MBS
INTERNATIONAL AIRPORT COMMISSION
October 21, 2004
MINUTES
The meeting was held in the Airport Commission Board Room, 8600 Garfield Road, Freeland, Michigan 48623. Chairman Eugene Gwizdala called the meeting to order at 1:00 p.m. Roll was called by Debbie Meisel.
Present Absent & Excused Staff Other
MINUTES: Dr. Distler
made a motion to approve the minutes of the Regular Commission Meeting held on
September 16, 2004. Ms. Jones-Ham
seconded the motion. The motion was
unanimously approved by the Board.
SEPTEMBER 2004 WARRANT REGISTER AND CASH &
INVESTMENT SUMMARY: Mr. Beson made a motion to
approve the Warrant Registers for the September Payroll Account Check Numbers
81103-81185; September Operations and Maintenance Check Numbers 35027-35111,
void check number 35069; and the September Cash and Investment Summary. Mr. McKeag seconded the motion and the Board
unanimously approved it.
PUBLIC COMMENT: None
AIRPORT
SURPLUS EQUIPMENT SALE: Mr. Nagel stated that over the
years the airport has built up a surplus of equipment, parts and odds and ends
that it no longer has a use for.
Periodically, the airport has held “garage sales” to try and clear out
some of this equipment. The airport
maintenance supervisor has been preparing for another sale and has developed a
list of items that the airport would like to dispose of. None of the equipment was purchased with
federal grant dollars, so there are no federal obligations to comply with. Mr. Beson made a motion authorizing the sale
of the listed surplus equipment at the best possible price. Mr. Elder seconded and the motion unanimously
carried.
TSA
LEASE EXTENSION: Mr. Nagel stated that in
November of 2002, the TSA entered a lease agreement for office space, a break
room area and training room. The old bar
area and the travel agency were modified to accommodate this lease. The lease was for a two-year period which
expires November 14, 2004.
The
TSA has requested a 12-month extension of the existing lease during which time
a longer lease extension can be negotiated.
The extension is for the same rate, $37.08 per square foot per year, and
terms as the existing lease. TSA has
been a good tenant and there has been no other interest in leasing the
space. The lease contributes over
$68,000 in annual income for the airport.
Mr.
Nagel continued that the extension makes good sense, as it would lock in the
TSA for at least twelve months with the intent to negotiate a long-term
extension before next November.
Mr.
McKeag made a motion to approve the TSA Supplemental Lease Agreement #2 for a
12-month extension and authorize the Chairman to execute the agreement. Ms. Jones-Ham seconded and the Board
unanimously passed the motion.
DONATION
OF SNOW BLOWERS: With the arrival of the two new
snow blowers comes the decision to dispose of the current blowers. Since these machines were originally
purchased with federal grant dollars, MBS must continue to follow federal
guidelines. If the fair market value of
the equipment is less than $5,000 per unit, they may be sold or may be disposed
of providing FAA notification of the disposition with no further
obligations. If the equipment is worth
over $5,000 per unit, there are additional FAA requirements to follow. Staff has contacted the original manufacturer
of the 1986 blowers and obtained a value of $4,900 for one unit and $3,900 for
the second. Basically, the only value
these units have is based on spare parts, since parts are very difficult to obtain
for these units. The lower valued unit
has drive train problems and has limited operational capacity. These units have proven difficult to maintain
and service, and with the two new blowers, there is no need to keep them.
Mr.
Nagel continued that the best scenario would be for both blowers to go to the
same airport, one to be used for moving snow and the other for spare
parts. Since the new blowers first
appeared on the FAA Five-Year Plan, the manager at Harry Browne Airport has
expressed an interest in obtaining both old blowers. He has been to MBS to look at the blowers,
and would be willing to maintain at least one blower.
As
done in the past, both blowers could be donated to Harry Browne Airport with
the stipulation that if needed, and if still operating, the airport could get
the blowers back to MBS. This process
has been used in the past, most recently with a fire truck donated to Buena
Vista Township.
Mr.
McKeag made a motion authorizing the manager to donate the two 1986 Schmidt
Snow Blowers to the Harry Browne Airport with the stipulation that if needed,
MBS could reacquire the machines. Mr.
Beson seconded and the motion passed unanimously.
