DES MOINES AIRPORT AUTHORITY BOARD SUMMARY MINUTES OF REGULAR MEETING Des Moines International Airport Board Room July 14, 2015

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1 DES MOINES AIRPORT AUTHORITY BOARD SUMMARY MINUTES OF REGULAR MEETING Des Moines International Airport Board Room July 14, 2015 Call to Order and Roll Call: Present: Christensen, Feldmann, Hansell, Levy and Ward 1. A Election of Officers Des Moines Airport Authority Board By-Laws, Article II, Section 2, Election of Officers states, The Board shall elect a Chairperson, Vice Chairperson, and Secretary/Treasurer from its membership at its regular meeting in July in every odd numbered year or as soon as practical thereafter. Officers will serve until their successors are elected. Mr. Feldmann nominated Mr. Hansell for the Board Chair position. Ms. Ward seconded. Yeas: Christensen, Feldmann, Levy and Ward. Nays: 0 Abstained: 0 Mr. Feldmann nominated Ms. Ward for Vice Chair. Mr. Hansell seconded. Yeas: Christensen, Feldman, Hansell, Levy. Nays: 0 Abstained: 0 Mr. Feldmann nominated Ms. Levy as the Secretary/Treasurer. Ms. Ward seconded. Yeas: Christensen, Feldmann, Hansell, Ward. Nays: 0 Abstained: 0 Chair: Hansell Vice Chair: Ward Secretary/Treasurer: Levy 2. A Closed Session Pursuant to Iowa Code section 21.5 (c) to Discuss Imminent Litigation The Staff Assistant Secretary pro tem took a roll call: Mr. Christensen: Yes; Mr. Feldmann: Yes; Mr. Hansell: Yes; Ms. Levy: Yes; Ms. Ward: Yes The Airport Board recessed and reconvened in closed session at 9:05am pursuant to Section 21.5(c) of the Code of Iowa to discuss with counsel matters of imminent litigation. Closed session ended at 9:42am. Board reconvened in open session at 9:44am. No action was taken in closed session. 3. A Action regarding the Lease between the Des Moines Airport Authority and the United States of America Ms. Levy moved that the chairperson read the following statement on behalf of the board. Ms. Ward seconded. Yeas: Christiansen, Feldmann, Hansell, Levy, Ward. Motion carried: Nays: 0 Abstained:0 Absent:0 Statement issued:

2 After extensive consultations with the Federal Aviation Administration, which is our airport s primary funding source, we have decided to temporarily delay the sending of a notice of termination of the lease to the National Guard Bureau (NGB) and the Iowa National Guard. We will continue to attempt to work with the NGB and the Iowa National Guard to resolve what they have been saying they have wanted to do for many months, that is, enter into a mutual agreement to: 1. Reduce the NGB and Iowa National Guard footprint at the airport; 2. Determine approximate past and future rental for the property mutually agreed to; 3. Pay to the City of Des Moines the delinquent storm water fees in the amount of approximately $200,000 which they have continually failed to pay. The airport reserves all of its rights to terminate the lease, and urges the NGB and Air National Guard to become good citizens and good tenants and do what they have said they are willing to do for the past two years as set forth above, but have failed to do. There is an approaching point in time when the airport will be required to proceed to exercise its rights under the lease agreement if the NGB and the Iowa National Guard continue to delay resolving this issue. The Airport will continue to ask the NGB and the Iowa National Guard to come to the negotiating table to resolve these issues. 4. A Approve Minutes for June 9, 2015, Meeting Ms. Ward moved to approve the minutes. Ms. Levy seconded the motion. Motion carried: Yeas: Christensen, Feldmann, Hansell, Levy and Ward Nays: 0 Abstained: 0 5. A Approve Supplement No. 1 to Agreement between the City of Des Moines and the Des Moines Airport Authority for the Provision of City Services As required in the Services Agreement between the City of Des Moines and the Airport Authority, legal services have been provided to the Authority through Assistant City Attorney, David Ferree. Mr. Ferree retired from the City of Des Moines Legal Department on June 30, The City of Des Moines Legal Department and the Airport Authority have agreed to release the City of Des Moines from their obligation of providing legal services to the Authority. Ms. Ward moved to approve Supplement No. 1.. Ms. Levy seconded the motion. Motion carried: Yeas: Christensen, Feldmann, Hansell, Levy and Ward Nays: 0 Abstained: 0 6. A Approve Engagement Agreement with David Ferree Law Office, PLC David Ferree has agreed to represent the Airport Authority as General Counsel through an independent engagement agreement. Jim Hanks, of Ahlers and Cooney, reviewed the agreement and his comments were incorporated into the current agreement.

