Airport Commission

Airport Commission Meeting Minutes December 13, 2018 – Owatonna Degner Regional Airport “DRAFT” 1. Call to Order Chairman Hale called the Airport Commission meeting to order at 5:00 PM at the Owatonna Degner Regional Airport. 2. Roll Call Attendance Todd Hale Chairman Tom Harrison Commissioner James Keltgen Vice Chairman Greg Krueger Commissioner Justin Lindee Commissioner Paula Snitker Commissioner Sharon West Commissioner Dave Beaver Airport Manager Visitors Ron Roetzel Bolton & Menk, Inc. 3. Approval of Agenda Chairman Hale presented the agenda and Commissioner Keltgen made a motion to approve and Commissioner West seconded the motion. The motion was approved. 4. Minutes Commissioner Keltgen made a motion to approve the minutes from the November 8, 2018 Airport Commission meeting and Commissioner Krueger seconded the motion. The motion was approved. 5. Action Items Chairman Reports There were no chairman reports. Staff Reports Airport Manager Beaver reported on airport activities and presented the fuel volumes dispensed to date. Mr. Beaver provided an update on winter operations and snow removal procedures. -FAA Supplemental Appropriation Funding Request Airport Manager Beaver explained that the FAA has been authorized to spend an additional $1 billion in supplemental appropriation for airports in the National Plan of Integrated Airport System (NPIAS) based on eligibility. The airport has submitted three eligible projects on the CIP for the 100% federal funding including the main aircraft parking apron reconstruction, runway 30 selected concrete panel repair and grooving, and development of the south quadrant building area and taxiway. Mr. Beaver reported that many airports across the country are competing for approval of funding from the supplemental with the FAA estimating approximately 1,800 hundred projects submitted for around $9.2 Billion. Mr. Beaver will update the commission on award timeline as information becomes available. - Working Group Airport Manager Beaver provided an update on the airport business development working group and explained that the group met on December 4th. Mr. Beaver reported that the group is looking at alternatives to support business development within the community and at the airport including working with based businesses Langer Aviation and John Klatt Airshows, exploring local business use of charter of shared aircraft, car rentals, and hangar area development. There was a brief discussion. - MnDOT Office of Aeronautics Update There was a brief discussion regarding MnDOT Aeronautics programs and funding. Mr. Beaver reported that there will be some upcoming retirements in the navigational aids (NAVAIDS) section that owns many of the state’s weather observation systems, and equipment for various instrument approaches. There was a discussion regarding the inspection and maintenance process for these programs and potential changes with new systems and MnDOT staff. - 2019 Equipment Purchases Airport Manager Beaver reported that the initial grant request documentation has been submitted to the Federal Aviation Administration (FAA) for the purchase of a new loader with snow blower and broom attachments. The FAA is anticipated to participate with 90% funding and MnDOT Aeronautics with another 5% grant funding participation. Mr. Beaver explained that the 5% local funding is budgeted in the airport vehicle replacement fund. -Bi-Fold Hangar Door Project Ron Roetzel with the airport engineering firm, Bolton and Menk, Inc. provided an update on the airport bi-fold door replacement project and presented the structural evaluation for the installation of the new large hangar doors. Mr. Roetzel then presented two alternatives for door replacement including both hydraulic and bi-fold strap configurations. Three summaries of estimated project costs received from prospective contractors were presented. There was a discussion regarding the cost estimates and differences in construction requirements including need for additional footings. Mr. Roetzel explained that it appears that the hydraulic door alternative from Higher Power doors is the most cost effective option. There were a number of costs that need to be firmed up prior to approving an alternative. Bolton and Menk will revise and submit as the information becomes available. Airport 2019 Rates and Charges Airport Manager Beaver presented the 2019 airport T-Hangar rate adjustment. The airport currently rents approximately thirty individual T-hangar units within three buildings. Mr. Beaver explained that the buildings were constructed in 1995, 2001, and 2005 and are presently near full occupancy. Mr. Beaver presented an area rental rate comparison for area airports and recommended an increase on $10.00 per month increase for all new and renewing T-hangar agreements beginning in calendar year 2019. There was further discussion regarding utilities and FAA grant assurances related to airport rental rates. Mr. Beaver added that consumer price index (CPI) rate escalators are built into airport land leases. There was a discussion regarding the rates on the three buildings and Mr. Beaver explained that the newer buildings are currently at a rate of $150.00 per month and the older building is at $115 per month. The older building has door openings to the north and south with the north facing doors being less desirable in the winter due to ice. There was a discussion regarding the south facing unit schedule increase to match the newer buildings due to their high demand. After discussion, Commissioner Greg Krueger made a motion to recommend approval of the airport T-hangar rental rate increase of $10.00 per month per unit for all new and renewing T-hangar rental agreements beginning in calendar year 2019 with the intent of implementing a rate schedule to increase the rate of the old building #3 south facing hangar units to the same rate as the new buildings over a three to four year period of time. Commissioner Keltgen seconded the motion. The motion was approved. 6. Adjournment The Airport Commission meeting was adjourned at 6:35 PM with a motion made by Commissioner Krueger and seconded by Commissioner Snitker.