MBS INTERNATIONAL AIRPORT COMMISSION

 

December 18, 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                                       Staff                                              Other     

George J. Biltz                           Jeff Nagel                                     Angela Osmond, TSA

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

Darnell Earley                             Ryan Riesinger                              Karen Ehrlin, NWA

Brian K. Elder                             Debbie Meisel                               Cheryl Wade, Midland Daily News

Eugene F. Gwizdala                                                                                John Palen, Midland Issues

Ernie Krygier                             Guest                                             Paul Wyche, Saginaw News

Jon Lynch                                  Boris Yakima, Monaghan, P.C.    Ron Sujkowski, Citizen

Hollis H. McKeag                     

Joyce J. Seals                            

 

PLEDGE OF ALLEGIANCE 

 

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

 

NOVEMBER 2008 WARRANTS AND CASH & INVESTMENT SUMMARIES:  Mr. Gwizdala made a motion to approve the Warrant Registers for the November Payroll Account Check Numbers 84265-84330; the November Operations and Maintenance Check Numbers 38930-39011, void check #38758; and the November Cash and Investment Summaries.  Mr. Biltz seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT:  None.

 

PROPERTY ACQUISITION UPDATE:  Mr. Nagel stated that Boris Yakima, the attorney handling the ongoing condemnation case, would like to update the Board on the case evaluation that took place last week.  This update is allowed to be conducted under Closed Session.  Ms. Seals made a motion to go into closed session.  Mr. Krygier seconded.  Chairman Distler asked for a roll call vote. Ms. Meisel took roll call as follows:  Mr. Biltz, yes; Dr. Distler, yes; Mr. Earley, yes; Mr. Elder, yes; Mr. Gwizdala, yes; Mr. Krygier, yes; Mr. Lynch, yes; Mr. McKeag, yes; Ms. Seals, yes.  The motion carried.

 

The Board returned from Closed Session.  Mr. Elder made a motion to accept the recommendation of counsel as stated in Closed Session.  Mr. Earley seconded and the motion passed unanimously.

 

TEN-YEAR PLAN:  Mr. Nagel stated that the MBS Airport Ten-Year Capital Plan is used as an internal budgeting tool and does not commit funds for all listed projects.  The plan is provided for informational purposes and no formal approval is required at this time.  Mr. Gwizdala made a motion to receive the 2009-2018 Ten-Year Plan.  Mr. Krygier seconded and the motion passed unanimously.

 

2009 BUDGET:  Mr. Nagel stated that the budget compares each account with the 2008 budget and shows the percentage difference between the two.  The 2008 year-end numbers will be presented in the annual audit.

 

The budget process was more difficult this year than in the past.  The airlines, as an industry, continue to modify flight schedules system-wide.  If the price of fuel spikes in 2009 as it did in 2008, there could be another round of capacity cuts which impacts the airport’s revenues.

 

The Finance Committee has met to review the budget and recommended that the budget be presented to the full Commission for approval.  Mr. McKeag, Chairman of the Finance Committee, stated that the budget looked good and they were satisfied with it.  Mr. Gwizdala made a motion to approve the 2009 Budget with Mr. Elder seconding.  Mr. Biltz asked whether it would be possible to list year-end totals for previous years.  This would help to see what the trend is; whether the line items are going up or down.  Mr. Nagel explained that the Budget is based on actual third quarter numbers and anticipated year-end numbers.  Mr. Biltz stated that this could be something that is done in January after year-end.  Mr. Earley stated that this information would be in the financial statement.

 

Mr. Lynch noted that although revenues are projected to be down by 5% that the expenses were adjusted downward appropriately to match that rather than just reducing the capital expense which is a mark of good financial stewardship.  He was also happy to see that the Public Relations line item received a fairly substantial increase.  Mr. Nagel stated that the category was increased to cover any of the marketing money for the air service incentives.  After discussion the motion passed unanimously.

 

FIVE-YEAR AIP PLAN:  Mr. Nagel stated that each year MBS is required to submit a Five-Year Capital Improvement Plan to the FAA.  The plan lists AIP projects for the upcoming year plus planned projects for the next four years.  The plan is required by the State and the FAA to assist with future funding needs.

