MISSOULA COUNTY AIRPORT AUTHORITY Regular Board Meeting November 27, :30 pm, Airport Conference Room

Transcription

1 MISSOULA COUNTY AIRPORT AUTHORITY Regular Board Meeting November 27, :30 pm, Airport Conference Room THOSE PRESENT: STAFF: OTHERS: Chair Shane Stack Secretary/Treasurer Matt Doucette Commissioner Dori Brownlow Commissioner Larry Anderson Commissioner Deb Poteet Commissioner Adriane Beck Alternate Commissioner Pat Boyle Alternate Commissioner Winton Kemmis Director Cris Jensen Deputy Director Brian Ellestad Administrative Manager Lynn Fagan Finance Manager Teri Norcross Accounting Clerk Rita Harris-Powers Manager of Projects Tim Damrow Business Development Manager Dan Neuman Chief of Public Safety Bob Otte Facility Operations Manager Thad Williams Shaun Shea, Morrison-Maierle Grace McKoy, Anderson ZurMuehlen Travis Frey, Martel Construction Steve Conway, Martel Construction Andy Anderson, First Interstate Bank Bruce Doering, Montana Flying Service Kynan Spethman, Northstar/Neptune MikeGierau, Jedediah s Jeff Lamson, GCPM Todd Donahue, Homestead Chair Shane Stack called the meeting to order and advised everyone that the meeting was being recorded. Motion: Commissioner Larry Anderson moved to seat Alternate Commissioners Pat Boyle and Winton Kemmis. Second: Secretary/Treasurer Matt Doucette AGENDA Motion: Commissioner Deb Poteet moved to approve the agenda as presented. Second: Alternate Commissioner Winton Kemmis 1

2 PUBLIC COMMENT PERIOD: None. MINUTES Motion: Commissioner Adriane Beck moved to approve the minutes of the Regular Board meeting dated October 30, 2018 as presented. Second: Alternate Commissioner Pat Boyle CLAIMS FOR PAYMENT Finance Manager Teri Norcross began by explaining that there are several larger payments to cover project costs that total approximately $1.9 million. The costs cover the Transportation Security Administration (TSA) checkpoint relocation, as well as the new terminal final design, demolition of the current TSA checkpoint, and foundation for the new terminal; all of these items are covered under the same grant at a ninety percent reimbursement rate. Teri then offered to answer any questions from the Board. Commissioner Larry Anderson asked about the payments made to individuals that were listed under TSA Relocation, and Teri explained those people worked as TSA Exit Lane Monitors during relocation of the revolving doors. Commissioner Adriane Beck asked about the nature of the payments to the Miscellaneous Tax Division for terminal demolition, and Teri explained that there is a Montana tax of 1% on public contracts which we withhold from contractors payments and pay to the state,. It was noted by Chair Shane Stack that Commissioner Dori Brownlow s arrival added to the Board quorum, and he suggested that one of the Alternate Commissioners be unseated for the remainder of the meeting. Motion: Secretary/Treasurer Matt Doucette moved to unseat Alternate Commissioner Pat Boyle. Second: Commissioner Adriane Beck Motion: Alternate Commissioner Winton Kemmis moved to approve the Claims for Payment as presented. Second: Commissioner Deb Poteet 2

