Metropolitan Airports Commission

Transcription

1 Metropolitan Airports Commission Full Commission Regular Monthly Meeting Minutes Monday, 1:00 pm

2 METROPOLITAN AIRPORTS COMMISSION FULL COMMISSION MINUTES REGULAR SCHEDULED MEETING Monday,, 1:00 p.m. Room 3040 Lindbergh Terminal Wold Chamberlain Field Minneapolis-St. Paul International Airport Call to Order A Regular meeting of the Full Commission, having been duly called, was held Monday, September 20, 2010 at Room 3040 Lindbergh Terminal, Wold Chamberlain Terminal, Minneapolis-St. Paul International Airport. Chairman Lanners called the meeting to order at 1:00 p.m. The following were in attendance: Commissioners: Staff: Others: Harris, Landy, McClung, McKasy, Monaco, Nelson, Peilen, Rehkamp, Sigel, Stenerson, Westerberg, Williams, and Chairman Lanners S. Busch, J. Hamiel, D. Probst, T. Anderson, T. Anderson, J. Nielsen, J. Felger, S. Douma, P. Hogan, M. Scovronski, E. Hermann, G. Warren, S. Wareham, R. Fuhrmann, B. Rief, C. Boyd, K. Gerads, B. Rineer, E. Johnson, J. Greer, M. Willis, P. Rasmussen, D. Ruch, E. Wilson, K. Racek Harold Strassner, Team Park; Robert Friskney, SMAAC, Merland Otto, City of Mpls; Tom Murphy, Nancy Grazzini-Olson, Thunderbird Aviation; Scott Neal, Jeffrey Fletcher, City of Eden Prairie, Jana Vaughn, Airport Foundation; Chris Cape, Thunderbird Aviation OPEN FORUM Harold Strassner, Team Park, asked whether the Commission had considered his suggestion to raise parking rates at MSP from $18 dollars to $20 dollars as it could provide an additional $10 to $15 million dollars in revenue to MAC. Chairman Lanners responded that staff is continually reviewing MAC's pricing policies and suggested he contact staff regarding his suggestion. OATH OF OFFICE Chairman Lanners administered the Oath of Office to MAC Police Officer, Alison Vikla. AWARD Chairman Lanners stated the Government Finance Officers Association (GFOA) has awarded the GFOA's Distinguished Budget Presentation Award to the MAC Finance Department for the 2010 Operating Budget and presented the award to Bob Schauer, Director of Finance. Mr. Schauer recognized MAC Finance staff Lynn Sorensen, Karen Schaefer, Indy Valters, and Kathy Fisher. CONSENT ITEMS The following Consent items were approved by roll call vote as indicated. COMMISSIONER LANDY MOVED AND COMMISSIONER STENERSON SECONDED APPROVAL OF THE CONSENT AND COMMITTEE AGENDA ITEMS AS LISTED BELOW. The Motion carried on the following roll call vote: Ayes: Thirteen: Commissioners: Harris, Landy, McClung, McKasy, Monaco, Nelson, Peilen, Rehkamp, Sigel, Stenerson, Westerberg, Williams

3 Page 2 and Chairman Lanners Nays: None Abstain: None Absent: Two Commissioners Boivin and Geisler Reports 1. Passenger and Operations Summary Commissioner Peilen requested that staff provide an update regarding the decrease in revenue levels. Jeff Hamiel, Executive Director, stated staff was in contact with Delta late last week and they are still working on evaluating the numbers and looking at all the data associated with passenger traffic, not only for Minneapolis-St. Paul, but several other hub airports. Staff needs a complete data review from Delta to make sure the numbers are verified. They do have a couple of models they are running and the models don't link up and Delta is aware of the issue. Staff expects to hear something from them in the next several weeks. Chairman Lanners requested that staff provide an update when the data is received. Financial Report - Board File No Approval of the total amount of $17,681, Airport Leases - Board File No Minneapolis-St. Paul International Approval of a lease agreement with Servisair Fuel Services to support into-plane fuel services per agreements with the airlines. Approval of a lease with General Services Administration for 17,000 square feet of premises within Lindbergh and Humphrey Terminals to be utilized by the TSA. Approval of a short-term agreement with AeroClinic to administer flu shots to the traveling public and airport employees from October 1 through December 31, 2010 at Terminals 1 and 2. Approval of a counter space lease agreement with Rochester Shuttle Express for 50 square feet of counter. Approval of a lease amendment with US Bank to Section 4 - A Terminal Rent and Lease Exhibit A. Flying Cloud Airport Approval of a lease transfer from D.J.W. Inc., Jerry Woods, Lot 48B to FCM Enterprises, Bloomington, MN. Anoka County-Blaine Airport Approval of a ground lease renewal with the Minnesota Pollution Control Agency, St. Paul, MN. Airlake Airport Approval of a lease transfer from Myron Sievert, Lot 26F to Ruth Sievert, Bloomington, MN. APPROVAL OF THE ABOVE TO AUTHORIZE THE LEASES, CONSENT TO TRANSFERS, AMENDMENTS, ASSIGNMENTS, CONSENT TO SUBLEASES, LICENSES AND OTHER ACTIONS AS INDICATED. ALL SUCH APPROVALS ARE SUBJECT TO PAYMENT OF ALL RENT OR MONEY OWED THE COMMISSION, COMPLIANCE WITH THE TERMS OF ALL EXISTING AGREEMENTS AND PAYMENT OF APPLICABLE ADMINISTRATIVE FEES, IF ANY,

