MN - Rochester: Regular Meeting

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Regular Meeting

Airport Commission ,

Tagged Interests: airport and boards and commissions

Regular Meeting http://www.rochestermn.gov/

Agenda Michon Rogers

507-328-2700

Tuesday, December 10, 2019 10:00 AM Room 104, City Hall

Airport Commission Page 1 Printed 12/5/2019

Tagged Interests: airport and boards and commissions

I. Call to Order

1. Supporting Information

II. Approve Minutes

1. Approve Minutes

III. Airport Financials

Tagged Interests: finance and airport

1. Airport Financials

Tagged Interests: finance and airport

2. Airport Operational Data

Tagged Interests: airport

IV. Action Items

1. Review Farmland Agreement KATS Company LLC

2. Review Farmland Agreement Dennis Strei

3. Review Farmland Agreement Ken Oehlke

4. BP Reimbursement Agreement Construction Requirements

Tagged Interests: construction

V. Information Items

VI. Other Business

Tagged Interests: business

VII. Adjournment

Supporting Information/Documentation for Agenda Items

Airport Commission Meeting

Tagged Interests: airport and boards and commissions

12/10/2019

Item III Airport Financials. (We will bring copies as we are still assembling the most recent information)

Tagged Interests: finance and airport

Item IV Airport Operational Data.

Tagged Interests: airport

Item V.1. KATS Company LLC Farming Agreement (Lease Attached)

Tagged Interests: leasing and agriculture

Item Description: Farm lease agreement for the right to farm small portion of land on airport property.

Tagged Interests: leasing, airport, agriculture, and property

Timeframe: One-year extension to existing agreement.

Cost: 2 acres @ 175/acre. Annual revenue is 350

Funding: N/A

Tagged Interests: funding

Staff Recommendation: Recommend Airport Commission and City Council Approval and Acceptance.

Tagged Interests: council, airport, and boards and commissions

Item V.2. Dennis Strei Farming Agreement (Lease Attached)

Tagged Interests: leasing and agriculture

Item Description: Farm lease agreement for the right to farm a portion of land on airport property.

Tagged Interests: leasing, airport, agriculture, and property

Timeframe: One-year extension to existing agreement.

Cost: 42 acres @ 175/acre. Annual revenue of 7,350

Funding: N/A

Tagged Interests: funding

Staff Recommendation: Recommend Airport Commission and City Council Approval and Acceptance.

Tagged Interests: council, airport, and boards and commissions

Item V.3. Ken Oehlke Farming Agreement (Lease Attached)

Tagged Interests: leasing and agriculture

Item Description: Farm lease agreement for the right to farm a portion of land on airport property.

Tagged Interests: leasing, airport, agriculture, and property

Timeframe: One-year extension to existing agreement.

Cost: 17.57 acres @ 175/acre. Annual revenue of 3,075

Funding: N/A

Tagged Interests: funding

Staff Recommendation: Recommend Airport Commission and City Council Approval and Acceptance.

Tagged Interests: council, airport, and boards and commissions

Item V.4. British Petroleum Reimbursement Agreement Construction Requirements

Tagged Interests: construction and Fossil Fuels - Oil

Item Description: BP will provide engineering and design services for the adjustment/relocation of the pipeline facilities off runway 2/20. The work

is the design phase of relocation of a 10 pipeline. Design work consists of site survey, engineering of route relocation design,
Tagged Interests: services

environmental surveying and permitting.

Tagged Interests: environment

Timeframe: N/A

Cost: Actual cost of any and all work performed. City cost shall be capped at 223,938.

Funding: N/A

Tagged Interests: funding

Staff Recommendation: Recommend Airport Commission and City Council Approval and Acceptance.

Tagged Interests: council, airport, and boards and commissions

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Rochester Airport Commission Meeting

Tagged Interests: airport and boards and commissions

Tuesday, November 12, 2019

Conference Room 104, City Hall

Meeting Minutes

The Rochester Airport Commission met Tuesday, November 12, 2019, at 2 pm with the following Commission

Tagged Interests: airport and boards and commissions

members in attendance: Dillon Dombrovski, Tim Geisler, Mayor Kim Norton, John Reed, and Randy Staver.