3 FINANCIAL REPORT Finance Manager Teri Norcross began by stating that the income statement looks favorable for the fiscal year to date, explaining that operating revenues are over budget and operating expenses are under budget. Teri then explained that she has been transferring approximately $100,000 to the Short Term Investment Pool (STIP) Terminal Reserve account each month, in addition to the net of monthly Customer Facility Charge (CFC) funds. She added that the Passenger Facility Charge (PFC) account is also growing and that these funds will aid in paying for eligible terminal project costs. Teri then stated that revenues for air service, as well as gift shop and rental car concessions are looking favorable as well. She added that some concession tenants and airlines are slow to pay, but MCAA staff is addressing these issues as necessary. Alternate Commissioner Winton Kemmis asked if the current investment interest rates are locked at their various rates between 1.25% %, and Teri explained that the Sweep account with First Security Bank is locked at 1.25%, the Stockman Bank and Bank of Montana rates do fluctuate, and that she is currently looking at some other figures to determine the best available options. Motion: Commissioner Larry Anderson moved to approve the financial report as presented. Second: Alternate Commissioner Winton Kemmis DIRECTOR S REPORT Director Cris Jensen began by explaining that an MCAA staff member told him about a Martel Construction employee that was working in the middle of the job site, and stopped what he was doing to ask an older passenger that seemed to be lost if she needed help finding her way through the terminal. The employee escorted the passenger to where she was trying to go, and the passenger later told an MCAA staff member how much she appreciated. Cris thanked the Martel Construction representatives that were present at the Board meeting for their employee s attitude toward helping out, adding that his actions say a lot about the quality of people they hire. Steve Conway of Martel Construction said he would pass the comment on to the employee that assisted the passenger. Cris then stated that three flights were cancelled due to fog over the Thanksgiving holiday weekend, though staff did have minimal success with fog seeding. Aside from the fog event, Cris stated that the rest of operations went well during the holiday. During his winter operations brief, Cris explained that a seal was put on the runway this year that is new to airports, and staff is finding that the coefficient of friction is being lost when deicer is applied to it. He went on to say that staff will hold off on using deicer whenever possible, and supplement by using brooms, until the issue can be addressed further. He added that sand is used when needed, but that it is used sparingly since it needs to be removed from the runway after use. Cris mentioned that there will be a ten to fifteen minute construction progress tour immediately following the Board meeting. He then stated that two press releases went out right before the 3

4 Board meeting. Deputy Director Brian Ellestad stated that one of those releases was regarding seasonal Frontier flights returning to the airport earlier in the spring of 2019 than they did in Frontier will return on March 22, 2019, adding that their seasonal service has returned earlier every year for the last five years. Brian went on to state that they have switched to aircraft with 180 seats for the spring 2019 return, up from the 150-seat aircraft that was used last year. He then stated that the other press release was regarding record-breaking passenger totals for the month of October 2018, as they were up eighteen percent over last year. He added that concessions are up ten percent to thirty percent from last year. Brian explained that departing seats at the airport have increased 114,000 for the year since American Airlines entered the market, which helps to put the competitive response from other airlines in perspective. He then stated that Billings Airport is currently sitting at approximately 540,000 departing seats in 2018, adding that Missoula Airport could be at 556,000 by next year if this trend continues, so Missoula s numbers may overtake Billings in Brian then added that revenue from Frontier flights was not budgeted for until May 2019, and that the increase to 180-seat aircraft was not budgeted for at all since staff was not aware of that change. Director Cris Jensen then turned the Board s attention to the new aerial photograph of the airport that was recently printed and hung on the wall in the Airport Conference Room. Manager of Projects Tim Damrow then delivered a brief terminal construction project update, including statuses for the TSA Relocation, Revolving Door Relocation, Gate 7 completion, Lav Service Station completion, and relocation of Vehicle Gate 1. Tim stated that petroleum products were found in the soil when excavating for the water line, so all of the contaminated soil was removed. Shaun Shea of Morrison-Maierle explained that Republic Services would charge $100,000 to bring all 1,000 yards of contaminated soil to the landfill which would be an unreimbursable project expense. He went on to say the other option for the contaminated soil is to put it in a containment area near the air traffic control tower and disc it for a seasons to allow the contaminants to dissipate, adding that this method will be reimbursable by the Federal Aviation Administration (FAA), and it will likely cost only $3,000 to complete. He stated Knife River already started moving the contaminated soil. Alternate Commissioner Winton Kemmis asked if the soil was very heavily contaminated, and Shaun responded that the contamination looked worse than the test results showed, adding that contaminants had been in the soil for fifty years according to those results. Commissioner Larry Anderson asked if there is now a plume around the ditch that MCAA will need to monitor, and Shaun responded that the Montana Department of Environmental Quality has not requested that be done. Tim mentioned that in dealing with this situation, a plan of action for any similar situations that should arise in the future was also developed. LEGAL REPORT Administrative Manager Lynn Fagan began by explaining that the City of Missoula has approved the zoning for the area including the airport to be annexed. She added that the public hearing and vote on annexation will be held on December 10, Lynn stated that more tenants than were anticipated have been voicing their concerns about a lack of pre-security food options now that Jedediah s has gone post-security. She went on to explain that MCAA staff sat with representatives from both Jedediah s and Liquid Planet to 4

