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03-20-2014 APM+HUTCHINSON AIRPORT COMMISSION March 20, 2014 5:30 p.m. Airport Arrival /Departure Building Minutes Members present: Doug McGraw, Dick Freeman, Joel Schwarze, Juli Neubarth, Ross Peterson, Steve Cook (Council Representative) Members absent: None Others Present: John Olson, City of Hutchinson; Tom Parker, Hutchinson Aviation; Jeremy Carter, City Administrator Meeting called to order at 5:34 p.m. There was a quorum of members present. 1. Approve December 5, 2013 and February 20, 2014 Airport Commission Minutes Motion made by Cook, second by Neubarth to approve minutes. Unanimous approval 2. Airport Commission Doug McGraw (to 09/14, second frill -term) Joel Schwarze (to 09/15, first frill -term) Ross Peterson (to 09/16, first frill -term) Dick Freeman (to 09/17, second frill -term) Juli Neubarth (to 09/18, second frill -term) Steve Cook (Council representative) For meeting schedules R interest forms for serving on the Airport Commission, see www.ci.lnrtchinson.nm.us 3. Hangars Olson reported that Rick Stodola rented Hangar 1 -12. Rick's typically based at Winsted, but will have his aircraft here until field conditions in Winsted improve. 4. Operational Issues (Oren Proiects) a) 2013 AIP (Master Plan Update) — Report on status of project. a. Olson thanked Commissioners for continents that have been provided related to the draft of chapters 1 -3 of the Master Plan update. Continents were provided to Bolton -Meek. Any filture continents can be forwarded to staff, who will make sure Bolton -Meek gets the information. For the Master Plan update, consultants are in the process of developing alternative projects to meet the goals identified and serve the filture traffic forecasted. The next Master Plan Advisory Group meeting will likely be held at the end of April or early May. b) 2014/2015 AIP (Reclaim Runway, Taxiway, Apron) — Report on status of project. a. Olson provided a memorandum regarding the proposed project. The plan is to have an engineering grant in 2014 and a construction grant in 2015. It was noted that pending legislation at the state legislature may result in significant local share savings. The City must inform MnDOT Aeronautics of its intent to proceed by May 1, 2014 and have a grant agreement by August 15, 2014. c) Airport services discussion. a. Draft FBO Agreement 1. ASI Jet AG, LLC (ASI). The draft agreement was put together subsequent to a meeting with ASI, City Administrator and Public Works Manager held on February 12. Primary components of the agreement included: Rent = $1,200: Per gallon ftlel flowage of 0- 25,000 gal = $0.080: 25,001- 50,000 gal = $0.085: +50,000 gal = $0.100. b. Jeremy Carter, City Administrator, presented to the Commission. His presentation included a summary of current operations and included three options, including: 1) the model proposed in the draft agreement: 2) a model showing the City being responsible for the ftlel: and 3) a model showing ASI & the City splitting the ftlel. There was an extensive amount of discussion. Discussions by Commissioners included: • Various models of agreements that could be used, • What benefits there would be to having the City control the ftlel, • Whether the City should subsidize an FBO operation at all: and if so, to what extent would be reasonable and/or necessary. • Several questions were asked, discussed and a wide variety of scenarios were discussed. There was discussion about what it would be like if there weren't an FBO onsite. The consensus was there is value to having a viable FBO at the airport. Discussion was then undertaken to discern what recommendation should be made to the City Council, again with much discussion. A motion was made by Freeman, second by Schwarze that the final proposal recommended to the City Council include: 1) ASI would have the ftlel and pay flowage fees as identified the draft agreement. 2) Rent was recommended at $1,800 per month for Hangars 1710, 1720 and the FBO office. 3) Continents and questions from Commissioners provided to City staff that may result in any language changes from the draft agreement would be discussed with ASI. Roll call vote: McGraw — Nay: Freeman — Aye: Schwarze — Aye: Neuharth — Aye: Peterson — Nay, Cook — Aye. The motion was carried on a vote of 4 ayes to 2 nays. Staff will be contacting ASI to set up another meeting with them to go over the details of the recommendation prior to sending the agreement to the City Council for approval. 5. Other Discussions & New Business a. Minnesota Airports Conference 4/16 -18. The next meeting is scheduled for April 17, 2014 but would conflict with MCOA conference. The date for the next meeting was changed to April 10, 2014. b. September is 50`11 anniversary of the airport — Due to the late time of the meeting being done: discussion of any commemoration was postponed to a ftiture meeting. At , a motion to adjourn was made by , second by Unanimous approval. NEXT MEETING: Regularly scheduled meeting: