AIRPORT COMMITTEE MEETING AGENDA June 14, :00 PM Moorhead Municipal Airport
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1 AIRPORT COMMITTEE MEETING AGENDA June 14, :00 PM Moorhead Municipal Airport 1. Call to Order 2. Agenda Amendments 3. Approval of Minutes A March 15, Citizens to be Heard 5. T-Hangar Lease Agreements 6. Airport Project Updates 7. Airport Updates 8. Moorhead Aviation Services Reports 9. Adjournment
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3 CITY OF MOORHEAD - AIRPORT COMMITTEE MEETING MINUTES MARCH 15, 2017 AT 4:00 PM MOORHEAD MUNICIPAL AIRPORT Pursuant to due call and notice thereof, a regular meeting of the Airport Committee was held at Moorhead Municipal Airport on March 15, 2017 at 4:00 PM. Roll call of the members was made as follows: Board Member Ward 1: Andy Skatvold Present, arrived at 4:03 Board Member Ward 2: Mike Koenig Present Board Member Ward 3: Bruce Emmel Present Board Member Ward 4: Wayne Lougheed Absent Board Member At-Large: K. Walter Vollmers Present Board Member At-Large: Roger Olsen Present Board Member City Council: Melissa Fabian Present 1. Call to Order Vice Chair Emmel called the meeting to order. 2. Agenda Amendments Roger Olsen requested to update the Committee with a promotional presentation he has created. 3. Approval of Minutes - December 12, 2016 Motion to approve made by Roger Olsen and seconded by K. Walter Vollmers. Motion Passed: For: 5; Against: 0; Abstain: 0; Absent: 2 4. Citizens to be Heard None. 5. T-Hangar Leasing Kristie Leshovsky provided an update on the proposed changes to process and leases for T- Hangars at the Moorhead Airport. The Committee discussed the policy and lease changes. Motion to Approve proposed updates outlined in the March 15 packet made by Melissa Fabian and seconded by Andy Skatvold, including: a. Transfer updates to hangar waiting list to Moorhead Aviation Services; b. Hangar inspections completed by Moorhead Aviation Services; and d. Storage Hangars require non-airport tenants who cannot show use of hangar for aeronautical use to remove items by June 1 and an amendment to allow storage lessees for both current hangar tenants and non-tenants who have an aeronautical use/business. Motion Passed: For: 6; Against: 0; Abstain: 0; Absent: 1 Item: c. Hangar Leases - was Tabled to the next meeting of the Airport Committee for further research and discussion Page 1 of 3
4 CITY OF MOORHEAD - AIRPORT COMMITTEE MEETING MINUTES MARCH 15, 2017 AT 4:00 PM MOORHEAD MUNICIPAL AIRPORT 6. Airport Disadvantaged Business Enterprise Program Leshovsky outlined the FAA process for establishing an Airport Disadvantaged Business Enterprise (DBE) Program. Airport engineer, Jeff Klein with Mead & Hunt, further explained how DBE is applied to future construction projects and the process to establish an Airport DBE goal for the Moorhead Airport DBE Program. Motion to Direct staff to document DBE comments and establish a DBE program and goal for the Moorhead Airport for federal fiscal years , as outlined by the FAA, by Roger Olsen and seconded by Mike Koenig. Motion Passed: For: 6; Against: 0; Abstain: 0; Absent: 1 7. Airport Updates o Airport Layout Plan Hangar Area Leshovsky provided a timeline and public input process update. Matt Blankenship with Mead & Hunt, provided details on four options for future hangar development. The Committee discussed the options. Motion to Approve obtaining public and agency comments on Option #1 with modification to include a T-Hangar structure as the ALP Preferred Alternative by Roger Olsen and seconded by K. Walter Vollmers. Motion Passed: For: 6; Against: 0; Abstain: 0; Absent: 1 o Pavement Rehabilitation Phase 1 Design Jeff Klein provided an update on the pavement rehabilitation project and process noting that this project will impact T-hangar lessee s access to hangars during construction. o Runway Repairs Moorhead Public Works crews are scheduled to conduct interim crack repairs to the primary runway in May-June This project may impact Airport users during construction. o Fly In A draft poster was included in the packet with discussion updating on which 2016 attractions will return in Moorhead Aviation Services Reports A fuel report was provided in the packet by Moorhead Aviation Services. Page 2 of 3