5 discuss pre-security food options, and both will submit proposals for a small cart, kiosk, or bar in the baggage claim area. She added that the issue will be sorted out before the holidays. Alternate Commissioner Winton Kemmis asked how far west the city s annexation will go, and Director Cris Jensen responded by explaining that the new city boundary on the south side of Interstate 90 will go as far west as the airport. Business Development Manager Dan Neuman added that the city s plan is to annex wherever their sewer system is. Commissioner Larry Anderson asked where the non-essential FAA land ends on the airport, and Cris pointed that boundary out on the new aerial map of the airport. COMMITTEE UPDATES Executive Committee: Met November 27, 2018 to discuss the Board agenda. 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: Anderson Zurmuehlen Fiscal Year 2018 Audit Finance Manager Teri Norcross introduced Grace McKoy from Anderson Zurmuehlen as the lead auditor for the last six years. Ms. McKoy explained that Anderson Zurmuehlen has been engaged to complete three different audits for MCAA. She stated that the Financial Audit, the Federal Funding Compliance Audit for Airport Improvement Programs, and the PFC Compliance Audit all received a clean opinion, which is the best audit opinion that can be achieved. After a brief description of the audits, Ms. McKoy thanked MCAA staff for the continued opportunity to work with the airport and she offered to answer any questions. Commissioner Adriane Beck asked if there is a recommendation for how long MCAA should stay with an auditing firm, and Teri responded that they are engaged for a period of three years. Administrative Manager Lynn Fagan added that at least every five years, MCAA goes through a selection process under FAA guidelines. Teri then explained that the Finance Committee reviewed and discussed some grants receivable that were added to the fiscal year-end balance sheet for the new terminal project, adding that an adjustment was also made because the pension liability increased based on the State of Montana s calculation that had not been released prior to the end of fiscal year Teri stated that the audit report was reviewed by the finance committee on November 13, 2018 and comes to the Board as a seconded motion. The motion to approve the report was made by Commissioner Larry Anderson and seconded by Commissioner Matt Doucette. The motion passed unanimously. 5

6 Fourth Addendum to Jedediah s Lease Agreement Administrative Manager Lynn Fagan stated that this lease addendum will amend the square footage of the leased space only. She went on to explain that Jedediah s is not billed for rent by square foot, so there will be no change to the revenue; this lease addendum is a formality for recording purposes only. Motion: Commissioner Adriane Beck moved to approve the Fourth Addendum to Jedediah s Lease Agreement as presented. Second: Commissioner Dori Brownlow Third Amendment to Gifted Wings Lease Agreement Administrative Manager Lynn Fagan stated that this lease amendment will only change the square footage of the leased space for Gifted Wings. She explained that Gifted Wings new space outside of the revolving doors in the post-security area is a nice space and that it is more visible than its current location on the second level of the terminal. This lease amendment will take effect on December 12, 2018 after the TSA Relocation is completed. Motion: Commissioner Deb Poteet moved to approve the Third Amendment to Gifted Wings Lease Agreement as presented. Second: Secretary/Treasurer Matt Doucette NEW BUSINESS The selection and contract with Springsted, Inc. to provide Municipal Advisory Services to Missoula County Airport Authority Finance Manager Teri Norcross began by explaining that MCAA staff needs assistance with the financial side of the new terminal project. The first items staff will be looking for from Springsted are cash flow projections and recommendations. The selection committee went through six submittals from the Municipal Advisor Request for Proposals, subsequently interviewing two of those firms, and ultimately selecting Springsted, Inc. Teri stated that Administrative Manager Lynn Fagan worked on a standard services contract, and Springsted signed it. Commissioner Larry Anderson asked if Springsted will assemble an initial strategy or package for MCAA, and Teri responded that their work will be broken down into task orders, the first of which will be to create a financial model for funding the new terminal project that is easy to use and modify. Alternate Commissioner Winton Kemmis noted that given the complicated process to get to this point, he thought it warranted some kind of comparative analysis to be presented to the Board. Teri confirmed that the Board will be presented with the options Springsted comes up with. Motion: Commissioner Dori Brownlow moved to approve the selection of Springsted Inc. as Municipal Advisor to the Missoula Airport Authority, and to approve the master 6

