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02-16-2012 APM+HUTCHINSON AIRPORT COMMISSION February 16, 2012 5:30 p.m. Airport Arrival/Departure Building Minutes Members present: Doug McGraw, Dick Freeman, Juli Neubarth, Ross Peterson, Eric Yost Members absent: Joel Schwarze Others Present: John Olson, City of Hutchinson; Tom Parker, Hutchinson Aviation; Chuck Brill, resident; Tim Miller, Air Methods; Frank Schaefer, Hector Airport Meeting called to order at 5:32 p.m. There was a quorum of members present. 1. Approve January 19, 2012 Airport Commission Minutes Motion made by Neubarth, second by McGraw to approve minutes. Unanimous approval. 2. Airport Commission Dick Freeman (to 09/12, first fiill -teen) Juli Neubarth (to 09/13, first fiill -teen) Doug McGraw (to 09/14, second fiill -teen) Joel Schwarze (to 09/15, first fiill -teen) Ross Peterson (to 09/16, first fiill -teen) Eric Yost (Council representative) For meeting schedules & interestforms for serving on the Airport Commission, see www.ci.hutchinson.mn.us There was a question whether Schwarze is in his second full -term. Olson will check with City administration staff to ensure all of the terms are identified properly. 3. Hansars Commissioners were provided with an updated hangar map. Discussion was held regarding insurance coverage for short-term rentals. Olson will check with other airports to identify necessary insurance coverage for providing short-term rentals in Hangar #1. Commissioners asked about fees for hangars. There was concern that some hangar rental rates were perhaps too high, resulting in vacancies. Olson will provide the Commission with the latest MCOA survey. 4. Operational Issues (Open Proiects) a) AIP — Crack Repair Project — Update a. Project close -out ongoing. Anticipated project closure in March. b) Consultant Selection a. Olson reported the City Council had taken action on 02/14/2012 to approve the Airport Commission's recommendation. Bolton & Menk have been notified and their staff will be meeting with Olson prior to their coming to an Airport Commission meeting in March or April when they will introduce themselves to Commissioners. c) 2012 Capital Improvement Plan a. Forms filed with FAA indicating there will be a 2012 project. It would be most beneficial to use the funding to reduce operating costs or provide for future potential revenue - generating projects, such as providing for additional private and enclosed hangar development. 5. Other Discussions/ New Business a) LED lighting The company that Olson and Schwarze have been working with have a prototype LED bulb that is able to fit into the airport's fixtures. There will need to be some testing to determine the feasibility of their use. It was recommended the runway end identifier lights remain incandescent, along with periodic runway lights being incandescent to account for use of night- vision goggles. b) 2013 ff. budgeting. Commissioners reviewed the budget in an attempt to further reduce the amount of contribution from the General Fund. There are some pending items that will help to reduce or eliminate the contribution, including: Hangar rental income: Until mid -year 2012, rent paid by Life Link III is being deposited into the Airport Construction Fund to offset the City's match for the hangar's construction. The 2012 budget includes one -half the year of rental income, but 2013 ff. budgets will include rent payments for the full year. Additional inquiries will be made regarding transitory and short-term rental of Hangar 91. Future Airport Improvement Projects will include provisions for additional hangars to be constructed. Agricultural property income: In 2014, after the tiling of the north field is accounted for, rental income will be going up. In addition, the long -term ag. lease provides for future negotiations of rates in 2014. Fields on the west side of the runway, including the area around the decommissioned NDB building will be available for rent, and it is anticipated there will be an increase in rent based on competition for the land. Electrical/LED lighting. Continued focus on utility costs will likely result in long -term operating expense reductions. LED ground -based lighting (roadway, apron, and building) will likely be done in 2012. The intent is to test LED runway lighting in 2012 -2013 to determine feasibility. c) Tom Parker, Hutchinson Aviation, requested the City review payments made for fuel facility maintenance that are made to the City. There is not an issue nor has there been an issue in the past, but just to double -check that everyone's expectations are being met, Parker has requested the review. Olson will work with City finance department staff to determine an appropriate, low -cost option. At 7:00, a motion to adjourn was made by Freeman, second by Peterson. Unanimous approval. NEXT MEETING: Regularly scheduled meeting: 03/15/12.