MBS INTERNATIONAL AIRPORT COMMISSION

 

August 21, 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 1:00 p.m.  Roll was called by Debbie Meisel.

 

COMMISSIONERS

 

Present                           Absent & Excused      Staff                      Other     

Kenneth W. Distler        George J. Biltz            Jeff Nagel             Rich Bostwick, NWA

Darnell Earley                Brian K. Elder             Ryan Riesinger      John Palen, Midland Issues

Eugene F. Gwizdala        Joyce J. Seals             Debbie Meisel       Cheryl Wade, Midland Daily News

Ernie Krygier                                                                                    Paul Wyche, Saginaw News

Jon Lynch                                                                                       

Hollis H. McKeag                                             

                                                                          

PLEDGE OF ALLEGIANCE 

 

MINUTES:  Mr. Gwizdala made a motion to approve the minutes of the Regular Commission Meeting held on July 17, 2008.  Mr. Krygier seconded the motion.  The motion was unanimously approved by the Board.

 

JULY 2008 WARRANT AND CASH & INVESTMENT SUMMARY:  Mr. Gwizdala made a motion to approve the Warrant Registers for the July Payroll Account Check Numbers 83974-84092; the July Operations and Maintenance Check Numbers 38621-38693; and the July Cash and Investment Summary.  Mr. Krygier seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT:  None.

 

MERS RESOLUTION:  At the July meeting, the Airport Commission approved a union contract proposal which included a change in pension for new union employees hired after September 1, 2008 and included the following:

 

-    1.25% Defined benefit multiplier

-    3% Employer contribution to the defined contribution portion

-    Optional employee contribution for the defined contribution.

 

To make this change official, MERS requires a Resolution to be passed.  Mr. Gwizdala made a motion to approve the Resolution from MERS.  Mr. Earley seconded and the Board passed the motion unanimously.

 

HERTZ LEASE AGREEMENT:  The Hertz franchise at MBS is currently operated by Traverse City Leasing.  Traverse City Leasing also operates numerous Hertz franchises throughout Michigan.

 

Hertz Corporation has offered to purchase all the franchise locations operated by Traverse City Leasing, including the Hertz at MBS.  The current lease allows the assignment of the lease with Airport Commission approval which cannot be unreasonably withheld.

 

Hertz and Traverse City Leasing are preparing an assignment document which must be approved by the Airport Manager and Airport Attorney.

 

Mr. Gwizdala made a motion to approve the assignment of the lease between MBS and Traverse City Leasing to the Hertz Corporation and authorize the Chairman to sign the related documents subject to Airport Manager and Airport Attorney approval.  Mr. Krygier seconded and the motion passed unanimously.

 

AIRPORT PURCHASING:  In 2004 the Airport Commission increased the spending limit of the Airport Manager to $10,000. 

 

Last month Mr. Nagel discussed an incident in which he needed to approve the purchase of liquid runway deicing chemical in the amount of $24,000 prior to obtaining Airport Commission approval.  After discussing this issue at the July Commission meeting, it was decided that a policy amendment would be brought back to the Commission for action.

 

The Finance Committee met on August 6, 2008 and recommended that the following language be added to the existing policy and approved by the Airport Commission.  (Note:  The new language is in bold print.)

 

 “The Airport Manager is expressly authorized to make payments during the ordinary course of business for goods and services rendered to MBS International Airport not exceeding $10,000.  This authorization does not pertain to or affect payment authorizations authorizing by contracts made by the MBS International Airport Commission.”

 

“The Airport Manager is authorized to renew existing contracts or existing purchase orders for goods and services having a fixed contract cost in excess of $10,000 in circumstances where it is necessary to secure costs favorable to the airport and time constraints prevent the submission of the purchase to the Commission for approval.  No contract or purchase order shall be renewed without prior review by the airport attorney and prior consent of the Airport Commission Chairman.”

 

Mr. Gwizdala made a motion to approve the updated purchasing policy for the Airport Manager as recommended by the Finance Committee.  Mr. Krygier seconded and the motion passed unanimously.

 

OPERATIONS VEHICLE PURCHASE:  The Airport Rescue and Fire Fighting (ARFF) Department is also responsible for the majority of airport operation functions.  These functions include airfield inspections, wildlife control, security inspections and snow removal operations among others.

 

The department currently uses a 1998 Chevy Trailblazer with over 160,000 miles.  The 2008 budget has $25,000 allocated for vehicle replacement.  Mr. Nagel has discussed this purchase with the Finance Committee and they have concurred with the recommendation to replace the vehicle.

 

In the past, MBS has purchased Chevy Trailblazers or GMC Envoys using a specification/bidding process.  Bids are evaluated selecting the lowest/best-qualified bid.

 

Mr. Earley made a motion to authorize the Airport Manager to replace the operations vehicle using the standard bid process not to exceed $25,000 and the sale of the current vehicle. Mr. Gwizdala seconded the motion.  Following a brief discussion the motion passed unanimously.

 

OLD BUSINESS:  Mr. Nagel provided a project update with the utilities.  The township has given approval and permits.  One of the two DEQ permits has been received.  The preconstruction meeting has been held with the contractor and the engineer.  The contracts have been signed.  The work should be moving forward soon.   

 

Mr. Nagel stated that Congress has still not passed a multi-year AIP reauthorization, therefore it is going month-to-month, year-to-year. The multi-year bill does not appear to be near passing.  MBS is required by the FAA and the State to provide a five-year plan document.  Preparing the plan will be a little difficult since the entitlement funding levels are unknown for this year and future years.  Also the new legislation was possibly going to raise the cap for PFC collection from $4.50 to $6 or $7.  Reauthorization not passing impacts MBS and all airports throughout the country.  Mr. Nagel stated the airport has a major project going and is happy with the way RS&H is working with him and the relationship with the FAA.  He is certain that a plan can be made that will work well when the multi-year bill is passed.

 

Mr. Nagel also informed the Board that the State has put together a Transportation Task Force.  They meet every other month and go around to various locations around the state holding public meetings.  Discussions take place regarding transportation issues which include roads, highways, bike paths, and tourism.  Mr. Nagel testified while they were in Frankenmuth and emphasized airport funding and moving airport funding from the FAA Capital Outlay Bill to the Transportation Budget. This would help streamline projects when FAA grants are received.  Other managers have testified to the Transportation Task Force and hopefully the testimonies will help move the funding out of the Capital Outlay Bill.

 

Mr. Nagel updated the Board regarding the Northwest/Delta merger.  Pilots have ratified an agreement prior to a merger which is very unusual.  NWA/Delta have expanded in code sharing on some Asian routes and other oversea routes.  They have also passed the European union evaluation process.  The senior management team for the company has been put in place.   Mr. Nagel gave Rich Bostwick the majority of the credit for maintaining seven flights in the fall schedule.  The approval of the merger is expected by the Department of Justice late this fall.  Mr. Nagel is working with the airlines since the airline lease agreements are expiring later this fall.  He feels that the negotiations will run smoothly since Northwest does not have the concern as they do at some airports where Northwest and Delta have rented space and they need to consolidate.

 

NEW BUSINESS:  None

 

ADMINISTRATIVE MATTERS:  Next regular meeting is scheduled for September 18, 2008. 

 

ADJOURNMENT:  There being no further business, Mr. Gwizdala made a motion to adjourn.  Mr. Krygier seconded and the Board unanimously passed the motion.  The meeting adjourned at 1:16 p.m.

 

 

                                                                                                                                                            Eugene F. Gwizdala, Secretary