MBS INTERNATIONAL AIRPORT COMMISSION

 

October 20, 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.

 

Chairman Gwizdala introduced and welcomed Darnell Early from the City of Saginaw to the Airport Board.

 

COMMISSIONERS

 

Present                                                       Staff                                   Other  

Patrick H. Beson                                        Jeff Nagel                           Jeremiah Stettler, Saginaw News

George J. Biltz                                            Ryan Riesinger                    Lorie Shane, Midland Issues

Kenneth W. Distler                                     A. T. Lippert                     

Darnell Early                                               Bob Peckham                    

Brian K. Elder                                            Debbie Meisel

Eugene F. Gwizdala

Wilmer Jones-Ham

Hollis H. McKeag

Karl S. Tomion

                                                                                                                       

PLEDGE OF ALLEGIANCE 

 

MINUTES:  Mr. Elder made a motion to approve the minutes of the Regular Commission Meeting held on August 18, 2005.  Ms. Jones-Ham seconded the motion.  The motion was unanimously approved by the Board.

 

AUGUST & SEPTEMBER 2005 WARRANT AND CASH & INVESTMENT SUMMARY:  Mr. Biltz made a motion to approve the Warrant Registers for the August Payroll Account Check Numbers 81790-81846 and September Payroll Account Check Numbers 81847-81930; the August Operations and Maintenance Check Numbers 35895-35978 and the September Operations and Maintenance Check Numbers 35979-36076, void checks 35948 & 36016; and the August and September Cash and Investment Summaries.  Ms. Jones-Ham seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT:  None

 

TSA LEASE:  Mr. Nagel stated that the Transportation Security Administration (TSA) has leased space in the terminal since November of 2002.  They have an office past the checkpoint and a training room and break room prior to the checkpoint.  The original lease was for a two-year term which was extended for one additional year last year.  When the lease was extended, it was done so at the same rate as the first two years and their intent was to negotiate a long-term deal.  Staff prepared and submitted a proposed three-year lease, but last week TSA once again requested a one-year extension to the current agreement.

 

Mr. Nagel continued stating that the TSA has been a good tenant and their current lease generates over $68,000 per year.  Since the lease was extended last year with no rate increase, Mr. Nagel recommended a 5% increase for the next year to $38.93 per square foot.  This figure is acceptable to the TSA and they have again voiced their desire to negotiate a longer term deal within the next year.

 

Mr. Beson made a motion to approve a one-year extension of the TSA lease at a 5% rate increase and authorization for the Chairman to sign.  Ms. Jones- Ham seconded the motion.  After discussion took place, the motion unanimously carried.

 

SEWER PROJECT:  Mr. Nagel explained that the rehabilitation of the Terminal Building sanitary sewer line has been part of FAA project #3205.  At the March meeting, the Commission approved a $13,053 contract with Peckham Engineering for the analysis of the line.  The goal for the project has been to find the source of storm water infiltration into the sanitary system.  This infiltration has caused problems for the township-owned sanitary sewer lift station, and could eventually cause problems with the sanitary sewer service for the Terminal Building.  The original analysis was completed and an additional $2,555.28 was required for further cleaning and smoke testing.

 

Pipeline Services has completed the analysis and the repair work, however, during the project the airport had a heavy rainstorm, which caused a buildup of storm water in the lift station.  Peckham Engineering evaluated the potential sources and feels the storm water may be coming from the 8-inch line serving the ARFF/Administration Building and the hangar line.  Bob Peckham has recommended the following work be completed on the 8-inch line:

 

1.                  Remove existing mineral deposits in all joints

2.                  Jet clean the line

3.                  Perform a TV inspection of the line looking for improper connections

4.                  Perform TV inspection during a heavy rain event.

 

An estimate has been received from the contractor in the amount of $7,900 to perform this work.  Mr. Peckham reviewed the estimate and, based on the original bid, considers the price to be reasonable.  Based on the results of this analysis, additional work may be required to rehabilitate the line and completely correct the problem.  Mr. Elder made a motion to approve modification #2 to the Peckham Engineering contract in the amount of $7,900 and authorization for the Chairman to sign.  Ms. Jones-Ham seconded and the Board unanimously passed the motion.

 

FIVE-YEAR PLAN:  Mr. Nagel presented the MBS Airport 2006-2010 five-year AIP Plan to the Board.  A five-year plan must be completed each year to be eligible to receive AIP grant money for those projects.  The airport’s ongoing 2005 projects include the terminal study, equipment purchase, sewer work, runway painting and security system and FIDS upgrade.

 

The 2006 projects are the same as those presented last year with one addition which is approximately 3,300 feet of storm drain along the north side of the airport.  This is a continuation of a project that began in 2000 and needs to be completed.  The drawing for this project is also attached.

 

Mr. Nagel explained that the airport is not locked into any of these projects at this time.  However, any item that MBS may request federal funding for should be listed on the plan.  Staff has met with both state and FAA officials to discuss the program.  A formal resolution is required for the 2006 projects only and will not be needed until January or February.  Ms. Jones-Ham made a motion to approve the five-year AIP program and Mr. Elder seconded.

