MBS INTERNATIONAL AIRPORT COMMISSION
The meeting was held in the Airport
Commission Board Room,
Present Staff Other
George J. Biltz A. T. Lippert (left ) John Palen, Midland Issues
Riesinger Cheryl Wade,
Brian K. Elder
Eugene F. Gwizdala
Wilmer Jones-Ham Guest
Karl S. Tomion
MAY 2006 WARRANT AND CASH & INVESTMENT SUMMARY: Mr. Biltz made a motion to approve the Warrant Registers for the May Payroll Account Check Numbers 82365-82420; the May Operations and Maintenance Check Numbers 36630-36700; and the May Cash and Investment Summary. Mr. Tomion seconded the motion and the Board unanimously approved it.
PUBLIC COMMENT: None
2006 SECOND-HALF MARKETING BUDGET: Mr. Nagel stated that the following is the proposed marketing budget for the second-half of 2006. MBS has continued strong marketing efforts with the new cost calculator ads which have been well received.
Holt has provided some preliminary information from the last survey. Approximately 20,000 surveys were sent out to residents in the three counties. The goal of the study was to obtain travel data from the customer, customer service information questions, and test our marketing methods. Holt estimated 8% of the surveys were returned and they have been through about half of them. Based on the survey results, the advantages of flying from MBS appear to be convenience, time and easy travel which demonstrates that the marketing message is getting out to the customers. Mr. Nagel stated that he would prepare a summary once he receives the completed results and will distribute it to the Board. He recommended at this time to continue the strong marketing efforts as listed.
Holt Marketing $5,000
The money for this marketing campaign is in our 2006 budget and other opportunities may be considered as they arise. Ms. Jones-Ham made a motion to approve the 2006 second-half marketing budget with Mr. Elder seconding. The motion unanimously carried.
VEHICLE PURCHASE: Mr. Nagel stated that a new airport rescue and firefighting (ARFF) vehicle was approved for the 2006 AIP projects in February of 2006. Peckham Engineering was hired to develop the bid documents, receive bids and provide a recommendation based on the bids received.
The specifications were developed and advertised as required. The advertisement was sent to three companies which produce these trucks. Two companies, Oshkosh Truck and E-One, requested a full set of bid documents. Bids were due on Tuesday, June 13th at Peckham Engineering. Only one bid was received for this truck. The bid was from Oshkosh Truck in the amount of $998,198.00. The grant amount estimate was $1,000,000. The breakdown of financial participation is:
Total Bid: $998,198.00
Federal (95%) 948,288.10
State (2.5%) 24,954.95
Local (2.5%) 24,954.95
This truck is a 1,500 gallon truck which also carries foam and 460 pounds of halotron extinguishing agent. The truck is also equipped with a roof snozzle which is a boom with a turret attachment.
Dennis Jouppe from Peckham Engineering has reviewed the submittal from Oshkosh. His recommendation is to award the bid to Oshkosh Truck as their bid meets the intent of the specifications and is within the original estimate. The bid documents must also be reviewed and approved by our state project manager. Mr. Nagel added that Mr. Jouppe said if the truck was re-bid, there probably would only be one response again since it is a specialized piece of equipment. Mr. Nagel estimated that 80-90% of these types of trucks are manufactured by Oshkosh Truck. Mr. Earley asked the age of the current trucks at MBS. Mr. Nagel informed the Board that there is a 1989 and a 1995 truck. Trucks become eligible for AIP funding after ten years qualifying both vehicles. Mr. Beson made a motion to approve the bid of Oshkosh Truck for the 1,500 gallon ARFF vehicle subject to state approval. Ms. Jones-Ham seconded and the motion unanimously passed. Mr. Nagel reminded the Board that the grant for the fire-truck also had included storm sewer work; however it has been eliminated from this grant until a decision on the terminal is reached by the Commission. Mr. Nagel did not want to construct a sewer line and then possibly move it in the near future.
GREVIOUS & ASSOCIATES PRESENTATION: Mr. Nagel reported that he has been contacted by Terry Grevious of Grevious and Associates concerning a possible 2007 Air Show at MBS. Terry has produced the Muskegon Air Show for numerous years and currently produces the Dayton Air Show. Terry visited MBS to have further discussions and Mr. Nagel has discussed this with the Operations Committee. The committee felt that a formal presentation to the full Commission would be beneficial.
