MBS INTERNATIONAL AIRPORT COMMISSION

 

November 17, 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 1:02 p.m.  Roll was called by Debbie Meisel.

 

 

COMMISSIONERS

 

Present                       Absent & Excused         Staff                       Other        

Patrick H. Beson         Kenneth W. Distler        Jeff Nagel               Jack Duso, City of Midland

George J. Biltz            Darnell Earley                A. T. Lippert          Lorie Shane, Midland Issues

Brian K. Elder             Karl S. Tomion              Debbie Meisel        Cheryl Wade, Midland Daily News Eugene F. Gwizdala                                                                                                      Al Duncan, Retired

Wilmer Jones-Ham                                                                         Jeremiah Stettler, Saginaw News

Hollis H. McKeag

                                                                                                                       

PLEDGE OF ALLEGIANCE 

 

MINUTES:  Ms. Jones-Ham made a motion to approve the minutes of the Regular Commission Meeting held on October 20, 2005.  Mr. McKeag seconded the motion.  The motion was unanimously approved by the Board.

 

OCTOBER 2005 WARRANT AND CASH & INVESTMENT SUMMARY:  Mr. Elder made a motion to approve the Warrant Registers for the October Payroll Account Check Numbers 81931-81987 and the October Operations and Maintenance Check Numbers 36077-36160, 36074 void; and the October Cash and Investment Summary.  Mr. Beson seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT:  None

 

ARFF TRAINING GRANT – 2006:  Mr. Nagel stated that F.A.A. Regulation 139 requires each Aircraft Rescue Fire Fighter to receive live fire training exposure once a year.  In order to meet these regulations, the State Aeronautics Commission and the Kellogg Community College developed a mobile training unit.  This unit has been used at MBS for the past several years and it has proved to be an excellent form of training.

 

Mr. Nagel informed the Board that the MBS training date is in May, and that staff has applied for a State grant to assist in the funding for the training.  Although the 2006 grant amount has not been determined, the 2005 grant was for 90% of the training cost, up to a $5,000 maximum.  Mr. Beson made a motion to approve the following Resolution.

 

RESOLUTION

 

RESOLUTION ADOPTING AND APPROVING THE EXECUTION OF THE SPONSOR CONTRACT BY THE COMMISSIONERS OF THE MBS INTERNATIONAL AIRPORT COMMISSION, OF FREELAND, MICHIGAN, AND THE DEPARTMENT OF TRANSPORTATION, FOR THE PURPOSE OF OBTAINING STATE AID FOR ARFF (AIRCRAFT RESCUE FIRE FIGHTING) TRAINING AT THE MBS INTERNATIONAL AIRPORT, UNDER CONTRACT NO._________.

 

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 a Sponsor Contract for ARFF Training at MBS International Airport, and that such Sponsor Contract shall be set forth hereinbelow:

 

Section II.  That the Airport Manager of the MBS International Airport Commission is hereby authorized and directed to execute said Sponsor Contract 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 2006 ARFF Training Contract shall

be as attached.

 

Ms. Jones-Ham seconded the motion and it was unanimously passed by the Board.

 

AIRFIELD PAINT/MARKING GRANT – 2006:  Mr. Nagel stated that the airfield paint marking is an annual maintenance project to meet F.A.A. requirements.  Earlier this year the entire airfield was painted under the FAA AIP program.  The maximum amount of State funds for 2006 painting is $7,500 with a $7,500 local match.  This money will be used to paint any area which fades during the winter snow removal operation concentrating on the runways.  This has been an excellent State program assisting airports with maintaining the paint on the airfield.  Mr. Biltz made a motion approving the following Resolution to accept the State’s grant offer for airfield paint marking:

 

RESOLUTION

 

RESOLUTION ADOPTING AND APPROVING THE EXECUTION OF THE GRANT AGREEMENT BY THE COMMISSIONERS OF THE MBS INTERNATIONAL AIRPORT COMMISSION, OF FREELAND, MICHIGAN, AND THE DEPARTMENT OF TRANSPORTATION, FOR THE PURPOSE OF OBTAINING STATE AID FOR THE DEVELOPMENT OF THE MBS INTERNATIONAL AIRPORT, UNDER CONTRACT

NO.________.

 

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 paint marking at the MBS International Airport, and that such Agreement shall be as set forth hereinbelow:

 

Section II.  That the Airport Manager 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 2006 Airfield Paint Contract shall

be as attached.

 

Ms. Jones-Ham seconded and the motion unanimously carried.

 

AIRFIELD CRACK SEAL REPAIR GRANT – 2006:  Mr. Nagel stated that the extreme cold conditions paired with ongoing snow removal operations causes a greater impact from frost on the airfield pavements.  The F.A.A. requires airports to have a pavement maintenance program.  Staff has requested a State grant in the amount of up to $5,000.00, which the Airport would have to match equally.  The State will take bids for all airports as one group bid, in an attempt to procure better pricing.  Mr. Beson made a motion approving the following Resolution to accept the State’s grant offer for airfield crack sealing:

 

RESOLUTION

 

RESOLUTION ADOPTING AND APPROVING THE EXECUTION OF THE GRANT AGREEMENT BY THE COMMISSIONERS OF THE MBS INTERNATIONAL AIRPORT COMMISSION, OF FREELAND, MICHIGAN, AND THE DEPARTMENT OF TRANSPORTATION, FOR THE PURPOSE OF OBTAINING STATE AID FOR THE DEVELOPMENT OF THE MBS INTERNATIONAL AIRPORT, UNDER CONTRACT

NO.__________.