4 Page 3 AUTHORIZE THE EXECUTIVE DIRECTOR OR A DESIGNATED REPRESENTATIVE TO EXECUTE THE NECESSARY DOCUMENTS. Approval of Minutes Approval of the Minutes for the Regular Scheduled August 16, 2010 Meeting. Finance, Development and Environment Committee - Board File No A1 Reports a. Budget Variance Report - July 2010 b. Accounts Receivable Summary c. Change Management Policy and Project Status Report A2 Final Payments - MAC Contracts a. Energy Program - Phase 10 & 11 - Boiler & HCML b. Airport Lane Reconfiguration c Multi-Family Sound Mitigation - BP#2 A3 Bids Received - MAC Contracts a Glycol Recovery Program A4 T1 - Lindbergh International Arrival Facility CCTV System Equipment A Audit Fee A6 Approval of Bond Documents Including Adoption of Resolution No A7 MAC Purchasing and Accounts Payable Audit Report A8 DISCUSSION: Reliever Airport Long Term Comprehensive Plan (LTCP) Final Adoption - Flying Cloud Airport A9 DISCUSSION: Preliminary Capital Improvement Program A Capital Improvement Program Adjustment - MSP 2020 Environmental Assessment and Concept Development A11 DISCUSSION: Bond Counsel Legal Services Continuing Consultant Selection Management and Operations Committee - Board File No B1 Request Authorization to Implement a Retail Merchandise Unit ("RMU") Operator Application Process B2 Request Authorization to Purchase Three Additional Retail Merchandise Unit ("RMU") Carts B3 Recommendation Regarding Payment of Rental Auto Extraordinary Costs B4 Request Authorization to Issue Request for Proposals for Police Records Management Systems DISCUSSION ITEMS - Board File No A8 Reliever Airport Long Term Comprehensive Plan (LTCP) Final Adoption - Flying Cloud Airport At the September FD&E meeting, the Committee reviewed a request for final adoption of the Flying Cloud Airport (FCM) Long Term Comprehensive Plan. Thunderbird Aviation expressed concerns at the meeting regarding the impact the LTCP may have on a proposed administration building. Concerns were also expressed regarding the security gate modifications and the impact that may have on their business. Thunderbird asked to be assured the LTCP will be compatible with their building plans. The Committee action had passed by majority vote. Commissioner Sigel moved to defer this issue to the October FD&E Committee and was seconded by Commissioner McKasy. She and Commissioner McKasy had the opportunity to meet with representatives from Thunderbird Aviation and they believe that progress was being made as to

5 Page 4 whether or not these issues of the LTCP and the proposed expansion of Thunderbird Aviation are related. According to Thunderbird Aviation, their proposed plans to expand may not make them compliant with potential changes to minimum standards. Future meetings are planned next week with legal representatives from Thunderbird, MAC staff and Commissioners. Comments from Commissioners were as follows: The LTCP is designed to be appropriate for the airport system in general. It would be a new precedent to tie the LTCP with any one tenant's wishes. The Commission wants Flying Cloud to be a quality airport and the LTCP leads to that. Want the LTCP passed now and will not support a deferral to next month. Hopefully a future meeting with Thunderbird Aviation and staff will give them some type of assurance that if they borrow and spend $1.5 million, MAC won't come back and tell them they are not in compliance. Minimum standards compliance is not part of the LTCP. That is a separate issue. What is the direction the Commission wants staff to take and will there be any ramifications in delaying the LTCP? Are there any federal funding issues that would cause a problem if this were delayed? A recent Supreme Court decision threw out variances to planning or building codes for residences - would have any effect on this issue? It is difficult to see the direct relationship between one tenant and the LTCP. Doesn't feel it can be fully addressed within a few weeks due to the process associated with land, leases, and building plans. Would be more comfortable if staff would present something regarding the specific issue that will be discussed in those meetings between now and October that will have direct implications of the LTCP and how it would benefit the Commission to wait until October. Thunderbird Aviation is the only tenant on the airfield that would be affected by the perimeter road. That issue needs clarification. Chris Cape, Thunderbird Aviation, addressed the Commission and stated that Thunderbird Aviation believes they have a plan that will offer alternatives to meet both the FAA's requirement for a perimeter road, minimum standards, and final approval to the LTCP. Thunderbird's concern is they believe there are alternatives to meet the needs of the perimeter road and their leasehold. COMMISSIONER SIGEL MOVED AND COMMISSIONER MCKASY SECONDED APPROVAL TO DEFER FINAL ADOPTION OF THE RELIEVER AIRPORT LONG TERM COMPREHENSIVE PLAN (LTCP) TO THE OCTOBER 6, 2010 FINANCE, DEVELOPMENT AND ENVIRONMENT COMMITTEE. The Motion passed by majority vote: A9 Preliminary Capital Improvement Program At the September 8, 2010 FD&E Committee, staff stated that Minnesota Statutes Chapter 473, requires that the Commission prepare an Assessment of Environmental Effects (AOEE) which assesses the cumulative environmental effects of its Capital Improvement Program (CIP) at each of the seven airports. Dennis Probst, Deputy Executive Director-Planning and Environment noted that the Committee package contains a schedule that outlines the dates/actions required for the development of the CIP, the environmental review process and the local review by "affected municipalities" process. The package also contains a listing of projects, cost totals for each category and project narratives. There were a number of questions about specific projects. The Committee action passed by majority vote.

