MBS INTERNATIONAL AIRPORT COMMISSION

 

July 19, 2007

 

MINUTES

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The meeting was held in the Airport Commission Board Room, 8600 Garfield Road, Freeland, Michigan 48623.Chairman Kenneth Distler 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†††††††††††† Justin Engel, Saginaw News

George J. Biltz†††††††††††††††††††††††††††††††††††††††††††††††††† A. T. Lippert†††††††† Rich Bostwick, NWA

Kenneth W. Distler††††††††††††††††††††††††††††††††††††††††††† Debbie Meisel†††††† ††

Brian K. Elder†††††††††††††††††††††††††††††††††††††††††††††††††††

Eugene F. Gwizdala

Wilmer Jones-Ham†††††††††††††††††††††††††††††††††††††††††††† Guests

Jon Lynch††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Robert Peckham

Hollis H. McKeag††††††††††††††††††††††††††††††††††††††††††††† ††††††† ††††††††††††††††††††† ††††††

 

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PLEDGE OF ALLEGIANCE

 

MINUTES:Mr. Gwizdala made a motion to approve the minutes of the Regular Commission Meeting held on June 21, 2007.Mr. Biltz seconded the motion.The motion was unanimously approved by the Board.

 

JUNE 2007 WARRANT AND CASH & INVESTMENT SUMMARY:Mr. Gwizdala made a motion to approve the Warrant Registers for the June Payroll Account Check Numbers 83168-83223; the June Operations and Maintenance Check Numbers 37622-37698; and the June Cash and Investment Summary.Mr. Biltz seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT:None

 

FAA MASTER LEASE SUPPLEMENT:Mr. Nagel stated that the FAA has a master lease with MBS for land required to support FAA navigational aids located here.The FAA installs and maintains the equipment and MBS is not permitted to generate revenue from this lease.

 

Mr. Nagel received a proposed supplement #6 to the lease which calls for the installation of Precision Approach Path Indicators (PAPIís) for Runway 23 and Runway 32.The equipment will replace the older Visual Approach Slope Indicators (VASIís) for these runways.Mr. Gwizdala made a motion to approve FAA master lease supplement #6 and authorize the Chairman, or in his absence the Vice-Chairman, to sign the related documents.Ms. Jones-Ham seconded and the motion passed unanimously.

 

MESABA USE AGREEMENT:Mr. Nagel stated that Mesaba currently has a Use Agreement in place to provide service to MBS.Based on the terms of the agreement, Mesaba pays a portion of the cost for common use areas such as the baggage claim and sterile gate area.This agreement was appropriate when the commission approved it in 2005; however, Mesaba is no longer serving MBS.Northwest now owns Mesaba and has requested that a new Use Agreement be entered which charges landing fees only when Mesaba flies into this market.This is the same arrangement MBS has currently with Mesa, which operates some United Express flights.Because the cost of the common areas is fixed and charges are based on percentage of enplanements, this would not reduce the revenues.

 

Mr. Nagel stated that he met with the Finance Committee and referred to Mr. McKeag for his comments.Mr. McKeag stated that the Finance Committee had met and reviewed the Mesaba and Pinnacle Use agreements and the farm leases.The committee agreed with Mr. Nagelís recommendations.

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Mr. Gwizdala made a motion to approve the termination of the existing Use Agreement with Mesaba which was approved in 2005.Mr. Elder seconded.††

 

Mr. Biltz stated that he feels that MBS needs to protect future revenue streams and be consistent with lease structures.Discussion took place.Mr. Nagel stated that these contracts will be due next year when the other contracts are due.It was decided that the contracts can be reviewed again at that time.Mr. Biltz also asked whether MBS has received any payment on pre-bankruptcy invoices. Mr. Nagel stated that no payment has been received however he was informed yesterday that a check was being overnighted for the full cure amount.He is hoping to receive it in the afternoon.

 

There being no further discussion, Chairman Distler asked for a roll call vote.Ms. Meisel called roll; Patrick Beson, yes; George Biltz, yes; Kenneth Distler, yes; Brian Elder, yes; Eugene Gwizdala, yes; Wilmer Jones-Ham, yes; Jon Lynch, yes; Hollis McKeag, yes.Motion carried.

 

Mr. Gwizdala made a motion to approve a Northwest affiliate Use Agreement with Mesaba for landing fees only with Ms. Jones-Ham seconding.The motion passed unanimously.

 

PINNACLE USE AGREEMENT:Mr. Nagel stated that Northwest has requested that MBS formally approve a Use Agreement with Pinnacle which covers landing fees only.Like Mesaba, Pinnacle does not provide service every month into MBS.This agreement will be similar to Mesa, flying for United Express, and Mesaba.Mr. Nagel stated that the Finance Committee has met and agreed with this proposal.Mr. Biltz discussed whether there should be a cap on landings when using a Use Agreement for landing fees only.Mr. Gwizdala made a motion to approve a Northwest affiliate Use Agreement with Pinnacle for landing fees only.Ms. Jones-Ham seconded and the motion passed unanimously.

 

FARM LEAES:Mr. Nagel stated that four of the farm leases expire at the end of the year.According to the lease, MBS and the farmers must agree to an extension prior to the end of August. The four farmers with expiring leases have all indicated they would like to continue, which is good for the airport because they know the security and operational requirements.Mr. Nagel has worked with Mr. Lippert to draft new updated leases in accordance with FAA standards.

 

Mr. Nagel stated that he recommended a three-year lease with a 5% cost increase to the Finance Committee which met on July 9th.Typically, the goal is to strike a balance between income and the cost savings by not maintaining that land.The committee agreed with the recommendation.Mr. Gwizdala made a motion to approve new three-year leases for those farm leases expiring in 2007 with a 5% cost increase.Mr. Elder seconded the motion.After brief discussion, the motion passed unanimously.

 

OLD BUSINESS:Mr. Nagel stated that one of the recommendations of the Marketing Committee was to look at MBSí marketing services.Request for Proposals went out for marketing services and are due tomorrow.There has been a good response.The Marketing Committee will be called for a meeting to look at the proposals and make a recommendation.

 

NEW BUSINESS:None

 

ADMINISTRATIVE MATTERS:Mr. McKeag stated that he would like to be invited to the next Marketing Committee meeting.

 

Next regular meeting is scheduled for August 16, 2007.Mr. Biltz stated that he will be unable to attend the August meeting.

 

ADJOURNMENT:There being no further business, Mr. Gwizdala made a motion to adjourn.Mr. Elder seconded and the Board unanimously passed the motion.The meeting adjourned at 1:36 p.m.

 

 

 

††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† ††††††††††††††††††††††† ††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Eugene F. Gwizdala, Secretary