MUNICIPAL AIRPORT AUTHORITY
The Regular Meeting of the Municipal Airport Authority of the City of Fargo, ND was held Tuesday, June 9, 2020 at 8:00 a.m. in the Airport Boardroom.
The members present or absent were as follows:
Present: Engen, Cosgriff, Haugen, Lind
Absent: Linn
Others: Bossart (via zoom), Strand (via zoom)
Vice Chairman Lind presiding.
Approved the Minutes of the Regular Meeting of the Municipal Airport Authority Held May 26, 2020;
The minutes of the Regular Meeting of the Municipal Airport Authority held May 26, 2020, were approved without objection.
Approved the Airport Vouchers Totaling $29,814.97:
Gen. Haugen moved to approve the airport vouchers totaling $29,814.97. Second by Mr. Engen.
On the call of the roll, members Engen, Cosgriff, Haugen, Lind voted aye. Absent and not voting: Linn
The motion was declared carried.
Approved the Individual Voucher to Mead & Hunt:
Mr. Engen moved to approve the individual voucher in the amount of $30,798.43 to Mead & Hunt for partial payment request for engineering services in connection with the Cargo Apron Expansion Project, AIP51.
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.
Approved the Individual Voucher to Sixel, LLC:
Mr. Engen moved to approve the individual voucher in the amount of $268.00 to Sixel, LLC for May passenger enplanement fees, Frontier – Denver.
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.
Approved the Individual Voucher to Flint Communications:
Mr. Engen moved to approve the individual voucher in the amount of $6,638.99 to Flint Communications for partial payment request for 2020 Airport Marketing Program.
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.
Discussion with Mr. Dave Middaugh, Middaugh Associates:
Mr. Dobberstein introduced Mr. Dave Middaugh, Middaugh Associates, and stated he is here today to give a presentation on options in employee health insurance programs.
Mr. Middaugh updated the board on the two public health insurance trusts being created in North Dakota. He stated one is the South East Education Cooperative and the other is with the North Dakota Insurance Reserve Fund (ND Public Health Insurance Trust). He stated these are self-funded health insurance plans. Mr. Middaugh reviewed the advantages of self-funded plans. He also reviewed the dual option plans featuring traditional plans and high deductible plans with health savings accounts. He reviewed the tax benefits of a health savings account vs. flexible spending accounts.
Mr. Dobberstein asked Mr. Middaugh his experience with clients and employees that have been offered the option of a health savings account.
Mr. Middaugh stated after the health savings account has been explained they see 60%-100% of employees going with that option. He stated people are scared of high deductible health plans, but once they are educated they see the advantages.
Received Preliminary 2021 Budget for Operations and Construction:
Mr. Dobberstein presented and reviewed the proposed preliminary 2021 Budget for operations and construction. He stated the board might want to consider an increase to the mill levy to replace the loss in PFC revenue due to the decrease in passenger traffic. He stated the board has until the next meeting to make that decision. He stated the Airport Authority is authorized to levy up to four mills and we currently and historically levy two mils. Mr. Dobberstein added that he does not expect any significant changes to either budgets but would bring any such changes to the attention of the board.
Gen. Haugen moved to approve the 2021 Budget for operations and construction as presented.
Second by Mr. Engen.
On the call of the roll, members Engen, Cosgriff, Haugen, Lind voted aye. Absent and not voting: Linn
The motion was declared carried.
Received Update from Voxtelesys Regarding Eastside Terminal Office Space:
The communication from Mr. Bruce Burke, Voxtelesys, dated June 3, 2020, was received and filed without objection.
Mr. Dobberstein stated this is just a matter for the public record. He stated Voxtelesys advised us in January that they would be vacating their space in the Eastside Terminal effective March 31, 2020. He stated the space has not yet been rented to another tenant and Voxtelesys previously requested an extension through June and would now like to extend their stay through July.
There was no objection to the request.
Received Request from American Legion Post #2 to Extend Eastside Terminal Lease:
The communication from Mr. Larry Lein, Post #3 Commander, dated June 1, 2020, was received and filed without objection.
Mr. Dobberstein stated the American Legion Post #2 is requesting a three-year extension to their lease in the Eastside Terminal.
Mr. Engen moved to approve the three-year extension requested by the American Legion Post #2.
Second by Gen. Haugen.
All members present voted aye and the motion was declared carried.
Received Communication from Gavilon Grain Exercising Option to Renew Eastside Terminal:
Mr. Dobberstein stated Gavilon Grain has an option in their lease for space in the Eastside Terminal for a one-year extension. He stated they are exercising that option with a 3% escalator for the rent.
Mr. Engen moved to approve the request from Gavilon Grain to exercise their option to extend their lease one year.
Second by Gen. Haugen.
All members present voted aye and the motion was declared carried.
Received Communication from Terry and Patricia Mathern Regarding Interest in Purchasing Airport Parcel:
The communication from Terry and Patricia Mathern dated June 1, 2020, was received and filed without objection.
Mr. Dobberstein stated Patricia Mathern is joining the meeting via zoom.
Mr. Dobberstein stated the parcel in question is a piece of land that was gifted to the Airport Authority by Mr. Jacque Stockman a number of years ago. He stated the property is located along the road which was formerly County 31 before it was rerouted. He stated the Matherns expressed interest in purchasing the property in 2017. He stated Attorney Bossart has researched the matter and her opinion is that if the parties can agree on a price, the parties could agree to not having the property appraised; and, the MAA does not have to hold a public sale for the property. It simply needs to be done by the MAA if the Authority deems it appropriate and votes to do so.
