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2009-01-14 Airport Relations Commission MinutesCITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA AIRPORT RELATIONS COMMISSION MINUTES January 14, 2009 The regular meeting of the Mendota Heights Airport Relations Commission was held on Wednesday, January 14, 2009, at 7:00 p.m., in the Council Chambers at City Hall, 1101 Victoria Curve, Mendota Heights, Minnesota. The following Commissioners were present: Liz Petschel, Chair; Robin Ehrlich, Vice Chair; Bill Dunn, Joe Hennessy, Sally Lorberbaum, Lyle Odland, and Dave Sloan, Commissioners. Also present were: Representative Rick Hansen; Ultan Duggan and Sandra Krebsbach, Councilmembers; Jim Danielson, City Administrator; Jake Sedlacek, Assistant to the City Administrator; and Mary Heintz, Recorder. Not Present: None. Approval of Minutes Chair Petschel requested one correction to the ARC meeting minutes of November 12, 2008, on page 3, paragraph C, citing Vice Chair “Ehrlich.” A motion was made by Commissioner Dunn, seconded by Commission Lorberbaum, to approve the minutes of the November 12, 2008, ARC meeting as amended. It was approved unanimously. Unfinished and New Business A. Meet with Representative Rick Hansen to discuss NWA/Delta merger, MAC/City relations, NOC work plan, ANRC letter Chair Petschel welcomed Representative Hansen and recognized the significant ongoing assistance he provides to the Commission. Representative Hansen described current and upcoming government activities including the swearing-in of newly-elected and re-elected House representatives, new bills being introduced, and upcoming joint hearing on the NWA/Delta Airlines merger. He reported that the State-of-the-State Address will be heard January 15 and the State budget will be received January 26, with the forecast expected the third week in February. Commission Meeting – January 14, 2009 Mendota Heights Airport Relations Commission 2 NWA/Delta Merger Vice Chair Ehrlich inquired as to whether all money would be due the State if NWA violated the current bonds contract. Representative Hansen reported that it is a loan agreement and a Statute could be needed for clarity and to make a strong case. Chair Petschel provided clarification that there is no money owed to the state. MAC floated bonds to finance the NWA loan. The money owed is between Delta and the bond holders now. She stated that all bonds to date have been paid on time, the bond holders are happy to hold them, and the fact that the bonds are outstanding and the transaction took place through MAC is the only leverage MAC has now. Vice Chair Ehrlich inquired about the proposed three-year agreement. Representative Hansen offered to email the timeline to Chair Petschel, adding that many Committee meetings are streamed and played back by many local cable companies. He also encouraged members of the Commission to testify and express concerns at upcoming hearings. Councilmember Krebsbach asked whether there has been any discussion about airport properties being sold. Representative Hansen stated that a few legislators proposed doing so for budget balancing but he didn’t think it would be a practical solution, given Federal involvement, and said the forecast today cited a $131 million budget drop for November and December. Chair Petschel described Representative Hansen as being instrumental in arranging for the hearings at the Legislature, which resulted in major concessions by the MAC: 1)A meeting once a year off the airport grounds, 2)A frank meeting between the Cities and MAC, 3)Input into appointments of MAC representatives. The City Administrator provided greater detail about the offsite MAC meeting, which had been attended by representatives of Inver Grove Heights, St. Louis Park, Richfield, Eagan, Minneapolis, Bloomington, and Mendota Heights, and said MAC was very surprised and delighted by the turnout. It was announced at the meeting that the NWA/Delta merger would likely occur in the late fall, which it did, and result in the world’s largest airline company. Concerns about the merger had been discussed, as had been reasoning for the NWA loan: 1) the world headquarters would remain in the Twin Cities, 2)approximately 13,000 jobs would be guaranteed as a result of that, and 3) the hub would remain in the Twin Cities. As a result of the merger, the headquarters will now move to Atlanta and employment numbers won’t be met (10,000 instead of 13,000). Chair Petschel stated the hope that a commuter hub be created