Held June 9, 2020:
The minutes of the Regular Meeting of the Municipal Airport Authority held June 9, 2020, were approved without objection.

Approved the Airport Vouchers Totaling $35,528.82:
Mr. Engen moved to approve the airport vouchers totaling $35,528.82.
Second by Mr. Lind.
On the call of the roll, members Engen, Cosgriff, Haugen, Lind, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to Mas Airport Services:
Mr. Engen moved to approve the individual voucher in the amount of $1,000.00 to Mas Airport Services for the Independent Fee review for architectural services for the SRE Building Construction Services Contract.
Second by Mr. Lind.
On the call of the roll, members Engen, Cosgriff, Haugen, 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 $6,597.91 to Mead & Hunt for partial payment request for engineering services in connection with the Cargo Apron Expansion Project.
Second by Mr. Lind.
On the call of the roll, members Engen, Cosgriff, Haugen, Lind, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Approved the Individual Voucher to the Greater Fargo-Moorhead Economic Development Corporation:
Mr. Engen moved to approve the individual voucher in the amount of $5,000.00 to the Greater FM Economic Development Corp. for the 2020 Investor Pledge.
Second by Mr. Lind.
On the call of the roll, members Engen, Cosgriff, Haugen, Lind, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Received Communication from SP Plus Regarding Parking Agreement Modification Options:
The communication from Mr. Brad McAllister, Regional Manager – West Airports, SP Plus, dated June 18, 2020, was received and filed without objection.

Mr. Dobberstein stated Mr. McAllister and Mr. Jason Finch are joining the meeting via zoom. Mr. Dobberstein stated early in the virus crisis we were approached by SP Plus about waiving the minimum annual guarantee as a result in the drastic drop in airport parking customers. He stated the board agreed to going with a straight percentage.

Mr. Finch was recognized and stated they are very appreciative of being able to present these options today. He stated the two options they are proposing are as follows:

Option 1 – Modification of existing rent thresholds and tiers
Option 2 – Conversion of the current Agreement to a Management Agreement
Additional Option – Continued operation of a seasonal shuttle service

Mr. Finch reviewed the details of each option and stated that Option #2 has been the one preferred by most of their airports around the country. He stated SP Plus is humbled and sincerely appreciated the immediate relief the airport provided right out of the gate. He stated unfortunately our original agreement broke as a result of the virus crisis.

Gen. Haugen asked if the seasonal shuttle would be an operation expense eligible for CARES Act funding.

Mr. Dobberstein stated that would be an eligible operating expense.

Mr. Cosgriff asked the term of this agreement.

Mr. Finch stated it would be for the remainder of the five-year contract which is through December 31, 2023.

Mr. Cosgriff stated since we are in a time of such dramatic changes, he would like to see the change for a short term in the event things flip back quickly.

Mr. Finch stated they certainly hope that is the case and he would entertain returning to the original agreement if that is the case.

Mr. Cosgriff suggested six months to one year.

Mr. Finch stated at least one year would make sense and would be fair and stated the recommended term is July 1, 2020 through June 30, 2021.

Mr. Dobberstein stated any review of this agreement would be based on performance of the parking lot, not just passenger numbers. He added that he is comfortable with either. He stated a majority of airports in the country are switching to a management agreement, away from the current concession agreement.

Mr. Cosgriff moved to approve Option #2 conversion of the current agreement to a Management Agreement with SP Plus for a one year term of July 1, 2020 to June 30, 2021.

Mr. Lind moved to approve the additional option with SP Plus, the continued operation of a seasonal shuttle service for the upcoming season, December 15, 2020 to March 31, 2021.

Second by Mr. Engen.
On the call of the roll, members Engen, Cosgriff, Haugen, Lind, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Received Communication from Cityscapes Development Regarding Interest in Purchasing a 1.1 Acre Parcel of MAA Property:
The communication from Mr. Rick Flacksbarth, CityScapes Development, dated June 18, 2020, was received and filed without objection.