 

The proposed 2009-2013 five-year plan was included in the packets.  The formulation of this plan has been difficult for the last two years as Congress has not passed a multi-year AIP bill.  The 2009 AIP program is operating under a short-term continuing resolution which requires bids to be submitted in February.  In addition, the FAA has informed staff to expect approximately 35% of MBS’ usual entitlement funding through this short-term extension.  Most industry experts expect a multi-year AIP bill to pass in early 2009 which will provide the airport with long-term financial guidance for the terminal project.

 

The five-year plan is a carryover from last year and it is critical to maintain a consistent program to ensure the best opportunity to receive FAA discretionary money.  The 2009 projects included in the five-year plan are as follows:

 

-         Airfield paint marking

-         Update Exhibit A property map

-         Construct Taxiway and Relocate RCAG
This item is the next step in the relocation of the RCAG equipment which began
with an AIP project in 2008.  The actual taxiway construction will not begin in 2009,
however, it was agreed to incorporate the RCAG movement into the taxiway
construction item.

-         Construct terminal (utilities/site prep/house demolition)

 

The final item listed for 2009 is terminal foundation and steel; however, that item is listed only as a project to take advantage of potential FAA discretionary money or a possible economic stimulus package.  Listing this work in 2009 helps justify additional funding.

 

As with past plans, a motion to approve this plan does not commit the Commission to these projects. Each year, the Commission must pass a Resolution for that year’s project.  This plan serves as a planning document.  Mr. Biltz made a motion to approve the MBS Airport Five-Year Capital Improvement Plan.  Mr. Krygier seconded and the motion passed unanimously.

 

2009 AIP PROJECT #3909:  Mr. Nagel stated at the November Commission Meeting that Congress had passed yet another short-term extension to the AIP program.  The FAA will require bids in February and they have only authorized 35% of annual entitlements.  MBS also has carry-over money which can be applied to the projects.

 

MBS has met with both State and FAA representatives to develop a plan which allows the airport to continue with the terminal project while maximizing available federal dollars.   RS&H has worked to prepare a project which fits the expedited FAA timeframe.

 

Project #3909 – Phase II of Terminal Construction, will include continued relocation of the RCAG through another Reimbursable Agreement, continued site preparation, house demolition, and temporary fencing.  The estimated cost of this project is $1,106,400.

 

The final amount of this project will be based on bids which are due in February and the FAA Reimbursable Agreement which should be completed in February as well.  Mr. Nagel stated that in a typical year bids are due in June or July and last year it was pushed to May.  This year they are due in February with a reduced amount of entitlement dollars.   The FAA gave three choices; do nothing, roll the money forward and hope for the best, or work hard and try to get a project that meets the qualifications which RS&H has done.  Mr. Nagel appreciates their efforts.  These costs are not final until approved by the Commission.  The first step in the formal paperwork process is passage of the attached Resolution.  Mr. Gwizdala made a motion to approve the Resolution for AIP Project #3909 and authorize the Chairman to sign related documents.  Mr. Biltz seconded the motion.

 

 

 

RESOLUTION

(AIP Grant #3909)

 

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. 3-26-0083-3909.

 

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 3-26-0083-3909.

 

There being no further discussion, the motion passed unanimously.

 

2009 AIP PROJECT #4009:  Mr. Nagel reported at the November Commission Meeting that Congress had passed yet another short-term extension to the AIP program.  The FAA will require bids in February and they have only authorized 35% of annual entitlements.  MBS also has carry-over money which can be applied to the projects.  Project #4009 will include airfield paint marking and updating Exhibit A.

 

Bob Peckham is doing the work for both of these projects and the bids for the paint marking should be in February.  The update to the Exhibit A property map is based on a negotiated agreement which the Commission approved in November.  The estimated cost to complete these projects is $110,000.

 

The first step in the paperwork process is approval of the attached Resolution.  Mr. Krygier made a motion to approve the Resolution for AIP Project #4009 and authorize the Chairman to sign related documents.  Ms. Seals seconded the motion.

 

RESOLUTION

(AIP Grant #4009)

 

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. 3-26-0083-4009.