Member absent: Steve Rymer. Others present: Brent Carlsen, Adam Holz, and Michon Rogers.

Call to Order. Mr. Staver called the meeting to order at 2 pm.

Minutes of October 28, 2019. The approval of the minutes was moved by Mr. Geisler, seconded by Mr.

Dombrovski, and passed unanimously by those members present.

Airport Financials. Mr. Holz presented.

Tagged Interests: finance and airport

Airport Operational Data. Mr. Reed presented. Discussion followed with questions regarding load factors.

Tagged Interests: airport

Action Items

Review Restaurant Lease Agreement. Mr. Reed presented. Discussion followed with questions regarding the

Tagged Interests: leasing and restaurants

timeline and products. It was moved by Mayor Norton, seconded by Mr. Geisler, and passed unanimously by

those members present.

Other Business

Tagged Interests: business

Boards and Commissions Questionnaire. Mayor Norton shared that she is asking all City Board and

Tagged Interests: boards and commissions

Commission members to complete a questionnaire regarding the role and purpose of Boards and

Tagged Interests: boards and commissions

Commissions. She requested each Airport Commission member complete this as well.

Tagged Interests: airport and boards and commissions

Ethics Ordinance Disclosure Form. Mayor Norton asked all of the Commission members to complete and

Tagged Interests: ordinance, boards and commissions, and ethics

submit an updated form to ensure compliance and as required by statute.

Tagged Interests: compliance

Adjournment. It was moved by Mr. Dombrovski, seconded by Mayor Norton, and passed unanimously by

those members present to adjourn the meeting at 2:25 pm.

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AGREEMENT

THIS AGREEMENT, made this _____ day of ___________, 2019, by and between the

City of Rochester, a Minnesota municipal corporation ( City ), the Rochester Airport Company,

Tagged Interests: airport

a Minnesota corporation ( Lessor ), and Kats Company, LLC, a Minnesota corporation with its

principle address at 2907 County Road 16 SW, Rochester, Minnesota 55902 ( Lessee ).

Tagged Interests: streets

WHEREAS, Lessor, acting under an agency agreement with the City of Rochester, manages

the Rochester International Airport ( Airport ) for the City, the owner thereof; and

Tagged Interests: airport

WHEREAS, corn, alfalfa and suitable cover crops, as approved by the Rochester Airport

Tagged Interests: airport

Company Manager, may be grown on certain Airport lands which are needed for and are

Tagged Interests: airport and manager

continuously used for the purpose of protection of air space vital to the safe operation of the

Airport; and,

Tagged Interests: airport

WHEREAS, Lessor and Lessee desire to enter into an agreement authorizing Lessee, as an

independent contractor, to farm the Premises under the terms and conditions specified hereinafter.

Tagged Interests: agriculture

It is understood that Lessee shall not be entitled to possession of the any lands leased hereunder,

Tagged Interests: leasing

which shall continue to be owned exclusively by the City for airport purposes, but Lessee shall have

Tagged Interests: airport

certain rights of ingress and egress as more fully set forth below:

NOW, THEREFORE, the parties hereto agree as follows:

1. This Agreement shall be effective as to the premises located in the County of

Olmsted and State of Minnesota, and described as follows:

Approximately 2 acres of land located on the SW corner of the NW of section 14,

of High Forest Township no. 104-105 ( Premises ).

2. The terms of this Agreement shall be effective for a period of one (1) year

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commencing on January 1, 2020, and terminating on December 31, 2020.

3. Lessee shall pay the City of Rochester 175 per acre that is made available to Lessee

in one (1) lump sum payment payable on or before January 1, 2020. The lease payment based on 2

Tagged Interests: leasing

acres would be 350 annually.