utilizing the old Republic campus, which would be an enormous fleet. Councilmember Duggan said he believed that the NWA/Delta training facilities would remain in Eagan, as would Reservations, and that there would be no negative impact with Southwest coming in. Commission Meeting – January 14, 2009 Mendota Heights Airport Relations Commission 3 The City Administrator reported that Eagan had expressed concern about empty NWA buildings in Eagan and the fallout on other surrounding businesses. Councilmember Krebsbach reported that she had been informed by co-workers that some NWA employees had been given notice of a 1-2 year job-loss timeframe. The City Administrator stated that Delta has $6-7 billion in unrestricted cash, having no trouble paying off the MAC loan if it chose, and that NWA will definitely be leaving (repainting NWA tails over a three-year period beginning in March). He said NOC has been a great organization with which to work on noise issues with MAC and concern is that Delta continue to be involved and reappoint a replacement for NWA’s Kathleen Nelson. Chair Petschel reported that a Delta representative had been appointed since that meeting, which is important because the biggest airline drives the NOC group and brings in other carriers. Retired NWA chief pilot Tim Buettel was described by both the City Administrator and Chair Petschel as being an outstanding asset to the City and being able to explain airline technology. He hopes to remain on the NOC as a consultant. Representative Hansen asked whether the City was aware if Delta had experience working with NOC organizations in other hubs. Chair Petschel said the question had been asked at the meeting but no direct answer received, though NWA’s Kathleen Nelson gave assurance that Delta is committed to working with the public and organizations such as the NOC. It is hoped that other airlines, such as Sun Country, will continue their operations. Chair Petschel commented that Southwest Airlines is the most ideal competitor to Delta because it can go toe-to-toe with its deep pockets, adding that it will add more direct flights for MSP if it stays. Chair Krebsbach asked if there would be a change in aircraft if MSP becomes more of a commuter hub. Commissioner Hennessy said routes and destinations determine aircraft and it’s likely MSP will see 767’s to Europe and 787’s to Narita, rather than 747’s. Chair Petschel expressed the Cities concern of the fleet mix following the merger, losing the more quiet A320 airbuses. Commissioner Hennessy noted that fuel costs drive NWA now, paying $37 a barrel instead of $140, and that the life of DC9s have been extended (because they are paid for). Councilmember Krebsbach complimented Chair Petschel for her leadership and the ARC for doing an outstanding job for City residents, citing quieter skies. Councilmember Duggan also informed residents of next week’s NOC meeting and Wednesday’s MAC meeting, which are both open to the public. Commission Meeting – January 14, 2009 Mendota Heights Airport Relations Commission 4 MAC/City Relations Chair Petschel provided background information on the City’s nomination and Governor Tim Pawlenty’s confirmation of attorney John McDonald as the City’s MAC Commissioner, vacated by Commissioner Tom Foley. The City is thrilled with the confirmation and a greater level of communication is anticipated having Commissioner McDonald on board. The ARC Commissioners reviewed a copy of a letter that had been sent to newly- appointed Commissioner McDonald congratulating him and thanking him for his willingness to serve. Councilmember Duggan suggested a motion, which was made by Commissioner Lorberbaum and seconded by Commissioner Odland, to commend those whose strenuous and continuing efforts ensured that the best candidate be appointed as the City’s representative to the MAC, including ARC Chair Liz Petschel, Mayor John Huber, Mary Jeanne Schneeman Representative Rick Hansen, and others. It was approved unanimously. Representative Hansen commented that it is easier to work with great people, such as Mayor Huber and members of the ARC and Council, and said Chair Petschel was very credible testifying at the hearing and welcomed her back any time. He said the City is well represented by ARC and it is important to be ready and prompt when working with governmental offices, such as the Governor’s Office. Commissioner Odland suggested that those attending be careful when speaking in acronyms, as many residents viewing this evening’s meeting