3 Ms. Levy moved to approve the engagement agreement. Ms. Ward seconded the motion. Motion carried: Yeas: Christensen, Feldmann, Hansell, Levy and Ward Nays: 0 Abstained: 0 7. A Approve the Compensation Committee s Recommendations Carlson Dettmann Consulting presented their compensation study summary at the April 14, 2015, Board meeting. The Board asked a compensation committee consisting of Liz Ward, Mark Feldmann, and Kevin Foley to review the study and make recommendations on a pay for performance system, salary adjustments for three Staff Directors, and salary increases for the non-bargaining employees. The study found that the Airport Authority pays well, but the three directors are underpaid. Mr. Foley reminded that salaries have been decreased by $860,000 since becoming an Authority back in 2011, $523,000 of that was in Administration. Mr. Foley asked to approve doing away with longevity pay that was adopted from the City of Des Moines policies, citing that the consultant report was all inclusive. Current employees that already receive longevity pay will not have it removed and will be placed in the scale accordingly. Also, Mr. Foley asked for the Executive Director to have oversight over the reviews of the three directors and then the board would be made aware of the raises during the budgeting process. He also mentioned having employment contracts with the three directors, allowing for raises to be administered through deferred compensation, there are benefits to both parties that way. Director s raises and 2% for non-bargaining employees should be retroactive to January 1, Going forward, salaries will be reviewed in the fall for the upcoming fiscal year. The compensation committee approved the recommendations and approved the staff to implement. Ms. Ward moved to approve the recommendations. Ms. Levy seconded the motion. Motion carried: Yeas: Christensen, Feldmann, Hansell, Levy and Ward Nays: 0 Abstained: 0 8. A Public Hearing - Approve Contract for Parking Garage Maintenance 2015 with Western Specialty Contractors This project provides for the maintenance of levels 1 and 4 of the South and North parking garage structures. The work includes the review and repair of coating on level 4, expansion joint repairs, and concrete modifications on level 1. The Engineer's Estimate for this project is $65, and is included within the FY 2015 budget. The lowest responsive, responsible bidder was Western Specialty Contractors in the amount of $45, a. Public hearing on approving the plans, specifications, forms of contract documents and engineer's estimate on the Parking Garage Maintenance 2015 project. b. Approve contract with Western Specialty Contractors in the amount of $45,

