MBS INTERNATIONAL AIRPORT COMMISSION
meeting was held in the Airport Commission Board Room,
Present Absent & Excused Staff Other
W. Distler Darnell Earley A. T. Lippert Tony Laseavi,
Wilmer Jones-Ham Diane Klapish Marty Willett, Dow Corning
INTRODUCTIONS: Chairman Distler asked that the meeting guests introduce themselves.
JULY 2007 WARRANT AND CASH & INVESTMENT SUMMARY: Mr. Gwizdala made a motion to approve the Warrant Registers for the July Payroll Account Check Numbers 83224-83282; the July Operations and Maintenance Check Numbers 37699-37780; and the July Cash and Investment Summary. Mr. Elder seconded the motion and the Board unanimously approved it.
PUBLIC COMMENT: None
SURPLUS EQUIPMENT: Mr. Nagel stated that the Airport Maintenance Supervisor has requested permission to sell the following equipment: 1994 Ford Tractor, 1994 26’ Batwing Mower, 1994 Hustler Zero Radius Mower, 7 ˝’ Western Pickup Snow Plow, and a 1998 20-foot Root Snow Plow. This equipment has been replaced and is no longer needed for operation. The only piece purchased with AIP money is the 20-foot snow plow. However, the value of this falls well below the $5,000 threshold for the FAA.
Mr. Nagel would notify the three local general aviation airports first and then advertise the equipment locally. Mr. Gwizdala made a motion to declare the above listed equipment as surplus and authorize the Airport Manager to sell at the best value for the airport. Mr. Beson seconded and the motion passed unanimously.
HANGAR #1 LEASE: Mr. Nagel stated that the tenants who currently own Hangar #1, Dr. Tom Light and Ralph Wolpert, requested an extension of their ground lease. The lease originated in 1987 and has been extended as far as possible by the existing agreement. This provides an excellent opportunity to update the lease to current FAA standards.
Dr. Distler asked Mr. Nagel to explain the disparity in the rates between Hangar #1 and Hangar #3. Mr. Nagel explained that when he was reviewing the contracts he saw that the rates were not the same and adjusted the rates over the next five years to make them equal. Mr. Nagel stated that he did not feel it was fair to put the burden of the increase all in one year.
Mr. Nagel recommended a five-year term with a five-year option and increasing the current rate 10% from $.30 per square foot to $.33 per square foot. The rate for the five-year option would be negotiated at that time. This proposal was discussed with the Finance Committee.
Mr. Gwizdala made a motion to approve a new five-year ground lease for Hangar #1 at the rate of $.33 per square foot with a five-year option. Mr. Elder seconded and the motion passed unanimously.
HANGAR #3 LEASE: Mr. Nagel stated that Avflight currently has a ground lease for Hangar #3 used for general aviation aircraft storage. The lease has been extended as far as possible under the term of the existing agreement. Avflight has requested a new lease and Mr. Nagel recommends a five-year term with a five-year option.
The current rate is $.20 per square foot. To bring this lease up to equal rates and charges as other similar hangars on the field, Mr. Nagel recommends the following rates: 2007-08, $.23; 2008-09, $.26; 2009-10, $.29; 2010-11, $.31; and 2011-12, $.33. The rates for the five-year option period would be negotiated at that time. Mr. Nagel discussed this proposal with the Finance Committee. Mr. Gwizdala made a motion to approve a new five-year lease at the above listed rates for Hangar #3 and provide a five-year option. Mr. Elder seconded and the motion passed unanimously.
PASSENGER FACILITY CHARGE APPLICATION #6: Mr. Nagel stated that the Passenger Facility Charge (PFC) is a fee placed on airline tickets which enables airports to fund eligible capital improvement projects. Applications need to be submitted to the FAA for their review and approval. There is also a process in place to gather input from airlines. The application approval process usually takes up to six months. It is very important to keep an active application in place while the PFC charge is being collected. Although there are a couple items remaining in previous applications, it is time to submit a new request. A motion approving the application is the first step in this process.
