MISSOULA COUNTY AIRPORT AUTHORITY Regular Board Meeting March 27, 2018 1:30 pm, Airport Conference Room THOSE PRESENT: STAFF: OTHERS: Chair Shane Stack Vice Chair Jeff Roth Secretary/Treasurer Matt Doucette Commissioner Dori Brownlow Commissioner Larry Anderson Alternate Commissioner Winton Kemmis Honorary Commissioner Jack Meyer Director Cris Jensen Deputy Director Brian Ellestad Financial Manager Teri Norcross Administrative Manager Lynn Fagan Accounting Clerk Rita Harris-Powers Business Development Manager Dan Neuman Manager of Projects Tim Damrow Ground Handling Manager Andrew Bailey Chief of Public Safety Bob Otte Airfield Operations Manager Nate Cole Martin Kidston, Missoula Current Gary Matson, Private Pilot Shaun Shea, Morrison-Maierle Chair Shane Stack called the meeting to order and advised everyone that the meeting was being recorded. Motion: Secretary/Treasurer Matt Doucette moved to seat Alternate Commissioner Winton Kemmis. Second: Commissioner Larry Anderson AGENDA Motion: Commissioner Dori Brownlow moved to approve the Agenda as presented. Second: Alternate Commissioner Winton Kemmis Vote: Motion Passed unanimously PUBLIC COMMENT PERIOD: None. MINUTES
Motion: Commissioner Larry Anderson moved to approve the minutes of the Regular Board meeting dated February 27, 2018 as presented. Second: Vice Chair Jeff Roth CLAIMS FOR PAYMENT Finance Manager Teri Norcross stated that the Claims for Payment include a revision of the second page of the check list (page 12 in the Board Packet) to account for the $18,582 check to Standard Signs, Inc. as payment for sign faces for the airfield project. Airfield Operations Manager Nate Cole added that the sign faces needed to be ordered early to ensure they would be received on time. Teri then offered to answer any questions from the Board. There were none. Motion: Commissioner Jeff Roth moved to approve the claims for payment as presented. Second: Alternate Commissioner Winton Kemmis FINANCIAL REPORT Finance Manager Teri Norcross stated that current revenues are over budget for the fiscal year, and expenditures are under budget. She explained expenditures for petroleum products have exceeded the budgeted expense amount for the fiscal year due to snow operations this winter, though the Financial Report will not represent that overage until next month. She then mentioned that the First Security Bank sweep account is now active and has been included in the Financial Report, and she welcomed any questions from the Board. Commissioner Larry Anderson asked if the sweep account holds $250,000 with a 1.25% interest rate, and Teri confirmed that is correct. Motion: Commissioner Dori Brownlow moved to approve the financial report as presented. Second: Secretary/Treasurer Matt Doucette DIRECTOR S REPORT Director Cris Jensen began by stating that as of yesterday, FedEx has officially been welcomed to the airport, adding that their first flight went out yesterday morning. He then commended Business Development Manager Dan Neuman for making the cold call to FedEx about moving their operations to the airport several years ago, and for his efforts in ensuring that the project was a successful one from start to finish.
