MBS INTERNATIONAL AIRPORT COMMISSION
April 16, 2009
MINUTES
The meeting was held in the Airport
Commission Board Room,
Present Absent &
Excused Staff Other
Ernie
Krygier
McDonald, Yakima, Grenke & McCarthy
Chairman Distler stated that he appreciated the good attendance since everyone has busy schedules.
MARCH 2009 WARRANTS AND CASH & INVESTMENT SUMMARIES: Mr. Gwizdala made a motion to approve the Warrant Registers for the March Payroll Account Check Numbers 84541-84596; the March Operations and Maintenance Check Numbers 39258-39338; and the March Cash and Investment Summaries. Mr. Biltz seconded the motion and the Board unanimously approved it.
PUBLIC COMMENT: None
PROPERTY ACQUISITION UPDATE: Chairman
Distler explained that this item qualifies for closed session because the Board
needs to consult with special counsel for the land acquisition regarding a
settlement strategy. This discussion in
an open forum would cause a detrimental financial affect on the settlement
position of the Commission. Mr. Biltz
made a motion to go into closed session for the purpose of consulting with the
attorney regarding trial and/or settlement strategy for pending
litigation. Mr. Krygier seconded the
motion. Chairman Distler asked for a roll call
vote. Ms. Meisel took roll call as
follows: Mr. Biltz, yes; Dr. Distler,
yes; Mr. Elder, yes; Mr. Gwizdala, yes; Mr. Krygier, yes; Mr. Lynch, yes; Mr.
McKeag, yes; Ms. Seals, yes. The motion
carried.
Upon return from closed session Mr. Elder made a motion that the Commission
follows the advice of counsel during the closed session. Mr. Krygier seconded and the motion passed
unanimously.
SMARTE
CARTE AGREEMENT: Mr. Nagel stated that Smarte Carte has
operated two luggage cart units at MBS for a number of years. Smarte Carte maintains and services the units
and MBS makes a small percentage of revenue.
The main purpose of having these units is a customer service feature.
MBS received
a letter from Smarte Carte in January stating that the new airline fees
regarding checked luggage has had a dramatic impact on their business
nationwide. Since the existing Smarte
Carte agreement was in a month-to-month status, discussion took place regarding
a variety of ways to keep the cart systems at MBS for passenger use. The most effective way is to utilize an
“airport-managed” system where MBS will maintain, service and manage the
units. Smarte Carte will provide
training and supply parts. MBS will receive
a “concession fee” equal to 5% of gross proceeds.
The
agreement is for a period of one year commencing May 1, 2009. The agreement automatically extends for an
additional year; however, each party has the option to cancel after the initial
term. This option has been discussed
with the Finance Committee and they agree with the recommendation to enter the
new agreement with Smarte Carte.
Mr.
Gwizdala made a motion to approve the agreement with Smarte Carte for the
“airport-managed” baggage cart systems at MBS Airport and authorize the
Chairman to sign. Mr. Biltz seconded and
the motion passed unanimously.
AMERICAN
RECOVERY AND REINVESTMENT ACT (ARRA) GRANT: Mr. Nagel stated that MBS was notified on
April 2, 2009 that the airport would receive $12.7 million in AIP discretionary
money through the American Recovery and Reinvestment Act (ARRA), commonly
referred to as the “stimulus package”.
This is very good news for the MBS project and was the culmination of a
lot of hard work by numerous members of the Great Lakes Bay Region and elected
officials. Mr. Nagel stated that 256 stimulus
grants have been issued through the FAA.
There have only been 13 stimulus grants issued over $12 million. As of this date MBS is the only airport in
the State of Michigan that has received one of these grants from the FAA though
others are being worked on and will be issued. This speaks volumes of MBS for
the work done and justification to get the project ready.
Now that the
grant has been announced, the hard work really begins. RS&H has designed several bid packages
which will incorporate the full $12.7 million.
The grant pre-application included the following items:
-Foundation, steel and
building systems $4.2
million
-Site improvements,
drainage, utilities and access road $7.7
million
-Passenger boarding bridges
and furnishings $3.1
million
Mr. Nagel
stated that there are a couple samples of some furniture next to the gift shop
and food court. They meet the Buy
American clause and the intent of the grant.
Although the
total of the pre-application is $15 million, the final grant amount will be
based on actual bids received. It should
be noted that this is 100% federal money and no local or State match is
required. Therefore, the goal is to take
full advantage of the $12.7 million. In
today’s bidding climate, it is not uncommon to see more competitive bids than
what is normally seen. In other words,
if the FAA is offering $12.7 million, it is the intent to find qualified
projects to get the full $12.7 million.
