MBS INTERNATIONAL AIRPORT COMMISSION
The meeting was held in the Airport
Commission Board Room,
Present Absent & Excused Staff Other
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
Karl S. Tomion
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
TOMION RESOLUTION: Mr. Nagel stated
that Mr. Tomion has accepted the position of City Manager for
Resolution of Appreciation
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
MBS INTERNATIONAL AIRPORT COMMISSION
Eugene F. Gwizdala Hollis H. McKeag Kenneth
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
· 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
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.
Mr. Nagel stated that the trip to
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
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
Hollis H. McKeag, Secretary