MBS INTERNATIONAL AIRPORT COMMISSION
January 21, 2010
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.
Present Staff Other
Brian K. Elder
Eugene F. Gwizdala Guests
Joyce J. Seals
NOVEMBER & DECEMBER 2009 WARRANTS AND CASH & INVESTMENT SUMMARIES: Mr. Gwizdala made a motion to approve the Warrant Registers for the November Payroll Account Check Numbers 85033-85089 and December Payroll Account Check Numbers 85090-85177; the November Operations and Maintenance Check Numbers 39889-39975, void check #39955 and December Operations and Maintenance Check Numbers 39976-40057; and the November and December Cash and Investment Summaries. Mr. Krygier seconded the motion and the Board unanimously approved it.
PUBLIC COMMENT: None.
AUDIT
SCOPE LETTERS: Attached is the audit scope letter from Andrews, Hooper & Pavlik
which outlines their accounting and audit services for the 2009 audit. This is similar to the past letters received
regarding their services.
In addition to the annual audit, Andrews, Hooper & Pavlik will be
performing the single audit for the MBS ARRA grant. The audit of this grant is required by the
FAA and will include additional work which is not included in the annual audit. Mr. Gwizdala made a motion to receive and
file the 2009 annual audit scope letter and the 2009 ARRA single audit scope
letter with Mr. Krygier seconding. Mr.
Biltz asked since the audit does not include internal controls whether there is
a separate procedure to audit the controls.
Mr. Nagel stated that although it is not included in the audit, every
year the auditors review and make recommendations. Mr. Biltz stated that he would follow the recommendation
of the Finance Committee but feels that at some point in time that the internal
controls should be audited. Mr. Nagel
stated that when the Finance Committee meets to review the financial statement
it could be discussed at that time.
There being no further discussion the motion passed unanimously.
WNEM DOPPLER
AGREEMENT: Mr. Nagel stated that MBS has an agreement with WNEM TV-5 for the
placement of their Doppler weather radar facility located on airport
property. In return, MBS receives a mention
each time the radar is used in the weather segment of the news. MBS also receives advertising trade as
outlined in the agreement.
MBS and
TV-5 both agree that the partnership has worked well and both sides would like
to extend the agreement another four years.
In return, MBS will continue to receive the “on air” mentions as well as
an annual trade value of $8,500 per year.
Mr. Gwizdala made a motion to approve a four year agreement with WNEM
for the Doppler radar unit at MBS Airport and authorize the Chairman, or in his
absence the Vice-Chairman, to sign the agreement. Ms. Seals seconded and the motion passed
unanimously.
POTASSIUM ACETATE PURCHASE: Mr. Nagel stated that in 2007 MBS purchased a new
vehicle which can pre-wet sand before applying it to the runway for
improved friction on the surface during winter operations. The chemical used to treat the sand is
FAA-approved liquid potassium acetate.
This type of runway treatment can be very effective in combating
freezing rain or freezing drizzle. The
truck holds 500 gallons and on-site storage has capability for 6,000 gallons.
Depending on the usage, periodically there is
a need to order more product. Since this product was used over the
holidays, a shipment needs to be ordered.
The Maintenance Supervisor received quotes from Old World Industries at $6.46/gallon
and Seneca Minerals at $5.25/gallon.
These prices include shipping.
A full shipment is 4,000 gallons so the total
price, using the low bid, would be approximately $21,000. It should be noted that the chemical is used sparingly;
however, it is very beneficial when needed.
The last order was placed in the summer of 2008. Mr. Earley made a motion to authorize the
Airport Manager to purchase 4,000 gallons of liquid potassium acetate from
Seneca Minerals at a price of $5.25 per gallon with Mr. Gwizdala seconding. Mr. Krygier asked if this product saves
manpower hours by eliminating going over the area again. Mr. Nagel stated that it does save time. The sand and chemical was sprayed down on
Christmas Eve and on Christmas Day maintenance was called out but was in only
two hours in order for the airport to open. There being no further discussion
the motion passed unanimously.
TERMINAL WAYFINDING PRESENTATION: Mr.
Nagel stated that RS&H continues to move forward with the ongoing terminal
design process. The next step is the wayfinding which is signage from curbside to inside the
building. The Operations Committee has
met to review the information and is ready to present it to the full Commission. Mr. Nagel introduced Mark Wilcer from
RS&H.
Mr. Wilcer pointed out the new aerial located
in the Board Room. It is an accurate
representation of what has been funded or under contract to date showing the
location of the new terminal. He then
proceeded with the presentation of the signage.
This is about a 50% presentation but wanted to get a consensus from the
Board that the signage design is acceptable before proceeding.
Mr. Gwizdala on behalf of the Operations
Committee stated that they had met and are looking for concurrence and a motion
from the Board to proceed. Mr. Elder
made a motion to approve the overall concept, design, and color of signage and
authorize RS&H to work with staff for final design and placement of
signage. Ms. Braddock seconded and the
motion passed unanimously.
OLD BUSINESS:
NWA/Delta Merger: Mr. Nagel stated that the merger is ongoing. The FAA authorized the carrier to operate with one operating certificate effective January 1, 2010. It is his understanding that at the end of the month the NWA reservation system will either end or route directly to the Delta system. Most of the aircraft flying into MBS have been changed to the Delta paint scheme.
As a result of the merger, MBS along with several other airports were contacted by Delta. They have NWA pilots that need to be trained on the 767 aircraft which is a large international aircraft. They were looking for suitable airports to conduct the training in visual conditions. Their primary airports are Rickenbacker Air Force Base in Columbus, Ohio and Toledo Express Airport. MBS, Grand Rapids and Lansing were also selected. Tuesday and Wednesday they did several touch and goes at MBS.
AIP Funding: Mr. Nagel stated that Congress has extended AIP through March 2010. MBS continues to work with the FAA and the State in terms of funding in the next phase of the project. Mr. Nagel stated that he feels it is important to keep the terminal project moving and get the building enclosed as soon as possible. RS&H, the Operations Committee, and staff are working hard to find the funding sources available and different aspects of how to proceed with the project. The Board will be continually updated.
Marketing Manager: Mr. Nagel stated that he had met with the Personnel Committee in December before the holidays. They determined that they did not want to bring on another full time staff person. The committee discussed the concept and the broad scope of work and directed Mr. Nagel to formulate a Request for Proposal for an individual or an entity for this work. The Personnel Committee has requested to view the draft of the Request for Proposal which should be sent to them in the next few weeks.
Construction Process: Photos of the construction progress were passed out. Mr. Nagel introduced Steve Westerbeke who is the resident project representative from RS&H. He is located at the Administration Building. Mr. Nagel stated that work will continue through the winter. On December 21st the RCAG communications equipment came down. It was located in the middle of the new terminal area. This allows the contractor to grade and start the foundations in that area.
NEW BUSINESS: None
ADMINISTRATIVE MATTERS: Mr. Lynch stated that he has been reviewing the data that has been included in the packets. He noted that airlines continue to reduce the number of seats coming and going out of the airport. In 2007 there were 561,000 seats available and in 2009 there were 445,000. Although passenger utilization is down, the available seats are also down. Mr. Lynch said that the timing of the marketing discussion is good.
Mr. Earley stated that he recommends the topic of recruiting a discount carrier into MBS be addressed in the Request for Proposal for the marketing position. The Board concurred with Mr. Earley’s recommendation. Chairman Biltz stated that the top four items that need to be addressed are a discount carrier, a new carrier, NW/Delta parity fares with Flint, and how MBS attracts ridership.
Next regular meeting is scheduled for February 18, 2010.
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 1:25 p.m.
Darnell Earley