The
Operations Committee has been involved in this process and has agreed that the
goal is to maximize the value of this grant while keeping the project on
schedule. These projects are all quality
projects that fit the efforts to develop the terminal as well as the goal set
by the ARRA of job creation. RS&H
has done an excellent job of meeting the goals of the Act while doing their
best to keep the terminal project moving forward. Completing all of this work would be a
benefit not only to the project, but the overall economy as well. This scenario provides a win-win solution.
FAA has set
very tight timeframes for the final grants to be issued. Those deadlines are outlined below:
Projects “on the
street” advertised Mid to late April
Bids received May
15th
Firm numbers to the
FAA June
1st
Grant offer June
17th
Notice to Proceed Mid-July
These
deadlines will require that the process move forward in an expedited
manner.
If these
deadlines remain as-is, the intent is to bring the bids to the full Commission
for approval at the regular Commission Meeting scheduled for May 21, 2009. However, because this process is new for all
parties (MBS, FAA, State) MBS needs to remain flexible enough in case any
deadlines were to change, or in case there would not be a quorum for the May
meeting. Therefore, in the event a contingency
plan is needed, Mr. Nagel recommended the following motion be passed.
A motion to
authorize the Operations Committee to review the bid tabulations and the
RS&H recommendation and direct the airport manager to submit the bid
tabulations to the FAA for the purpose of completing the final Grant
Application. This action will not
formally approve the bids but will suffice to meet the FAA requirement for
completion of the Grant Application.
Mr. Gwizdala made
the above motion with Ms. Seals seconding. Discussion took place as to what would happen
if the bids came in over or under the $12.7 million. Mr. Nagel stated that the airport wants to
use the entire grant amount and has estimated $15 million with the hopes that
the bids come in under at $12.7 million.
The project was designed to have various parcels or bid packages so the
work to be done could be adjusted by removing a portion or if the bids come in
at $15 million a decision would need to be made if it was a good price to pay
the balance with local dollars. Chairman
Distler stated that the Operations Committee, comprised of Mr. Biltz, Mr.
Gwizdala, and himself, feels that this is the direction to go. He also thanked them for attending the
meetings which were sometimes last minute.
There being no further discussion, the motion passed unanimously.
In addition,
the Commission usually passes a Resolution in the early stages of the Grant
process to allow the Chairman to sign all related paperwork for the grant. The paperwork for this grant will be more
involved than a regular grant. Mr. Nagel
recommended that the attached Resolution be passed at this time. This too, will insure that the grant process
stays on course and MBS will be able to meet the FAA timetables. Mr. Gwizdala made a motion to approve the
attached Resolution.
RESOLUTION
(ARRA 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.
Mr. Biltz seconded and the motion passed
unanimously.
OLD BUSINESS:
Terminal Enhancement: Mr. Nagel asked Mr. Riesinger to update the Commission on the Terminal Enhancement. Mr. Riesinger stated that the work is in progress. The interior painting and ticket counter improvements are complete with the vinyl flooring in front of the ticket counters 90% complete. Entrance tiles have also been replaced. Removal and replacement of the carpeting will start tonight or tomorrow night. The work is on schedule and is expected to be complete mid-May. Positive comments have been received.
Terminal Phase II Construction Report: Mr. Riesinger stated that Phase II is installation of a temporary perimeter fence, construction of an access road to be used throughout the terminal project, tree removal, structure demolition, and pavement removal. The preconstruction meeting was last Tuesday. The work is expected to take approximately 60 calendar days to complete. This work is preparation for Phase III.
NEW BUSINESS: None
Mr. McKeag stated
that the airport is far enough along that serious thought should be given to
what should be done with the current passenger terminal. Mr. Nagel stated that the grant has expedited
this process. He stated that he will
look at a couple ways to evaluate the building and determine what the
potentials are. He will present to the
Operations Committee and then bring it back to the Board.
ADMINISTRATIVE MATTERS: Chairman Distler thanked the board members for any contacts that were made while waiting for approval of the airport grant. He stated that the board members are diverse and add to the success of the airport.
Next regular meeting is scheduled for May 21, 2009.
ADJOURNMENT: There being no further business, Mr. Gwizdala made a motion to adjourn. Ms. Seals seconded and the Board unanimously passed the motion. The meeting adjourned at 1:48 p.m.
Eugene F. Gwizdala, Secretary