6 Page 5 Commissioner Nelson stated he voted against the action as he is opposed to spending $250,000 in 2011 and $250,000 in 2012 for the Art in the Terminal based on the economic conditions. He requested an Amendment to the CIP to remove the Art in the Terminal line item. The Amendment was moved by Commissioner McKasy. Denny Probst responded that back in August 2008, the Commission supported a joint program that would be moved forward with the Airport Foundation and MAC. MAC would deal with lighting and spatial issues to create the opportunity for the Foundation to place art in the terminal. MAC will not be involved in the purchase or acquiring artwork. Commissioner Peilen commented that the Airport Foundation is really the lead on the Arts Program and is looking to secure outside funding. Tom Anderson, General Counsel, stated the Foundation has looked to MAC to provide infrastructure support. The Foundation is proceeding on the assumption that the Commission has indicated its willingness to provide this kind of infrastructure to the building and the actual implementation of the Art Program would be by the Airport Foundation. Jana Vaughn, Executive Director-Airports Foundation, responded to a question concerning the timing of the Arts Program and stated the Foundation has been moving forward since the Commission approved the Master Art Program in This year the Foundation started a rotating art exhibit. There is an Art Show scheduled for November and she has received enthusiasm from employees to participate in the Art Show. The Foundation did buy a hanging wall system in preparation for the November show and that was an item that was part of the infrastructure. The Foundation also bought display cases for the C Concourse to accommodate art. She stated it would be difficult for the Foundation to move forward without receiving some of that support from MAC. COMMISSIONER NELSON MOVED AND COMMISSIONER MCKASY SECONDED APPROVAL OF AN AMENDMENT TO DELETE THE ART PROGRAM INFRASTRUCTURE SUPPORT FROM THE PRELIMINARY CAPITAL IMPROVEMENT PROGRAM. The Motion failed on the following roll call vote: Ayes: Five Commissioners Harris, McKasy, Nelson, Rehkamp, and Westerberg Nays: Eight Commissioners Landy, McClung, Monaco, Peilen, Sigel, Stenerson, Williams and Chairman Lanners Abstain Absent Two Commissioners Boivin, and Geisler COMMISSIONER LANDY MOVED AND COMMISSIONER WILLIAMS SECONDED APPROVAL OF THE PRELIMINARY CAPITAL IMPROVEMENT PROGRAM FOR PURPOSES OF ENVIRONMENTAL REVIEW. FURTHER, THAT STAFF BE AUTHORIZED TO PROCEED WITH THE ENVIRONMENTAL REVIEW PROCESS AND THAT THE FINANCE, DEVELOPMENT AND ENVIRONMENT COMMITTEE BE DESIGNATED HEARING OFFICERS FOR THE PUBLIC HEARING TO BE HELD AT THE NOVEMBER FINANCE, DEVELOPMENT AND ENVIRONMENT COMMITTEE MEETING. The Motion passed on the following majority vote: Ayes: Eleven: Commissioners: Harris, Landy, McClung, McKasy, Monaco, Peilen, Rehkamp, Sigel, Stenerson, Williams and Chairman Lanners Nays: Two Commissioners Nelson and Westerberg Abstain: None Absent: Two Commissioners Boivin and Geisler

