MISSOULA COUNTY AIRPORT AUTHORITY Regular Board Meeting October 27, 2015 THOSE PRESENT: STAFF: OTHERS: Chair Larry Anderson Commissioner Paul Stafford Commissioner Steve Powell Commissioner Barbara Berens Commissioner Jerry McConnell Alternate Commissioner Shane Stack Commissioner Chris Lounsbury Director Cris Jensen Deputy Director Brian Ellestad Financial Manager Teri Norcross Facilities Manager, Thad Williams Chief of Public Safety, Jesse Johnson Ground Handling Manager, Tim Damrow Business Development Manager, Dan Neuman Administrative Assistant, Nancy Van Zant Lynn Fagan, Fagan Law Office Kynan Spethman, Northstar Jet Steve Rossiter, EAA Anthony Rodriguez, MEP Gary Matson, Pilot Chair Larry Anderson requested Commissioner Paul Stafford Chair the meeting. Commissioner Paul Stafford called the meeting to order and advised everyone that the meeting was being recorded. Commissioner Jeffrey Roth was absent. AGENDA Motion: Commissioner Chris Lounsbury moved to seat Alternate Commissioner Shane Stack Second: Commissioner Barbara Berens Motion passed unanimously Motion: Commissioner Barbara Berens moved to approve the Agenda as Second: Commissioner Jerry McConnell. Motion Passed unanimously. Commissioner Steve Powell arrived. Public Comment Period: Anthony Rodriquez with MEP is conducting a survey on the needs of the community air service. It is coming along nicely, receiving good response, and the final report should be available by the next meeting. 1
MINUTES Review and approve the minutes of the Regular Board meeting dated September 29, 2015 as Motion: Commissioner Larry Anderson moved to approve the Minutes of the Regular Board meeting dated September 29, 2015 as Second: Commissioner Barbara Berens. Motion Passed Unanimously CLAIMS FOR PAYMENT Teri asked if there were any questions regarding payments. Commissioner Paul Stafford questioned the scan system expense. Cris explained that this allows for surface temps on the runway, for better safety. Chair Larry Anderson asked about the water expense to Albertsons, Thad explained it is sterile water for back-up batteries. Motion: Commissioner Jerry McConnell moved to approve the claims for payment as Second: Commissioner Shane Stack. Motion Passed Unanimously FINANCIAL REPORT Teri discussed the financial report with the Board. Teri mentioned there may be a loan with Neptune for capital improvements. The Audit report is delayed to examine a late entry. The meeting with Commissioner Roth was to familiarize him with the operations, expense and day to day workings of the airport and finances. Teri offered to spend time with anyone who would like to better familiarize themselves with the Airport operations and finance. Motion: Commissioner Larry Anderson moved to approve the financial report as Second: Commissioner Shane Stack. Motion Passed Unanimously DIRECTOR S REPORT Airport Director Cris Jensen advised the Board that the main focus of his report was regarding the airplane crash in the airport parking lot. The security system video showed the start to finish events regarding the accident, and this was shown to the Board. The staff is gearing up for the upcoming holiday traffic and related concerns. There are flow concerns with the increased flights and enplanements. December 19 th, Delta will start its daily flight to Seattle. Cris & Brian are going to be visiting the Airlines in the coming weeks to discuss more service and 2
destinations. Task Order 22 found the Madsen property less than desirable, but on further contemplation a portion of it may serve the needs, and the Authority may want to consider a partial purchase. When discussions first started the Madsen s wanted to sell all or nothing. They are now considering a partial property sale. Commissioners Larry Anderson and Paul Stafford commented that perhaps we should have a press release with the concerns of holiday travel; all agreed this would be a good idea. Cris stated that TSA may add a new screening lane to help with the flow of passengers. Cris and Brian met with staff in two separate meetings to address concerns and review procedure/performances during the recent tragic crash. Commissioner Larry Anderson asked if we have a full time monitor on the video system. We don t have someone watching all day, but it is recorded. Cris thanked Mutual aid, the Sheriff s office and rural fire for a great response to the incident. Some of our employees were out of town at meetings, and it happened at a shift change. Officer Kreis did an amazing job of getting to the scene. The County handled the media and traffic with the help of TSA. All the help from different sources worked well together. The NTSB and FAA gave their perspective, the praised our staff response and were amazed it had been recorded on video. It could have had a much worse outcome. REPORT FROM LEGAL COUNSEL Lynn discussed with the Board the DBE program