MBS INTERNATIONAL AIRPORT COMMISSION

 

April 21, 2005

 

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.

 

 

COMMISSIONERS

 

Present                               Absent & Excused                    Staff                                Other     

Patrick H. Beson                Wilmer Jones-Ham                   Jeff Nagel                        Robert St. Mary

George J. Biltz                    Karl S. Tomion                         Ryan Riesinger                 Nancy Kincade
Cecil A. Collins                                                                  A. T. Lippert                   Jeremiah Stettler

Kenneth W. Distler                                                             Debbie Meisel                 Cheryl Wade

Brian K. Elder

Eugene F. Gwizdala                                                                                                     

Hollis H. McKeag

 

 

PLEDGE OF ALLEGIANCE 

 

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 17, 2005.  Mr. Elder seconded the motion.  The motion was unanimously approved by the Board.

 

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

 

AMENDED 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 September 9, 2005.  The airport’s pension provider, MERS, will not allow a benefit to begin in the middle of a month.  All benefit changes must take effect on the first of a month.  Therefore, an amendment to the contract is needed with the pension effective date changed to September 1, 2005.  That will be the only change to the union agreement which was approved last year.  Mr. Nagel stated that the union will draft the amendment.  Dr. Distler made a motion to approve an amendment to the union contract for the B-4 pension benefit effective on September 1, 2005.  Mr. McKeag seconded and the motion passed unanimously. 

 

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.

 

RENTAL CAR AGREEMENTS:  Mr. Nagel stated that last year the rental car leases were extended through April 30, 2005.  The extensions included a one-year rate freeze on office and counter rent. Staff has worked with all four companies and has negotiated a three-year extension which includes a three percent increase per year on office and counter rent.  All other terms and conditions will remain as-is.  Mr. Nagel stated that the Operations Committee reviewed this proposal and Mr. Lippert approved the amendments as to form.  Dr. Distler stated that the Operations Committee had reviewed and concurred with the proposal.  He made a motion to approve a three-year extension for the on-airport car rental companies including a three percent per year increase in office and counter rent and authorization for the Chairman to sign the agreements.  Mr. McKeag seconded and the motion unanimously carried.

 

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

3105                                                                                          Security/FIDS

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:

 

RESOLUTION

(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,

Freeland, Michigan:

 

Section I.  That MBS International Airport Commission, on behalf of the City of Midland, the City of Saginaw and the County of Bay, Michigan, shall submit a Grant Application and enter into a Grant Agreement for the development of the MBS International Airport, and that such Grant Documents shall be set forth hereinbelow:

 

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 Manager is hereby authorized and directed to impress the official seal and to attest said execution:

 

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.

 

HONEYWELL 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 Administration Building; preventative maintenance; component replacement; and 24-hour, seven days per week emergency response service.

 

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.

 

Honeywell 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 MBS Airport.

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.

 

DOW 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 April 30, 2005.

 

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.

 

Next regular meeting is scheduled for May 19, 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 1:13 p.m.

 

 

 

                                                                                                                                                            Hollis H. McKeag, Secretary