Airport Commission: Putting project plans together

The Brainerd Lakes Regional Airport commission Thursday morning took another step in preparation for an upcoming redevelopment project.

The commission approved an agreement with consulting engineer Mead & Hunt for engineering services for the planned general aviation redevelopment project at the airport.

The project includes relocating Federal Aviation Administration antennas, which in turn allows for the construction of a new general aviation arrival and departure facility. It also includes the replacement and relocation of an aging fuel system.

The agreement with Mead & Hunt carries a total cost of $452,079, with $211,328 of the total coming from design fees. The remaining $240,751 comes from construction administration costs.

The agreement comes in roughly $37,000 below the independent fee estimate for the engineering services, which was $489,000. The independent fee estimate is required by the FAA, said airport director Steve Wright, and is designed to keep costs stable.

"It helps us understand that Mead & Hunt is in line and within reason," Wright said.

The airport's portion of the $452,079 fee will be determined as the project is designed, Wright said. Federal and state funding will support the project, he said, and those contributions could amount to up to 90 percent of the total cost. The federal and state funding will be secured before breaking ground on the project.

The FAA will only fund the public portions of an airport building project, said Michelle Baird, project manager with Mead & Hunt. For example, the FAA won't contribute funding for private business projects at an airport.

"They're not going to help a (fixed-base operator) build a building," Baird said. "It has to be totally used by the public at all times."

Early conversations with FAA representatives on preliminary project layouts have provided good feedback, Baird said. Those conversations revealed the project will be able to secure a high percentage of federal funding, she said.

"They're willing to sit and be fair," Baird said.

The project's intent is to improve the public portion of the general aviation arrival and departure facility, Wright said. Because of this focus, the project has high potential for federal funding, he said.

The high costs for engineering services for the project are due to the federal government involvement in the project, commission member Don Jacobson said.

"That's why federal government costs so darn much money in my mind," Jacobson said. "I know we have to play by the rules but it just bothers me."

The fuel system relocation will happen this fall, Baird said. The engineers will spend the coming winter designing the general aviation building and the project will go out for bids in the spring of 2018.

In other business, the commission talked briefly about President Donald Trump's recent budget proposal, which included the elimination of the federal Essential Air Service program. Small communities are questioning the decision, Wright said, because the EAS program helps keep many rural airports open throughout the country. Wright is working with the statewide Local Airline Service Action Committee and Regional Air Service Alliance to develop a list of the impacts this decision would have on smaller communities.

The essential air service subsidy is funded through a tax on commercial air travel ticket sales, Jacobson said. Because the essential air service program is funded through a tax paid by consumers, eliminating the program shouldn't have an impact on the federal budget, he said.

"It has nothing to do with the budget because it doesn't come out of the budget," Jacobson said.

Jacobson asked Wright what would happen to the Brainerd Lakes Regional Airport if the EAS program were eliminated. Some remote airports have a per ticket subsidy of $200-$300, Wright said. In Brainerd, the subsidy ranges from $50-$90 per ticket, he said, which is fairly low.

"As we continue to see the growth of this air service," Wright said. "That subsidy level decreases as more passengers use your facility."

If the EAS subsidy were eliminated, Wright said, it's likely airlines would increase ticket prices. He said he would research the issue more and come back to the April meeting with more details.

Commission member Kevin Stunek and commission chair Andy Larson were absent Thursday.