and the goal was received and approved. She worked on staff issues. Uber is expected in the community and discussion on what that means to the airport. Local governments cannot charge fees to network transportation. So far this hasn t been seen in Missoula. Commissioner Steve Powell asked if there are restrictions for Uber in other airports. The new rulings limit Airport restrictions. Commissioner Larry Anderson asked if there are liability issues with Uber. Lynn did not feel there would be. COMMITTEE UPDATES Executive Committee: September 29, 2015. Met to discuss the September Board Agenda, the City of Missoula s demand letter regarding impact fees. MCAA did not receive the Community Air Service Grant, but discussions are still on going with American Airlines. MEP and the community are still willing to contribute funds for air service incentives. Finance Committee: No Activity. Business Development: No Activity Contract & Lease Committee: No Activity Facility & Operations Committee: No Activity Marketing Committee: No Activity General Aviation Committee: No Activity Legislative Committee: No Activity UNFINISHED BUSINESS: None NEW BUSINESS: NW Medstar option to lease: Northwest Medstar has had an option to lease approximately 1.5 acres of land for the purpose of constructing a new hanger and base operation facility. The 3
original option to lease was signed December 1 st, 2014, and for a term of one year with the understanding they would begin construction during that term with a standard lease to be signed at that time. Northwest Medstar did not begin construction during that time, but did show diligent efforts to move forward with the project. In addition, MCAA is currently working on a focused planning effort for the area of the proposed construction and therefore staff believes that the delay in construction is actually in the best interest of the airport. With that in mind, NW Medstar has asked for a new one year Option to lease and staff is in support of this request. NW Medstar plans to break ground in the spring of 2016. The new Option to lease is for a slightly smaller 1.1 acres. NW Medstar has signed options, Task Order 22 deals with this, Morrison Maierle will be doing the civil engineering work for them. Motion: Commissioner Larry Anderson moved to approve new Option to Lease with Northwest Medstar for a term of one year as presented Second: Barbara Berens Motion passed unanimously Cooperative Purchasing NJPA (National Joint Powers Alliance): The airport is looking to procure a Public Safety vehicle and two pieces of snow removal equipment. Because we only buy these occasionally and one at a time, we do not always get the most competitive bids when we purchase them through an invitation to bid. The Procurement Policy states that is our policy to obtain the best possible price consistent with required quality and in a manner providing for full and open competition. Staff has done some research into cooperative purchasing in order to obtain better pricing. Cooperative purchasing means procurement conducted by and or on behalf of more than one public purchasing unit. This type of purchasing is permitted under Montana law. The National Joint Powers Alliance (NJPA) is an agency created to provide cooperative purchasing services for government, education and non-profit agencies. NJPA conducts a full and open competitive procedure including advertisements and notice, preproposal conferences, evaluation and review of proposals by a board of advisors. Pursuant to our Procurement Policy and variance from the policy must be approved by the Board. The process of going to bid on equipment can leave unsatisfactory equipment. This process is done by more than one entity, this allows for best price and quality. The County and State both use this process. Commissioner Paul Stafford asked if they do DBE? Lynn Fagan replied that this process doesn t require DBE. Cris stated the Federal government makes specifics hard to follow. This process allows the purchase to follow guidelines and receive the goods with needed specifics. Lynn Fagan stated that we shouldn t use this for everything, but for some national access purchases would be good. Commissioner Larry Anderson stated he felt this should be for hard goods only and not contracts. All were in agreement. Motion: Commissioner Barbara Berens moves to approve a variance from the Procurement Policy to allow staff to purchase a Public Safety vehicle and snow removal equipment through the cooperative purchasing conducted by the National Joint Powers Alliance Second: Commissioner Shane Stack Motion passed unanimously 4
