MBS INTERNATIONAL AIRPORT COMMISSION
The meeting was held in the Airport
Commission Board Room,
Present Absent & Excused Staff Other
George J. Biltz Wilmer Jones-Ham A. T. Lippert Lorie Shane, Midland Issues
Brian K. Elder Debbie Meisel
Eugene F. Gwizdala
Hollis H. McKeag
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
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
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
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
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
Hollis H. McKeag, Secretary