MBS INTERNATIONAL AIRPORT COMMISSION

 

June 18, 2009

 

MINUTES

                                                                           

The meeting was held in the Airport Commission Board Room, 8600 Garfield Road, Freeland, Michigan 48623.  Chairman George Biltz 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                    Andre Borrello                              John Palen, Midland Issues

Darnell Earley                             Ryan Riesinger                              Ron Engel, Mead & Hunt

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

Eugene F. Gwizdala                                                                               

Ernie Krygier                             Guest                                            

Jon Lynch                                  Mark Wilcer, RS&H                    

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 May 21, 2009. Mr. Krygier seconded the motion. The motion was unanimously approved by the Board.

 

MAY 2009 WARRANTS AND CASH & INVESTMENT SUMMARIES:  Mr. Gwizdala made a motion to approve the Warrant Registers for the May Payroll Account Check Numbers 84654-84709; the May Operations and Maintenance Check Numbers 39423-39493, void check #39133; and the May Cash and Investment Summaries.  Mr. McKeag seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT:  None.

 

COMMITTEE ASSIGNMENTS:  Chairman Biltz stated that each year committee assignments are made by the Chairman.  The following committee assignments reflect no changes from the previous year.

 

Operations                                                       Finance

Ken Distler, Chairman                                    Hollis McKeag, Chairman

George Biltz                                                    Brian Elder

Gene Gwizdala                                               Joyce Seals

 

Marketing                                                        Personnel

George Biltz, Chairman                                  Darnell Earley, Chairman

Brian Elder                                                      Jon Lynch

Ken Distler                                                      Ernie Krygier

 

Mr. Gwizdala made a motion to receive the information with Ms. Seals seconding.  The motion passed unanimously.  Mr. McKeag asked that he be removed as Chairman of the Finance Committee. After discussion, Mr. Krygier made a motion to appoint Ms. Seals as Chairperson of the Finance Committee. Mr. Lynch seconded and the motion passed unanimously.

 

AIRFIELD PAINT MARKING:  Mr. Nagel stated that repainting the airfield was originally placed in the 2009 Part A AIP Program.  Peckham Engineering designed the project, bids were received and approved by the Airport Commission.  Prior to the grant being issued, the eligibility of the airfield painting was questioned by the FAA.  At that time, the FAA did not allow MBS to move forward with this project.

 

The eligibility issue has been resolved and MBS is eligible for this work.  Therefore, MBS plans to include this project in the 2009 Part B AIP Program.  The low bidder in February, PK Contracting, has agreed to hold their price as bid.  Staff wants to complete the work now and pay with local funds then reimburse the airport with FAA dollars after the grant is issued later this year.  This allows the airport to paint now as opposed to waiting until September or October.

 

Since bids were already taken and approved by the Commission, the only authorization needed at this time is for the Airport Manager to use local funds to pay for the painting.  The following costs are involved in this project:

 

            Project Design                                                         $7,413.00

            Paint Bid                                                               $78,803.78

            Project Supervision                                                 $8,803.00

 

Mr. Gwizdala made a motion to authorize the Airport Manager to use local funds to complete the airfield paint marking project and to include that project in Part B of the 2009 AIP Program grant application.  Ms. Seals seconded the motion.  Chairman Biltz stated that the bid was approved in February and given the economy asked if it would be better to rebid.  Mr. Nagel stated that he is actually pleased that the price is being held because there is more work available now despite the economy and the price could have increased.  In February there wasn’t any work available.  Mr. Nagel stated that there is also a time constraint.  There being no further discussion, the motion passed unanimously. 

 

TSA LEASE:  Mr. Nagel stated that the Transportation Security Administration has a lease with MBS which covers their office, break room and training room.  In addition, they added a storage room on the second level of the terminal building.  The current lease expires in November of this year.  The TSA has contacted us regarding an extension to November, 2011 with an option to go until 2012, depending on the new terminal construction.

 

The current rate for the office/break room is $42.95 per square foot or $6,589.25 per month and the storage area is $19.86 per square foot or $503.12 per month.  The following rates have been agreed to: 

                                                                                    Office                             Storage

 

            12/1/09 – 11/30/10                                      $44.45/ft.2                                 $20.56/ft.2

            12/1/10 – 11/30/11                                      $45.78/ft.2                                 $21.18/ft.2

            12/1/11 – 12/30/12                                      $47.15/ft.2                                 $21.82/ft.2

 

These new rates will result in additional income for MBS of $2,974.25 the first year; $2,637.01 the second year; and $2,716.63 the third year.

 

It was very good news that TSA is interested in keeping all of their currently leased space and to be able to negotiate an increase.  They have been a good tenant.  Mr. Earley made a motion to approve the new lease rates for the TSA and authorize the Chairman, or in the absence of the Chairman the Vice-Chairman, to sign the related documents.  Mr. Krygier seconded and the motion passed unanimously.

 

RUNWAY FRICTION TESTER:  Mr. Nagel stated that the purchase of a runway friction tester was approved by the Commission on PFC Application #5.  Mr. Riesinger updated the Board last month that the airport is moving forward with this purchase.  This vehicle is used to determine the friction on pavement surfaces during snow removal operations.  The current vehicle was purchased in 1994 and needs to be replaced.

 

Detailed specifications were drafted in-house and bids were due June 5, 2009.  The FAA has approved two vehicles for using self-contained friction measurement equipment.  One company, based in Sweden, uses a SAAB while the other company, based in the U.S., uses a crew-cab pickup truck.  The MBS specification was sent to both of these firms.  Only one bid was submitted which was Dynatest at $185,122.73.