from their homes may not be familiar with them: NOC (Noise Oversight Committee), MAC (Metropolitan Airport Commission), ARC (Airport Relations Commission). Chair Petschel also encouraged residents to view the City’s video entitled “Airport 101,” which was created by the ARC and describes aircraft and how the airport and ARC work. She said it would be an ARC goal to circulate the video again this year. Councilmember Krebsbach encouraged the ARC to have their meetings televised quarterly and said residents may not be aware of the hard work done by the ARC on their behalf. Chair Petschel said all ARC meetings are open to the public, held the second Wednesday of each month, but meetings typically are not televised because of subject sensitivity and maintaining an open forum for frank discussion. The Assistant to the City Administrator stated that this evening’s meeting would be available on the City’s webstream for those interested. NOC Work Plan Chair Petschel acknowledged the extreme productivity of the NOC group and said it has had a favorable effect on the City. She said there had not been such a level of Commission Meeting – January 14, 2009 Mendota Heights Airport Relations Commission 5 cooperation with the Tower before chief Carl Rydeen, who has been instrumental in making improved changes. Chair Petschel reported on the reconstruction plan on 12L/30R beginning in September, which will result in no aircraft going off the north parallel, as well as the implementation of RNAV, whereby aircraft ascend by computer and maintain designated headings until they reach a given turn point (for Mendota Heights, at 494 and 35E). She reiterated that the single most important task for the ARC is equitable runway usage, noting that the November Technical Advisor’s Report showed 12L/30R taking two-thirds of night-time operations. Minneapolis shares the same concerns as Mendota Heights with regard to 30R. Commissioner Hennessey asked what determines which runway aircraft depart from in the evening, and Chair Petschel said it is the controller, citing fuel savings and ease of having regional jets parked close to the end of the runway being sent off the closest runway. She said it is time to revisit the subject with Mr. Rydeen of inequitable night- time departures. Commissioner Dunn commented that, in the past, the situation gets better when discrepancies are pointed out to the Tower and that other reasons for inequity may be Tower personnel turnover and “habit” of doing so. Chair Petschel said the inequity needs to be addressed immediately (and is on the NOC work plan) before the pattern becomes a standard operating procedure. Councilmember Duggan thanked the ARC for paying attention to FAA reports and bringing anomalies to the FAA’s attention so they can direct traffic to the appropriate headings. ANRC Letter Chair Petschel provided some history regarding the Rogers Lakw East group, identified now as ANRC, and the differentiation between that group and the ARC. The missions of the two are very different as are the members, as ARC commissioners are appointed by the City, and she reported that she had sent a letter (after discussing with Mayor Huber) to MAC that provided clarity about that important distinction. She said Jeff Hamiel responded with a letter thanking ARC for the clarification and reaffirmed MAC’s willingness to work with the ARC. Councilmember Duggan provided some history on the ANRC and an update about his meeting with the group, which had been requested by them, and described it as disjointed and impossible to follow, though acknowledging the passion and commitment of those members. Chair Petschel, on behalf of the ARC, thanked him for meeting with them. B. Updates for Introduction Book None. Commission Meeting – January 14, 2009 Mendota Heights Airport Relations Commission 6 Acknowledge Receipt of Various Reports/Correspondence A. MAC Noise News B. October 2008 ANOM Technical Advisor’s Report C. November 2008 ANOM Technical Advisor’s Report D. October 2008 ANOM Eagan/Mendota Heights Departure Corridor Analysis E. November 2008 ANOM Eagan/Mendota Heights Departure Corridor Analysis F. Airport Noise Report, N G. November 7, 2008 H. Airport Noise Report, November 14, 2008 I. Airport Noise Report, November 28, 2008 J. Airport Noise Report, December 5, 2008 K. Airport Noise Report, December 12, 2008 L. Airport Noise Report, December 19, 2008 M. Airport Noise Report, December 24, 2008 Highlights of the Technical Advisor’s Reports were briefly discussed, including