February 17, 2005




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†††††

Patrick H. Beson††††††††††††††† Wilmer Jones-Ham†††††††††††††††††† Jeff Nagel††††††††††††††††††††††† John Palen

Cecil A. Collins††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Ryan Riesinger†††††††††††††††††††
Kenneth W. Distler†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† A. T. Lippert††††††††††††††††††

Clay J. Dunn†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Debbie Meisel††††††††††††††††

Brian K. Elder

Eugene F. Gwizdala†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††

Hollis H. McKeag

Karl S. Tomion



MINUTES:Dr. Distler made a motion to approve the minutes of the Regular Commission Meeting held on December 16, 2004.Mr. McKeag seconded the motion.The motion was unanimously approved by the Board.


DECEMBER 2004 & JANUARY 2005 WARRANT REGISTERS AND CASH & INVESTMENT SUMMARY:Dr. Distler made a motion to approve the Warrant Registers for the December Payroll Account Check Numbers 81296-81379 January Payroll Account Check Numbers 81380-81434; December Operations and Maintenance Check Numbers 35257-35349 and January Operations and Maintenance Check Numbers 35350-35456; and the December and January Cash and Investment Summary.Mr. Elder seconded the motion and the Board unanimously approved it.




PINNACLE AIRLINES AGREEMENT:Mr. Nagel stated that Pinnacle Airlines, a wholly-owned subsidiary of Northwest Airlines, has announced their intention to re-enter the MBS market.Pinnacle will be flying one of two MBS-Minneapolis flights per day using a 50-seat CRJ aircraft.In the past, Pinnacle has operated these routes; however, their operating agreement has expired.Mr. Elder made a motion to approve an operating agreement with Pinnacle Airlines and authorization for the chairman to sign the agreement.Mr. Beson seconded and the motion was unanimously passed by the Board.

AIRFIELD CRACK/SEAL REPAIR:Mr. Nagel stated that the State of Michigan is once again offering a grant program to assist airports with pavement crack sealing.The proper maintenance of the pavement is important to gain the most useful life from the asphalt.MBS has utilized this program in the past and would like to request state funding for 2005.The airport is eligible for $5,000 this year, which would be matched equally for a total project of $10,000.00.The $5,000.00 local matching money is in the 2005 Budget.The state takes the bids on this project to include all airports requesting funding to obtain the best possible price.


Mr. McKeag made a motion to approve the following Resolution to seek state grant money for pavement crack sealing and to authorize the chairman to execute the grant.








BE IT RESOLVED by the members of the MBS Airport Board of Commissioners of Freeland, Michigan:


Section I.That the MBS Airport Board of Commissioners, Freeland, Michigan, shall enter into an Agreement for the airfield pavement crack sealing at the MBS International Airport, and that such Agreement shall be as set forth hereinbelow:


Section II.That the Chairman of the MBS International Airport Commission, is hereby authorized and directed to execute said Agreement on behalf of the Commission, and authorized and directed to impress the official seal and to attest said execution.


Section III.That the Grant Agreement referred to as the 2005 Airfield Pavement Crack Seal Contract

shall be as attached.



Mr. Dunn seconded and the Board unanimously passed the motion.


PERSONNEL COMMITTEE REPORT:Mr. Tomion reported that the Personnel Committee made up of Mr. Collins, Mr. Beson, and himself, met to review and discuss compensation for Mr. Nagel.Mr. Tomion stated that the committee reviewed specific goals that were set at the time of hire and compared salaries to other Michigan airports.Their conclusion was that it was a good first year for Mr. Nagel.When he was hired, he started at the beginning range for airport managers.The recommendation of the committee is to increase Mr. Nagelís compensation by 5%, from $86,000 to $90,300.Other recommendations were to set goals for the upcoming year, as stated in the committeeís report, provide Mr. Nagel with an employment agreement, and evaluate the manager as other professional managers by the full Commission rather than a committee.Mr. Tomion stated that Mr. Nagel could ask in writing that his review be held in a closed session however the meeting would be open to the public when the findings and recommendations were made.†† Mr. Tomion made a motion to increase Mr. Nagelís base salary by 5% to $90,300 effective immediately.Mr. McKeag seconded and the Board unanimously passed the motion.

Mr. Tomion also made a motion that an employment contract for Mr. Nagel be drafted by the attorney and brought back to the Personnel Committee for review.Mr. Collins seconded the motion. Discussion took place as to what types of items would be included in an employment agreement.Mr. Tomion stated that a contract protects both Mr. Nagel and the Commission.†† Mr. Lippert suggested that Mr. Nagel be authorized to have another lawyer review the contract and be allowed a nominal amount for reimbursement.There was no objection from the Commission concerning this item.The motion unanimously carried.


Dr. Distler complimented the Personnel Committee on an outstanding report and review.††††


Mr. McKeag stated that he felt one of the goals of the airport manager should be to have a positive impact on the number of airline passengers.


Mr. Collins stated that he asked Mr. Nagel to send members of the Personnel Committee a breakdown of the diversity of airport staff and recommended that maintaining diversity within the organization should be included in the managerís goals.


After discussion, Mr. Nagel stated he would revise his goals and submit them to the Personnel Committee for review and comment prior to going to the full Commission.


OLD BUSINESS:Mr. Nagel stated that he had enclosed in the packets the total passenger count for 2004 versus 2003 for several Michigan airports as requested at the last meeting.Based on 2003 information, MBS ranks nationwide at 162 out of 372 primary airports.Mr. Nagel stated that he would continue to include the passenger numbers in the packets each month.Passenger count for January 2005 versus January 2004 was up by 16.47% with an increase of over 5,000 passengers.


NEW BUSINESS:Mr. Tomion stated that Ms. Betty Owen, prior airport manager, was given the Woman of Distinction award last night.He thanked Mr. Lippert for the great job he did introducing Ms. Owen.


Mr. Dunn suggested that the Finance Committee review the Investment Policy of the airport.Mr. Nagel stated that the policy is conservative with investments primarily in certificates of deposit.He explained that staff calls for the rates from several banks and decides what term is appropriate.Mr. Nagel stated that Mr. McKeag, Mr. Elder, and Mayor Ham are on Finance Committee.Since the auditors are currently auditing the airport, it was agreed that a committee meeting would be set up once the preliminary audit is complete so it also could be reviewed.Mr. Dunn stated that the Investment policy might not need any changes however; it would be prudent to review the policy occasionally.


Mr. Collins announced that Mayor Jones-Ham is being honored by the City of Saginaw during Black History Month at several different locations.Mr. Elder suggested that Mr. Lippert write a resolution for Mayor Ham to be presented at the next meeting.


ADMINISTRATIVE MATTERS:Next regular meeting is scheduled for March 17, 2005.


ADJOURNMENT:There being no further business, Mr. Elder made a motion to adjourn.Mr. Beson seconded and the Board unanimously passed the motion.The meeting adjourned at 1:23 p.m.




††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† ††††††††††††††††††††††† ††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Hollis H. McKeag, Secretary