5 CITY OF MOORHEAD - AIRPORT COMMITTEE MEETING MINUTES MARCH 15, 2017 AT 4:00 PM MOORHEAD MUNICIPAL AIRPORT 9. Moorhead Airport Promotional Presentation Roger Olsen provided information regarding an Airport promotional presentation he will provide to interested service organizations. 10. Adjournment 5:55 PM Approved By: Wayne Lougheed, Vice Chair Attest: Kristie Leshovsky Page 3 of 3
6 AIRPORT COMMITTEE REPORT T-HANGAR LEASE AGREEMENTS To: Moorhead Airport Committee Subject: T-Hangar Leasing Date: June 14, 2017 Prepared By: Kristie Leshovsky and Kim Citrowske At the March 15 Airport Committee meeting, t-hangar policy updates were approved, but further discussion and study were requested regarding hangar leases. The revised draft Hangar Lease is attached. The discussion points at the March 15 meeting included: c. Hangar Leases i. Revise language requiring proof of aircraft ownership from 90 days to 30 days ii. Revise language noting annual inspections for aircraft are required iii. Revise language amending assumption of lease to transfer without direct family relationship iv. Evict tenants with continued delinquencies v. Update language as recommended by the City Attorney s Office vi. Consider increase in monthly lease rates - new tenants or all tenants (south three hangars) $225/$265 T-Hangars $145 T-Hangars $145 T-Hangars $135 T-Hangars Current hangar lease rates are $135, $145 and $225/$265 per month for a T-Hangar. Hangar Price Description Proposed Increase Number of Hangars Monthly Revenue Annual Revenue $265 New Hangar plus storage None 2 $530 $6,360 $225 New Hangar None 4 $900 $10,800 $145 Middle 2 Hangars Base 21 $3,045 $36,540 $135 South Hangar Base 6 $810 $9,720 $67.50 Storage Units Base 4 $270 $3,240 Total Revenue to Airport Budget $5,555 $66,660
7 The Committee discussed various lease increases at the March 15 meeting, including potential lease increases for new leases and increases for existing leases. Here is a study of potential impacts. All existing hangar leases allow the City to increase rent once per year with a minimum of 60 days notice of the increase. $5 Increase per month budget impacts: Hangar Price Description Proposed Increase Number of Hangars Monthly Revenue Annual Revenue $265 New Hangar plus storage None 2 $530 $6,360 $225 New Hangar None 4 $900 $10,800 $150 Middle 2 Hangars Add $5 21 $3,150 $37,800 $140 South Hangar Add $5 6 $840 $10,080 $73 Storage Units Add $ $292 $3,504 $10 Increase per month budget impacts: Potential Revenue to Airport Budget $5,712 $68,544 $5 INCREASE - ANNUAL IMPACT $157 $1,884 Hangar Price Description Proposed Increase Number of Hangars Monthly Revenue Annual Revenue $265 New Hangar plus storage None 2 $530 $6,360 $225 New Hangar None 4 $900 $10,800 $155 Middle 2 Hangars Add $10 21 $3,255 $39,060 $145 South Hangar Add $10 6 $870 $10,440 $78 Storage Units Add $ $312 $3,744 Potential Revenue to Airport Budget $5,867 $70,404 $10 INCREASE - ANNUAL IMPACT $312 $3,744 SUGGESTED ACTION Recommend Approval to the City Council for proposed changes T-Hangar Lease Agreements including: i. Revise language requiring proof of aircraft ownership from 90 days to 30 days ii. Revise language noting annual inspections for aircraft are required iii. Revise language amending assumption of lease to transfer without direct family relationship iv. Evict tenants with continued delinquencies Upon 3rd delinquency within a calendar year v. Update language as recommended by the City Attorney s Office vi. Increase in monthly lease rate for tenants (south three hangars) - $5 or $10 per month ($5.50/$10.50 for storage spaces) ATTACHMENTS Draft Lease
