MISSOULA COUNTY AIRPORT AUTHORITY Regular Board Meeting October 30, 2018 1:30 pm, Airport Conference Room THOSE PRESENT: STAFF: OTHERS: Vice Chair Jeff Roth 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 Administrative Manager Lynn Fagan Accounting Clerk Rita Harris-Powers Manager of Projects Tim Damrow Business Development Manager Dan Neuman Ground Handling Manager Andrew Bailey Shaun Shea, Morrison-Maierle Gary Matson, GA Pilot Barb Neilan, Destination Missoula/TBID Martin Kidston Travis Frey, Martel Construction Steve Conway, Martel Construction Andy Anderson, First Interstate Bank Vice Chair Jeff Roth called the meeting to order and advised everyone that the meeting was being recorded. Motion: Commissioner Larry Anderson moved to seat Alternate Commissioner Pat Boyle. Second: Commissioner Adriane Beck AGENDA Motion: Commissioner Adriane Beck moved to approve the agenda as Second: Commissioner Deb Poteet PUBLIC COMMENT PERIOD: None. 1
MINUTES Commissioner Larry Anderson noted that in the minutes of the Regular Board meeting dated September 27, 2018, Shaun Shea of Morrison Maierle was listed with his name spelled incorrectly, adding the suggestion that the minutes be amended to reflect that correction. Motion: Commissioner Adriane Beck moved to approve the minutes of the Regular Board meeting dated September 27, 2018 as amended. Second: Secretary/Treasurer Matt Doucette CLAIMS FOR PAYMENT Director Cris Jensen stated that the payment to American Airlines for air service incentives was MCAA s commitment to the minimum revenue guarantee (MRG) that was agreed upon with American Airlines, adding that Missoula Economic Partnership s (MEP) portion of that has already been reimbursed. He then mentioned a payment to Ascent Aviation for deicing, and payments to Maxwell Asphalt and Morrison Maierle for construction-related expenses, adding that the next design meeting for the new terminal project will be held November 15, 2018. Cris then offered to answer any questions from the Board. Alternate Commissioner Pat Boyle asked if the payment to American Airlines was similar to what staff expected it to be, and Cris responded that was not the case. He went on to explain that there were likely a number of factors that contributed to American Airlines lower numbers for June and August 2018, such as the competitive response by other airlines that added a higher number of seats to the market. He added that while some of the MRG will be used sooner than we may have expected, passengers have benefited from seeing lower ticket prices. Commissioner Larry Anderson asked when MCAA s recently awarded $8.7 million grant will be available for use, and Cris responded that eligible work has already begun, adding that a request for reimbursement has already been submitted to the Federal Aviation Administration (FAA). Motion: Commissioner Larry Anderson moved to approve the Claims for Payment as Second: Commissioner Deb Poteet FINANCIAL REPORT Director Cris Jensen stated that MCAA is currently free of debt, though more debt will be realized as the terminal project progresses. Cris explained that a committee of staff and Board members interviewed two financial consulting firms for financing the terminal project, adding that staff will bring a recommended motion to the Board at November s meeting. 2
Cris stated that the 2019 fiscal year is 25% complete, adding that revenue for the year-to-date is slightly over budget and expenditures for the same are slightly under budget. He added that while this places MCAA in a good financial position, focus will still be given to areas of concern, such as petroleum expenses that have exceeded their budgeted amount. Secretary/Treasurer Matt Doucette asked why there were no coffee and restaurant concessions for September, and Cris explained that we have not yet received payment from Liquid Planet or Jedediah s. Commissioner Larry Anderson asked if staff has a timeline for negotiating terminal project loans, and Cris responded that it will likely begin in early- to mid-spring. Commissioner Deb Poteet asked if staff expects the debt to ebb and flow on a revolving line of credit, and Cris explained that there are a number of ways to structure the terminal project debt, adding that the financial consultants will aid staff in navigating funding options. Motion: Commissioner Dori Brownlow moved to approve the financial report as Second: Secretary/Treasurer Matt Doucette DIRECTOR S REPORT Director Cris Jensen began by stating that Montana s enplanements for September 2018 increased 8.5% over September 2017, adding that Missoula s enplanements for September increased 10.7% over 2017. Cris then explained that the recent increased interest in constructing general aviation (GA) hangars has encouraged staff to revisit MCAA s primary guiding documents, adding that a proposal will be presented to the Board next month. Cris then reminded the Board that the Transportation Security Administration (TSA) Pre-Check has been scheduled for the week of November 12 19, 2018 in the Airport Conference Room, adding that enrollment costs $85 and is good for five years. He explained that the recent presidential visit cost MCAA approximately $7,500, and he commended staff for doing an