2004
BUDGET ADJUSTMENT: Mr. Nagel stated that the 2004
Operating Budget was developed without the two new snow plows listed as a
Capital Expense. This was done because
the purchase order for these trucks was signed in December of 2003 and staff
planned to carry this item as an accounts payable and not as a 2004
expense. When the auditors were here in
February, they advised staff that this could not be done since the trucks were
not substantially complete.
Since
the trucks have been delivered and MBS has been invoiced, staff must adjust the
Capital Account accordingly. Because
these trucks were purchased with PFC dollars and not AIP money, the airport
must pay the entire amount. The cost of
the two trucks is $614,744 and the money is available in the PFC account. The Capital Account currently has
approximately $950,000 but there are still some outstanding items such as the
front-end loader, pickup truck, Trailblazer and the local share of AIP
projects. The Contingency Account has
$800,000 available and Mr. Nagel recommended that $300,000 be moved from
Contingency to Capital to cover the cost of these trucks. Since the entire Capital Account is not
anticipated to be spent, the full $614,744 does not need to be moved to cover
the two plow trucks.
Mr. Nagel reported that the auditors were consulted and they agree with this
recommendation.
Dr.
Distler made a motion authorizing a 2004 Budget adjustment moving $300,000 from
Contingency to Capital Expense. Mr.
McKeag seconded and the Board unanimously passed the motion.
SAGINAW
COUNTY SHERIFF DEPARTMENT AGREEMENT: Mr. Nagel
reported that the current law enforcement agreement with the Saginaw County
Sheriff Department expires on December 31, 2004. In keeping with past practice, the department
has proposed a three-year extension to this agreement. A letter from Sheriff Charles Brown was
included stating their interest in extending the contract and explaining some
other services MBS has received over the years.
The cost for SCSD deputy services for 2004 is $238,011, plus overtime,
and covers a deputy stationed at the airport sixteen hours per day. The proposed cost covers the same hours as no
new directive has been issued by the TSA requiring MBS to add coverage.
The
proposed contract amounts are:
Annual Per
Month
2005 $266,988 $22,249
2006 $282,780 $23,565
2007 $300,132 $25,011
Mr.
Nagel stated that there are two main reasons for the increase in cost. The first is that all County contracts must
be kept as a separate account and all costs associated with the contract must
be covered. In the past, some of the
costs came from the general fund within the Department. That change is effective in 2005. The second factor is the increase in cost
associated with benefits for the deputies, in particular health care and a
retiree reserve for health care.
It
should be noted that these costs are as close as the Department can estimate as
the contract with the union expires in 2005.
The airport’s cost will be adjusted to ensure MBS is only billed for the
actual cost associated with performing the contract. The Department does not charge MBS an “administration charge” or markup on the
contract.
Mr.
Nagel also stated that the County does an excellent job performing this
contract, and they go above and beyond the scope of the contract to assist MBS
when there are security upgrades, special needs and during VIP visits.
Mr.
Lippert has reviewed and approved the amendment. Mr. Elder made a motion to approve the
proposed amendment to the Saginaw County Sheriff Department Agreement and
authorization for the Chairman to execute the agreement. Mr. Beson seconded and the motion unanimously
carried. Discussion took place regarding
the benefits of this service, including financial compared to having the
airport’s own department.
FIVE-YEAR
PLAN: Mr. Nagel asked that the plan be brought to
the November meeting. After discussion
with Bob Peckham, the airport engineer, the FAA at the District Office, and the
State, Mr. Nagel stated that he is not prepared to present the Five-Year Plan
as it was sent out. Mr. Elder made a
motion to defer the Five-Year Plan to the November meeting. Ms. Jones-Ham seconded and the Board passed
the motion unanimously.
OLD
BUSINESS: None
NEW
BUSINESS: None
ADMINISTRATIVE
MATTERS: Mr. McKeag remarked that September passenger
count exceeded September of last year.
Next
regular meeting is scheduled for November 18, 2004.
ADJOURNMENT: There being no further business, Ms.
Jones-Ham made a motion to adjourn. Mr.
Beson seconded and the Board unanimously passed the motion. The meeting adjourned at 1:20 p.m.
Hollis
H. McKeag, Secretary