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12-20-2012 APM+HUTCHINSON AIRPORT COMMISSION December 20, 2012 5:30 p.m. Airport Arrival/Departure Building Minutes Members present: Doug McGraw, Dick Freeman, Juli Neubarth, Ross Peterson, Joel Schwarze Members absent: Eric Yost (Council Representative) Others Present: John Olson, City of Hutchinson; Tom Parker, Hutchinson Aviation; Others present: Andy Nissen, Tim Miller, Cheryl Dooley, Jim Weckman Meeting called to order at 5:32 p.m. There was a quorum of members present. 1. Approve November 15, 2012 Airport Commission Minutes Motion made by Neubarth, second by Peterson to approve minutes. Unanimous approval 2. Airport Commission Juli Neubarth (to 09/13, first fiill -teen) Doug McGraw (to 09/14, second fiill -tenn) Joel Schwarze (to 09/15, first fiill -teen) Ross Peterson (to 09/16, first fiill -teen) Dick Freeman (to 09/17, second fiill -teen) Eric Yost (Council representative) For ineeting schedules & interest forms for serving on the Airport Commission, see www.ci.hutchinson.mn.us Olson reported the amendment to the City Code eliminating the Planning Commission member had passed. 3. Hansars Olson reported there were no changes since last month's hangar map. 4. Operational Issues (Open Proiects) a) 2012 financial statements, 2013 budget The YTD 11/30/12 financial statements/budget was presented to the Commission. The net expenditure for the airport was budgeted at $9,635. The YTD net expenditure was $1,126. This year's activity will likely be significantly under budget, considering there is only one month of 2012 left. The Construction fund will see revenues from the 2011 close -out of about $2,700 but it won't likely show up until 2013. The December rent from Life Link III should leave the Construction fund with a slight balance. b) Items relating to the FBO agreement Olson provided information about the current FBO agreement. Included was information about the fuel flowage fee, the FBO hangar rental payment, insurance, business models used by other airports, fueling services and potential improvements to agreement language. Olson will present Commissioners with improved agreement language. Discussion was held regarding the necessity to clearly identify what the components of a future FBO agreement would be. Discussion was held regarding the need to clearly identify subsidy from the airport and payments made by the FBO. These items should be clearly identified, along with what expectations the airport has for the FBO. Significant discussion was held regarding the proposal from Mr. Sparboe. Mr. Parker handed out a letter to the Commission from Mr. Sparboe, who indicated he was withdrawing his offer. Discussion turned to securing a new FBO or some other arrangement between Mr. Parker and another tenant that would address mechanic services. Mr. Parker is working on a potential deal with ASI Jet, currently at Flying Cloud Airport, to perform mechanic services. Were ASI Jet to come to Hutchinson, they would be supplying mechanics for the shop, as well as be selling agricultural aircraft. 5. Other Discussions/ New Business a) Other items: Olson reported the ag. leases for Paul Wright & RJ/Marilyn Tesch were approved by the City Council. Classic Aero and Lux -ury Aviation requested permission to vary from traffic patterns for agricultural activities. Classic Aero Tim Miller 16852 Rum Ave Hutchinson, MN 55350 Lux -ury Aviation Jeff Lux 50846 — 160"i St Cosmos, MN 56228 A motion was made by Freeman, second by McGraw to allow Classic Aero and Lux -ury Aviation to vary from traffic patterns for all agricultural activities in the 2013 season, provided they comply with State statutes and rules governing agricultural aviation and herbicide /pesticide spraying. Unanimous approval. Jim Weckman presented before the Commission. Jim is working on building a hangar of at least 40' x 40' for storage of his privately owned airplane. He would like the Commission to consider offering him GA Conventional Hangar space, whether that be located north of the existing GA hangars, or to consider a reduction of commercial hangar rates, if the hangar were to be built on the south end of the existing commercial hangar area. Olson indicated he will work with the Airport Engineer to establish a potential location for Mr. Weckman's hangar. Olson reported that another potential commercial hangar may be constructed. RAM Buildings of Winsted has requested information about constructing a commercial hangar. The hangar would be located south of the existing AJA Aviation hangar. At 7:20, a motion to adjourn was made by Freeman, second by Schwarze. Unanimous approval. NEXT MEETING: Regularly scheduled meeting: 01/17/2013.