reduced complaints (which is typical for winter months), decreased number of MSP operations, more night-time operations over Mendota Heights post 9/11, as well as hushed kits and RNAV. Chair Petschel requested some closing thoughts from Representative Hansen, who reported on the new Lafayette bridge (to open in October 2010), noise barriers along 52, and a Wacota bridge update. He will serve on various House committees: (Game, Fish, Forestry; Environment Policy; Environment Finance; Capital Investment (only Dakota County representative); as well as ex officio member for the Cultural and Outdoor Heritage Fund (sales tax beginning July 1 will be available September 1). Additional information can be obtained at www.lohc.state.mn.us. Representative Hansen reported that he had met with the Minnesota Conservation Corporation, whose focus is on how to use the funds for job creation. “A Day at the Capitol” for the District will be held on February 7, so residents can see how the government works, and he encouraged those interested to sign up. He then excused himself from the meeting. Chair Petschel, on behalf of the ARC, thanked Representative Hansen for his attendance at this evening’s meeting. Other Commission Comments or Concerns None. Upcoming Meetings • City Council Meeting – January 20, 2009 – 7:00 p.m. • NOC Meeting – January 21, 2009 – 1:30 p.m. • MAC Meeting – January 26, 2009 – 1:30 p.m. • Planning Commission – January 27, 2009 – 7:00 p.m. Commission Meeting – January 14, 2009 Mendota Heights Airport Relations Commission 7 Discussion ensued regarding upcoming meeting agendas, and it was decided that new MAC Commissioner John McDonald be invited to attend a future ARC meeting, after he has received some introductory information (ARC membership and video). The City Administrator reminded attendees about the upcoming annual holiday party. Councilmember Duggan requested that this evening’s ARC televised meeting be put on the webstream for viewing. Councilmember Krebsbach asked that the ARC ensure the NOC work plan is on the ARC work plan. Commissioner Hennessey commented that, as a part of its duties and responsibilities, the ARC needs to pay close attention to issues that ensure MSP remains a relevant, viable entity (relative to the merger transition); assure that the new Delta respects the obligations of contracts; and work with Delta as a partner and remain a viable asset. Councilmember Duggan asked that staff request copies of other bills (in addition to the one circulated at this evening’s meeting) from Representative Hansen, to provide feedback and propose rephrasing so it doesn’t appear Delta is being “hammered on the head.” The Assistant to the City Administrator also noted that the State has a search engine on its website and any bill can be pulled up. Councilmember Krebsbach said it is important that Mendota Heights’ position be made clear, as it has to co-exist with MSP and is a resource, looking at how Industry Park might benefit from the close proximity as a regional headquarters. Commissioner Odland reminded the public that the ARC is an airport relations committee and not just a noise abatement committee. Councilmember Duggan complimented Chair Petschel for a commendable job representing the City at meetings, improving relations with other communities and MSP, and opening others’ eyes to other significant issues, such as the economy and housing, as well as noise. Commissioner Sloan commented that the NWA-Delta merger is not dissimilar to the Chrysler-Mercedes Benz merger, where having one party bigger than the other does not make for “equality,” and Delta is definitely the “bigger dog” in this merger. He said Delta will be making business decisions based on traffic patterns, etc., which will have an impact. Chair Petschel stated that is why it was important to have a strong MAC appointment, someone to take wise leadership and see the merger through to a productive end. Discussion ensued on the importance of maintaining jobs and service in the area after the merged Delta, as well as a viable MSP (being the 13th busiest airport in the nation), and that prioritization efforts for other airports have not worked in the past. Commission Meeting – January 14, 2009 Mendota Heights Airport Relations Commission 8 Public Comments None. Adjourn Commissioner Dunn made a motion, seconded by Commissioner Hennessey, to adjourn the meeting at 9:09 p.m. It was approved unanimously. Respectfully submitted, Mary Heintz TimeSaver Off Site Secretarial, Inc.