8 Added text Deleted text HANGAR LEASE THIS LEASE is executed in duplicate this day of, 20, between the City of Moorhead, Minnesota, a Minnesota political subdivision (hereinafter referred to as Lessor ) and (hereinafter referred to as Lessee ). 1. Premises. Lessor shall hereby leases to Lessee a T hangar unit at the Moorhead Municipal Airport (the Premises ). The exact unit is set out in the map attached as Exhibit A to this Lease. 1. Use of Hangar. The Premises shall be used for the purpose of storing an aircraft identified as follows: YEAR MODEL N NUMBER Lessee shall be responsible for maintaining a neat, orderly hangar, and shall not store items which would result in a nuisance or any flammable or other hazardous materials on in the Premises. hangar. Lessee agrees to comply with all guidelines established at the Moorhead Municipal Airport and Federal Aviation Administration (FAA) for storage of airplanes and use of hangar facilities. 2. Proof of Aircraft Ownership. Lessee shall possess proof of ownership of the aircraft being stored on the Premises, in leased hangar, and aircraft must be properly licensed and receive annual inspections. certified for flight. If Lessee sells the aircraft, the Lessor must be notified in writing within ten (10) days of the sale, and Lessee has thirty (30) ninety (90) days in which to replace said aircraft. One thirty (30) ninety (90) day extension may be allowed, if requested in writing from the Lessor prior to the expiration of the initial thirty (30) days. If an aircraft is not owned at the time this the Hangar Lease is consummated, Lessee has thirty (30) ninety (90) days to obtain an aircraft. If Lessee tenant is not the owner of the stored aircraft (e.g. Lessee tenant is principal operator, but a direct family member owns the aircraft), the aircraft owner s signature will shall be required on this Lease. 2. Term. The term of this Lease will shall be month-to-month commencing, 20. Provided, that If the commencement date set forth above is not the first (1 st ) day of the month, the first rental period will shall expire on the last day of the commencement month above written. In the event of termination of this Lease by thirty (30) days written notice to the Lessor, Lessee shall remove all property from the Premises hangar by midnight of the last day of the term. Termination by Lessee automatically terminates tenancy of any Sublessee. In the event Lessee fails to fully vacate the leased Premises, Lessee agrees to reimburse Lessor for all costs and 1
9 expenses, including reasonable attorney s fees incurred by Lessor in regaining possession of the leased Premises. 3. Assumption of Lease. Hangar leased by Lessee does not transfer with the sale of the aircraft, unless the sale of the aircraft is between direct family (parent/ child/spouse) members Assignment/Subleasing. The Hangar leased by Lessee may transfer with the sale of the aircraft. The new aircraft owner must enter into a new Hangar Lease agreement with Lessor. Lessee may not assign or sublet said premises without the prior written consent of Lessor Rent/Lost Locks/Keys. Lessee shall pay a rental fee in the amount of $ per month, except, if the rental commences other than on the first (1 st ) day of the month, the rent for that month shall be prorated based on the number of days left in that month. A late fee charge of $15 shall be assessed for payments received after the tenth (10 th ) day of the month, and said late fee shall be added to the following month s payment. At or before the time this Lease is signed, Lessee shall have paid the sum of $305.00, the receipt of which is hereby acknowledged by the Lessor. The Lessor shall retain $ as a damage deposit. This amount shall be returned to the Lessee at the end of the lease term if the hangar has not been damaged through actions of the Lessee, keys/locks are turned in to the Airport Manager, and the Premises hangar is returned to the Lessor in a clean condition with all personal belongings removed from the Premises. The Lessor will also hold $ as payment for the last month s rent under this Lease. Any delinquency on monthly payments is a violation of the terms of this Lease and Lessor may begin the Termination of Lease process set forth below upon the third monthly payment delinquency within a calendar year. Lessor may adjust the rental fee charged herein once per year. Lessor shall notify Lessee of the new rental rates at least sixty (60) days prior to the effective date of said rates. There will be a $5 $65 charge to replace lost keys and a $15 $120 charge if keys are