 

There was some concern that a new terminal building is listed on the plan, especially that “Conceptual Plans” are included in 2006 projects when the results of the terminal study have not been released.  It was questioned whether there is an alternative plan for that money if the study does not endorse a new terminal.  Mr. Nagel explained that the Conceptual Plans are the layout or footprint to help with a financial picture if MBS would go the direction of a new terminal.  He further explained that the five-year plan helps to keep funding in line per the Master Plan.  Mr. Nagel also stated that the money is not lost but projects would be moved to a future year if an item were not completed.  After more discussion Mr. McKeag made a motion to table the five-year plan until the terminal study results were in.  Mr. Tomion seconded.  Chairman Gwizdala requested a roll call vote by Ms. Meisel.  The vote was Patrick Beson, no; George Biltz, no; Kenneth Distler, no; Darnell Early, no; Brian Elder, no; Eugene Gwizdala, no; Wilmer Jones-Ham, no; Hollis McKeag, yes; Karl Tomion, yes.  The motion did not pass.

 

Mr. Peckham stated that MBS has a very good relationship with the Federal and State government grant people.  The five-year plan puts MBS in line for the AIP funding.   Submitting early also puts MBS in line for discretionary funds.  Discussion continued.  It was determined that the five-year plan is not the first step to a new terminal building but rather a guideline that can be changed at anytime.  Mr. Nagel also explained that any item listed on the plan is presented to the Board for a formal resolution before the work or purchase can proceed.  There being no further discussion, Chairman Gwizdala requested Ms. Meisel to take a roll call vote on the original motion.  The vote was Patrick Beson, yes; George Biltz, yes; Kenneth Distler, yes; Darnell Early, yes; Brian Elder, yes; Eugene Gwizdala, yes; Wilmer Jones-Ham, yes; Hollis McKeag, yes; Karl Tomion, yes.  The motion unanimously passed.  

 

PROPERTY PURCHASE:  Mr. Nagel said that the issue of purchasing property on the north side of the airport has been discussed since early 2001.  The property consists of approximately 155 acres and could be used for development of a new terminal, other airport development or simply approach protection for the airport.  The purchase of the property has been on the five-year plan and is AIP eligible.  The most effective method to proceed with this is to purchase the property with local funds, then seek reimbursement through the state and FAA.  To insure reimbursement, the state and FAA procedures need to be followed.

 

During our recent Michigan Airport Planning (MAP) meeting, the property purchase was discussed with state and FAA representatives.  It was recommended to utilize a specialized land acquisition consultant to assist with this process.  Mr. Nagel investigated this further and would agree with this approach.  The consultants assist with all the necessary steps required to purchase the property and insure the state and federal procedures are followed.  In addition, the cost of the consultant is also reimbursable.

 

The first step in the process is to hire a consultant.  Mr. Nagel stated he would advertise seeking a statement of qualifications and interview potential firms.  The airport needs state approval of the consultant before moving forward.  The contract for the consultant would be presented to the Commission for approval.

 

Mr. Tomion made a motion to approve the Airport Manager to begin the process of selecting a consultant to assist with the purchase of property and Mr. Early seconded.  Mr. Biltz asked if other properties had been looked at.  Mr. Nagel stated that this property purchase is part of a long-range plan and was part of the Master Plan.  Mr. McKeag also asked how the property would be used.  Mr. Nagel stated that it would most likely be leased for agriculture.  After discussion, the motion unanimously carried.

 

OLD BUSINESS:  Mr. Nagel stated that Mr. McKeag, Chairman of the Finance Committee would report on a meeting that had taken place.  Mr. McKeag stated that the meeting took place on October 14, 2005.  Those in attendance were Mr. Elder, Ms. Jones-Ham, Mr. Gwizdala, Mr. Nagel, Mr. Riesinger, Ms. Meisel, five bankers representing Chemical Bank, Citizens Bank, and LaSalle Bank and himself.  The meeting covered the current investments of the airport, the investment policy, and Act 20.  The meeting determined that the best investment for the airport, while rates are continuing to rise, is the short term CD.  Also, the rate difference between 60-90 day CDs and 1 year is not significant.  Investing in a one-year CD would be considered if rates were to decline or have a larger difference to make it worthwhile.  Mr. McKeag also reported that the investment policy could be expanded to include commercial paper however, it would not enhance the net gain at this time.  Therefore, it was decided to keep the investment policy as it is.  Mr. McKeag stated that Mr. Nagel and Ms. Meisel were doing a good job with the current investments.

 

NEW BUSINESS:  None 

 

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

 

ADJOURNMENT:  There being no further business, Mr. Early made a motion to adjourn.  Ms. Jones-Ham seconded and the Board unanimously passed the motion.  The meeting adjourned at 1:34 p.m.

 

 

 

                                                                                                                                                            Hollis H. McKeag, Secretary