 

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 Airport Manager 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 2006 Airfield Pavement Crack Seal

Contract shall be as attached.

 

Ms. Jones-Ham seconded the motion and it was unanimously passed by the Board

 

MESA AGREEMENT:  Mr. Nagel stated that Skywest is currently operating as the United Express carrier at MBS.  Skywest has the station lease and is responsible for all costs associated with operating the station.  Mr. Nagel informed the Board that he had been notified that Mesa will begin operating some of the United Express flights into the MBS market for Skywest.  Based on his conversations with Skywest, Mesa will be responsible for their own landing fees and therefore, is in need of an operating agreement.  Mr. McKeag made a motion to approve an operating agreement with Mesa at our current rate structure and authorization for the Chairman to sign.  Mr. Biltz seconded and the motion unanimously carried.

 

VEHICLE PURCHASE:  With the recent addition of the ARFF Department Supervisor, there is need for an additional staff/operations vehicle.  The vehicle would be a Trailblazer to match the existing vehicles.  Staff would utilize the standard purchase procedures by bidding the vehicle with local dealers.  The money is available in the 2005 budget if purchased by the end of the year.  Mr. Elder made a motion to approve the Airport Manager to accept bids on a new Trailblazer and to purchase the lowest, best-qualified vehicle at a cost not to exceed $30,000.  Ms. Jones-Ham seconded and the motion unanimously carried.

 

CREATIVE HOST AGREEMENT:  Mr. Nagel stated that Creative Host has had the contract for food service, gift shop and the game room at MBS since 1996.  The original agreement was for ten years with the concessionaire having the option to renew the agreement for an additional five-year period.  The current agreement expires on January 31, 2006 and Creative Host notified Mr. Nagel that they wish to renew for the five-year period.  The current agreement requires Creative Host to pay 5% of gross revenues with a minimum of $45,000 per year.  The percentage rate is fixed but it can be opened for negotiation to re-establish the minimum.  Currently they pay the minimum monthly payments most months, and slightly exceed the minimum in the summer months due to the Skyroom business.  Mr. Nagel does not recommend a change in the minimum at this time.  This does not preclude MBS from renegotiating the figure at any time during the lease period.

 

Creative Host is a multinational company with airport concessions worldwide.  MBS is fortunate to have these resources in the terminal.  The grouping of all the concessions under one agreement makes MBS an attractive facility for Creative Host.  Airports our size are sometimes not as fortunate to have a company meet their concession needs.  Mr. Biltz made a motion to approve a five-year extension of the Creative Host agreement and authorization for the Chairman to sign with Mr. McKeag seconding.  Mr. Biltz asked how the income from the agreement compares to the other agreements at the airport. Mr. Nagel explained that this agreement would be comparable to the car rental agreements where there is a percentage charged with a minimum.  This agreement is not based on square footage.  The Board passed the motion unanimously.

 

ECONOMIC IMPACT STATEMENT:  Mr. Nagel stated that the last economic impact statement for MBS was conducted by the State in the late 1990’s.  This was a generic study conducted using a standard formula for several airports.  Although the data was useful, Mr. Nagel feels a more thorough study should be conducted.

 

Mr. Nagel explained that an economic study such as this would have the following objectives:  determine the current financial inputs to the immediate service area of MBS; determine the impact of the regional economy of MBS; provide a range of specific economic impact outcomes based on the evolving role of MBS over the next ten years; and define and evaluate the total contribution MBS provides to the airports service area.

 

Over the past year, Mr. Nagel has spoken to several firms about this project.  The one factor which must be considered is a range of expected shifts in air service and that impact on MBS.  The firm which Mr. Nagel feels is best suited to perform this study is The Boyd Group.  They have experience with economic impact studies and are very familiar with MBS, the tri-county area and aviation within Michigan.  Mr. Nagel spoke to Mike Boyd while he was at his Aviation Forecasting Conference in October and has sent MBS a proposal.  The price is very competitive with other estimates received, and the money is available in the 2005 budget.  Mr. Biltz make a motion to approve The Boyd Group to conduct an Economic Impact Analysis for MBS Airport not to exceed $16,500.  Mr. McKeag seconded the motion.  After discussion, the motion unanimously carried.

 

ADI LEASE:  Mr. Nagel stated that ADI is the company which operates the Dow shuttle.  They currently have an agreement for Northwest Airlines to handle their ground operations.  In an effort to provide stability to their operation, they have expressed an interest to lease airline space and ground-handle their own flights.  Space is available in the middle section of the ticket counter and ADI would like to lease half of that space.  This space has been divided up in the past between Continental and US Air and should work well for ADI.  There has been no other interest in leasing this space and the lease would generate over $20,000 per year in additional revenue.  ADI would like to occupy the space beginning December 1, 2005 and the term would run concurrent with the new Northwest and Skywest leases.  Mr. Beson made a motion to lease approximately 827 square feet of space to ADI at the current rates and authorized the Chairman to sign the lease.  Ms. Jones-Ham seconded.  Mr. Biltz abstained from the vote and the Board unanimously passed the motion.

 

OLD BUSINESS:  None

 

NEW BUSINESS:  Mr. Gwizdala appointed Darnell Earley to the Personnel Committee.

 

Mr. Nagel reported to the Board that the airport had the annual FAA safety inspection last week and had zero discrepancies.  Mr. Nagel complimented Mr. Riesinger, Assistant Manger, and the Maintenance and Fire Supervisors for their efforts in getting all the paperwork in for the inspection. 

 

ADMINISTRATIVE MATTERS:  Next regular meeting is scheduled for December 15, 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