 

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 3-26-0083-4009.

 

There being no further discussion, the motion passed unanimously.

 

AIRPORT ATTORNEY REPLACEMENT:  Mr. Nagel told Mr. Lippert how much he appreciated everything he has done for him and the Board.  Chairman Distler also thanked Mr. Lippert.  He stated that Mr. Lippert has given freely of his time and that it has been more than a job to him.  Anyone that has been on the Commission knows that what he has done for the airport cannot be measured but is appreciated.  Chairman Distler also thanked the Personnel Committee for their time and effort.  Mr. Earley, Chairman of the Personnel Committee stated that Mr. Krygier and Mr. Lynch are on the Committee.  Although Mr. Lynch was unable to attend the interviews, Mr. Earley held conversations with him regarding the process.  Mr. Earley also stated that he called each of the Commissioners to brief them on the process.

 

Mr. Earley stated that fifteen firms replied to the Request for Proposal to Provide Legal Services.  Mr. Nagel and Mr. Riesinger also participated in the interview process.  They made the initial screening of the proposals and presented it to the Committee.  In two sessions five firms were interviewed.  The Committee feels that it has a good match with a local firm.  At least one other firm brought a much more extensive specific credential in respect to aviation and airport.  The local firm was very convincing in the second interview that they have well rounded counsel that the airport needs and will be able to come up to speed during a period of learning in airport and aviation matters.  With the top three of the five interviewed, there was no question whether they would be able to do the job but the fit that the Committee agreed upon was the locality of a local firm, the rate, and compatibility.  The recommendation of the Personnel Committee is that the Airport Commission appoints Gilbert, Smith and Borrello as airport general counsel and authorizes the Airport Manager to contract with the firm for their services.  The proposed contract shall be reviewed by the Personnel Committee prior to execution.  The Committee felt that it would be in the best interest of the Commission and public to go with a local firm that provides a quality service at a competitive rate.  Mr. Earley added comments regarding Mr. Lippert’s contribution to the airport and the region.  Mr. Lippert also served as counsel for the Saginaw Midland Water Supply.  He will be missed.  On behalf of the Personnel Committee and the Commission, he wished Mr. Lippert the best and thanked him for his service.  Those in attendance applauded Mr. Lippert.

 

Mr. Biltz made a motion to accept the recommendation of the Personnel Committee.  Mr. Gwizdala seconded and the motion passed unanimously.

 

OLD BUSINESS:  None

 

NEW BUSINESS:  Mr. Nagel stated that annually Andrews Hooper and Pavlik provide a Scope Letter for the upcoming audit.  A copy of the letter was given to the Board.  Mr. Gwizdala made a motion to receive the Scope Letter from Andrews Hooper and Pavlik, PLC.  Ms. Seals seconded and the motion passed unanimously.

 

Mr. Nagel stated that Rich Bostwick, manager of NWA, will be departing from MBS.  He has been here 30 years.  He has accepted a promotion with NWA/Delta in Detroit as a Manager of Ramp Operations at Detroit Metro.  Mr. Nagel stated that he has worked with several NWA managers at several airports in his 20 years and Rich ranks in the top.  His commitment to the airport and the community and the treatment of TSA and other tenants with respect is unmatched.  Mr. Nagel appreciates his assistance and wishes him well.  Mr. Bostwick thanked the Commission.  Everyone has been excellent to work with.  He announced that Karen Ehrlin will be taking his place.  Chairman Distler told Mr. Bostwick that he will be missed but wishes him well.

 

ADMINISTRATIVE MATTERS:  Chairman Distler again told Mr. Lippert that he will be greatly missed.  Various Commissioners wished Mr. Lippert well.  Mr. Lippert thanked everyone for their best wishes.

 

Next regular meeting is scheduled for January 15, 2009.  Chairman Distler wished everyone a happy holiday.

 

ADJOURNMENT:  There being no further business, Mr. Krygier made a motion to adjourn.  Mr. Biltz seconded and the Board unanimously passed the motion.  The meeting adjourned at 1:57 p.m.

 

 

                                                                                                                                                            Eugene F. Gwizdala, Secretary