MBS INTERNATIONAL AIRPORT COMMISSION

 

April 17, 2008

 

MINUTES

                                                                           

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 1:01 p.m.  Roll was called by Debbie Meisel.

 

COMMISSIONERS

 

Present                                 Staff                                        Other  

George J. Biltz                     Jeff Nagel                               John Palen, Midland Issues

Kenneth W. Distler              A. T. Lippert                           Rich Bostwick, NWA

Darnell Earley                      Ryan Riesinger                        Cheryl Wade, Midland Daily News     

Brian K. Elder                      Debbie Meisel                         Wilma Kasten, Citizen

Eugene F. Gwizdala                                                                       

Ernie Krygier                                                                                  

Jon Lynch                                                                                        

Hollis H. McKeag                                                               

Joyce J. Seals                                                                      

                                                                                                                

PLEDGE OF ALLEGIANCE 

 

MINUTES:  Mr. Gwizdala made a motion to approve the minutes of the Regular Commission Meeting held on March 20, 2008.  Ms. Seals seconded the motion.  The motion was unanimously approved by the Board.

 

MARCH 2008 WARRANT AND CASH & INVESTMENT SUMMARY:  Mr. Gwizdala made a motion to approve the Warrant Registers for the March Payroll Account Check Numbers 83747-83802; the March Operations and Maintenance Check Numbers 38330-38396; and the March Cash and Investment Summary.  Mr. Biltz seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT:  None

 

RESOLUTION OF APPRECIATION:  Mr. Nagel stated that Dave Willett has been employed as an airport firefighter at MBS since 1975.  Dave has announced his intention to retire at the end of April. Mr. Gwizdala made a motion to approve the following resolution.

 

 

MBS International Airport Commission

Resolution of Appreciation

 

The MBS International Airport Commission

recognizes with great appreciation the dedicated service of

 

DAVID M. WILLETT

 

who has served the airport and the owner communities since 1975. He began his career in the Crash/Fire/Rescue Department and continued his public service as it became known as the Airport Rescue and Fire Fighting Department.  During his years of service he has willingly aided the airport managers acting on behalf of the Airport Commission and the management staff.

 

His pleasant company will be missed by all who have served and worked with him, and the best wishes of his fellow employees and airport management are with him as he retires.

 

This Resolution of Appreciation was unanimously adopted at a regular meeting of the MBS Airport Commission on April 17, 2008 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

Ernie Krygier Jr.                                              George J. Biltz                                         Joyce J. Seals

Brian K. Elder                                                 Jon Lynch                                                Darnell Earley

 

Jeff Nagel, Airport Manager

A. T. Lippert, Jr., Airport Attorney

 

Ms. Seals seconded and the motion passed unanimously.

 

RENTAL CAR AGREEMENTS:  Mr. Nagel stated that all four of the rental car lease agreements expire at the end of April.  Discussions took place with each of the companies and it was agreed to extend the agreement three years with a 3% annual increase in office and counter space rent.  This proposal was discussed at the March Finance Committee meeting and the committee agreed and recommended to take it to the full commission for approval.  Mr. Biltz made a motion to approve a three-year extension to the rental car agreements with a 3% annual increase in office space and counter rental rates.  Mr. McKeag seconded and the motion passed unanimously. 

 

2008 AIP PROJECTS:  Mr. Nagel stated that at the December 2007 meeting, the commission approved the Five-Year Capital Plan.  Based on that plan, staff has applied for federal funds for the 2008 projects.

 

Congress has passed a temporary AIP extension which requires project applications to be submitted in early June which is much earlier than previous years.  The temporary measure also reduces entitlement dollars for 2008.  Staff has been working with RS&H to meet the accelerated schedule set by the FAA.  The projects expected to be completed this year include land purchase, Navigational Aid relocation, and site utilities.