A two-page event proposal which outlines a possible show was included in the packets along with a Scope of Services which would be the responsibility of Grevious & Associates. The show would be contingent on the participation of a military jet team. If a jet team did commit to the show at MBS, staff would negotiate a contract with Grevious & Associates and that contract would be brought back for Commission approval.
Based on the information Mr. Nagel has seen, this show would be an excellent way to market and promote the airport. There is no cost to the Commission at this time; however, a commitment to support such a show should be made. Mr. Nagel introduced Terry Grevious to the Board to make a formal presentation and answer any questions.
Mr. Grevious reviewed the event proposal that was given to the Board members. An in-depth question and answer period took place. Items that were discussed were:
· No cost to the airport if a jet team is not acquired
· No disruption of commercial flights
· Security and fencing
· Chambers, Visitor & Convention Bureaus, civic organizations would be involved
· Profit or loss depends on weather
· Budget for seed money
· Risk of air shows
Commission McKeag stated that he was against the idea based on potential risks including accidents and/or financial risks.
Mr. Nagel stated he brought this to the Board for their wishes. The show would have potential marketing for the airport although there are risks involved. Dr. Distler thanked Mr. Grevious for his presentation. He stated since he is on the Operations Committee, it has given him some time to think about an air show. He stated that he is a risk taker and proceeded to make a motion to commit the Commission to act as the nonprofit Air Show Board; commit to using $100,000 of the marketing budget as seed money for show start-up costs; and approve Grevious & Associates to file the necessary paperwork to apply for military jet team participation. Ms. Jones-Ham seconded. Mr. Gwizdala asked for a roll call vote. The Board members voted as follows: Mr. Beson, yes; Mr. Biltz, yes; Dr. Distler, yes; Mr. Earley, yes; Mr. Elder, yes; Mr. Gwizdala, yes; Ms. Jones-Ham, yes; Mr. McKeag, no; and Mr. Tomion, yes. Motion carried.
OLD BUSINESS: Mr. Nagel stated the grant that covers the Terminal Study with RS&H was received and ready to be signed by the chairman and attorney.
Mr. Nagel stated that the TSA exit lane continues to be an item. Staff is formulating a response to the public comment concerning turning the responsibility of monitoring the exit lane from the check point over to the airport operator after the last departure of the day. Mr. Riesinger is drafting the response and it will be sent in by the deadline of next week.
Mr. Nagel reminded the Board that the Traverse City trip is scheduled for Tuesday, June 20th. Currently, Commissioners McKeag, Tomion, Beson, and Gwizdala are scheduled to attend. Mr. Beson stated he is unable to attend. Those attending are to be at the Administrative Office at 8:00 a.m. If any one else is interested in going, please contact the office before next week. The trip will take most of the day.
NEW BUSINESS: None
ADMINISTRATIVE MATTERS: Next regular meeting is scheduled for July 20, 2006.
Dr. Distler suggested that anyone going to the ACI conference in Reno may want to consider flying into Sacramento. Mr. Nagel stated that Reno is difficult to fly into. There are several connections such as Chicago/Denver/Reno, Detroit/LA/Reno, or Detroit/San Francisco/Reno. Mr. Nagel suggested that any commissioner that plans on attending should make their reservations as soon as possible.
Chairman Gwizdala stated that the Board has the job performance of the Airport Manager. He reported that Mr. Nagel asked for a closed session and the letter of request is filed at the office should anyone want to see it. Mr. Elder made a motion to go into closed session with Mr. Beson seconding. Chairman Gwizdala asked for a roll call vote. The vote was as follows: Mr. Beson, yes; Mr. Biltz, yes; Dr. Distler, yes; Mr. Earley, yes; Mr. Elder, yes; Mr. Gwizdala, yes; Ms. Jones-Ham, yes; Mr. McKeag, yes; and Mr. Tomion yes. The motion carried.
The Board went into closed session.
Mr. Elder made a motion to return to open session. Mr. Beson seconded and the motion passed.
ADJOURNMENT: There being no further business, Mr. Beson made a motion to adjourn. Mr. Elder seconded and the Board unanimously passed the motion. The meeting adjourned at 3:02 p.m.
Hollis H. McKeag, Secretary