MISSOULA COUNTY AIRPORT AUTHORITY Regular Board Meeting January 29, :30 pm, Airport Conference Room

Transcription

1 MISSOULA COUNTY AIRPORT AUTHORITY Regular Board Meeting January 29, :30 pm, Airport Conference Room THOSE PRESENT: STAFF: OTHERS: Vice Chair Matt Doucette Secretary/Treasurer Adriane Beck Commissioner Dori Brownlow Commissioner Shane Stack Commissioner Larry Anderson Commissioner Deb Poteet 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 Advertising Manager Amanda Jacobson Shaun Shea, Morrison-Maierle Martin Kidston, Missoula Current/Montana Today Andy Anderson, First Interstate Bank Gary Matson, Local Pilot Vice Chair Matt Doucette called the meeting to order and advised everyone that the meeting was being recorded. Motion: Commissioner Shane Stack moved to seat Alternate Commissioner Winton Kemmis. AGENDA Motion: Commissioner Shane Stack moved to approve the agenda as presented. Second: Secretary/Treasurer Adriane Beck PUBLIC COMMENT PERIOD: None. 1

2 MINUTES Motion: Secretary/Treasurer Adriane Beck moved to approve the minutes of the Regular Board meeting dated December 20, 2018 as presented. Second: Alternate Commissioner Winton Kemmis CLAIMS FOR PAYMENT Finance Manager Teri Norcross began by stating that one of the larger payments this month was to pay for monitoring the fuel spill on the airport which will be reimbursed by the State Petro Fund. She also stated that the payment to American Airlines will be partially reimbursed with funds from the Small Community Air Service grant. Commissioner Dori Brownlow asked about the timeframe for being reimbursed from the State Petro fund, and Teri responded that the turnaround is generally a couple of months. Alternate Commissioner Winton Kemmis asked if the full amount of the payment will be reimbursed, and Teri confirmed that is correct. Commissioner Deb Poteet asked if the timeframe for reimbursements from the Small Community Air Service will be the same, and Deputy Director Brian Ellestad explained that it will likely be longer due to the partial federal government shutdown. Commissioner Larry Anderson asked how much of that grant has been used, and Brian responded that approximately $744,000 has been paid to date. Motion: Commissioner Deb Poteet moved to approve the Claims for Payment as presented. FINANCIAL REPORT Finance Manager Teri Norcross began by noting that there are large payments for Air Service Incentives this month, and that accounts receivable numbers should start to drop now that more customer payments on some past due accounts have been coming in. She then asked if the Board likes the new presentation of the Profit & Loss statements, and the Board agreed that it is easier to read than the previous format. Teri then noted that Vice Chair Matt Doucette had previously asked her what contributed to the miscellaneous revenue account exceeding its budgeted amount, so she explained that unbudgeted rideshare revenue has been added into miscellaneous revenue for this fiscal year. Teri then stated that staff is working with Springsted to build a financial model, adding that the next step will be to examine MCAA s debt structure options for the future of the terminal project. Dori then asked when Springsted will have a presentation for the Board, and Teri explained that they will present to the Board in March or April at the Board retreat; or, if the Board retreat is pushed out to May, they will present sooner. She then mentioned that an Airport Improvement Project (AIP) grant from 2017 has been closed out. 2

3 Motion: Commissioner Larry Anderson moved to approve the financial report as presented. Second: Alternate Commissioner Winton Kemmis DIRECTOR S REPORT Director Cris Jensen explained that since the Board approved a contract with Airport Management Consulting Group (AMCG) for updating Primary Guiding Documents for the airport in December 2018, staff has been working with the firm to gather the necessary information. Cris then discussed the proposed legislation that will eliminate the $0.02 fuel rebate for commercial airlines which will come out to approximately $500,000 in jet fuel in Montana. Commissioner Shane Stack asked Cris to confirm that the $0.02 from commercial airlines will go to general aeronautics, and Cris confirmed that is correct. Cris then stated that House Bill 133 proposes that all disabled military veterans will receive free parking at airports. He then stated that LC1526 proposes that $0.10 will be added to price of jet fuel, which will equate to approximately $3 million from commercial airlines that will also go into general aeronautics. He then asked Board members from the Legislative Committee if they would like to schedule a meeting to discuss any of the proposed legislative changes he explained. The committee members chose to hold off on scheduling a meeting for the time being. Cris then stated that a delegation from the airport in Kalispell will be visiting MCAA on February 12, 2019 to discuss their own terminal project. He added that they will have Board and staff members in attendance, and they would like to meet MCAA s Board for lunch. Cris then mentioned to let him know if any Board members would be interested in attending the American Association of Airport Executives (AAAE) conference in Boston. Deputy Director Brian Ellestad delivered the air service development update, explaining that Missoula s competitive market has translated to real dollars for passenger savings. He stated that MCAA has seen double-digit growth for the beginning of 2019, adding that there will likely be 6 8% more seats in the market by year end. Brian then stated that Frontier Airlines will begin its seasonal service in March this year; the earliest they have ever started their service out of Missoula. Manager of Projects Tim Damrow gave a brief terminal construction project update, including the completion of Phase I, relocation of the Transportation Security Administration (TSA) checkpoint. He stated that Phase II, demolition of the old TSA checkpoint and foundation for the South Paw of the new terminal, is in progress. He then added that upcoming work will include terminal access road enhancements, and relocation of passenger boarding gate 1. LEGAL REPORT Administrative Manager Lynn Fagan began by stating that eighteen airports have responded to the compensation study she is working on, adding that in general, salary ranges are similar to other airports. Commissioner Shane Stack asked if cost of living comparisons were also considered, and Lynn responded that staff has not yet done this, though the information may be available from Associated Employers. 3