not returned when lessee terminates lease. to replace lost locks Termination of Lease. Lessee shall have the right to terminate this Lease upon thirty (30) days written notification to the Lessor. Lessor may shall have the right to terminate this Lease for any reason upon sixty (60) days written notice to Lessee. Lessor shall also retain the right to terminate this Lease upon thirty (30) days written notice if Lessee violates the terms of this Lease. Lessee shall be deemed not to have violated the terms of this Lease unless the Lessor has provided written notice to the Lessee of a such violation of this the Lease and such violation is not cured within five (5) days, or a similar violation occurs within ninety (90) days of the notice of the first violation Commercial Operations. Lessee shall not conduct commercial operations from the leased Premises hangar without Lessor s written approval Inspection. Lessor, or its designated representative, retains the right of 2
10 access to the Premises hangar, at Lessor s option Utilities. Lessor shall provide electricity as the sole utility to the hangar at Lessor s expense Snow Removal. Snow removal will be the responsibility of the Lessor at a distance from the hangar door which can be safely accomplished without incurring damage to the Premises hangar or the snow removal equipment. During periods of excessively heavy snowfall, snow removal operations will be accomplished in accordance with the priorities set forth in the airport snow removal plan. Removal of any snow or ice remaining after plowing operations cease is the responsibility of the Lessee Indemnification. Lessee assumes all risk of personal injury or death and property damage or loss from whatever causes arising out of Lessee s, or Lessee s agents or employees, use or occupancy of the Premises. Lessee expressly agrees to release, hold harmless, defend, and indemnify Lessor, Lessor s officers, employees, agents, and representatives, from any and all liability, losses, damages, claims, demands, actions, judgments, and executions in any way arising out of or regarding Lessee s, or Lessee s agents or employees use or occupancy of the Premises, whether known or unknown, foreseen or unforeseen, liquidated, unliquidated, fixed, contingent, material or immaterial, disputed or undisputed, suspected or unsuspected, asserted or unasserted, direct or indirect, at law or in equity, from the beginning of time, and Lessee understands and acknowledges the significance of such release and waiver and hereby assumes full responsibility for any injuries, damages or losses that Lessee may incur as a result of Lessee s execution of this Lease. In addition to holding Lessor harmless from any and all claims arising out of or related to Lessee s use or occupancy of the Premises, Lessee agrees to indemnify and defend Lessor from any and all actions brought against Lessor relating to or arising out of Lessee s, their agents, assignees or designees use of the Premises. Said indemnification will include, inter alia, attorney s fees, damages, whether punitive, economic or compensatory, and costs and disbursements. However, this paragraph will not apply to suits against Lessor arising out of Lessor s negligence or intentional acts, or those of its employees, agents or designees. Lessee specifically agrees and acknowledges that these release, hold harmless and indemnification provisions will survive the termination of this Lease. It is expressly agreed by the Lessee that the Lessor shall be held harmless and shall not be liable for damages to Lessee s property which relates to the occupancy of the premises. Lessee agrees to also indemnify the Lessor from any and all liability, loss or damage the Lessor may suffer as a result of claims, demands, costs (including reasonable attorney s fees) or judgments against it arising from the operation of Lessee s aircraft or from the occupancy of Lessee s aircraft on the Lessor s premises, except said damage directly and proximately caused by negligence or an affirmative act by the Lessor Insurance. Lessee shall procure and maintain in force during the term of the Lease, at Lessee s expense, liability insurance in an amount equal to or greater than required by Minnesota law for licensed aircraft in Minnesota. Lessor must be named as 3
