MBS INTERNATIONAL AIRPORT COMMISSION

 

April 20, 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 1:00 p.m. Roll was called by Debbie Meisel.

 

COMMISSIONERS

 

Present Absent & Excused Staff Other

Patrick H. Beson Kenneth W. Distler Jeff Nagel John Palen, Midland Issues

George J. Biltz Brian K. Elder A. T. Lippert

Darnell Earley Ryan Riesinger

Eugene F. Gwizdala Debbie Meisel

Wilmer Jones-Ham

Hollis H. McKeag

Karl S. Tomion

PLEDGE OF ALLEGIANCE

 

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

 

MARCH 2006 WARRANT AND CASH & INVESTMENT SUMMARY: Mr. Biltz made a motion to approve the Warrant Registers for the March Payroll Account Check Numbers 82220-82307, void check numbers 82262 & 82271 and the March Operations and Maintenance Check Numbers 36473-36554; and the March Cash and Investment Summary. Mr. Earley seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT: None

 

TSA LEASE EXPANSION: Mr. Nagel stated that at the last Commission meeting he mentioned that the TSA is interested in reaching a long-term lease at MBS. While continuing to negotiate terms of the extension, TSA has requested adding 304 square feet of leased space on the second level of the Terminal Building. This space was last leased by Huntleigh Security, the private firm which ran the checkpoint prior to TSA, and has been vacant for four years. The lease rate has historically been well below the rates on the first level of the terminal due to the location.

 

Mr. Nagel negotiated a rate of $18.00 per square foot per year with the TSA which would amount to an additional $456 per month in revenue. This space would also be included in the long-term lease with the TSA. Mr. Beson made a motion to approve the amendment to the TSA lease to add 304 square feet of space located on the second level at a rate of $18.00 per square foot and authorization for the Chairman to sign the amendment. Ms. Jones-Ham seconded and the motion unanimously carried.

 

HONEYWELL AGREEMENT: Mr. Nagel stated that Honeywell has been providing service to MBS since 1985. Their service includes a computerized automated energy management system for the Passenger Terminal and Administration Building. They also provide preventative maintenance, limited component replacement and 24-hour, seven days per week emergency response service. Honeywell has also added additional services over the years at no charge such as participation in our recent terminal study. The service contract benefits MBS by saving energy, reducing equipment downtime, extending equipment life and helping control the budget. Honeywell employees are trained in our security requirements and have security badges which allow access anytime they need it.

 

The contract usually runs in five-year increments. Last year the Commission approved a one-year extension with no price increase. Mr. Nagel has discussed the contract with Honeywell and they have agreed to another one-year extension at the same annual price ($49,261.00) as the last two years. With the future of the terminal currently being studied, Mr. Nagel believes this is best for MBS and for Honeywell. Mr. Beson made a motion to approve the one-year extension to the Honeywell contract for the same rate as 2005-2006, and authorization for the Chairman to sign the agreement. Ms. Jones-Ham seconded and the motion unanimously carried.

 

STANDARD PARKING AMENDMENT #8: Mr. Nagel stated that Standard Parking has managed the MBS lot since 1965. The original contract states that the contractor can raise the parking rates with approval from the Airport Manager which cannot be unreasonably withheld. Mr. Nagel stated that in the past rate increases have come before the Airport Commission in the form of lease amendments.

 

Standard Parking approached Mr. Nagel several months ago regarding a potential rate increase since rates have not been adjusted since 1996. After researching parking rates at other airports and negotiating with Standard, a fair compromise has been reached.

 

Below is a summary comparison of MBS rates with Flint and Lansing.