Mr. Dobberstein stated CityScapes Development has been working with the Mikel family on cleaning up the property located west of Dakota Drive and 19th Avenue North. He stated the buyer of that property is looking to build a commercial building on the lot and needs additional acreage in order to build on that property and is interested in purchasing the airport’s adjacent property which is 1.1 acres. He stated this property was acquired with federal funding which is a lengthy process should the board decide to sell the property. He stated many years ago when Old Highway 81 was rerouted, Mr. Mikel had the opportunity to work with the State to move his business at no expense. He stated Mr. Mikel backed out of that offer.

Mr. Rick Flacksbarth, Cityscapes Development, was recognized and stated the project is still in the development stages but in order for the buyer to be able to build on the property they would need the additional 1.1 acres to the east. He stated they are also working with the City of Fargo on the easement to the west for access to the property from Old 81. He stated he began working with the Mikel family on this property five years ago.

Gen. Haugen stated this property is right at the entrance to the airport and has been an eyesore for many years. He stated it is being cleaned up now but he is very concerned about the property turning into something we might regret later.

Mr. Flacksbarth stated Gen. Haugen's concerns are noted but the proposed building would be more of a showcase building compared to what is currently on the property.

Mr. Lind stated that is not hard to beat.

Mr. Engen stated he would need to see a lot more information before even considering the request.

Mr. Dobberstein stated he will be up front and say he has no interest in selling the property. He stated we should hold on to it.

Mr. Engen stated he appreciates the fact that Cityscapes is helping the owner get the property cleaned up and all of the rights and restrictions figured out, but he would agree with Mr. Dobberstein that we should not sell it. He stated there are too many concerns until we have more information.

Chairman Linn stated it appears the board is not interested in selling the property at this time.
She expressed the board's appreciation of Cityscapes efforts in getting the property cleaned up.

_Received Communication from Dave Currier, Air Condo Association, Requesting Extension of South General Aviation Area Hangar Ground Lease:
The communication from Mr. Dave Currier, Air Condo Association, dated June 9, 2020, was received and filed without objection.

Mr. Dobberstein stated this is a four unit hangar and they are requesting a five-year extension to the ground lease.

Mr. Lind stated he would like an inspection of this hangar and confirm the units are being used for housing aircraft. He stated he is in the area of that hangar all of the time and he never sees airplanes coming in or out of there. He would like that confirmation before we extend the lease.

Mr. Dobberstein stated the extension will include language that they are subject to an annual inspection. He stated he has gathered information from multiple airports in the area and how they handle this matter. He stated one example is Minneapolis and their regulations are over the top, primarily because they own most of the hangars on the airport. He stated they enact a "reversionary clause" which means that if someone gets a 20-year ground lease on their hangar today, at the end of that term the ownership of the hangar reverts to the airport. He stated we have chosen to issue five and ten-year extensions on hangar ground leases. He stated he and Attorney Bossart have not finalized the new language regarding annual inspections. He stated we are trying to keep it as simple as possible.

Mr. Dobberstein stated he will get ahold of Mr. Currier and arrange a time to make that inspection of the hangar. He stated he should be able to get that done today or tomorrow.

Mr. Engen moved to approve the five-year extension of the ground lease for the Air Condo Association, subject to the favorable results of the hangar inspection by airport staff.
Second by Gen. Haugen.
On the call of the roll, members Engen, Cosgriff, Haugen, Linn voted aye. Lind voted no.
The motion was declared carried.

Received Communication from Dakota Air Parts (MACO Leasing) Requesting Extension of Ground Lease:
The communication from Mr. Shawn Johnson, General Manager, Dakota Air Parts, dated June 18, 2020, was received and filed without objection.

Mr. Johnston was recognized and stated Dakota Air Parts is a long time tenant at the airport, starting with the Eastside Terminal Building. He stated they have been in their hangar for close to 20 years. He stated they are doing some long term planning and thought this would be a good time to look at a lease extension on the hangar.

Mr. Dobberstein stated the current lease does not expire until 2024 but if the board wants to grant that extension they certainly can do that.