4 The public hearing was opened and closed with no comments from the public. Ms. Levy moved to approve both (a) the plans, specifications, forms of contract documents and engineer's estimate on the Parking Garage Maintenance 2015 project, and (b) the contract with Western Specialty Contractors in the amount of $45, Mr. Christensen seconded the motion. Motion carried: Yeas: Christensen, Feldmann, Hansell, and Ward Nays: 0 Abstained: 0 9. A Public Hearing-Approve Rental Car Lease and Operating Agreements The current rental car concession agreement expires on July 31, A Request for Bid resulted in all of the current rental car companies submitting qualifying bids to remain at the Airport. The combined total minimum annual guarantee bid increased 15% over the previous contract period. The term of the new agreement is five years. All bids submitted were accepted from the following: Hertz, National / Alamo, Enterprise, Avis, Dollar / Thrifty, Budget / Payless. The public hearing was opened and closed with no comments from the public. Mr. Feldmann moved to approve the agreements. Ms. Ward seconded the motion. Motion carried: Yeas: Christensen, Feldmann, Hansell, Levy and Ward Nays: 0 Abstained: A Approve Lease Agreement with Swissport SAUSA, LLC (Brian) A lease on a portion of Building 5 has been negotiated with Swissport SAUSA, LLC. Swissport operates cargo handling services for multiple commercial airlines. The lease is for one year and will continue on a month-to-month basis thereafter with rent increases tied to CPI every January. Initial rent is $34,425 annually. Ms. Ward moved to approve the agreement. Ms. Levy seconded the motion. Motion carried: Yeas: Christensen, Feldmann, Hansell, Levy and Ward Nays: 0 Abstained: A Approve the Revised Air Service Incentive Program The Air Service Incentive Program was developed to help entice airlines to provide new air service to the Airport. The Program required some revision and has not been offered to the airlines for over four years. Many airports offer a similar incentive program and in the highly competitive environment for airline service, an incentive program may tip the scales one way or the other when an airline is deciding where to locate limited resources. Ward moved to approve the revised Air Service Incentive plan. Ms. Levy seconded the motion. Motion carried: Yeas: Christensen, Feldmann, Hansell, Levy and Ward Nays: 0 Abstained: A Approve Contract for Demolition of Building No. 36 with City of Lamoni

5 This contract will provide for the removal of building No. 36, South Executive T hangars. City of Lamoni plans will disassemble the hangar down to the concrete slab on grade. The structural steel from the hangar will be salvaged and reinstalled within the footprint of the Airport at Lamoni. Once complete, the Authority will remove the slab on grade and associated footings, replacing the area with vegetation. The City of Lamoni does not have the bond for the contract in yet. Mr. Belt asked to allow the Executive Director sign the contract once it arrives. Ms. Ward moved to approve the contract and allow the Executive Director to sign. Ms. Levy seconded the motion. Motion carried: Yeas: Christensen, Feldmann, Hansell, Levy and Ward Nays: 0 Abstained: A15-77 David Fisher Consulting Report 14. A15-78 Financial Report Mr. Fisher has been meeting with state legislators, the mayor, and the City Council, he also has a meeting planned in Ames, Boone, and Newton with their legislative representatives. Mr. Hansell, Mr. Foley and Mr. Fisher met with Governor Branstad and he said he would bring the PFC initiative to the National Governor s conference. He has also met with Scott Sanders and Paul Trombino who were helpful in identifying revenue streams. Mr. Feldmann requested check marks for what has been done on the consultant s report thus far, which Mr. Fisher said he will do. Mr. Foley brought up that they heard from Congressman Young that he has heard the request and that the Iowa delegation is being flooded with letters to support the PFC increase. Mr. Feldmann asked for a clarification of the Terminal Plan of Action report and Possible Funding sheet. Mr. Fisher said he would checkmark what has been done thus far, and clarified that there is the PFC funding, state, county, and City projections for funds that are out there, nothing is concrete yet. The numbers are for an internal benefit. Ms. Levy inquired about the timeline asking if there were any deadlines that the Airport Authority needs to be vigilant of. Ms. Ward brought up the idea of a hotel being attached to the airport as something to think about. Income is 2-2.5% ahead of budget because of the milder weather causing the supplies expenses costs to be lower, as well as maintenance costs. Staff is starting to budget for 2016 and will have the budget ready in October. Ms. Levy moved to accept the financial report. Ms. Ward seconded. Yeas: Christensen, Feldmann, Hansell, Levy, and Ward. Nays: 0 Abstained: 0 Absent: 0

6 15. A15-79 Briefing Statistics were flat and Mr. Foley explained he doesn t expect much growth until September when an additional flight is added. Jim Erickson retired from board service and was presented a plaque by Mr. Hansell. He summarized several of the key milestones that had happened under the airport board over the past 20 years and thanked Mr. Erickson for his service. Mr. Feldmann moved to adjourn. Ms. Levy seconded. Yeas: Christensen, Feldmann, Hansell, Levy, and Ward. Nays: 0 Abstained: A15-80 Adjourn The meeting adjourned at 10:33.