7 contract with Springsted Inc. to provide Municipal Advisory Services to the Missoula Airport Authority. Second: Commissioner Adriane Beck Approval of Springsted Task Order One Finance Manager Teri Norcross explained that Springsted is anxious to begin its work for MCAA. This first task order will allow Springsted to create CF financing model that MCAA staff can keep updated as the new terminal project moves forward. She added that the task order will be billed on an hourly basis, and that it will be billed as a project cost. Commissioner Larry Anderson asked if task orders will be accompanied by another engineers cost quote to compare to so an idea can form about what the task order will cost. Teri responded that advising task orders are generally in smaller magnitude than engineering task orders, adding that if Springsted s costs start to increase, staff would decide reword the process. Director Cris Jensen noted that the airport is not required to obtain an Independent Fee Estimate (IFE) for task orders under $100,000, adding that Springsted s work falls more in line with professional services. Motion: Alternate Commissioner Winton Kemmis moved to approve Task Order #1 for work that Springsted Inc. will provide to the Authority related to the terminal project. Second: Commissioner Adriane Beck. Liberty Mutual Builder s Risk Insurance for Terminal Project Administrative Manager Lynn Fagan began by stating that MCAA s contract with Martel Construction puts the onus of obtaining builders risk insurance on the airport, so as the terminal project progresses further toward demolition of the current TSA checkpoint, Todd at Payne Insurance suggested purchasing builders risk insurance in conjunction with project phases. Lynn then explained that builders risk insurance is property insurance only, adding that Martel Construction holds the liability insurance to cover the project. Commissioner Dori Brownlow asked if the premiums will be annual or based on project phases, and Lynn responded that the premiums will be structured in such a way that the insured phase of the project will need to be completed within a year, or the policy will need to be renewed. Dori asked if MCAA staff has received an estimate on total insurance fees for the project, and Lynn responded that she has provided Payne Insurance a total construction estimate for the project so far, but that Payne cannot provide an estimate because the projections are too vague at this point. Commissioner Larry Anderson asked if there will be breakdowns of builders risk insurance costs for other phases, and Lynn responded that there will be a new builders risk insurance policy with each project phase. Commissioner Adriane Beck asked if it is standard that the building owner would carry insurance above the liability insurance that the contractor already has, and Lynn responded that Payne Insurance suggested having it. Steve Conway of Martel Construction noted that MCAA s contract with Martel stated the builders risk insurance would be purchased by MCAA, adding 7