 

Dynatest is the company which produced the friction test vehicle that the airport currently operates.  This is also the company which utilizes the pickup truck to mount their equipment.  The friction tester is a very technical piece of equipment that does not offer numerous bidding options.  After reviewing the information submitted, it is the recommendation to accept the bid of Dynatest in the amount of $185,122.73.  This price also reflects a trade-in value of $7,000 for the current friction tester.

 

The PFC Application amount for this equipment was $190,000.  The funds to purchase the vehicle are currently available in the restricted PFC account.  Mr. Gwizdala made a motion to approve the bid of Dynatest in the amount of $185,122.73, authorize the Airport Manager to sign the purchase documents, and approve the Airport Manager to trade-in the current runway friction tester.  Ms. Seals seconded the motion.  Discussion took place regarding maintenance of the vehicle.  There being no further discussion the motion passed unanimously.

 

GRANT #4109:  Mr. Nagel stated that the FAA has released the second half of the 2009 AIP Program.  MBS has received a $2.4 million grant.  The timeframe for getting numbers to the FAA is once again very tight.  The FAA needs numbers by July 31, 2009.

 

The following three items will be on this grant application:

 

-           Reimbursement for land acquisition including the settlement payment, MBS attorney fees, required relocation, and environmental payment.

-           Airfield paint marking (bids approved by MBS Airport Commission on February 9, 2009).

-           Phase IV of the terminal project which will be the construction of the connector taxiway.

 

RS&H is in the process of designing the new connector taxiway.  Bids are set to be received on July 26, 2009, which is too late for Commission approval on July 16th.  Therefore, a special meeting will be needed to be scheduled the last week of July.  Mr. Nagel stated that there is a way to approve the bid today based on contingencies which would be that the bid is the lowest qualified bid, not higher than the number that was given to the FAA for the pre-application, and is recommended by the consultant, RS&H.  If that would be the motion today, a special airport commission meeting would not be required to receive the bids.  Mr. Nagel would then update the Board in August.  The process then could be continued to meet the July 31 deadline for the FAA grant application.       

 

This grant will reflect a traditional AIP grant with a Federal share of 95%, State share of 2.5% and local share of 2.5%.

 

Mr. Gwizdala made a motion to approve the attached Resolution for Grant #4109 with Ms. Seals seconding. 

  RESOLUTION

(AIP Grant #4109)

 

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. 3-26-0083-4109.

 

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 3-26-0083-4109.

 

The motion passed unanimously.

 

Chairman Biltz stated that the issue with a special meeting at the end of July is that this is very time sensitive and the concern is will a quorum be available and if not there is a problem meeting the deadline.  The normal questions that would be asked at a meeting would be all of the stipulations that would be required in the motion.

 

Dr. Distler made a motion to approve the taxiway connector bid with the following conditions:

 

-          The bid is the lowest qualified bid

-          The bid is not higher than the estimate given to the FAA in the pre-application

-          The bid is the recommendation of RS&H based on their review of all submittals.

  

The motion was seconded by Mr. Krygier.  Mr. Earley recommended that the board members be able to see the bids prior to approval via fax or email.  Discussion took place.  Dr. Distler made motion to amend the motion to add a fourth condition that all commissioners would see the bids by either email or fax and one commissioner may request a special meeting to be called.  Ms. Seals seconded.  The Board passed the motion to amend the motion unanimously.  The Board then passed the amended motion unanimously. 

 

Mr. Lynch stated that MBS is getting into the full scale of the new facility.  It would be helpful if monthly the board members could receive a matrix listing the previous approved grants, the items to be constructed under the individual grants, and the status of the work being done on those items.  This would help the board to follow the progress of the work.  Mr. Nagel agreed that it will help the Commission and also staff.

 

Mr. McKeag asked about a ground breaking.  Mr. Nagel stated that the overall project has begun without an official ceremony.  As far as a ground breaking ceremony for the terminal portion of the project, that has not been determined. 

 

OLD BUSINESS:  Mr. Nagel stated that staff did receive the stimulus grant from the FAA and it has been signed by the Chairman.

 

Mr. Nagel stated that the last two years the FAA Reauthorization was short terms of 12 months for the AIP program and this year it was two six month authorizations.  Currently there is a movement in Congress to pass a multi-year bill.  Mr. Nagel hopes to see that before the end of this year.  Within the bill there has also been discussion of modifying the PFC.  With limited bonding authority the airport has been advised by the FAA to seek local contributions, including PFCs, as much as possible.  Mr. Nagel will continue to update the various committees and the Board.    

 

NEW BUSINESS:  None

 

ADMINISTRATIVE MATTERS:  Ms. Seals pointed out that on the passenger count report, MBS’ loss percentage number is much lower than the other airports.  She asked Mr. Nagel if there is explanation for that.  Mr. Nagel stated the numbers are down throughout the state.  Why one airport is down less than another is not always known but Lansing did lose a leisure carrier which would have some impact on their service.

 

Mr. Earley asked Mr. Nagel to schedule a meeting for the Personnel Committee to begin the evaluation process of the Airport Manager.  Mr. Earley would like to meet sometime between now and the next Commission Meeting.    

 

Next regular meeting is scheduled for July 16, 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 1:26 p.m.

 

 

                                                                                                                                                            Ken Distler, Secretary