MBS INTERNATIONAL AIRPORT COMMISSION

 

June 16, 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               Nancy Kincade, Airport Taxi

George J. Biltz                  Hollis H. McKeag          Ryan Riesinger        Lorie Shane, Midland Issues
Cecil A. Collins                                                      A. T. Lippert          Jeremiah Stettler, Saginaw News

Kenneth W. Distler                                                 Debbie Meisel       

Brian K. Elder                                                       

Eugene F. Gwizdala

Karl S. Tomion

 

                                                                                                                       

PLEDGE OF ALLEGIANCE 

 

MINUTES:  Mr. Tomion made a motion to approve the minutes of the Regular Commission Meeting held on May 19, 2005.  Mr. Biltz seconded the motion.  The motion was unanimously approved by the Board.

 

MAY 2005 WARRANT AND CASH & INVESTMENT SUMMARY:  Mr. Beson made a motion to approve the Warrant Registers for the May Payroll Account Check Numbers 81625-81676 and the May Operations and Maintenance Check Numbers 35671-35744; and the May Cash and Investment Summary.  Mr. Elder seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT:  None

 

WNEM AGREEMENT:  Mr. Nagel explained that WNEM has had their Dopplermax 5000 radar unit on MBS property since 2001.  The original agreement with WNEM runs for twelve years, however, the terms are open for negotiation every four years.  The current terms require the following; mention of “from MBS” during each news broadcast weather segment while showing the radar image and $8,000 worth of advertising time per year.

 

Mr. Nagel believes that the live mention of MBS during the weather segments is a very valuable advertising tool and he required WNEM to continue that.  An increase to $8,500 per year advertising trade was also negotiated.  This agreement has proven to be an excellent component of MBS’ overall marketing campaign.  Mr. Elder made a motion to approve the amendment to the WNEM Agreement and authorization for the Chairman to sign the agreement.  Mr. Tomion seconded and the motion unanimously carried.

 

MARKETING BUDGET:  Mr. Nagel stated that last year MBS began an aggressive marketing program.  The airport continued with the Business Alliance as well as developed new ads focused on the leisure market.  Television, radio, billboard and community sponsorships have been utilized for the campaigns.  Holt Marketing is the agency that the airport has had on a retainer basis.  This relationship has worked well and Mr. Nagel recommended that it be continued.  Together, the following proposed budget was developed for the remainder of 2005:

 

            Continuation of I-75 Billboard   $10,800

            Saginaw Spirit Partnership                      $6,800

            Radio Advertising Time             $42,000

            Television                                             $20,000

            New Television Production                     $2,000

            Holt Services                                          $5,000

                                                                        $86,600

 

Mr. Nagel believes it is very important to continue the marketing efforts as the airport attempts to develop “brand loyalty” within our communities.  The marketing efforts also include numerous civic presentations and sponsorship of community events.  This budget does leave room available for additional marketing/promotional events which may develop throughout the year. 

 

Mr. Tomion made a motion to approve the 2005 second-half marketing budget with Dr. Distler seconding.  Mr. Collins asked if the WNEM agreement was included in the $86,600 total.  Mr. Nagel said it was not but stated that it would be footnoted in the marketing budget.  The motion unanimously carried.

 

DOW CORNING LEASE:  Mr. Nagel stated that Dow Corning has had a lease for Hangar #4 since 1985.  The original lease was for ten years which has twice been extended by five years.  The current lease expires July 31, 2005.

 

Dow Corning has expressed an interest in a five-year extension and staff has negotiated a 3% increase per year which would bring their rate to 2005-06, $55,195; 2006-07, $56,851; 2007-08 $58,557; 2008-09, $60,314; and 2009-10, $62,123. 

 

Mr. Nagel explained that the lease has a clause which would allow Dow Corning the option to purchase the hangar at any time during the agreement.  They have invested in improvements to the hangar and have expressed an interest in purchasing the hangar in the future.  Therefore, Mr. Nagel recommended leaving that condition in the agreement.

 

Mr. Beson made a motion approving an amendment to the Dow Corning Hangar #4 lease with a rate increase of 3% per year and authorization for the Chairman to sign the agreement.  Mr. Elder seconded the motion.  Mr. Collins asked what the proper procedure is for selling the hangar.  Mr. Lippert stated that Dow Corning and MBS each would get an appraisal done and the price would be negotiated.  The clause that is in the agreement is purely an option; there is in no way an obligation on MBS’ part to sell.  Mr. Biltz abstained from the vote.  The motion carried.  

 

OLD BUSINESS:  Mr. Nagel stated that the FAA grant on Project #3205 that included rehabilitation of the sewer, the airfield painting, purchasing of the de-icing vehicle has been received. The contracts were approved at last month’s meeting.  Staff is expecting the State contract by the end of June.  The sewer work and airfield painting is anticipated to be complete in the month of July and the purchase order for the de-icing vehicle will be issued once the contract is received.  The Security/FIDS grant is the only grant outstanding.  A pre bid meeting was held and bids are due next week.  Staff expects to bring it to the July meeting for approval. 

    

NEW BUSINESS:  None

 

ADMINISTRATIVE MATTERS:  Mr. Collins asked Mr. Nagel to report on the Travel Agents Luncheon.  Mr. Nagel stated that they met last week and do so on a quarterly basis.  The meeting was held in the Skyroom with four commissioners in attendance.  It was a very positive exchange of information.  The next meeting will be the second Wednesday in October.  There were 16 or 17 agents in attendance.  

 

Mr. Biltz asked if there were any surprise or interesting revelations that came out of the meeting.  Mr. Nagel stated that the agents expressed some concern regarding the departure time of the last United flight from Chicago getting passengers back from the west coast.  Mr. Nagel followed up with Gloria, Vice President of the association, informing her that the best course of action as an association would be to write a letter to Bill Reed, local manager of United.  Mr. Reed thought this was best because he would be able to forward the letter to several people rather than one.  The association is trying to get the 5:50 p.m. Chicago time departure to 6:50 p.m. departure Chicago time.  Mr. Nagel stated Bill Reed assured him that he would copy him in on the letters.  Mr. Biltz asked that the Commission get a copy also.

 

Next regular meeting is scheduled for July 21, 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 1:10 p.m.

 

 

 

                                                                                                                                                            Hollis H. McKeag, Secretary