04-10-2014 APM+HUTCHINSON AIRPORT COMMISSION
April 10, 2014
5:30 p.m.
Airport Arrival /Departure Building
Minutes
Members present: Doug McGraw, Dick Freeman, Joel Schwarze, Steve Cook (Council Representative)
Members absent: Juli Neubarth, Ross Peterson
Others Present: Jeremy Carter and John Olson, City of Hutchinson; Silas Parmar, PE, Bolton & Menk; Tim Ashenfelter, Tom
Ashenfelter, Ken Fischbach, and Tim Miller, ASI Jet AG, LLC; Andy Nissen, pilot
Meeting called to order at 5:35 p.m. There was a quorum of members present.
1. Approve March 20, 2014 Airport Commission Minutes
Motion made by Schwarze, second by Freeman 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.mn.us
3. Hangars
No changes.
4. Operational Issues (Oren Proiects)
a) 2013 AIP (Master Plan Update) — Silas Parinar of Bolton & Menk presented before the Connlnission, reporting on
the status of the Master Plan Update.
Parinar indicated the forecasts have been reviewed and approved with FAA & MnDOT. Earlier today, staff from
Bolton -Menk met with FAA and MnDOT staff to review potential alternatives for crosswind runway projects and
building area plans to support information identified in the forecasts.
Potential alternatives will be reviewed by the Master Plan Advisory Group (MPAG). To increase participation
during this critical time of planning, all Commissioners are invited to attend a May 8 meeting prior to the regular
meeting. A light sandwich supper is planned between meetings.
b) 2013 AIP (Obstruction Removal) — Parinar provided an update on the obstruction removal project.
The issue of obstructions to Rwy 33 was originally identified on the MnDOT 5010 inspection report provided June
15, 2012. Following receipt of the 5010 report, City staff worked with Bolton & Menk to develop a project to
address the obstructions, which was included in the 2013 grant.
In the meantime, FAA conducted a flight procedures inspection, resulting in notification of obstructions and a
NOTAM being issued for Class C aircraft.
City staff and Bolton & Menk have been in discussions with the property owner and the property owner's attorney.
An agreement with the property owner was executed, survey crews identified the maximum height of trees earlier
this week, and the contractor is expected to begin work next week. When the work is completed and verified by
survey, the NOTAM will be removed.
c) 2014/2015 AIP (Reclaim Rwy, Twy, Apron) — Parmar reviewed project memorandmn, which was similar to the
memo handed out at the last meeting and provided to the Resource Allocation Committee at their last meeting.
The next steps in the project will be executing an engineering services agreement along with the grant application
this spring. The planning and engineering is planned to be done tinder a 2014 grant.
A construction grant is proposed for 2015. Depending upon weather conditions, it is anticipated that this project
would take about one ftlll month of working days to complete. The project will be phased so that the runway is
completed first. During runway construction, the taxiway will be striped as the primary runway. After the runway
is repaved, the taxiway and connectors will be addressed. Based upon typical ftmding cycles, it is anticipated this
work would be done in the fall of 2015.
At this time, the apron is also included in the project, but there is the possibility it may need to be deferred, if
ftmding is not available. The apron project will include additional concrete hard stand tie - downs.
d) Airport services discussion.
a. Tim Ashenfelter presented before the Coimnission. He expressed his disappointment that some people at the
airport had been discussing the notice of bankruptcy recently in the Star Tribtune newspaper without ftlll
knowledge of the circtunstances. Tim indicated also expressed that the increase in rent from the original
negotiations held with the City appeared to him to be arbitrary. Tim indicated that ASI is primarily under the
control of Tom Ashenfelter.
b. The recommendation approved by the Commission at last meeting included:
i. Rent = $1,800 /mo. Remove reference to rent increase based on sales volume of aircraft maintenance
business.
ii. Per gallon ftlel flowage fees: 0- 25,000 gal= $0.08: 25,001- 50,000 gal= $0.085: +50,000 gal= $0.10
iii. Remove Hangar 2 -8 from the agreement.
c. Jeremy Carter, City Administrator, presented before the Commission indicating that City staff had conducted
negotiations with ASI subsequent to the last meeting. During those negotiations, it was noted that rent of
$1,800 would be unacceptable to ASL During negotiations, ASI indicated they would be willing to pay up to
$1,400 per month or $1,500 per month if Hangar 2 -8 was also included. Carter indicated that based on
questions raised regarding property taxes during negotiations, there will need to be two agreements drafted with
ASL One agreement with a ten -year term will be for services. A separate rental agreement will be drafted for
the hangars. The separate agreement for hangar rental is necessary for property tax reasons.
d. Significant discussion followed Carter's report, resulting in a motion made by Freeman, second by Schwarze to
reduce rent to $1,400 and include other recommendation made by the Commission at the last meeting. This
motion was not called.
e. Following discussion of the original motion, the motion was amended by Freeman, second by Schwarze to
reduce rent to $1,200 for the first year, followed by an increase to $1,400 the following year and include other
recommendations made by the Commission at the last meeting. Unanimous approval.
5. Other Discussions & New Business
a. Airport 50t11 anniversary celebration. McGraw indicated that actual operations began at the airport in the spring
of 2015. Moving the date out to correspond with the actual opening of operations at the airport will provide
additional time to plan for a 50`11 anniversary celebration. McGraw will check to see if he can locate any
members of the Butler family who may be willing to participate in an event next spring.
At 7:05, a motion to adjourn was made by Freeman, second by Schwarze. Unanimous approval.
NEXT MEETING: 4:00 p.m. May 8, 2014 — MPAG meeting (including all Airport Commission members)
5:30 p.m. May 8, 2014 — Airport Commission meeting