11 an additional insured on such policy. Lessee must provide a copy of this policy to Lessor. The insurance may not be cancelled or terminated, except upon thirty (30) days written notice to Lessor of Lessee s intent to cancel or terminate the policy. If Lessee allows the insurance policy to lapse without furnishing a new, valid policy to Lessor, this will be deemed a violation of this Lease and Lessor may initiate proceedings to have this Lease terminated. Lessor and Lessee hereby grant to each other, on behalf of any insurer providing fire and extended coverage to either of them thereof, a waiver of any right of subrogation any such insurer or one party may acquire against the other by virtue of payment of any loss under such insurance, such waiver to be effective so long as each is empowered to grant such waiver under the terms of his/her insurance policy or policies involved without payment of additional insurance premiums. Said waiver shall stand mutually terminated as of the date either Lessor or Lessee ceases to be empowered Security/Parking. All gates will be kept closed. Hangar doors will be kept closed and lights will be turned off except when the facility is being used. Vehicles must be parked so as not to interfere with aircraft or snow removal operations Airport Regulations. Lessee agrees to be bound by all airport regulations adopted by the Lessor, the State of Minnesota, or the United States Government, in effect at the time of the execution of this Lease or as may be enacted or amended in the future. Any violation of any of those statutes, ordinances, rules and regulations is shall be a violation of this Lease and grounds for termination pursuant to paragraph 5 6 of this Lease Entire Agreement. This Lease contains the entire agreement between the parties and supersedes all prior written or oral agreements or negotiations concerning this Lease Amendments. This Lease may only be amended in a writing executed by both parties to this Lease. IN WRITING WHEREOF, this Lease has been executed as of the day and year first written above. CITY OF MOORHEAD BY: BY: (Lessee) Its Mayor Lessee Address: Phone: BY: Its City Manager C:\Program Files\Neevia.Com\Document Converter\temp\44541.doc 4
12 To: Moorhead Airport Committee Subject: Project Updates Date: June 14, 2017 Prepared By: Kristie Leshovsky and Kim Citrowske AIRPORT COMMITTEE UPDATES PROJECT UPDATES Airport Layout Plan Hangar Area: Following the March 15 Airport Committeee meeting, Mead and Hunt completed public input (online and a March 30 open house) on the Preferred ALP Layout and held a conference call with stafff from MnDOT and the FAA. FAA/MnDOT Comment and Review: The FAA and MnDOT have provided numerous comments on the Preferred ALP Layout and associated planning documents. Mead and Hunt staff are currently incorporating their comments. Final review: Once comments are received and resolved from FAA and MnDOT,, the final report and ALP update sheets will be brought to the Airport Committee for final review and anticipated recommendation to the City Council. Pavement Rehabilitation Phase I Construction and Apron Design: 1. Design/Bid Hangar Pavement: Mead and Hunt submitted draft design documents to the FAAA for review on February 2 and updated plans on April 7. The FAA submitted final comments on May 18. Plans will be advertised on June 9 with the bid opening on June 29. Assuming the bids are within the proposed budget, it is anticipated that award of bid and related Mead and Hunt and MnDOT/FAA grant agreements will be brought to the July 10 City Council meeting. 2. Hangar Pavement Estimated Project Schedule: Bid Opening June 2017 City Council Approval July 2017 Project Constructionn August 28 -September 29, Hangar Pavement Construction is estimated to take one month to complete (weather and other construction factors can increase project timeline) and will have an effect on access to hangars. Tenants were sent a letter on May 24 (see attached) noting the estimated construction timeline.
13 4. Cost Estimate Hangar Construction and Apron Design: The State FY begins July 1, The FAA is funded through the end of Federal FY 2017 (September 30). Grant applications are due July 7. Estimated Project Construction Costs: Construction $960,000 Engineering/Construction Administration $150,000 Geotechnical and DBE Plan $8,400 Apron Design $195,000 Total Project Construction $1,313,400 Estimated Funding: AIP Entitlement Funding * $487,797 AIP Eligible Amount in Excess of Entitlement ** $122,555 State of Minnesota (anticipated) $232,001 City of Moorhead $471,047 Total Project Construction $1,313,400 *Available with AIP Funding approval through September Includes $150,000 Houston County agreed to paid back in 2018 (originally scheduled in 2017). **AIP eligible share in excess of entitlement to be funded locally in 2017 and reimbursed in future grant At their November 2016 meeting, the Airport Committee made a motion to pursue 2017 funding for the hangar-area pavement project and design/bidding for the apron pavement area upgrades.
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15 To: Moorhead Airport Committee Subject: Airport Updates Date: June 14, 2017 Prepared By: Kristie Leshovsky, Kim Citrowske and Steve Moore AIRPORT COMMITTEE UPDATES RUNWAY REPAIRS Runway repairs were completed the week of May 22 nd. There were 87 transverse cracks repaired along the entire runway with other cracks filled. Steve Moore, Public Works Director, noted that there were some water seepage issues during the project which may be the result of limited base course under the asphalt (resulting in groundwater seeping through the cracks). All repairs were made and Moorhead Aviation Services will monitor the repairs in case any follow up is needed. MnDOT is scheduled to repaint the runway in See attached project photos. VEHICLE/EQUIPMENT UPDATE Public Works provided a newer unit to serve as the airport courtesy vehicle. This unit will present a more professional image for the airport. Additionally, the airport received a 10 ½-foot Toro Groundsmaster mower to replace an older 6-foot mower. Moorhead Aviation is doing a great job maintaining and operating the equipment provided by the City. FLIGHT PROCEDURES UPDATE Moorhead s instrument approach procedures will be updated upon implementation by the FAA due to existing building locations at the Moorhead Airport. The LPV 7/8 mile approach is anticipated to be eliminated in the fall 2017 Terminal Procedures publication as a 1000 foot wide primary surface cannot be accommodated. Moorhead will be changed back to 1 mile after that time. DBE PLAN The Moorhead Airport Federal FY Disadvantaged Business Enterprise (DBE) Program has been approved by the City Council and U.S. Federal Aviation Administration. AIRPORT PRESENTATION Roger Olson will be presenting information on the Airport at the June 26 City Council Committee of the Whole meeting. FLY IN The 2017 Moorhead Airport Fly In is anticipated for Saturday, September 9, Attached is a draft of a poster/handout design and draft revised layout due to construction for review and comment.
16 Transverse cracking prior to repair
17 Starting milling operations
18 Milling at 2 depth 24 width
19 Crack will be cleaned out and sealed prior to paving
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21
22 Crack filling
23 Crack filling
24 Completed crack fill
25 Completed crack fill
26 Water truck decreases milling friction
27 Milling, cleaning and clearing operations
28 Milling, cleaning and clearing operations
29 Milling, cleaning and clearing operations
30 Crack filling and finished transverse crack repair
31 Crack filling and finished transverse crack repair
32
33 One of many crack fill locations
34 87 transverse cracks repaired along entire runway All other remaining cracks were filled along runway
35 EAA Young Eagle YOUTH AIRPLANE RIDES 9am - Noon Model Airplane Demo Sky Dive Fargo - JUMP AT Noon Sanford Helicopter MN Highway Patrol Helicopter SPONSORED BY:
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37 Moorhead Municipal Airport Fuel Sales 100 LL (Gallons) Jet A (Gallons) Total , , Total 29, , Total 25, ,840.3 Total , ,866.4 Total , ,190.2 Total , ,890.2 Total , , Total 17, ,048.3 Total , , January February March 1, April 1, May 2, June 2, July 2, ,081.4 August 3, ,413.9 September 2, ,565.7 October 2, ,088.6 November 1, ,088.1 December Total 21, , January February March 1, April 1, May 2, June July August September October November December Total YTD 5,
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