amazing job and jumping in to help when needed. Cris then stated that Barb Neilan from Destination Missoula/Tourism Business Improvement District (TBID) was in attendance to speak about Take Flight Missoula. Ms. Nielan stated that TBID and MEP are currently only $40,000 away from reaching their small air service grant funding goal for American Airlines MRG, adding that they hope to close that gap in the near future. She went on to explain that they are looking at a restructuring of how Take Flight Missoula will be funded in the future, adding that a membership-style organization with annual dues is being considered. She went on to state that the conversation about Take Flight Missoula will change to help business owners understand why yearly giving is important. LEGAL REPORT Administrative Manager Lynn Fagan began by explaining that on October 22, 2018, the Missoula City Council approved the Letter of Agreement with the airport regarding the annexation terms. Lynn then stated that annexation is not scheduled to go before the City 3
Council for a few weeks, adding that new zoning regulations for airport land have been made available. She then offered to distribute copies of zoning to any interested Board members. COMMITTEE UPDATES Executive Committee: Met October 30, 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: McCue Landlord s Release and Consent Administrative Manager Lynn Fagan stated that tenant Mike McCue entered into a 30-year ground lease with the airport in September 2018, adding that he has begun construction on a set of condo-style hangars. This item will allow Mr. McCue to secure financing for this project from First Security Bank. Motion: Commissioner Deb Poteet moved to approve the Landlord s Release and Consent between MCAA and First Security Bank with Mike McCue as Tenant, as Second: Commissioner Adriane Beck NEW BUSINESS None. INFORMATION/DISCUSSION ITEMS Director Cris Jensen reminded the Board that the December Board Meeting would fall on Christmas Day if kept to the last Tuesday of the month, so he suggested scheduling it for Thursday, December 20, 2018. The Board agreed. Cris added that in lieu of a holiday party this year, there will be a social gathering after the December Board meeting. Administrative Manager Lynn Fagan then reminded the Board that the annual Election of Board Officers will be held at next month s meeting. Commissioner Larry Anderson asked if staff has struggled in finding space for the new GA hangars being constructed, and Cris responded that is correct, adding that Business Development Manager Dan Neuman has been working to find adequate space for current and 4
future hangar construction. Vice Chair Jeff Roth asked if the location of the new hangars will limit certain wingspans from taxiing through the area, and Cris responded that none of the new hangars being constructed will interfere with the Obstacle Free Area. Cris then announced that the new Kettle House brewery in Bonner has invited airport staff to attend a soft opening this Saturday, November 3, 2018 from 5pm to 8pm. He added that MCAA will be paying for a food truck for airport guests, and he invited any interested Board members to attend. Manager of Projects Tim Damrow then gave a short presentation wherein he displayed pictures from the presidential visit, along with pictures of terminal project construction progress. He then explained that staff has launched MCAA s Bear with Us campaign for the terminal construction project, along with the new Name the Bear social media campaign. He stated that the airport experience survey has been retailored to better ensure passenger satisfaction, adding that passenger concerns are being addressed by doing things like improving wayfinding signage throughout the terminal. Tim also mentioned that costs for jet bridges and running new electric service at various project locations came in significantly under budget, so staff was able to pass approximately $566,000 back into contingency funds. For his terminal project update, Tim stated that the glycol filling station and ground service equipment parking area have both been completed, along with utility improvements, and progress toward relocating the TSA security checkpoint, including the restaurant going postsecurity as early as Friday of this week. He then mentioned that staff will hopefully be receiving updates soon from the Department of Environmental Quality regarding the samples for contaminated ground that was discovered by construction crews. Larry then asked if any airlines take part in alerting passengers about terminal construction changes, and Tim responded that not many airlines have the ability to do that. Cris added that the infographic leaflet Tim presented at last month s meeting will be made available for passengers at each ticket counter. Barb Neilan of Destination Missoula/TBID asked if any assistance was needed from the organizations she represents, and Tim suggested a meeting to discuss it. Cris then offered to give any interested Board members a tour of current construction progress. The November Board Meeting will be held in the Airport Conference Room on Tuesday, November 27, 2018 at 1:30pm. There being no further business the meeting was adjourned. 5