MBS INTERNATIONAL AIRPORT COMMISSION
January 15, 2009
meeting was held in the Airport Commission Board Room,
Present Absent & Excused Staff Other
Ernie Krygier Wilma Kasten, Citizen
Jon Lynch Guest
MINUTES: Mr. Gwizdala made a motion to approve the minutes of the Regular Commission Meeting held on December 18, 2008. Mr. Krygier seconded the motion. The motion was unanimously approved by the Board.
DECEMBER 2008 WARRANTS AND CASH & INVESTMENT SUMMARIES: Mr. Gwizdala made a motion to approve the Warrant Registers for the December Payroll Account Check Numbers 84331-84422, void checks #84332, 84366,84368, 84371, and 84372; the December Operations and Maintenance Check Numbers 39012-39083, void check #39017; and the December Cash and Investment Summaries. Ms. Seals seconded the motion and the Board unanimously approved it.
PUBLIC COMMENT: Mr. Ron Sujkowski, of 3184 Yorkshire Drive, Bay City stated that the MBS website is outdated and that the Ifly website still links to the old website. Mr. Nagel stated he has been working with the Marketing Committee and that the Board has hired a new marketing firm. They are in the final stages of updating the website but are waiting for final piece from SwiftTrip. Mr. Nagel stated that both addresses work but are the old site. The new website should be up in the next month.
Mr. Sujkowski commented that Bishop Airport sponsors the news on TV12 and that MBS should consider the same with TV5. He also suggested that the Commission Meetings be held at various times and locations to make people more aware of MBS. Chairman Distler stated that during the year RS&H and Mr. Nagel have traveled to various areas and that there would be more of that in the future as the terminal project goes forward.
INTRODUCTION OF AIRPORT ATTORNEYS: Chairman Distler stated that the Personnel Committee went through a selection process to replace Tom Lippert as MBS Airport general counsel. That process resulted in the selection of Gilbert, Smith & Borrello by the Airport Commission at the December, 2008 meeting.
Mr. Nagel stated that a contract has been executed with the law firm and all has gone well while working with them during the last month. Mr. Nagel then introduced Andre Borrello.
Mr. Borrello addressed the Board. He introduced partner Christina Grossi and associate Jamie Totten. Two other partners, David Gilbert and Bill Smith were unable to attend. Mr. Borrello stated that he appreciates the trust that the Board has placed in them. He is very committed personally and professionally to public service. He has had a career in the City of Saginaw for ten years and has been doing the same type of work with public bodies. He finds it very satisfying and will work his hardest to ensure that the trust the Board places in them is not misplaced.
FAA LEASE: Mr. Nagel stated that the FAA currently leases two offices in the Administration Building. The lease expires in September, 2009, however, the FAA has contacted MBS and requested that a new lease rate be negotiated now rather than wait until later this year. The FAA has been a good tenant and their operation is a perfect fit for the Administration Building.
The current lease rate is $13.00 per square foot, which amounts to $10,192 per year. Numerous conversations have taken place regarding a new rate and $15.05 per square foot was agreed to, which would increase the annual income to $11,799. This rate would be for five years and would equal what US Customs currently pays for rent in the Administration Building. The Customs lease and the FAA lease would then both expire in 2014. Mr. Gwizdala made a motion to approve the FAA Lease rate of $15.05 per square foot and authorize the Chairman to sign the related documents. Ms. Seals seconded and the motion passed unanimously.
PROPERTY ACQUISITION UPDATE: Mr. Nagel stated that although Mr. Yakima was unable to attend the meeting, he has been in communication with him. Mr. Nagel stated that MBS accepted the case evaluation recommendation on the parcel including the house and rejected the case evaluation recommendation on the vacant farm land parcel. Mr. Yakima notified Mr. Nagel that the other side has rejected both case evaluation recommendations. This results in moving forward towards trial. There is a settlement conference set for mid April and possibly a trial date in late April. Mr. Yakima will be at a future meeting if consultation is needed towards either a settlement or trial strategy. Mr. Nagel will continue to work with Mr. Yakima.
PROJECT #3909 AND #4009: Mr. Nagel stated that at the December 20, 2008 meeting, the Airport Commission approved the following two AIP projects for the first half of 2009:
#3909 Phase II of the terminal project
#4009 Paint the airfield and update the Exhibit A property map
In compliance with the accelerated FAA schedule this year, all bids for these projects will be opened on Friday, February 6, 2009. The FAA requires bid amounts to be submitted through the State by February 10, 2009 to complete the grant application process. Submitting these bid amounts to the FAA as part of the application process does not bind the commission in any manner, specifically to a particular contractor, nor does this submission “approve” or otherwise “award” bids. As in the past, all bids and contracts for these projects will be subject to Airport Commission approval at the regular Commission meeting on February 19, 2009.
During a typical year, the Commission has time to approve bids prior to the completion of the grant application; however the timeframe this year does not permit that. This has been discussed with the FAA Program Manager, the State Project Manager, and Mr. Borrello and there is no objection to this since the only information on the grant application is the bid amount.
To satisfy the unusual time constraints involved for these grant requests to be considered, Mr. Nagel recommend the Commission choose one of the following courses of action:
1. Approve a motion directing the Airport Manager to submit bid and contract amounts to the FAA for the purpose of completing FAA Grant Applications for Project #3909 and Project #4009. The amounts submitted to the FAA will be based on engineer’s recommendation and State Project Manager concurrence. All bids and contracts shall be subject to Airport Commission approval at the February 19, 2009 regular meeting, it being further understood that the submission of the application shall not in any manner bind the Commission to a particular bidder/contractor or to accepting a grant based on the amounts provided by the Airport Manager; or
2. Schedule a special meeting of the Airport Commission for February 9, 2009 to review and approve the Manager’s recommendation of bid amounts received through the bidding process for submission to the FAA as described above.
Mr. Nagel emphasized that submissions are required no later than February 10, 2009, so it is imperative that if the Commission chooses to have a special meeting on February 9, 2009, that a quorum be present so that the submission of the application can be considered and approved. Mr. Gwizdala made a motion to schedule a special meeting of the Airport Commission for February 9, 2009 to review and approve the Manager’s recommendation of bid amounts received through the bidding process for submission to the FAA as described above. Mr. Earley seconded the motion. After discussion took place in regards to the two options, Chairman Distler asked for a roll call vote. Ms. Meisel took roll call as follows: Dr. Distler, no; Mr. Early, yes; Mr. Elder, yes; Mr. Gwizdala, yes; Mr. Krygier, yes; Mr. Lynch, no; Mr. McKeag, yes; Ms. Seals, no. The motion carried.
The Special Meeting was set for Monday, February 9th, at 5 p.m. in the Administration Building.
OLD BUSINESS: Mr. Nagel stated that passenger stats are given to the Board each month. There was an article that came out of Midland that was not from any of the represented publications that are at this meeting. The article had incorrect data stating that there was a 19% decline in passenger traffic. MBS will finish the year about 12.5% down with about 304,000 total passengers. Through November, Traverse City is down 8%, Grand Rapids down 9%, Kalamazoo down 13%, and Lansing down 13%. Mr. Nagel stated he wanted to inform the Board that 19% down was incorrect.
NEW BUSINESS: None
ADMINISTRATIVE MATTERS: Next regular meeting is scheduled for February 19, 2009 and a special meeting on February 9, 2009 at 5p.m.
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 1:26 p.m.
Eugene F. Gwizdala, Secretary