Mr. Johnson stated Dakota Air Parts also owns some property adjacent to the airport on the north side. He stated they are looking at some construction on that site so that is one of the reasons they are looking at an extension at this time. He stated they are committed to the Fargo area and want to make certain they have a long term agreement in order to move forward. He added that they currently have two helicopters in the hangar and are looking to move their aircraft back to the hangar, which is currently being housed at Fargo Jet Center.

Mr. Engen moved to approve the extension based on ten years from the May 4, 2024 expiration date, with the understanding that the lease rate is reviewed annually and we are able to adjust it accordingly.
Second by Mr. Lind.
On the call of the roll, members Engen, Lind, Cosgriff, Haugen, Linn voted aye. No member being absent and none voting nay the motion was declared carried.

Authorized Attendance at the 31st Annual Aircraft Rescue and Firefighting Working Group Conference, August 23-36, 2020, Orlando, FL:
Mr. Lind moved to authorize attendance at the 31st Annual Aircraft Rescue and Firefighting Working Group Conference, August 23-26, 2020, Orlando, FL.
Second by Mr. Engen.
All members present voted aye and the motion was declared carried.

Received Proposals to Upgrade HVAC Control System for the Westside Terminal:
Mr. Dobberstein stated we received two proposals to upgrade the HVAC controls in the Westside Terminal. He stated the proposals were as follows:

G&R Controls: $34,790.00
Direct Digital Control: $42,525.00

Mr. Dobberstein stated this project is to replace the computer system that was installed when the terminal was expanded back in 2008. He stated it is way past its useful life.

Mr. Darren Anderson stated the existing system uses Windows XP which is no longer supported.

Mr. Dan Bullis, Operations Supervisor/Landside, was recognized and stated we began having problems back in January when the system started crashing. He stated we had G&R Controls come in and clear some error codes but it started happening again within a couple of weeks. He stated it crashes an average of three times per week and we have been able to get it back up, but eventually that will no longer work.

Mr. Engen moved to accept the low bid from G&R Controls and to get the upgrades installed as soon as possible.
Second by Mr. Lind.
On the call of the roll, members Engen, Lind, Cosgriff, Haugen, Linn voted aye.
No member being absent and none voting nay the motion was declared carried.

Mr. Dobberstein stated G&R Controls was the original installer so it would be hard to compete as someone else would have to install an entirely new system

NDPERS Update:
Attorney Stacey Bossart was recognized, via zoom, and stated she does not have any update on the NDPERS Public Safety Plan. She stated she did send another email request to Assistant Attorney General Dean DePountis regarding our request for a letter from their office regarding the discussion she and the city attorney had with him. She stated she will continue to follow up with him.

Mr. Dobberstein asked her to email him every hour and call him every half hour.

Chairman Linn asked Attorney Bossart to be persistent as we need to get that information from them in writing.

Received Letter of Intent from Roger Tidd to Lease Office in the Eastside Terminal:
The letter of intent from Mr. Roger Tidd dated June 17, 2020, to lease space in the Eastside Terminal, was received and filed without objection.

Mr. Dobberstein stated the office Mr. Tidd would like to lease is a small office on the second floor being vacated by Voxtelesys on July 31. He is requesting a one year lease effective August 1, 2020. He added that Mr. Tidd has been a tenant previously. He stated Mr. Tidd has a patent on an electrical outlet plug used during painting.

Mr. Engen moved to approve the lease for space in the Eastside Terminal to Mr. Roger Tidd for a one year term effective August 1, 2020.
Second by Mr. Lind.
All members present voted aye and the motion was declared carried.

Certified Mill Levy to the Board of City Commissioners for 2021 Improvements, per Section 2-06-14 of the North Dakota Century Code:
Mr. Dobberstein stated the board received and approved the preliminary 2021 budget at the last meeting. He stated the final mill amount has not yet been finalized yet but in visiting with both the City of Fargo Assessor and the Cass County Auditor, we know it will be between $623,00-$625,000. He stated if we stay at two mills we would certify an amount of $1.4 million, not to exceed two mills.

