Board OKs agreement

There’s still no resolution to a lawsuit related to the runway extension project at Portland Municipal Airport.

But an agreement reached with the construction firm that handled the first phase of the project is designed to protect the city from any financial losses.

Portland Board of Aviation on Wednesday approved an indemnity agreement with HIS Constructors that puts the company on the hook for any penalties that may stem from the suit.

City attorney Wes Schemenaur explained to the board that the lawsuit filed on Oct. 19, 2022, in Jay Superior Court does not look as if it will come to a conclusion any time soon. The last action in the case came in November when a planned jury trial was canceled. No hearings are currently scheduled.

HIS Constructors of Indianapolis handled the first phase of the runway extension — draining and leveling the land west of the existing runway. It entered into a contract with Greg and Cindy Whitenack of rural Portland to provide the dirt required for the work. The removal of the dirt was to create a larger pond on the Whitenacks’ property.

Cindy Whitenack visited the aviation board in November 2021, saying HIS Constructors did not meet the specifications of the agreement.

“They just left a mess back there,” she said at that time, adding that she had repeated problems attempting to communicate with the company and indicating that it had not followed through on promises.

When the Whitenacks filed the lawsuit against HIS Constructors almost a year later, the City of Portland and Portland Municipal Airport were named in the suit as well.

The aviation board has held back $99,383 in retainage owed to the company for the project until the dispute with the Whitenacks was resolved. However, the deadline is approaching to close out the Federal Aviation Administration grant that paid for the project and includes those dollars.

Schemenaur explained that the indemnity agreement, which had already been signed by HIS Constructors, would allow the aviation board to close out the grant. The agreement says HIS Constructors will indemnify Portland from any liability related to the lawsuit. The company would also take over the defense in the case. In exchange, the aviation board would agree to release the $99,383 to the company.

Aviation board members Faron Parr, Clyde Bray, John Ferguson and Caleb Lutes unanimously approved the indemnity agreement. The city’s board of works is expected to act on the agreement during a special meeting Tuesday.

The board then approved a pay request for the remaining grant funds from the FAA and then OK’d releasing those funds to HIS Constructors. Jason Clearwaters of engineering firm Butler, Fairman & Seufert said he will have close-out documents ready for the grant next month. (The project was entirely federally funded because of coronavirus relief dollars. Such projects are typically paid for 90% by the FAA with 5% each coming from the state and municipality.)

Also, Clearwaters said an FAA flight check, which is one of the final steps of closing out the second phase of the runway extension project, is scheduled for next week.

The board also approved an FAA grant pay request totaling $7,717.80 for design of the apron expansion at the airport. Bidding of the project is planned for later in the spring.

In other business, the board:

•Following a question from Lutes, heard from Tavzel that several aviators have said they will be flying in for the April 8 solar eclipse. He added that the airport is working with Jay County Emergency Management Agency on preparations in case of an emergency.

•Heard from airport manager Hal Tavzel that the airport sold 4,471 gallons of fuel in February for $20,597. That’s down from 5,820 gallons in February 2023, but up still higher than the 4,053 gallons sold in February 2022.

•During the manager’s report, learned the following from Tavzel:

    —A new hydraulic hangar door is expected to arrive next month and be installed.

    —All hangars are currently rented and the airport has a waiting list of additional individuals who are interested. (Bray asked about a couple of renters that are not up to date on payments. Tavzel said he will address the issue.)

    —Plans called for a wireless internet connection to be installed to communicate with the airport's automated weather observing system (AWOS).

    —A second flight instructor has been hired.