 

The land purchase will be a partial reimbursement for costs incurred to date.  Once the process is completed and the final numbers are determined, another grant application will be submitted for final reimbursement.  This process allows reimbursement for the expenses much earlier than anticipated.  The Navigational Aid reimbursement is for Phase I in the amount of $44,275 which the commission approved in December, 2007 and is already paid.  The site utility work is being designed and bids are due in early May.  A recommendation to award should be brought to the Airport Commission at the May meeting.  The next step in the grant process is to pass a Resolution which begins the formal paperwork required by the State.  Mr. Gwizdala made a motion to approve the following Resolution for Grant #3708.

 

RESOLUTION

(AIP Grant #3708)

 

RESOLUTION ADOPTING AND APPROVING THE EXECUTION OF THE GRANT APPLICATION, GRANT AND ALL RELATED DOCUMENTS BY THE MBS AIRPORT COMMISSION, A SPECIAL STATUTORY BODY, ACTING AS SPONSOR FOR THE CITY OF MIDLAND, CITY OF SAGINAW, AND COUNTY OF BAY, MICHIGAN, AND THE UNITED STATES OF AMERICA, FEDERAL AVIATION ADMINISTRATION, FOR THE PURPOSE OF OBTAINING FEDERAL AID FOR THE DEVELOPMENT OF THE MBS INTERNATIONAL AIRPORT, UNDER PROJECT NO. 3-26-0083-3708.

 

BE IT RESOLVED by the members of the MBS International Airport Commission,

Freeland, Michigan:

 

Section I.  That MBS International Airport Commission, on behalf of the City of Midland, the City of Saginaw and the County of Bay, Michigan, shall submit a Grant Application and enter into a Grant Agreement for the development of the MBS International Airport, and that such Grant Documents shall be set forth hereinbelow:

 

Section II.  That the Chairman or Vice-Chairman of the MBS International Airport Commission, is hereby authorized and directed to execute said Grant Application, Grant Agreement, and all other related documents in (4) copies on behalf of the City of Midland, City of Saginaw, and County of Bay, Michigan, and the Airport Manager is hereby authorized and directed to impress the official seal and to attest said execution:

 

Section III.  That the Grant Application/Agreement referred to as Project 3-26-0083-3708.

 

Mr. Biltz seconded the motion.  It was confirmed that the three items in the grant are all a part of the terminal expansion.  There being no further discussion the Board unanimously passed the motion.

 

OLD BUSINESS:  Mr. Nagel gave a marketing update.  The Request for Proposal process took place and two firms made presentations earlier in April.  Mr. Nagel recommended Bolger and Battle to the Marketing Committee.  The first phase is developing a Marketing Strategy and Plan which includes a Situation Analysis, Brand Platform/Value Proposition, Marketing Objectives and Measures, Tactics, Budget and Timetable, and Account Team and Work Process.  Mr. Nagel stated that he is excited to move forward with this process and will continue to work with the committee.

 

NEW BUSINESS:  Mr. Nagel stated that there have been three airlines that have gone out of business and one airline, Frontier that has filed for bankruptcy.  The Northwest/Delta merger is big news in the airline world.  It is too early to speculate on direct impact at MBS in terms of frequency, aircraft, hub connections, and fares.  The merger still needs Department of Justice approval.  Mr. Nagel had news articles from the Wall Street Journal and local newspapers available for each of the commissioners regarding Northwest/Delta merger and potential impact on the industry as the airline industry moves forward.

 

ADMINISTRATIVE MATTERS:  Mr. Lynch stated that the airport has had a good relationship with Northwest over the years and asked whether there is a relationship with Delta.  Mr. Nagel stated that MBS does not have a relationship with Delta since they do not fly into MBS but he will pursue contacts through The Boyd Group, the aviation consultant, and also through Rich Bostwick who will remain to be the day to day contact. 

 

Mr. Earley wondered what if any impact the merger would have on plans for the new terminal.  He stated that although it may be too early to determine, information will need to be evaluated as it is developed.  Mr. Earley stated that his interest is beyond the plan for the new terminal but also includes a plan for increased ridership.  Mr. Nagel stated that that is everyone’s interest.

 

 Next regular meeting is scheduled for May 15, 2008. 

 

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 1:14 p.m.

 

 

 

                                                                                                                                                            Eugene F. Gwizdala, Secretary