 

 

SHORT-TERM

 

MBS (Current)

MBS (Proposed)

Lansing

Flint

 

$.75 each hour

$7.00 daily max

First 15 minutes free

$.75 each hour

$10.00 daily max

First 15 minutes free

$2.00 16-60 minutes

$1.50 each additional hour

$10.00 daily max

 

$.75 each hour

$20.00 daily max

 

 

 

LONG-TERM

 

MBS (Current)

MBS (Proposed)

Lansing

Flint

 

$1.00 first hour

$.75 each additional

$4.00 daily max

$20.00 weekly max

 

$1.00 each hour

$5.00 daily max

$25.00 weekly max

$2.00 each hour

$7.00 daily max

$35.00 weekly max

$1.00 each hour

$7.00 daily max

$30.00 weekly max

 

 

Mr. Nagel believes this increase is certainly justified and appreciates the willingness from Standard to provide 15 minutes of free parking in the short-term lot. This should help eliminate some vehicle traffic from in front of the terminal. Mr. Biltz made a motion to approve Lease Amendment #8 to the Standard Parking Lease and authorization for the Chairman to sign. Mr. McKeag seconded the motion. Mr. Beson complimented Mr. Nagel on providing the 15 minutes of free parking for customer service. Mr. Nagel feels that it will alleviate some of the problems with passenger drop off and pickup. There being no further discussion, Chairman Gwizdala called for a vote. The motion passed unanimously.

 

OLD BUSINESS: Mr. Nagel stated that he had advertised for Request for Qualifications for the new terminal project conceptual plans. Eight firms submitted qualification packages with three of the firms selected for interviews. The Operations Committee and Mr. Nagel completed the interviews and ranked the companies one through three. The Committee did decide to negotiate a contract with Reynolds, Smith, and Hill also known as RS&H. They are headquartered in Jacksonville, Florida and have an office in Chicago, Illinois and two offices within the state of Michigan. They are a high quality firm and offer several services under one roof including civil engineering, architectural, landscape design, and interior design. Mr. Nagel stated that he has begun to negotiate a contract with RS&H. The contract would need to come before the Board hopefully by the May meeting. Mr. Nagel referred to Mr. Biltz and Mr. Gwizdala, two members of the committee. Mr. Biltz stated that Mr. Nagel had brought three very qualified candidates to the committee. After interviewing they made their choice. Mr. Biltz stated that RS&Hs track record, history, other terminals in Michigan, and other sites that are similar in size are very impressive.

 

NEW BUSINESS: Mr. Nagel informed the Board that Tri-County Travel Agent luncheon/meeting will be held at the Skyroom Restaurant on May 17th.

 

Mr. Nagel updated the Board regarding the passenger boarding checkpoint. TSA currently operates the checkpoint from when it opens in the morning until the last arriving flight. Their responsibility is to screen all departing flights but they have kept someone at the checkpoint until the last arriving flight to insure no one gets into the sterile area after the checkpoint closes. TSA has maintained this responsibility for four years and now TSA nationally has insisted that they do not have the responsibility to maintain the security of the sterile area after the last departing flight. There is still some debate as to whether the responsibility will fall onto the airport operator or the air carriers. If MBS received an amendment to the security plan or a security directive, there will be no choice but to honor that which could mean hiring a private security guard to man the checkpoint during that time. There could be a cost not included in our current budget causing a budget amendment. This issue has come up in the past but ACI and AAAE put pressure on the TSA and no change took place. At this point TSA will continue as they have through May. Mr. Nagel assured the Board that he will keep them updated.

 

ADMINISTRATIVE MATTERS: Mr. McKeag asked what the passenger activity was for March. Mr. Nagel stated that the passenger count was 33,844 which was 6.4% down for the month, for a total of 8% for the year.

 

Mr. Biltz asked if the Board has done any long term planning on the on the personnel side such as wage structure, costs, and benefits as compared with other airports of our size. He stated that the airport is being looked at from a capital improvement long term plan and that the labor side should be looked at. Mr. Nagel stated that those discussions have not taken place with the Board however the Personnel Committee could meet to start those conversations. Chairman Gwizdala stated that Mr. Tomion is chairman of that committee and he and Mr. Nagel should have further discussion.

Next regular meeting is scheduled for May 18, 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 1:20 p.m.

 

 

 

Hollis H. McKeag, Secretary