4. Subject to approval of the Rochester Airport Company Manager, Lessee shall be

Tagged Interests: airport and manager

granted reasonable access to the Premises. Lessee shall keep the Premises free from foul weeds in

Tagged Interests: grant

accordance with applicable weed laws. Lessee shall till up crop residue as soon as possible

following the harvest rather than leaving stubble and crop residue on the surface so as not to provide

more of an attractant to wildlife.

5. Lessee shall not interfere with existing waterways on the Premises. Lessor shall

provide Lessee with access to the various portions of the Premises through means of suitable gates

or entrances thereto. Lessee shall use only such accesses as are specified by Lessor. Lessee shall, at

all times, follow and abide by regulations and other directions of the Rochester Airport Company

Tagged Interests: regulation and airport

Manager to ensure safe airport operating conditions and to avoid any activities which might present

Tagged Interests: airport and manager

a hazard to operation of the landing and take-off areas.

6. Lessee shall comply with all Federal, State or other governmental rules and

regulations with respect to security at airports and any other supplemental and/or amendments

Tagged Interests: regulation, airport, and security

thereto.

7. Lessee shall obtain and maintain throughout the term of this Agreement liability

insurance, naming the City of Rochester and the Rochester Airport Company as additional insureds

Tagged Interests: airport and insurance

under said policy or policies, with a single limit of 1,000,000, and shall provide the Rochester

Tagged Interests: policy

Airport Company Manager and the Rochester City Clerk with suitable evidence of said insurance.

Tagged Interests: airport, insurance, and manager

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Lessee s liability insurance shall be primary to any liability insurance maintained by the City or

Tagged Interests: insurance

Lessor. Lessee further agrees to hold the City and Lessor harmless for any liability or property

Tagged Interests: property

damage to third parties which may be occasioned by or through their performance of or under the

Tagged Interests: performance

terms of this Agreement.

8. The risk of loss or damage to Lessee s property, including machinery and supplies,

Tagged Interests: risk and property

shall be borne by Lessee. Lessee shall maintain the level of personal property insurance it deems

Tagged Interests: insurance and property

reasonable.

9. This Agreement shall be binding upon the parties hereto and their respective

successors in interest. Lessee may not assign his interest in this Agreement without the express

written consent of the City and Lessor, but said consent shall not be unreasonably withheld.

10. Lessee shall not place any building or other structure on the Premises.

11. At the termination of this Agreement or any extension thereof, Lessees shall leave

said Premises in as good condition and order as the same were in at the commencement of this

Agreement, reasonable wear and tear excepted.

12. This Agreement may be terminated by either party upon a material breach that is not

cured within 30 days of written notice.

13. Lessee for itself, its heirs, successors, and assigns, as a part of the consideration

hereof, does hereby covenant and agree to operate in compliance with all other requirements

Tagged Interests: compliance

imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle

Tagged Interests: regulation and transportation

A, Office of the Secretary, Part 21, Nondiscrimination in Federally Assisted Programs of the

Tagged Interests: program

Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964, and as said

Tagged Interests: transportation and civil rights

regulations may be amended.

Tagged Interests: regulation

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14. Lessee for itself, its heirs, successors and assigns as part of the consideration hereof,

does hereby further covenant and agree that: (1) no person on the grounds of race, color, or national

origin shall be excluded from participation in, denied the benefits of, or be otherwise subject to

discrimination in the use of said facilities; (2) that in the construction of any improvements on, over,

Tagged Interests: construction and discrimination

or under such land and the furnishing of such services thereon, no person on the grounds of race,

Tagged Interests: services

color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise

be subjected to discrimination; and (3) that Lessees shall use the Premises in compliance with all

Tagged Interests: discrimination and compliance

other requirements by or pursuant to Title 49, Code of Federal Regulations, Department of

Tagged Interests: regulation

Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted

Tagged Interests: transportation

Programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of

Tagged Interests: transportation, program, and civil rights

1964, and as said regulations may be amended.

Tagged Interests: regulation

15. The failure of Lessor to enforce any provisions of this Agreement shall not constitute

a waiver by Lessor of that or any other provision.