MBS INTERNATIONAL AIRPORT COMMISSION

 

July 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             Darnell Earley               Jeff Nagel               Rich Bostwick, NWA

George J. Biltz                                                     A. T. Lippert          John Palen, Midland Issues

Kenneth W. Distler                                              Ryan Riesinger  Lori Wagner, Andrews Hooper &

Brian K. Elder                                                     Debbie Meisel                                                Pavlik

Eugene F. Gwizdala                                                                          

Wilmer Jones-Ham                                                                           

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 June 15, 2006.  Mr. Biltz seconded the motion.  The motion was unanimously approved by the Board.

 

JUNE 2006 WARRANT AND CASH & INVESTMENT SUMMARY:  Mr. Elder made a motion to approve the Warrant Registers for the June Payroll Account Check Numbers 82421-82477, the June Operations and Maintenance Check Numbers 36701-36770, void check number 36741; and the June Cash and Investment Summary.  Mr. Tomion seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT:  None

 

KARL TOMION RESOLUTION:  Mr. Nagel stated that Mr. Tomion has accepted the position of City Manager for Port Huron, Michigan.  The following resolution expresses appreciation to Mr. Tomion for his years of service on the MBS International Airport Commission.  Mr. McKeag made a motion to approve the resolution with Mr. Biltz seconding.  Chairman Gwizdala had Ms. Meisel read the resolution on behalf of the board.     

 

 

 

 

MBS International Airport Commission

Resolution of Appreciation

 

The MBS International Airport Commission

recognizes with great appreciation the dedicated service of

 

KARL S. TOMION

 

who has served the airport and the owner communities since 1992. During his years of service he has shared his skills as a professional city manager, his understanding of community needs, and his knowledge of aviation related activities and concerns to the commission. He has willingly aided the airport manager and management staff as an active committee member.

 

His counsel, support, and ever-pleasant company will be missed by all who have served and worked with him, and the best wishes of all go with him as he leaves us for new opportunities and challenges as the City Manager of Port Huron Michigan.

 

This Resolution of Appreciation was unanimously adopted at a regular meeting of the MBS Airport Commission on July 20, 2006 and shall be retained in the permanent minutes of the commission.

 

MBS INTERNATIONAL AIRPORT COMMISSION

 

Bay County                                       City of Midland                            City of Saginaw

 

Eugene F. Gwizdala                            Hollis H. McKeag                            Kenneth W. Distler

Patrick H. Beson                                 George J. Biltz                                 Wilmer Jones-Ham

Brian K. Elder                                                                                             Darnell Earley

 

Jeff Nagel, Airport Manager

A. T. Lippert, Jr., Airport Attorney

 

 

The board unanimously passed the motion.

 

PERSONNEL COMMITTEE REPORT:  Mr. Tomion reviewed the letter that the Personnel Committee presented to the board.  The committee had the following comments on Mr. Nagel:

 

·        Management of general operations of the airport has been excellent.

·        Representation of MBS and commission to public, business, and community organizations has been in a very positive manner.

·        Effectively involved the commission, through the committee structure, in addressing issues facing the airport.

 

The following goals were set for Mr. Nagel for the next year:

 

1.      Work with a soon-to-be-appointed marketing committee to prepare a study to determine if Northwest Airlines lowers their fares at MBS, if it will increase their overall profitability for their combined operations at MBS and Bishop airports.  The results of this study should also be shared with The Dow Chemical Company and the Dow Corning Corporation.

 

2.      Negotiate a new collective bargaining agreement for MBS union employees.  The current agreement expires in September 2007 and before negotiations begin, a negotiation strategy should be established with the assistance of the MBS Personnel Committee.

 

3.      Negotiate and recommend for commission approval fair and reasonable agricultural lease renewals that are consistent with FAA grant assurances.

 

4.      Pursue the complete renovation of the existing terminal or the construction of a new MBS Airport terminal.

·        Complete new terminal study – March 2007

·        Prepare FAA design grant application – July 2007

·        Obtain grant for terminal design – October 2007

·        Complete design including required approvals from the FAA and other agencies – October 2008

·        Bid construction of improvements – December 2008

·        Begin construction – April 2009 (construction completion will vary depending upon whether the project is new construction or rehabilitation)

·        Request traffic studies by the Bay and Saginaw County Road Commissions to determine the need for access road improvements based on origin and destination and other traffic studies – January 2007

 

Mr. Tomion stated that the Personnel Committee had reviewed Mr. Nagel’s compensation with his performance and made a motion that his salary be increased 4%, from $90,300 to $93,912, effective February 1, 2006.  Mr. Tomion added that the efforts of Mr. Nagel and staff are very much appreciated and respected.  Ms. Jones-Ham seconded that motion passed unanimously. 

 

Mr. Elder made a motion to adopt the goals for Mr. Nagel with Mr. Biltz seconding.  The board passed the motion unanimously.

 

RENEWAL OF AUDIT AGREEMENT:  Mr. Nagel stated that Andrews, Hooper & Pavlik, Certified Public Accounts, have provided professional services and performed the annual independent audit for MBS since 1996.  The existing agreement ended with the 2005 audit which was presented to the commission in March.

 

The staff at Andrews, Hooper & Pavlik has an excellent understanding of MBS’ unique activity with Federal AIP grants and relationship with the State Department of Aeronautics.  They also perform the PFC audit, which is required to be conducted independently of the standard audit.  They also assist staff throughout the year as questions come up concerning finances.

 

The Finance Committee met last March and requested that Andrews, Hooper & Pavlik submit a new proposal to provide services for the next five years.  The committee agreed that if the proposal was reasonable, it would be brought to the full commission for approval.

 

The proposed rates for service are as follows:

 

                                  2005                                           Proposed Charges

                               Charges                2006             2007         2008         2009            2010 

 

Regular Audit           $7,800                 $8,200        $9,200        $9,500     $9,800         $10,100

 

PFC Audit               $2,373                 $2,500        $2,800        $2,900     $3,000        $3,100

 

 

The increases are similar to past increases with the exception of 2007.  This larger increase is due to a requirement for ten new Statements on Auditing Standards which take effect that year.  Mr. Elder made a motion to approve the proposal from Andrews Hooper & Pavlik to provide auditing services for the next five years.  Ms. Jones-Ham seconded and the motional passed unanimously.

 

OLD BUSINESS:  Mr. Nagel stated that the trip to Traverse City to see the terminal was postponed. He would like to reschedule sometime in the fall.

 

Mr. Nagel stated that the contract for RS&H was signed on July 3rd.  The kickoff meeting was held on Wednesday, July 19th.  Mr. Nagel will keep the commission updated.

 

Mr. Nagel stated that he has met with Commonwealth regarding the purchase of property to the north of the airport.  Commonwealth will have a recommendation in August.

 

Mr. Nagel reported that he had read in the Wall Street Journal that a tentative agreement has been reached between NWA and the flight attendants.  Rich Bostwick stated that vote takes place on July 25th and they should have the results by July 30th.

     

NEW BUSINESS:  Chairman Gwizdala appointed Mr. Biltz, Dr. Distler, and Mr. Elder to the Marketing Committee with Mr. Biltz acting as chairman.

 

ADMINISTRATIVE MATTERS:  Next regular meeting is scheduled for August 17, 2006.

 

ADJOURNMENT:  There being no further business, Mr. Biltz made a motion to adjourn.  Mr. Elder seconded and the Board unanimously passed the motion.  The meeting adjourned at 1:20 p.m.

 

 

 

                                                                                                                                                            Hollis H. McKeag, Secretary