8 that the important thing is that someone carries the necessary insurance. Alternate Commissioner Winton Kemmis asked if this package will be added to the airport s existing coverage, and Lynn responded that the insurance package is being purchased from a different insurance company, so it provides different coverage. Winton then asked if the original insurance carrier would share in any potential loss, and Lynn answered that if damage occurred to both the old and new portions of the building, the insurance carriers would work to cover both. Motion: Commissioner Adriane Beck moved to accept the Liberty Mutual quote for Builder s Risk insurance for Phase II of the Terminal Project in the amount of $26, as presented. Second: Secretary/Treasurer Matt Doucette Todd Donahue of Homestead Helicopters asked if Lynn asked MCAA s current insurance provider to just provide additional coverage, and she confirmed that was correct, but that their quote was higher and that it had more strings attached. Purchase of Scott Air-Pak X3 Pros Chief of Public Safety Bob Otte began by explaining that the airport needs to purchase replacement air packs for staff firefighters. He stated that Scott Air-Paks were chosen for their compatibility with the City of Missoula s equipment. He then offered to answer any questions from the Board. Commissioner Larry Anderson noted that the attached quote is for ten of each item listed, and he asked if that number is to ensure there is one for each staff member. Bob explained that the order will allow for spares with ten regulators and twenty bottles. He added that the airport has turnouts in both locations, and that these air packs have not been replaced for fifteen years. Alternate Commissioner Winton Kemmis asked what will happen to the old equipment, and Director Cris Jensen responded that all fire equipment has useful life, so once they expire, they should not be used elsewhere. Commissioner Adriane Beck asked if MCAA staff conducts their own fit testing, and Bob responded that Scott will do the initial fit testing and then instruct MCAA staff on how to do subsequent fit testing. Director Cris Jensen then noted that self-contained breathing apparatuses were on the budget for capital expenditures last fiscal year, but that $70,000 has moved forward to fiscal year 2019 for spending since it was not spent last year. He added that for this reason, the line item shows a zero budgeted amount. Motion: Commissioner Larry Anderson moved to approve the purchase of Scott Air-Pak X3 Pros for the Public Safety Department in the amount of $70, Second: Secretary/Treasurer Matt Doucette Recommendation of Award for the USFS Hangar Restroom Remodel Project Director Cris Jensen explained that plans are moving ahead to modify the MCAA-owned building that is leased by the United States Forest Service (USFS) to expand the bathrooms into 8

9 the break area. Staff is recommending that this construction project be awarded to Sirius Construction in the amount of $149,494. Commissioner Larry Anderson asked if this bid will be the extent of project costs for the hangar, and Facility Operations Manager Thad Williams responded that there has been talk of expanding the hangar years down the road. Larry asked if that means the current remodel project will be within the existing footprint of the building, and Thad confirmed that is correct. Motion: Secretary/Treasurer Matt Doucette moved to accept the USFS Hangar Restroom Remodel bid results and award construction to Sirius Construction in the amount of $149, contingent on Forest Service execution of Letter of Agreement. Second: Commissioner Deb Poteet Administrative Manager Lynn Fagan then noted that the USFS has already signed the letter of agreement. Task Order No. 17 to the Master Agreement for Professional Engineering Services with Morrison-Maierle Director Cris Jensen explained that MCAA staff would like to use Morrison-Maierle for construction management services for the USFS hangar modification project. This task order, in the amount of $17,500, will allow Morrison-Maierle to provide this service. Motion: Alternate Commissioner Winton Kemmis moved to approve Task Order No. 17 with Morrison-Maierle in the amount of $17, Second: Secretary/Treasurer Matt Doucette Election of 2019 Officers Under Article III, Section 3 of the MCAA Bylaws, The current Chair may nominate a slate of Officers by nominating a Commissioner to serve as Secretary/Treasurer, nominating the current Secretary/Treasurer to serve as Vice Chair and nominating the current Vice Chair to serve as Chair. This shall be defined as the Succession Order. Chair Shane Stack stated that, under this Succession Order, he would like to nominate Commissioner Adriane Beck to serve as Secretary/Treasurer for the coming year. Jeff Roth would move to Chair and Matt Doucette would move to Vice-Chair. Shane asked three times if any other Board members had a nomination they would like to make. Each time he asked, no one responded. Commissioner Larry Anderson asked Adriane if she would accept the nomination, and she responded that she would. Vote: Election Passed Unanimously INFORMATION/DISCUSSION ITEMS 9

10 Administrative Manager Lynn Fagan reminded the Board that the Christmas Party will be held Friday, December 14, 2018 at 6:00pm at the Terrace Suite at L.A. Design in Missoula. Director Cris Jensen then reminded the Board that the construction progress tour for TSA Relocation will happen immediately following the meeting, and that the General Aviation Committee Meeting will follow that tour back in the Airport Conference Room. The December Board Meeting will be held in the Airport Conference Room on Thursday, December 20, 2018 at 1:30pm. There being no further business the meeting was adjourned. 10