CITY OF BILLINGS AVIATION AND TRANSIT DEPARTMENT

1901 Terminal Circle, Room 216 Thomas H. Binford, A.A.E. Billings Logan International Airport Director of Aviation and Transit Billings, 59105-1996 (406) 657-8495 Kevin Ploehn (406) 657-8438 FAX Assistant Director of Aviation and Transit www.flybillings.com

AVIATION AND TRANSIT COMMISSION MINUTES Tuesday, November 6, 2007

The Aviation and Transit Commission met in the Russ Lehner Conference Room at the Billings Logan International Airport on Tuesday, November 6, 2007. Those in attendance included:

Aviation and Transit Commission Members City Staff and Guests Jack Bayne, Vice Chair Tom Binford, Director of Aviation & Transit Owen Neiter Kevin Ploehn, Assistant Director of Aviation & Transit Dick Larsen Mark Kennedy Sterling Starr

BRIEFING ON MEETING } Vice Chair Bayne explained that he and Commission Chair Wohler, Commission Members Larsen and Kennedy, and Tom Binford attended the Essential Air Service (EAS) Task Force meeting that was held in Billings on October 26, 2007. He stated that the Task Force Members appreciated the support and input from the Commission, and also enjoyed the Airport tour after the meeting. He then asked Mr. Binford to provide a summary of the meeting. Mr. Binford began by explaining that at the October 2007 Aviation and Transit Commission Meeting, the Commission requested that Big Sky Airlines attend this meeting so that the Commission could visit with them about the new EAS contract. He stated, however, that Big Sky President, Mr. Fred deLeeuw was out of town and could not attend tonight's meeting. Mr. Binford then provided a briefing on the EAS meeting. He explained that the purpose of this meeting was to hear presentations on the proposals that were submitted to the Department of Transportation (DOT) by Big Sky and to provide airline service to the EAS markets in Montana. Great Lakes' proposal was $8,201,992 and indicated that they would operate a similar schedule as Big Sky and would be willing to switch the hub from Billings to . Additionally, they explained that they would not be providing service from Billings to Helena. The Big Sky proposal was $8,473,617 and would be very similar to the service they currently provide. } Following the presentations, the Task Force Members discussed the proposals/presentations. The general consensus of the group was that they desired to hub out of Billings and that Helena service was important to them. They did however, express a number of concerns about Big Sky's recent performance, but also had questions/concerns about switching to a new carrier. The Task Force then established a committee to draft a letter to the two carriers and requested that they provide follow up responses to several questions at a November 12, 2007 Task Force meeting to be held in Billings. A copy of the letter was distributed to the Commission Members. It is anticipated that following the November 12, 2007 meeting, that the Task Force will offer a joint recommendation on their preferred EAS provider to the DOT. The Commission and staff then had a lengthy discussion concerning the meeting and proposals. The majority of the discussion focused on the frustration that was expressed by many of the communities concerning the service they have been experiencing with Big Sky Airlines and their difficulties in getting these problems corrected. They felt it would be important to attend the November 12, 2007 EAS meeting to hear how both Big Sky and Great Lakes intend to better serve the EAS communities. BRIEFING ON MASTER PLAN TAC MEETING } Mr. Ploehn informed the Commission that the Mead and Hunt Master Plan consulting group came to town last week and met with the Master Plan Technical Advisory Committee (TAC) for the initial kick off meeting. The Consultant began by identifying the roles, responsibilities, and expectations for the TAC. They then discussed the project goals and scope of the Master Plan, the key issues that Airport staff identified to be looked at, the project schedule, and then discussed some of their initial research. } The Mead and Hunt Consultant also emphasized that they are very interested in the point of views that this group will bring to the planning effort, as they will help to determine whether the Consultant is on track or needs to change directions. They also asked that if TAC Members were aware of special things going on in the community that might impact the Airport in the future, to please let them know of these items. } Commissioner Starr, who is a member of the Master Plan TAC, commented that during the kickoff meeting he mentioned that there were some potentially large projects in the works that could impact the Airport, one being the recent purchase of the Red Lodge Mountain. The new owner was interested in making some upgrades to the existing ski hill and pursuing making Red Lodge more of a destination resort area. Commissioner Starr also noted that another investment group is looking at the surrounding Billings area for a western themed resort. A discussion pursued on how these types of items could be addressed in the Master Plan. Mr. Starr mentioned that Signature International Hotels and Resorts, Inc., who is evaluating the western theme park, might consider funding a master planning effort that could occur in parallel to the City's Master Plan to determine how this project would impact Airport facilities. He explained that they are currently planning on a 2014 start up, and if this project goes forward, it would result in significant passenger enplanement increases. He committed to keep the Commission and staff advised of any developments on this project.

ITEMS FROM THE COMMISSION } Vice Chair Bayne wished everyone a happy Thanksgiving, and also mentioned that the Commission needed to go see the Department's new Aircraft Rescue Fire Fighting (ARFF) vehicles at one of their future meetings.

AIRPORT AND TRANSIT ADMINISTRATIVE/OPERATIONS REPORTS } Tom Binford explained that the required public hearing on the City/County land swap for the future Downtown Transit Center will be held during the November 13, 2007 City Council meeting and the closing would occur the following morning. He informed the Commission that the City Council would also appoint the Ad Hoc Committee Members during the November 13 meeting. This AD Hoc Committee will review and offer design recommendations for the Center to the City Council. The Members of this Committee will be Council Member Nancy Boyer, Commission Member Mark Kennedy, Randy Hafer, Kim Barnett, Stephen Wahrlich, Geoffery Parkins, Greg Krueger, and Kimberly Watson. He also explained that CTA continues to work on this project and that we should have some preliminary layouts to share with the Commission within the next few weeks. } Mr. Binford also advised the Commission that the Transit Planning Consultant who has been hired to conduct the route and schedule evaluation and to hopefully develop a new schedule that will better accommodate the employee breaks, will have his first organizational meeting with staff this month and will begin to work on this project. This project will involve extensive passenger and user surveys, and staff will keep the Commission updated on this important planning study. } Mr. Ploehn mentioned that the reverse screening area had been leased to the Transportation Security Administration (TSA) for storage. This item would be on the November 13, 2007 Council Agenda and would generate $15,706 per year. } Mr. Ploehn also pointed out that the two 1992 Oshkosh fire trucks that were recently replaced, were put out for bids. Two bids were received for each truck; the high bids were $42,483 for one and $43,621 for the other, for a total of $86,104. } Mr. Ploehn updated the Commission on Corporate Jet, the soon to be new Fixed Based Operator that will be using the old facilities. He indicated that they would be signing a lease shortly for a fuel farm area to install two tanks for Jet A and one tank for AvGas. A recently received letter portrays that they will be doing all FBO type services. } Finally, Mr. Ploehn informed everyone that beginning November 15, will replace the 70 seat RJ's currently leased from Horizon, with contracted Express Jet aircraft until Frontier can get their Lynx operation fully certified by the Federal Aviation Administration. Once Lynx is certified as a new airline, the Express Jet aircraft will be replaced with Lynx 70 seat Q-400s. The Express Jet aircraft will be 50 seat regional jets. Express Jet does most of their business flying 205 planes as Continental Express.

PUBLIC COMMENT PERIOD A public comment period was offered; there being no public comment, the meeting was adjourned.

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