Cris then reminded the Board about the Aircraft Owners and Pilots Association (AOPA) Fly-in to be held June 15 16, 2018. He added that the airport is expecting approximately 500 planes with 3,000 people in attendance. The Board was invited to notify staff if they have interest in being a part of the event. Vice Chair Jeff Roth asked if, due to the number of planes expected at the event, arrivals would be staggered. Cris replied that arrivals will not be scheduled, and that pilots are allowed to arrive at their discretion and wait in line to land, if that is necessary. Cris also reminded the Board that the Magnetic Variation and Pavement Maintenance (MagVar) project is scheduled for April 24,, 2018 May 1, 2018, adding that the runways will be closed from 1:00pm through 8:00pm on those days, which will affect flight schedules. Cris then discussed the implications of the FY 2018 Omnibus Appropriations Bill for the airport. He stated that the bill has been approved by Congress and will present $1 billion in additional Airport Improvement Project (AIP) discretionary funding for non-hub and small-hub airports. This could increase MCAA s discretionary funding from $11.5 million to $20 million. These added funds could help the funding scenario for MCAA s terminal project. Cris then stated that one item MCAA staff was hopeful about was the potential increase of the Passenger Facility Charge (PFC) cap from $4.50 to $8.50, but that item did not make it into the bill. Cris also added that they have agreed to fund the Law Enforcement Officer (LEO) reimbursements for the coming year which is usually a point of uncertainty, so MCAA did not budget for those funds for the current fiscal year. However, given the action by Congress and the receipt of approximately $105,000 this year, MCAA staff has conservatively budgeted for $50,000 in LEO reimbursements as part of the FY 2019 budget. Cris then mentioned that negotiations for the Building and Field union contract are underway, adding that members have made very reasonable requests for the coming proposal period. Another meeting is scheduled for tomorrow, and staff expects that the final proposal will be presented to the Board for consideration and approval in May or June. Deputy Director Brian Ellestad presented the Air Service Update, beginning with Delta upgrading their Airbus 319s to Airbus 320s which will mean a total increase of 27% in available seats in June, and 12% for the full calendar year. He stated that MCAA is currently the best in the state for load factors, coming in at approximately 89% for the month of February. Brian mentioned that United Airlines has decided to schedule their service to San Francisco further into the fall, with their last scheduled flight currently set for October 3, 2018. He then stated that MCAA has been officially awarded the American Airlines ground handling contract, and Cris added that their Chicago flights are already 70 80% full. Commissioner Larry Anderson asked if there will be a drop in other airlines with service to Salt Lake City for southbound travelers, and Brian responded that is not the case since the added service increases competitive response in the market. LEGAL REPORT Administrative Manager Lynn Fagan began by explaining that Ground Handling Manager Andrew Bailey and Advertising Manager Amanda Jacobson approached Great Harvest Bakery in Missoula for a sponsorship of the baggage delivery service. Great Harvest has agreed to provide cookies to MCAA to attach to bags being delivered to passengers in exchange for adding their business logo to MCAA s baggage delivery van.
Lynn stated that she has designated a recurring timeslot for committee meetings to be held monthly on the Tuesday prior to the Regular Board Meeting at 1:30pm. This timeslot can be used for any committee that requires a meeting in a given month. She then stated that MCAA will be visited by public relations/marketing firms from April 11 12, 2018; they will be scheduled to visit for the day, including lunch and an opportunity to meet members of the Board if any are interested. Lynn went on to explain that the meeting for the custodial request for proposals was held on Friday, and Facilities Manager Thad Williams guided two vendors through the building of the four that received packets from Lynn. The proposals are due April 5, 2018 and a final choice will be presented to the Board at the April Regular Board Meeting. Commissioner Larry Anderson asked if MCAA has had any issues with the current custodial service company, and Lynn replied that staff is very happy with the current provider and that they do a great job. However, federal rules require that MCAA put the contract out to bid every five years. Lynn then stated that she began working on insurance applications for FY 2019 since the threeyear guaranteed rate on liability insurance from AIG expires this year. She added that Tex and Todd from