MBS INTERNATIONAL AIRPORT COMMISSION

 

March 16, 2006

 

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 1:01 p.m.Roll was called by Debbie Meisel.

 

COMMISSIONERS

 

Present†††††††††††††††††††††††††††††† Absent & Excused†††† Staff†††††††††††††††††††††† Other†††††

Patrick H. Beson††††††††††††††† Darnell Earley††††††††††† Jeff Nagel†††††††††††††† John Palen, Midland Issues

George J. Biltz†††††††††††††††††††††††††††††††††††††††††††††††††††† A. T. Lippert††††††††† Jeremiah Stettler, Saginaw News

Kenneth W. Distler††††††††††††††††††††††††††††††††††††††††††††† Ryan Riesinger††††††† Cheryl Wade, Midland Daily News

Brian K. Elder†††††††††††††††††††††††††††††††††††††††††††††††††††† Debbie Meisel†††† †† Irene Duncan, Citizen††††††††††††††††††

Eugene F. Gwizdala

Wilmer Jones-Ham††††††††††††††††††††††††††††††††††††††††††††† Guests†††††††††††††††††††

Hollis H. McKeag†††††††††††† †††††††††††††††††††††††††††††††††† Lori Wagner††††††††††

Karl S. Tomion

 

PLEDGE OF ALLEGIANCE

 

MINUTES:Mr. Biltz made a motion to approve the minutes of the Regular Commission Meeting held on February 16, 2006.Dr. Distler seconded the motion.The motion was unanimously approved by the Board.

 

FEBRUARY 2006 WARRANT AND CASH & INVESTMENT SUMMARY:Dr. Distler made a motion to approve the Warrant Registers for the February Payroll Account Check Numbers 82163-82219 and the February Operations and Maintenance Check Numbers 36415-36472; and the February Cash and Investment Summary.Ms. Jones-Ham seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT:None

 

MULTIPURPOSE TRACTOR (PFC #5):Mr. Nagel stated that a multiuse tractor is included in PFC application #5.This piece of equipment can be used in both winter (snow removal) and summer (mowing) operations.Staff is at the point to begin the procurement process for this tractor.Mr. Nagel received a contract from Peckham Engineering to complete this process including specification development, preparing the bid documents, receiving bids and providing a recommendation to award.The contract price is $5,450.00 which is in line with the past contracts.The airport has used Peckham in the past and this process works very well.Mr. Elder made a motion to approve the contract with Peckham Engineering for procurement of a specialized multipurpose tractor and authorization for the Chairman to sign.Mr. Beson seconded and the motion passed unanimously.

2005 FINANCIAL AUDIT:Mr. Nagel stated that Lori Wagner from Andrews, Hooper and Pavlik is here to present the 2005 Audited Financial Statement for MBS International Airport.He thanked the audit firm and the airport internal staff for the audit preparation.Mr. Nagel stated that the Financial Committee met on March 9th to review the audit.He then referred to Mr. McKeag, Chairman of the Finance Committee.Mr. McKeag stated that he and Mr. Elder met to review the audit; Ms. Jones-Ham was unable to attend.The Finance Committee stated that all of their questions were answered and accepted the audit.Mr. Biltz made a motion to receive the 2005 MBS Financial Audit with Ms. Jones-Ham seconding the motion.

 

Ms. Wagner thanked the Board for inviting her to review the financial report.She stated that normally Randy Morse would also be in attendance however he had a meeting in Grand Rapids and was not sure he would be able to attend this meeting.Ms. Wagner reviewed the report answering questions from the Board as she proceeded.The Board did question that operating revenue declined and operating expenses increased.Ms. Wagner explained that although it appears that there was a loss last year that is based on their format which does not include interest income.The airport relies on the interest income for operating and includes it in the budget.With the interest income included the airport had a net gain of $260,000.She stated that the airport did relatively well overall.

 

Questions also focused on the pension plan. Ms. Wagner explained that the pension plan is audited by MERSís audit firm although Andrews Hooper & Pavlik does review the actuarial.MERS bills the airport each month and all payments were made accordingly. The airport did make pension contributions that exceeded the annual pension cost in 2005 which reduced the liability. Ms. Wagner explained that the liability is based on all employees retiring immediately, making the vesting period, and staying at the airport until they meet the retirement qualifications.

 

Mr. McKeag asked Mr. Nagel what the airportís current parking rates are and is the airport competitive with other surrounding airports.Mr. Nagel stated that MBS is lower.Mr. McKeag asked Mr. Nagel to bring a comparison of parking rates at the surrounding airports to the next meeting.Mr. Nagel stated that he would bring the comparison and added that the rates have not been increased since 1996.Standard Parking has been here at the airport since 1965 and has been in touch with Mr. Nagel regarding the rates.Mr. Nagel explained that since 1965 there have been four or five increases over the life of the contract.Standard Parking can increase the rates however they must have the approval of the airport manager which cannot be unreasonably withheld.In the past the rate increases have come to the Commission as part of a supplement to the agreement and that would be Mr. Nagelís intent.

 

There being no further discussion, Mr. Gwizdala called for a vote.The motion unanimously carried.

 

OLD BUSINESS:Mr. Nagel stated that last November TSA renewed their contract for a one year term but originally wanted a long term lease.GSA has contacted Mr. Nagel and they wish to reenter discussion regarding a long term lease and some additional storage space.Mr. Nagel hopes that in the near future he will be returning to the Commission with a long-term lease for TSA.††††

 

NEW BUSINESS:Mr. Nagel stated that the three local chambers, Bay, Saginaw, & Midland, organized a Washington D.C. fly-in the second week in May to meet with our representatives in Washington.One of the agenda items is MBS International Airport regarding our project and the infrastructure around that project.The chambers have been very supportive.Mr. Nagel has approached all three chambers and economic groups about the project.He feels it is a very positive sign that they have invited him and that they are willing to support this project.Mr. Nagel will report at the May Commission Meeting.††

 

ADMINISTRATIVE MATTERS:Dr. Distler asked if there has been any further discussion regarding the purchase of the Dow Corning hangar.Mr. Nagel stated that there is no news to report.Dow Corning is looking at all their options however there is another meeting with them next week.

 

Dr. Distler stated that he is not familiar with the news in the Bay City or Midland newspapers however he is aware that there have been two very positive articles in the Saginaw News one of which was in the editorial section.Dr. Distler thanked the Saginaw News and Jeremiah Stettler for the articles.Mr. Nagel stated that he had received positive comments on both the articles.

 

Mr. Beson asked for an update on the Northwest pilots.Mr. Nagel stated that the pilots have a tentative agreement which is going out for ratification.The pilot union is recommending that the agreement be approved.Northwest has also reached a tentative agreement with the flight attendants.The ground workers, ticket counter and baggage handlers on the ramp had a contract proposal out for vote which was rejected and is going back to the bargaining table and possibly back to the bankruptcy judge.Mr. Nagel feels some optimism that eventually an agreement will be reached with the machinistís union which includes the ticket counter and baggage handlers.

 

Next regular meeting is scheduled for April 20, 2006.

 

ADJOURNMENT:There being no further business, Mr. Biltz made a motion to adjourn.Ms. Jones-Ham seconded and the Board unanimously passed the motion.The meeting adjourned at 1:43 p.m.

 

 

 

††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† ††††††††††††††††††††††† ††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Hollis H. McKeag, Secretary