Mr. Dobberstein stated what we are doing today is gauge the interest of the board members in selling the property. He stated we currently have a license agreement in place with the Matherns for their use of one of the buildings on the property and they have done a good job taking care of the property. He stated this is just a remnant piece of property that was gifted and he is not opposed to selling it, it’s just a matter of determining a fair price.
Mr. Engen stated the fact that they have maintained the property as if it was their own tells him that we should offer the property to them at a reasonable price.
Mr. Cosgriff asked if we have any idea what the property is worth.
Mr. Dobberstein stated we do not.
Gen. Haugen asked if there was any flood mitigation on the property.
Mrs. Mathern was recognized and stated during flooding the property is always completely under water. She stated the area is no longer buildable.
Mr. Dobberstein stated if the board concurs to move forward with determining a price on the 2.3 acres, he and Attorney Bossart will work with the Matherns on a proposed price.
Mr. Cosgriff asked if there were any restrictions on the gift.
Attorney Bossart stated she could not find any restrictions on the gift.
Vice Chairman Lind stated he is open to selling the property but we should get a valuation before moving forward.
Mr. Engen moved to turn the matter over to Mr. Dobberstein and Attorney Bossart to come up with a price recommendation and bring it back to the board.
Second by Gen. Haugen.
All members present voted aye and the motion was declared carried.
NDPERS Update:
Attorney Bossart stated she has not yet received anything in writing from the ND Attorney General’s Office on whether or not the Airport ARFF employees joining the NDPERS Public Safety Plan would have any effect on the City of Fargo’s police and fire department employees.
Mr. John Strand was recognized (via zoom) and stated he had nothing to add but that they are moving forward.
Received Proposal from TL Stroh Architects for SRE Building Construction and Administrative Services:
Mr. Dobberstein stated Mr. Terry Stroh, TL Stroh Architects, has a proposed cost for the contract for construction and administrative services for the SRE Building. He stated since the estimated costs exceed $100,000, the FAA requires an independent fee review. He stated we have used Mas Services located in Grand Canyon, AZ to conduct an architectural fee review in the past.
Gen. Haugen moved to approve the Professional Services Agreement with TL Stroh Architects for the SRE Building Project, subject to an independent fee review to be conducted by Mas Services.
Second by Cosgriff.
On the call of the roll, members Engen, Cosgriff, Haugen, Lind voted aye. Absent and not voting: Linn
The motion was declared carried.
Received Bids and Recommendation of Award from Mead & Hunt for Airfield Pavement Markings Project:
Mr. Jeff Klein, Mead & Hunt, was recognized (via zoom) and stated we opened bids for the Airfield Pavement Markings Project on June 4. He stated this is the project to replace the markings on Runways 18/36 and 9/27, as well as some other areas on the airfield. He stated we received three bids (Fahner Asphalt Sealers, Hi-Lite Airfield Solutions, Northstar Safety) and the bid amounts varied greatly from about $285,000 to $688,000. He stated obviously with that variance it raised eyebrows so he reached out to Hi-Lite and reviewed their bid with them. He stated they triple checked their bid and are comfortable with their bid. He stated airfield marking is all they do so they have the equipment already and have two water blasters which speeds up the project. He stated they feel the project can be completed in 7-15 days. Mr. Klein stated their recommendation is to award the bid to Hi-Lite Airfield Solutions.
Mr. Dobberstein stated Hi-Lite is a large firm that has been around for many years and do work at airports all over the country. He added that he thinks the reason for the variance in the bids is that at least one of the other contractors would have probably had to purchase some of the equipment for the project whereas Hi-Lite already has the equipment required.
Mr. Engen moved to award the bid for the Airfield Pavement Markings Project to Hi-Lite Airfield Solutions based on their low bid of $285,941.30.
Second by Cosgriff.
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 he does not have a lot to report on the Cargo Apron Expansion Project other than we will be submitting the grant application for final funding to the FAA shortly and plan to start the project July 6.
Mr. Dobberstein stated at the last meeting we discussed the funding of both the Cargo Apron Expansion Project and the SRE Building project. He stated after review of all of our options we determined the best option would be to apply all of our available entitlement funds to the SRE Building Project and any remaining funds applied to the Cargo Apron Expansion. He stated that will allow the FAA to try to get some additional supplemental funds for the Cargo Apron Project.
Mr. Terry Stroh, TL Stroh Architects, was recognized and stated they do have a foundation permit for the SRE Building and are still working on the issue of the retention pond for the building in order to get the building permit issued. He stated the requirements for retention ponds has changed in recent years. He stated they are working with Mead & Hunt on the matter as they have a specialist on retention ponds. He stated we will be seeing a change order to the project as the retention pond will be twice the size originally planned. He stated the Water Shed District was okay with the original plan but the City of Fargo was not. He stated the contractor should have their project schedule determined this week and they are still looking at a ten month project.
Other Business:
Mr. Dobberstein reported on passenger traffic numbers. He stated May 2020 compared to May 2019 we are down 86.4% and year to date 2020 we are down 36.7%, which is tracking with the national average.
Mr. Dobberstein stated on June 10 the ND Aeronautics Commission will meet to finalize their preliminary grants to the airports in the state. He stated we requested $3,345,901 and will receive $244,121.
The Airport Position Evaluation Committee (APEC) will meet for the first time on Wednesday, June 10 at 2:00 pm.
The meeting of the Municipal Airport Authority was adjourned until the next Regular Meeting to be held June 23, 2020, at 8:00 a.m.