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.

 

COMMISSIONERS

 

Present                                             Staff                                        Other     

Tom Adams                                     Jeff Nagel                               Angela Osmond, TSA

George J. Biltz                                 Andre R. Borrello                  

Bregitte Braddock                           Ryan Riesinger                       

Darnell Earley                                  Debbie Meisel                        

Brian K. Elder                                                                                 

Eugene F. Gwizdala                                                                        Guests   

Ernie Krygier                                    Mark Wilcer, RS&H

Jon Lynch                                        Steve Westerbeke, RS&H

Joyce J. Seals                                  

 

PLEDGE OF ALLEGIANCE 

 

MINUTES:  Mr. Gwizdala made a motion to approve the minutes of the Regular Commission Meeting held on November 19, 2009.  Mr. Krygier seconded the motion.  The motion was unanimously approved by the Board.

 

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