MBS INTERNATIONAL AIRPORT COMMISSION
The meeting was held in the Airport
Commission Board Room,
Present Absent & Excused Staff Other
Mr. Gwizdala welcomed George Biltz, Vice President of Global Purchasing at Dow Chemical as the new member to the Airport Board.
MINUTES: Dr. Distler
made a motion to approve the minutes of the Regular Commission Meeting held on
MARCH 2005 WARRANT AND CASH & INVESTMENT SUMMARY: Mr. Elder made a motion to approve the Warrant Registers for the March Payroll Account Check Numbers 81491-81571; March Operations and Maintenance Check Numbers 35519-35602; and the March Cash and Investment Summary. Dr. Distler seconded the motion and the Board unanimously approved it.
PUBLIC COMMENT: None
UNION CONTRACT: Mr. Nagel stated that in
December 2004, the Commission voted to approve a union contract amendment which
included wage adjustments in 2004 and 2006 and a pension adjustment effective
2005 BUDGET ADJUSTMENT: Mr. Nagel explained that during the course of the 2004 audit, it was recommended by the auditors to adjust the budget to account for the revenues and expenses from the airline use of the passenger-boarding bridges. The airlines currently pay $15.98 per use of the jetways.
These funds have been carried as a liability and the auditors requested that it be expensed every year. Therefore, an adjustment to the budget is needed to reflect this change. Both revenues and expenses will be adjusted by $65,000 to accommodate this change. The revenues are located under Jetway Use Fee and expenses will be under Jetway Repair and Replacement. Any revenues that are not spent are placed in a reserved fund for jetway replacement. Mr. Nagel stated that the adjusted proposed budget with the changes noted was included in the Commission packets. Mr. Nagel also stated that this had been presented to the Finance Committee and they agreed with the adjustment.
Mr. McKeag made a motion to approve the 2005 budget adjustment with Mr. Collins seconding. The Board unanimously passed the motion.
CAR AGREEMENTS: Mr. Nagel stated that last year
the rental car leases were extended through
AIP GRANTS: Mr. Nagel stated that in December the Commission passed two resolutions for the airport’s upcoming AIP grants. The FAA now requires any project which includes security work to have its own grant. Since the security system and FIDS are being bid together, that project will require a separate grant. Therefore the grants will be:
Grant # Project
3005 Terminal Study
3205 Deicing Vehicle, Pavement Marking & Sewer Work
Since the resolutions have already been passed for 3005 and 3105, the attached resolution is needed for grant #3205.
Mr. McKeag made a motion to approve the following resolution for AIP grant 3-26-0083-3205:
(Deicing Vehicle, Pavement Marking & Sewer Work)
RESOLUTION ADOPTING AND APPROVING THE EXECUTION OF THE GRANT APPLICATION, GRANT AND ALL RELATED DOCUMENTS BY THE MBS AIRPORT COMMISSION, A SPECIAL STATUTORY BODY, ACTING AS SPONSOR FOR THE CITY OF MIDLAND, CITY OF SAGINAW, AND COUNTY OF BAY, MICHIGAN, AND THE UNITED STATES OF AMERICA, FEDERAL AVIATION ADMINISTRATION, FOR THE PURPOSE OF OBTAINING FEDERAL AID FOR THE DEVELOPMENT OF THE MBS INTERNATIONAL AIRPORT, UNDER PROJECT NO. 3-26-0083-3205.
BE IT RESOLVED by the members of the MBS International Airport Commission,
Section I. That MBS International Airport Commission, on
behalf of the City of
Section II. That the Chairman or Vice-Chairman of the MBS
International Airport Commission, is hereby authorized and directed to execute
said Grant Application, Grant Agreement, and all other related documents in (4)
copies on behalf of the City of Midland, City of Saginaw, and County of Bay,
Michigan, and the Airport
Section III. That the Grant Application/Agreement referred to as Project 3-26-0083-3205.
Mr. Biltz seconded and the Board unanimously passed the motion.
EXTENSION: Mr. Nagel stated that Honeywell has been
providing service to MBS since 1985.
Their service includes Computerized Automated Energy Management System
for the Passenger Terminal and
Mr. Nagel explained that the Honeywell employees are trained on the equipment at MBS as well as the security requirements needed to conduct business at the airport. The agreement has assisted MBS by saving energy, reducing equipment downtime, extending equipment life, improving comfort, and budget control.
The contract usually runs in five-year increments with the last amendment approved in 2000. With the upcoming terminal study, Mr. Nagel recommended a one-year extension and depending on any needs discovered in the study, a longer extension next year. Mr. Nagel discussed this option with Honeywell and they agreed to a one-year extension at the same rate as 2004-05, $49,261.00.
has also offered their full support, at no charge, with the upcoming terminal
study. This is an example of the “value
added” services provided by Honeywell over the years to
Dr. Distler made a motion to approve a one-year extension of the Honeywell agreement at the same rate as last year. Mr. McKeag seconded and the motion unanimously carried.
CHEMICAL LEASE: Mr. Nagel stated that Dow
Chemical has had a ground lease for their hangar and parking lot since
1960. The hangar lease is typically
amended in five-year increments with the cost adjusted for inflation. In the past, this increase has ranged from
between 2% and 3% per year. The last
amendment for ground rent for the hangar was signed in 2000 and had an increase
of approximately $.015 per square foot, per year, with the current rate being
$.565 per square foot. This amendment is
set to expire
Mr. Nagel discussed a new amendment with a representative from the Dow Real Estate Office and they have agreed to a five-year amendment with a $.015 per year increase which is approximately 2.5% per year. All other terms and conditions will remain as-is. Mr. McKeag and Mr. Biltz abstained from the vote. Mr. Elder made a motion approving Amendment #12 to the Dow Chemical lease and authorization for the chairman to sign. Mr. Beson seconded. The motion was passed.
OLD BUSINESS: None
NEW BUSINESS: Mr. Gwizdala appointed Mr. Biltz to the Operations Committee.
ADMINISTRATIVE MATTERS: Mr. Collins asked whether any of the resolutions or amendments affect the current operating budget and would an amendment to the budget be needed. Mr. Nagel explained that when the budget is being prepared, any potential increases are considered based on what leases are coming due. At this time no adjustment to the budget is needed.
regular meeting is scheduled for
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
Hollis H. McKeag, Secretary