PayneWest insurance will report back to her with quotes from AIG and Chubb Insurance, so she will bring those to the Board by June. COMMITTEE UPDATES Executive Committee: Met March 27, 2018 to discuss the Board agenda. Finance Committee: Met March 27, 2018 and minutes will be provided with next month s Board Meeting Packet Business Development: No Activity Contract & Lease Committee: No Activity Facility & Operations Committee: Met March 27, 2018 and minutes will be provided with next month s Board Meeting Packet Marketing Committee: No Activity General Aviation Committee: No Activity Legislative Committee: No Activity UNFINISHED BUSINESS: Contract Amendment No. 1 to Task Order No. 04 to the Master Agreement for Professional Engineering Services with Morrison-Maierle Director Cris Jensen explained that this amendment will reduce the billable amount on the contract to allow for the return of $140,000 in service fees from Morrison-Maierle since all work from that task order was completed under budget. This amendment will reduce the contract amount for Task Order No. 4 from $1,275,000 down to $1,135,000 to reconcile that difference, allowing MCAA to use those funds for future design costs. Motion: Secretary/Treasurer Matt Doucette moved to accept Amendment No. 1 to Task Order No. 04 with Morrison-Maierle in the reduced fee amount of $140,000. Second: Commissioner Larry Anderson
Recommendation of Award for the Magnetic Variation & Pavement Maintenance Project Director Cris Jensen explained that MCAA received six bids for this project, and all bids were vetted by Morrison-Maierle. Based on the information from their assessment, staff at MCAA would like to award the project to Maxwell Asphalt, Inc. due to their reasonable and responsible bid of $964,234.15. Commissioner Larry Anderson asked, given the time sensitive nature of this project, if Maxwell Asphalt will have the capacity for such a project. Cris responded that staff had some concerns about their bid being so low, but that Morrison-Maierle cleared up those concerns. Shaun Shea of Morrison-Maierle explained that Maxwell Asphalt is a reputable company that has worked with Morrison-Maierle in the past, and that the bid they offered is reflective of the competition for business. Motion: Vice Chair Jeff Roth moved to accept the Magnetic Variation & Pavement Maintenance bid results and award construction to Maxwell Asphalt, Inc. in the amount of $964,234.15 contingent on FAA concurrence. Second: Commissioner Dori Brownlow Commissioner Larry Anderson asked if the portion of the motion that states FAA concurrence is a perfunctory measure, and Cris responded that while he is confident the FAA will concur, MCAA must go through the process of obtaining FAA concurrence, but this is nothing out of the ordinary. Cris was then asked if the numbers on the runways will change, and he responded that is correct, adding that 11/29 will be changed to 12/30 and 7/25 will change to 8/26. Task Order No. 12 to the Master Agreement for Professional Engineering Services with Morrison-Maierle Director Cris Jensen explained that in moving forward with the MagVar project, MCAA s next step will be to get Morrison-Maierle under contract for construction management in the amount of $72,500.00. Morrison-Maierle s services will include on-site observation during construction, grant management and closeout services, an update to the Airfield Lighting Controls System (ALCS), and an update to the Airport Layout Plan. Motion: Alternate Commissioner Winton Kemmis moved to approve Task Order No. 12 with Morrison-Maierle in the amount of $72,500.00. Second: Secretary/Treasurer Matt Doucette NEW BUSINESS: Task Order No. 11 to the Morrison-Maierle, Inc. Master Agreement Director Cris Jensen explained that in 2005, MCAA financed, designed, and constructed a hangar for United States Forest Service to house aircraft that supports their firefighting mission. The 20-year lease was structured to spread out repayment of the $4 million project over the
term of the lease, but the airport was able to repay the total in less than half that time. The Forest Service has decided to add 38 personnel members to their staff to fulfill their new helicopter mission at the airport, so they would like to add to the bathrooms and modify the break room in the airport-owned hangar to accommodate the additional staff. It is the Forest Service s request that MCAA again finance and design this project in the amount of $28,000. This Task Order will authorize Morrison-Maierle to proceed with design of the modifications, the preparation of a Construction Operations and Safety Plan, and the preparation of the Final Plan and Specifications for bidding purposes. Commissioner Larry Anderson asked if the project would be eligible for AIP funding, and Cris responded that is not the case. He added that the Forest Service is expecting to be able to contribute a lump sum of that