On Airport Car Rental Lease Addendums: The Authority entered into contracts with on Airport Rent Car Companies on September 1, 2014. This addendum reflects changes to the number of Ready stalls each of the car companies has due to the increase in the size of the Rent Car parking area that was completed in early 2015. The addendum also changes the rate for the parking spaces for $12.87 per month to $10.00 per month. Motion: Commissioner Steve Powell moved to approve the Lease Addendums for Alamo/National, Avis/Budget, Enterprise and Hertz/Thrifty car rental companies as Second: Commissioner Larry Anderson Motion passed unanimously Hold Room Seat Refurbishment: In FY 2012 the airport and airlines refurbished each of our hold room seating due to wear and tear. Every airline was given the same option, to transfer ownership of the chairs and the airport would maintain them. United chose that route, so the airport budgeted in FY2012 for costs associated for Untied gate 2 and gate 1 which is under airport control. Alaska chose to maintain ownership, but utilized our vendor and paid for the cost of refurbishment. Delta in 2011 sent new seat backs, and chair seats the airport installed on their seating. That product is not holding up and Deltas hold room chairs are in poor condition. Delta would like to transfer control of their chairs to the airport as they no longer have vendor to support their product. We have asked them to pay half and transfer control to the airport so they will be maintained in good condition. The chairs the airport had covered in FY2012 are holding up and are still in excellent shape with life remaining. The new terminal project includes the replacement and standardizing of airport seating. Commissioner Barbara Berens wanted to know if the airport would be reimbursed by Delta and how quickly the chairs would be returned. Thad Williams stated the order would take about 6 weeks to fill; the repair would only take a few days. Delta will be billed for half the cost. Motion: Commissioner Shane Stack moved to approve Big Sky Upholstery s bid of $9,576 for the refurbishment of gate three hold room chairs as Second: Commissioner Larry Anderson Motion passed unanimously Amendment to Frontier Ground Handling Agreement: In April 2015, the Board approved the Standard Ground Handling Agreement with Frontier Airlines. That Agreement included provisions and charges for deicing. The cost of deicing fluid has recently increased, necessitating and increase to the cost we charge to Frontier. This Amendment shows the increased cost. The increase in cost has been communicated to Frontier and they have agreed to the change. Lynn Fagan has reviewed the Amendment of $1.00 increase per gallon for deicing costs and comparisons have been done. Commissioner Larry Anderson asked if we can recycle the fluids. The company that was taking the fluid for free is too far away. The airport now has to have it hauled. Commissioner Anderson also wanted to know approximately how much is used, which is approximately 1000 gallons. It now goes through a slow discharge to the city. 5
Motion: Commissioner Chris Lounsbury moved to approve the Amendment to the Frontier Standard Ground Handling Agreement as Second: Commissioner Steve Powell Motion Passed unanimously Runway 25 Hanger Lease Addendum: The Authority entered into the Lease Agreement with the Runway 25 Hangers LLC on August 5, 2008. In the original lease document the lease rate increases were calculated by the CPI. Also there was a CAM (common area maintenance) fee that was adjusted by the CPI every three years. At the June 30, 2015 Board meeting the Board approved Resolution No 2015-4 Setting Ground Rent for Aviation Leases at the Airport. The Resolution set the rate at.145 cents per square foot per year, which will be reviewed annually by the Board to approve increases. This lease addendum adjusts the ground rental rate to.145 per square foot and removes the cam fee. Cris explained this is to standardize the lease to be as all other tenants. Commissioner Steve Powell recused himself as a member of the 25 Hanger LLC Motion: Commissioner Barbara Berens moved to approve the Second Lease Addendum for the Ground Lease with the Runway 25 Hangars LLC as Second: Commissioner Shane Stack, Motion Passed Unanimously EAA Chapter 517 Option to Lease: EAA Chapter 517 has presented a written request to lease approximately 3000 square feet of land for the purpose of constructing a hangar and associated facilities. The proposed location will be just to the east of the airports SRE building This is in the area of old gate 22. The building will be approximately 50x60 EAA will have one (1) year to begin construction and standard lease will be executed at the time they begin construction. EAA expects to begin construction in the spring of 2016. This is a different Chapter than the Stevensville Chapter. Motion: Commissioner Steve Powell moved to approve an Option to Lease with Experimental Aircraft Association Chapter 517 for a term of one year as Second: Barbara Berens Motion Passed Unanimously There being no further business the meeting was adjourned. 6