4 Lynn then stated that MCAA staff has met with the City Public Works and Development Department staff, and that they were taken through the airport to become familiar with it and some challenges that are currently facing the airport. She then mentioned that Neptune Aviation is planning to pursue another infrastructure loan through the State Department of Investments, and staff will likely bring something to the Board next month regarding that. Lynn then told the Board that she will be surveying the Board for availability for a Board Retreat that will likely take place in March or April Commissioner Larry Anderson asked how airport staff positions compare to other airports in terms of duties, based on the results of the compensation study. Lynn responded that some positions are similar, and others are not. Larry then asked Manager of Projects Tim Damrow if the adjustments to the ticket counters he described in his project update were a planned project item, or if they were added out of necessity. Tim responded that most adjustments to ticket counters were in the original scope of the project, but that slight modifications were needed beyond that. Larry then asked if these modifications impacted the budget, and Tim explained that they did not, adding that leftover contingency funds were used to cover the costs. COMMITTEE UPDATES Executive Committee: Met December 20, 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: Amendment to FAA AIP Grant 62 Director Cris Jensen explained that this action item will amend AIP 62 by $22,315 to include project overruns associated with the Magnetic Variation & Pavement Maintenance Project, and the design of the TSA Relocation Project. He added that this amount falls well under the Federal Aviation Administration s (FAA) ability to amend AIPs up to 15% of the total. He stated that MCAA s portion of this amended amount will be $2, Motion: Commissioner Dori Brownlow moved to accept the Grant Amendment for AIP in the amount of $22, as submitted to the FAA. Second: Commissioner Adriane Beck Vote: Motion passed unanimously 4

5 Addendum to Airline Use Agreement for Horizon Airlines Deputy Director Brian Ellestad explained that Alaska Airlines lost ticket counter space, passenger queuing area, and equipment storage space due to the project construction in the terminal. He added that their lease should be amended since they will be relocated to a jointuse shared counter space and trailer space, with a resulting decrease in rent revenue from Alaska of approximately $1,200 per month. He added that this agreement will be in effect through the end of June, at which point a holdover period will begin. Commissioner Larry Anderson asked if this amendment will be retroactive, and Brian responded that it will begin February 1, Motion: Commissioner Larry Anderson moved to approved Addendum to the Airline Use Agreement and Passenger Terminal Lease with Horizon Air Industries, Inc. Second: Alternate Commissioner Winton Kemmis NEW BUSINESS Resolution No Adopting Airport Parking Violation Fees Administrative Manager Lynn Fagan explained that this resolution will allow staff to increase parking violation fees, adding that the fees have not been increased since Staff would like to increase MCAA s parking and speeding violation fee schedule to correspond with the City of Missoula s fee schedule. Lynn added that Chief of Public Safety Bob Otte confirmed with the City that MCAA would be allowed to charge under the municipal court system if staff chooses to. Commissioner Adriane Beck asked if MCAA will keep all revenue that results from paid parking violations, and Lynn confirmed that is correct. She added that she is working on drafting a Memo of Understanding to work out the details with the City. Commissioner Larry Anderson asked if traffic violations involving Uber and Lyft would fall under the same fee schedule, and Lynn explained that the rideshare Resolution applies more specific fees to the commercial lane. Motion: Alternate Commissioner Winton Kemmis moved to approve Resolution No and its violation fee schedule. Vice Chair Matt Doucette noted that an additional alternate commissioner should be seated after Commissioner Deb Poteet left the meeting. Motion: Commissioner Dori Brownlow moved to seat Alternate Commissioner Pat Boyle Second: Commissioner Adriane Beck 5

6 Flynn Family Ranch Lease Extension Administrative Manager Lynn Fagan explained that the Flynn Family Ltd. Partnership has been leasing approximately sixty acres of land at the east end of the runway, and that they are interested in renewing their lease at the end of its term. She added that no one else can access this land since it is surrounded by neighboring land. She then stated that the new proposed lease rate would increase from $18 per acre per year up to $26 per acre per year which is the same as Dr. Pruyn s agriculture lease. Commissioner Larry Anderson noted that the recommended motion on the Agenda Action Sheet should be corrected, and Lynn stated the recommended motion should read Move to approve the addendum to the Flynn Ag Lease as presented. Motion: Alternate Commissioner Pat Boyle moved to approve the addendum to the third ground lease agreement with Flynn Family Ltd. Partnership as presented. INFORMATION/DISCUSSION ITEMS Local pilot Gary Matson asked if LC1526 would increase the price of fuel by $0.10 only for commercial airlines, and Director Cris Jensen responded that it would increase for all aviation fuel across the board. The February Board Meeting will be held in the Airport Conference Room on Tuesday, February 26, 2019 at 1:30pm. There being no further business the meeting was adjourned. 6