7 Page 6 A11 Bond Counsel Legal Services Continuing Consultant Selection Commissioner Harris expressed concern that MAC should treat the financial advisory firms and the bond counsel firms the same way MAC treats underwriter firms. It would be good to have a pool of them available to MAC for use in a variety of issues. He stated it is important to promote the local economy in Minnesota and asked that when this selection occurs again, that staff include the Minnesota firms. COMMISSIONER LANDY MOVED AND COMMISSIONER REHKAMP SECONDED APPROVAL OF THE FOLLOWING: 1. KUTAK ROCK BE DESIGNATED AS A CONTINUING CONSULTANT TO PROVIDE BOND COUNSEL LEGAL SERVICES; AND 2. THAT THE EXECUTIVE DIRECTOR OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS. The Motion passed on the following roll call vote: Ayes: Thirteen: Commissioners: Harris, Landy, McClung, McKasy, Monaco, Nelson, Peilen, Rehkamp, Sigel, Stenerson, Westerberg, Williams and Chairman Lanners Nays: None Abstain: None Absent: Two Commissioners Boivin and Geisler NEW BUSINESS - Board File No GO 15 - Mesaba/Compass Headquarters Covenants Tom Anderson, General Counsel, stated as part of the acquisition of Northwest Airlines by Delta in 2009, Delta agreed to maintain the headquarters of two of its regional airline subsidiaries, Mesaba Airlines and Compass Airlines, until February 2012 as part of the "Minnesota Functions" covenant contained in the GO 15 Financing Agreements. On July 1, 2010, Delta completed the sales of Mesaba Airlines and Compass Airlines to two separate buyers. Mesaba was sold to Pinnacle Airlines, which is a separately owned entity, and Compass was sold to Trans State which is also a separately owned company. Delta informed staff that they have an agreement with these two new owners to keep the headquarters of Mesaba and Compass in Minnesota through July of Comments by Commissioners were as follows: Does MAC have copies of the agreements with the two companies? Are the employment levels staying the same? Would have preferred that the definition of headquarters in the old agreement was carried forward to the new agreements. Okay with this as long as the guarantees we have on the two new entities meet or exceed the covenants. Does MAC have the opportunity to change these quantitative criteria to objective criteria instead of negotiating additional functions? Is the covenant for the simulator affected in this agreement? Are the financing agreements separate from the other agreements? Dick Saunders, SMAAC, asked the following questions that were responded to by staff: Do the GO 15 financing agreements stand separate from the 2016 agreement with Delta for the overall umbrella commitment?

8 Page 7 The payroll for Compass ending June 30, does the average aggregate only apply to a seventh month period? COMMISSIONER MCKASY MOVED AND COMMISSIONER NELSON SECONDED APPROVAL OF THE ATTACHED AGREEMENT WITH DELTA AIRLINES AND AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE THE NECESSARY DOCUMENTS. The Motion passed by majority vote. NON-AGENDA ITEM Recommendation Regarding Adoption of Resolution No General Obligation Revenue Bonds Series 15 Refunding Steve Busch, Deputy Executive Director-Finance & Administrative Services, stated this Resolution authorizes staff to proceed with document preparation for the issuance of a refunding of General Obligation Revenue Bond Series 15 and authorizes staff to proceed with a Notice of Public Hearing, if required, regarding the issuance of these refunding bonds. Staff, as in the past, has been working with Jefferies and Company, Inc., Kutak Rock and Leigh Fisher on the refunding. Commissioner Harris commented that MAC is using financial advisory firms, bond counsel and consultants that are not based in Minnesota. He supports this measure but MAC is not giving an opportunity to keep business in Minnesota, particularly on a non-aviation specific measure. He urged staff to review how they choose advisory firms. COMMISSIONER NELSON MOVED AND COMMISSIONER STENERSON SECONDED APPROVAL OF RESOLUTION NO. 2134; AUTHORIZATION FOR STAFF TO PROCEED WITH DOCUMENT PREPARATION FOR THE ISSUANCE OF A REFUNDING OF GENERAL OBLIGATION REVENUE BONDS SERIES 15; AND NOTICE OF PUBLIC HEARING (IF REQUIRED BY BOND COUNSEL). (UNDERWRITER(S) WILL BE SELECTED IN THE NEAR FUTURE. Ayes: Twelve: Commissioners: Harris, Landy, McClung, Monaco, Nelson, Peilen, Rehkamp, Sigel, Stenerson, Westerberg, Williams and Chairman Lanners Nays: None Abstain: None Absent: Three Commissioners Boivin and Geisler, McKasy OLD BUSINESS - Board File No Eden Prairie Agreements Dennis Probst, Deputy Executive Director Planning and Environment, provided an update to the four agreements approved between MAC and Eden Prairie covering two Athletic Field Leases, a Garden Plot, and a Development Process Agreement dealing with projects on MAC owned airport property. This was an information item. No Commission action was requested. ANNOUNCEMENTS There were no announcements. Chairman Lanners adjourned the meeting at 2:45 p.m.

9 Materials for this meeting are available at the following website: Page 8