amount in September 2018, and the remainder will be rolled into a new lease. Alternate Commissioner Winton Kemmis asked about the nature of the different lease rate calculation for the Forest Service hangar, instead of it being in line with the standard $0.155 per square foot, and Cris responded that their lease rate calculation is different because MCAA is leasing the actual building, not just the land it is on. He then added that the Forest Service lease is the only one of its kind on the airport. Motion: Commissioner Dori Brownlow moved to approve Task Order No. 11 with Morrison-Maierle in the amount of $28,000. Second: Vice Chair Jeff Roth Federal Aviation Administration Grant Application for AIP-062-2018 Director Cris Jensen explained that this application is for entitlement grant funding for a compilation of projects in the amount of $1,262,384.47. Those projects include the MagVar project construction, construction management services, and project closeout; new passenger terminal building TSA relocation, design services, and pre-construction services; as well as new passenger terminal building schematic design pre-construction services. Board Chair Shane Stack asked if MCAA will be unable to award these projects without grant approval, and Cris replied that the projects will be awarded regardless of grant approval, so it will fall to MCAA to pay the amounts if the application is not approved. Shane then asked what the timeframe will be to hear back about grant approvals, and Cris explained that the regional FAA office has begun processing their grants and understands the time sensitive nature of getting the application approved. Motion: Commissioner Larry Anderson moved to accept the Grant Application for AIP- 062-2018 in the amount of $1,262,384.47 as submitted to the FAA. Second: Secretary/Treasurer Matt Doucette Resolution No. 2014-4 Resolution Authorizing the Creation of a Limited Liability Company and Powers Related Thereto Lynn began by explaining that there has been an ongoing discussion regarding the potential separation of the ground handling services into its own limited liability company. This item was
discussed at length at the joint Finance Committee and Facilities and Operations Committee meeting this month. The committee determined that it would be best to segment this separation into smaller sections, beginning only with the creation of the LLC, while staff continues to work on a more detailed business plan. Chair Shane Stack stated that this comes to the Board as a seconded motion from the joint Finance Committee and Facility and Operations Committee meeting. Commissioner Larry Anderson commented that along with creating the LLC, MCAA will designate Lynn as the registered agent. Larry then asked Ground Handling Manager Andrew Bailey to give the Board a rundown of how the bag delivery service has been doing. Andrew explained that the estimated number of bags delivered per month was 15, but in just 11 days the bag delivery service has delivered 22 bags to passengers. Lynn added that ten ground handling staff members have signed up to drive the delivery van when needed. INFORMATION/DISCUSSION ITEMS Vice Chair Jeff Roth confirmed with Deputy Director Brian Ellestad that with the airport s added summer air service, an additional 2,458 seats will be available weekly this summer, and Brian added that those seats will continue to stimulate the market and drive prices down. A short discussion followed about the importance of emphasizing to travelers that arriving early to the airport is the key to making it through the airport and onto their scheduled flights on time. Secretary/Treasurer Matt Doucette asked if the upstairs deck is open for passengers to utilize, and Deputy Director Brian Ellestad confirmed that it has been open for a few weeks. Private Pilot Gary Matson commented on airplane traffic at the AOPA Fly-in. He mentioned that the Air Traffic Control crew is not particularly concerned with the increased traffic, and that there will be emergency procedures in place in the case of an incident on the runway. A discussion followed about the event in general. Director Cris Jensen offered to present the AOPA Fly-in event package at the next Board meeting. Commissioner Larry Anderson asked what activities are schedule for the Fly-in, and Gary answered that there will be varied workshops, seminars, and a party on Friday, June 15 th ; there will also be airplane exhibits and seminars on Saturday, June 16 th. Business Development Manager Dan Neuman added that short take-off and landing demos will occur on Saturday, as well as fly-outs, adding that AOPA will have over 70 employees of their own coming in earlier that week to assist with the setup and execution of the event. The April Board Meeting will be held in the Airport Conference Room on Tuesday, April 24, 2018 at 1:30pm. There being no further business the meeting was adjourned.