Mr. Engen moved to certify to certify to the Board of City Commissioners a mill levy amount of $1.4 million, not to exceed 2.0 mills, as per Section 2-06-14 of the North Dakota Century Code, for 2021 improvements.
Second by Mr. Lind.
On the call of the roll, members Engen, Lind, Cosgriff, Linn voted aye. Haugen voted no.
The motion was declared carried.

Airport Construction and Security Update:
Mr. Terry Stroh, TL Stroh Architects, was recognized (via zoom) and stated they are moving along on the SRE Building Project. They have some of the walls poured. He stated they are still working on tanks and sizes. He stated things are going well so far. He stated he did receive the schedule from the contractor and the completion date is in February.
Mr. Dobberstein stated the car rental ready lot reconstruction project will start next week. The arrangement with SP Plus for temporary parking in the short term parking is ready to go July 1.

Airport Position Evaluation Committee (PEC) Update:
Chairman Linn stated the Airport PEC had its first meeting on June 10. She stated she gave a presentation on the history of the Municipal Airport Authority and reviewed the portion of the MOU establishing the Airport PEC.

Chairman Linn stated it had been suggested that we try to schedule the mediator, Judge Karen Klein, to attend a video meeting with the APEC, but since we have been advised that the meetings have to be open it was unlikely that she would do that. She stated the Assistant City Administrator is working on setting up a meeting with Judge Klein and representatives from the MAA and the COF that were involved in the mediation process. She stated she is not certain the reason for the meeting because the parties agreed to the written document. She stated apparently there are some questions someone wants asked of Judge Klein.

Mr. Cosgriff stated as the newest member of the board, he read the MOU and talked to representatives on both sides and he can see there is some difference in interpretation on both sides. He stated both sides have equal merit and reason behind them but he thinks it would be helpful if both sides participated in that discussion. He added that there seems to be misunderstanding on both sides.

Chairman Linn stated we found ourselves in this situation because the agreement which was written decades ago was so open for interpretation. She stated this process was to make sure the MOU was succinct and specific so that in years to come other MAA boards will not have to go through what we just went through the past two years.

Mr. Dobberstein stated state statute is very clear. He stated the whole thing about this MOU is that 99.9% of the people in this community could not care less about what is in this MOU. He stated this is about how 26 employees get paid, what benefits they have access to, how our phone rings, how the computer works, and what accounting system we use. He stated people don’t care about that. He stated what people care about is how the airport and the city, the park district, the county, city of West Fargo and others get along in terms of air service development, easements, right of ways, planning, zoning and development around the airport. He stated the MOU is not what people in this community care about but for some reason the city commission believes they have to have an agreement in order to do those other things that this authority has done for over 51 years. He stated he can and has given a list of things we have done in cooperation and collaboration with the City of Fargo, which will continue with or without an MOU. He stated that is what public entities do between each other. He stated if we think there is going to be any different interpretation between parties he is not sure, but this has gone on long enough.

Chairman Linn stated getting back to the PEC, we are waiting for the study from ADK on the ARFF positions. She stated she would like to recommend that we also get an updated compensation study from ADK for the Executive Director and the Assistant Director. She directed Mr. Dobberstein to start that process.

Chairman Linn stated it is also not clear whether or not the Airport PEC is required to have open meetings. She stated the City of Fargo’s PEC does not hold their meetings open to the public so Attorney Bossart was going to check with the Attorney General’s Office and get their response.

Mr. Cosgriff asked if there was any reason we would not want to have those meetings open. He stated the discussion and decisions deal with positions and not individuals. He stated he feels if there is any question as to whether a meeting should be open he feels it is just simpler to open the meeting.

Chairman Linn stated that is why she would like to get a response from the Attorney General’s office but until then we will continue to hold them open.

Chairman Linn stated the APEC selected Jane Pettinger as its Chair and she was selected to be the Secretary and record minutes.

The meeting of the Municipal Airport Authority was adjourned until the next Regular Meeting to be held July 14, 2020 at 8:00 a.m.
Time at adjournment was 9:10 a.m.