Mr. Nagel has worked with Peckham Engineering and RS&H to develop items for Application #6. These items are:
- Design and construct sand storage building (local share of AIP Grant #2903)
- Terminal Study – first phase (local share of AIP Grant #3005)
- Design and construct security system and FIDS (local share of AIP Grant #3105)
- Procurement of de-icing equipment (local share of AIP Grant #3205)
- Terminal sewer rehabilitation (local share of AIP Grant #3205)
- Design and construct airfield pavement marking (local share of AIP Grant #3205)
- Terminal Study – Phase II (local share of AIP Grant #3306)
- Land Acquisition Consultant (local share of AIP Grant)
- Land Acquisition (local share of AIP Grant)
- Snow Sweeper Procurement (local share of AIP Grant #3607)
- Design and construct pavement rehabilitation, GA taxiway, blast pads, terminal apron (local share of AIP Grant #3607)
- Design of new terminal building (local share of AIP Grant #3507)
- Utilities and site prep – new terminal
- Construct new terminal – first phase
- PFC preparation cost through June 2007
- PFC audit expense (2005-2010)
This application would approve the collection of an estimated $2,780,000. The majority of items will be for reimbursement of the local share of previous AIP grants. The two items concerning the new terminal were taken directly off the Five-Year Plan for 2008 expenses. As the terminal design and construction proceeds, additional PFC applications will be submitted as needed. Mr. Gwizdala made a motion to approve PFC Application #6 with Mr. Elder seconding. After brief discussion the Board passed the motion unanimously.
FAA REIMBURSABLE AGREEMENT: Mr. Nagel requested that this agenda item be removed.
DOW CORNING PRELIMINARY PLANS: Mr. Nagel stated that one of the approvals that Dow Corning is required to receive is commission approval of the preliminary plans. Dow Corning has submitted the preliminary plans which have been reviewed by Bob Peckham. Approval of the preliminary plans does not constitute an approval to construct the hangar. The FAA is continuing their airspace review process of this project. Mr. Gwizdala made a motion to approve the preliminary plans for the Dow Corning hangar. Ms. Jones-Ham seconded and motion passed unanimously.
PROPERTY PURCHASE UPDATE: Mr. Nagel stated that he wanted to provide the Board with an update of the purchase of the property that has been ongoing. Mr. Nagel discussed this with Mr. Lippert and this item is eligible should the Commission wish to go into closed session. Mr. Gwizdala made a motion to go into closed session with Ms. Jones-Ham seconding. Chairman Distler requested a roll call vote. Ms. Meisel called roll; Patrick Beson, yes; Kenneth Distler, yes; Brian Elder, yes; Eugene Gwizdala, yes; Wilmer Jones-Ham, yes; Hollis McKeag, yes. Motion carried.
Upon returning from closed session, Mr. Elder made a motion to authorize the Chairman to sign the Good Faith Offer and for counsel to present the offer. If accepted, authorize the Airport Manager to conclude the sale in accordance with FAA and State requirements. Mr. Gwizdala seconded and the motion passed unanimously.
OLD BUSINESS: Mr. Riesinger reviewed the paving construction project that started on August 1, 2007. The project should be completed in 72 calendar days which would be mid October weather permitting. If anyone is interested in a tour please contact the Administration Office.
Mr. Nagel stated that he has updated the Marketing Committee that he has received Request for Proposals for marketing service. He has begun reviewing and short listing them for presentations. There was a good response.
The Boyd Group did the fare study that the Board requested. The study was done several months ago. Mr. Nagel and Mike Mooney who is Vice President of the Boyd Group and has 19 years of airline pricing experience went to Minneapolis to meet with the Northwest Pricing Department. The meeting was productive in that they were open-minded and looked at the data presented. Mr. Nagel expects to hear from Northwest by the end of the month. Both the Marketing Committee and the Board will be updated.
NEW BUSINESS: Mr. Nagel stated that Northwest called back and hired new pilots. They also changed some work rules with the pilot’s union. In June and July the system was hit very hard with flight cancellations. Hopefully in August the cancellations will be reduced.
Northwest has ordered new regional jets. They are 76 passenger jets with two class configuration; a first class and coach class. MBS is slated to get one per day tentatively to replace a CRJ50 which holds 50 passengers. Mr. Nagel stated that the first class configuration jet is important for the business flyers. Mr. Nagel appreciates Rich Bostwick’s efforts in getting the new jet for MBS.
ADMINISTRATIVE MATTERS: Next regular meeting is scheduled for September 20, 2007.
ADJOURNMENT: There being no further business, Mr. Gwizdala made a motion to adjourn. Ms. Jones-Ham seconded and the Board unanimously passed the motion. The meeting adjourned at 1:46 p.m.
Eugene F. Gwizdala, Secretary