MBS INTERNATIONAL AIRPORT COMMISSION
meeting was held in the Airport Commission Board Room,
Present Staff Guests
George J. Biltz A. T. Lippert Lori Wagner, Andrews Hooper & Pavlik
Kenneth W. Distler Ryan Riesinger
Darnell Earley Debbie Meisel Other
MARCH 2007 WARRANT AND CASH & INVESTMENT SUMMARY: Mr. Earley made a motion to approve the Warrant Registers for the March Payroll Account Check Numbers 82974-83055; the March Operations and Maintenance Check Numbers 37394-37477; and the March Cash and Investment Summary. Mr. Beson seconded the motion and the Board unanimously approved it.
PUBLIC COMMENT: None
FINANCIAL AUDIT: Mr. Nagel stated
that Andrews Hooper & Pavlik were in attendance to present the 2006
Financial Audit. Mr. Nagel also stated
that the Finance Committee met on
Mr. Morse thanked staff for their cooperation with the audit. He stated there were no surprises in the audit; that the audit basically followed the objectives of the scope letter. Mr. Morse stated that time is spent looking at the projects, PFC revenues and areas that they feel would be where a material mistake could take place or there could be risks. He was pleased to inform the Board that there were no issues related to those.
Morse stated that in a couple of years GASB 45 will be required pertaining to
post retirement and how it is to be recorded.
Several years ago, the airport made an asserted effort to make a rough
estimate of the liability and updates it on an annual basis. GASB 45 will require an actuarial valuation
to be done closer to the effective date of
Mr. Morse stated that they review internal controls. Although the accounting department is small and there are areas where there is not proper separation of duties, proper compensating controls are in place. There were no significant deficiencies or material weaknesses. Mr. Morse also stated that there was good communication, no issues, no adjustments or unrecorded items, and no disagreements with management. Andrews Hooper and Pavlik gave an unqualified opinion which is the best opinion given. The audit went very well and they had great cooperation with management.
After brief discussion, Mr. Earley made a motion to receive the 2006 MBS Financial Audit. Mr. Elder seconded and the motion unanimously carried.
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
A summary of the last year of service includes 56 total calls to the airport, 11 were “critical” or “emergency”, 27 “other” reports, and 18 preventative maintenance. Of the “critical” and “emergency” calls, Honeywell met the contract requirements for response time and completion time on all but one, due to the need to order a part.
In the past, the contract has been for five-year increments. The past two years the commission approved a one-year extension with no price increase. Mr. Nagel has discussed the contract with Honeywell and agreed to another one-year extension at the cost of $49,261.00. With the ongoing terminal project, it is Mr. Nagel’s belief that this is the best way to proceed. Ms. Jones-Ham made a motion to approve the one-year extension to the Honeywell contract for the same rate as 2006-2007, and authorization for the Chairman to sign the agreement. Mr. Biltz seconded and the motion passed unanimously.
The cost of improvements to the
The Commission’s counsel, A.T. Lippert, Jr., represents
This report is intended to inform the commission members of the status of the proposed water contract and its impact when concluded upon some airport employees. It is reasonable to foresee strong objections to the imposition of a city tax upon non-resident employees, and those who will work in the new terminal may conclude that is the obligation of the commission to express its approval or disapproval of the agreement as it is now written. The consensus opinion of the commission can be communicated by the chairman to the Saginaw City Council if an exemption is considered appropriate.
Mr. Earley stated that the arrangement with
Discussion took place as to whether the airport could pay a fee rather than having the employees pay a tax. Mr. Lippert stated that the act allows only for a tax. After discussion, Chairman Gwizdala asked that the commissioners be allowed to think on this topic before making a decision. Possibly a committee could be set up to discuss it further.
Mr. Nagel stated that the City of
Mr. Nagel updated the board on the projects. It appears that MBS will be getting three grants this year; terminal design & wetland mitigation, pavement projects & snow broom, and the property purchase. Mr. Nagel stated that he hopes to have the project resolutions to the board in May or June. Staff is anxious to get the grants so MBS can be reimbursed for the money spent from local funds on specs for the snow broom and pavement.
Mr. Biltz stated that the capital outlay bill was approved by House and Senate. Did the governor sign it? Mr. Nagel stated yes.
Mr. Biltz asked about Mr. Nagel’s meeting with the editorial board from Midland Daily News. Mr. Nagel stated that he did meet with them for over an hour but had not seen an editorial in the paper. Mr. Nagel referred to Cheryl Wade of the Midland Daily News. Ms. Wade stated that the purpose of the meeting was that all the editors would know what the issues are so that when stories arose they would be informed. She also stated that she thought it was a really good discussion, however no editorial has printed.
Mr. McKeag asked about the rate study. Mr. Nagel stated that it was presented and that there were three recommendations by the Marketing Committee. Mr. Nagel stated that the Small Community Air Service Grant Application is due the end of this month. The 20 key fare market study that Mike Boyd is doing will be done the end of April or the beginning of May. Mr. Nagel stated that he is working on developing a request for qualifications/proposals for a marketing firm.
NEW BUSINESS: Mr. Nagel stated that Rich Bostwick informed him that NWA has decided to hire assistant managers of airport operations at 33 stations. It is a new position for NWA and it definitely shows NWA’s commitment to customer service. MBS is one of the first stations to get the position which is being filled by Karen Ehrlin. She has 28 years of experience with NWA. Mr. Nagel stated that he welcomes her.
Mr. Nagel stated that the travel agent meeting was yesterday. Mr. Gwizdala, Mr. Elder, and Mr. Lippert were in attendance. The fare study was discussed and an update was given of the terminal project. It was a small group of about a dozen agents. They were very interested in the airport development. Comments were good. The next meeting will be in late summer or early fall.
ADMINISTRATIVE MATTERS: Next regular meeting is scheduled for
ADJOURNMENT: There being no further business, Mr. Elder made a motion to adjourn. Ms. Jones-Ham seconded and the Board unanimously passed the motion. The meeting adjourned at
Hollis H. McKeag, Secretary