MBS INTERNATIONAL AIRPORT COMMISSION

 

December 15, 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         Kenneth W. Distler        Jeff Nagel               Jeremiah Stettler, Saginaw News

George J. Biltz            Wilmer Jones-Ham        A. T. Lippert          Lorie Shane, Midland Issues

Darnell Earley                                                   Ryan Riesinger        Nancy Kincade, Airport Taxi

Brian K. Elder                                                  Debbie Meisel             

Eugene F. Gwizdala

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 November 15, 2005.  Mr. Biltz seconded the motion.  The motion was unanimously approved by the Board.

 

NOVEMBER 2005 WARRANT AND CASH & INVESTMENT SUMMARY:  Mr. Biltz made a motion to approve the Warrant Registers for the November Payroll Account Check Numbers 81988-82044 and the November Operations and Maintenance Check Numbers 36161-36214; and the November Cash and Investment Summary.  Mr. Tomion seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT:  None

 

TEN-YEAR PLAN:  Mr. Nagel stated that the Ten-Year Capital Plan is used as an internal budgeting tool and in no way commits funds to all items listed.  The plan is presented to the Commission for information purposes only.  No motion for approval is required.  Mr. Biltz made a motion to receive the Ten-Year Plan.  Mr. Elder seconded and the motion unanimously carried.

 

2006 BUDGET:  Mr. Nagel presented the 2006 Budget and related worksheets.  The worksheets show 2005 Budget numbers, 2005 3rd Quarter and 2006 Budget.  2005 year-end numbers will be presented in the annual audit.  Mr. Nagel stated that the Finance Committee had met and recommended that the budget be presented to the full Commission for approval.  He also thanked Ms. Meisel for her time and help with the budget.  Mr. Nagel referred to Mr. McKeag from the Finance Committee for any input.  Mr. McKeag stated he had no additional input.  Mr. Biltz questioned that operating income was down and operating expense was up, particularly in fringes.  Mr. Nagel stated that a conservative approach was taken with the operating revenues since Northwest and United are the airport’s carriers.  He stated that he did not want to over inflate revenues but hoped that the revenues would come in higher than projected.  Mr. Nagel also stated that there is an increase in the fringes since the union, which comprises of 20 out of 28 employees, negotiated a pension increase in 2006.  The union contract opens in 2007 and all fringes will be reviewed at that time.  Mr. Biltz had a concern regarding the percentage of benefits to wage was higher than he is familiar with.  Mr. Tomion stated that when the union negotiated for the pension increase they did not receive a wage increase so that would account for some of the fringe but not wage increase.  Mr. Biltz stated that since the contract is coming due in 2007, staff should be looking at wage and fringes and working with all of the employees since across the nation wage and fringes are being reviewed.  Mr. Nagel stated that the process has already been started.  Mr. Earley made a motion to approve the 2006 Budget.  Mr. Elder seconded and the motion passed unanimously.

 

NONUNION MERS BENEFIT:  Mr. Nagel stated that the Personnel Committee met to discuss benefits for nonunion staff members.  Typically, these benefits mirror those negotiated with the bargaining unit employees.  The last union contract called for an increase in the pension benefit for 2005-2006 to MERS B-4.  This became effective for the union employees on September 1, 2005.  The nonunion staff employees include five office personnel and two department supervisors.  Mr. Nagel stated he would like to make this benefit retroactive for these employees to December 1, 2005.

 

Mr. Nagel said that MERS requires an actuarial prior to the adoption of any new pension benefit.  That process has been completed and the estimated annual cost for the increased benefit is approximately $6,900 per year.  After discussing this issue, the committee agreed to support this change in pension benefits for nonunion staff employees.  Mr. Nagel referred to Mr. Tomion, chairman of the Finance Committee.  Mr. Tomion made a motion to approve MERS pension B-4 effective December 1, 2005 for employees in the nonunion employee group and authorization for the Chairman to sign the MERS paperwork.  Mr. Biltz seconded the motion.  Mr. Tomion stated that the Personnel Committee had reviewed the actuarial and had a lengthy discussion regarding this benefit.  They felt that it is important to bring the nonunion employees up to the same benefit of the union and that the cost of under $7,000 was reasonable.  Mr. Biltz stated that he has the same concerns that he had stated in regards to the budget which is the cost of benefits and that they need to look at them in the future.  Mr. Tomion mentioned that the City of Midland have looked at changes such as defined contribution versus defined contribution.  With discussion ending, the Board voted and the motion unanimously carried.

 

MARKETING PROGRAM:  Mr. Nagel stated that the following is the 2006 first-half marketing budget.  Staff continues to establish the MBS brand and Holt Marketing is in the midst of measuring these efforts with a detailed market survey.  The 2006 Budget includes a healthy Promotion and Public Relations item and Mr. Nagel recommends that the airport continue to aggressively continue these programs:  Saginaw Spirit Partnership, $5,000; Holt Marketing, $5,000; Television & Radio Production, $6,000; Television Air Time, $20,000; Radio Air Time, $43,000; I75 Billboard, $11,100; for a total of $90,100.  Additional marketing opportunities will be evaluated as they develop.  Mr. Biltz made a motion to approve the marketing plan as outlined.  Mr. Beson seconded and the Board unanimously passed the motion.

 

SANITARY SEWER PROJECT:  Mr. Nagel stated that the rehabilitation of the sanitary sewer system has been included in FAA Project #3205.  The goal for this project has been to eliminate the infiltration of storm water and ground water into the sanitary system.

 

The project has included the analysis and repairs to the sanitary line coming from the Terminal Building.  Because additional problems were discovered, the Commission approved the analysis of the sanitary line serving the Administration Building and hangar line.  This analysis was completed and the findings were leaky joints in the line and a broken pipe connection coming from the hangar line.  Both of those conditions allow ground water to enter the sanitary system.  The recommended repairs include:  Interior grouting of all joints in this line, $24,076 and drill down to the broken connection and place a grout cap over the break, $1,800 for a total of $25,876.

 

Although the grout cap fix for the leaky connection is recommended because it is less costly and should expedite the closing of this project, if it does not solve the problem, the connection would need to be dug up next spring and possibly place a manhole at that location.  Mr. Nagel stated that these are eligible project costs and they have been reviewed and approved by our State Project Manager.  Mr. Nagel stated that Jim Peckham would answer any questions.  Mr. Peckham explained that the grouting may need to wait until spring depending on the weather.  Mr. McKeag made a motion to approve a contract modification for $25,876 with Pipeline Services and authorization for the Chairman to sign.  Mr. Biltz seconded.  After a question and answer period, the motion unanimously carried.

 

OLD BUSINESS:  Mr. Nagel reported that the terminal study draft has been completed.  The Operations Committee met and requested some additional data which will be incorporated into the final document.  Once completed the final document will be sent out to all the Commissioners.  Mr. Nagel is hoping for a presentation and recommendation at the January meeting.  That meeting may be a longer meeting and may be moved to the Skyroom so that team would have a larger area for their presentation.   

 

NEW BUSINESS:  None.

 

ADMINISTRATIVE MATTERS:  Next regular meeting is scheduled for January 19, 2006.

 

Mr. Gwizdala wished everyone a Merry Christmas and a Happy New Year.

 

ADJOURNMENT:  There being no further business, Mr. Tomion made a motion to adjourn.  Mr. Biltz seconded and the Board unanimously passed the motion.  The meeting adjourned at 1:22 p.m.

 

 

 

                                                                                                                                                            Hollis H. McKeag, Secretary