MBS INTERNATIONAL AIRPORT COMMISSION

 

 

February 18, 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                           Absent & Excused         Staff                         Other           

Tom Adams                   Darnell Earley                Jeff Nagel                Calvin Rusch

George J. Biltz               Eugene F. Gwizdala      Andre R. Borrello    Angela Osmond, TSA

Bregitte Braddock                                                Debbie Meisel         

Greg Branch                                                                                          

Brian K. Elder                                                       Guests                     

Ernie Krygier                                                        Mark Wilcer, RS&H 

Jon Lynch                                                             Steve Westerbeke, RS&H

 

PLEDGE OF ALLEGIANCE 

 

MINUTES:  Mr. Adams made a motion to approve the minutes of the Regular Commission Meeting held on Jahnuary 21, 2010.  Mr, Krygier seconded the motion.  One typographical correction was noted prior to the motion passing unanimously.

 

JANUARY 2010 WARRANTS AND CASH & INVESTMENT SUMMARIES:  Mr. Krygier made a motion to approve the Warrant Registers for the January Payroll Account Check Numbers 85178-85235; the January Operations and Maintenance Check Numbers 40058-40139, void check #40023; and the January Cash and Investment Summaries.  Mr. Lynch seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT:  None.

 

WELCOME NEW COMMISSIONER:  Chairman Biltz welcomed Saginaw Mayor Greg Branch who has been appointed to serve on the MBS Airport Commission taking the seat vacated by Commissioner Joyce Seals.

 

RESOLUTION OF APPRECIATION:  Joyce J. Seals has stepped down from her position on Saginaw City Council to run for a State House seat.  With her resignation from City Council, Joyce will no longer be appointed to the Airport Commission.

 

Although her time on the Commission was short, Joyce was an excellent member.  In appreciation of Joyce’s time on the Airport Commission, the attached Resolution of Appreciation has been drafted.

MBS International Airport Commission

Resolution of Appreciation

 

The MBS International Airport Commission

recognizes with great appreciation the dedicated service of

 

JOYCE J. SEALS

 

who has served the airport and the owner communities since 2007. During her time of service she has shared her skills as a community leader, her understanding of community needs, and her general business experience with the Commission. She has willingly aided the airport manager and management staff as an active member of the Finance Committee.

 

Her counsel, support, and ever-pleasant company will be missed by all who have served and worked with her, and the best wishes of all go with her as she leaves us for new opportunities.

 

This Resolution of Appreciation was unanimously adopted at a regular meeting of the MBS Airport Commission on February 18, 2010 and shall be retained in the permanent minutes of the Commission.

 

MBS INTERNATIONAL AIRPORT COMMISSION

 

Bay County                                City of Midland                        City of Saginaw

 

Eugene F. Gwizdala                      Tom Adams                                    Bregitte Braddock

Ernie Krygier                                 George J. Biltz                               Darnell Earley

Brian K. Elder                               Jon Lynch                                      Greg Branch

 

Jeff Nagel, Airport Manager

Andre Borrello, Airport Attorney

 

Mr. Krygier made a motion to approve the Resolution of Appreciation for Joyce J. Seals.  Ms. Braddock seconded and the motion passed unanimously.

 

ELECTION OF SECRETARY:  Mr. Nagel stated that with the resignation of Joyce Seals, the position of Airport Commission Secretary is now vacant.  According to the Commission By-Laws “The MBS International Airport Commission shall elect no more than one (1) officer (Chairman, Vice-Chairman, Secretary) from each of the three owning municipalities.”  Since the current Chairman is from Midland and the Vice Chairman is from Bay County, the new Secretary needs to be a City of Saginaw representative.

 

Ms. Braddock nominated Darnell Earley as Secretary.   Mr. Elder seconded the nomination and it passed unanimously.  Chairman Biltz stated that Mr. Earley will be the new Secretary upon his acceptance.

 

SSP LEASE AMENDMENT:  Mr. Nagel stated that in May, 2009 the Commission approved an amendment to the SSP lease which increased the graduated scale of gross revenue for concessions and eliminated the minimum amount due to the airport.

 

SSP operates the food court, gift shop, game room, vending machines and the Skyroom.  The amendment went through December 31, 2009 at which time it was agreed it would be revisited.

 

The Finance Committee met on February 1, 2010 to discuss this lease.  The current lease expires January 30, 2011.  After discussion, the committee recommended the extension of the existing amendment until January 30, 2011 to coincide with the lease.  The committee also directed the Airport Manager to evaluate the possibility of drafting a Request for Proposal to provide service for the food court, gift shop, game room and Skyroom after January 30, 2011 when the SSP lease expires.  In addition, the Airport Manager was asked to evaluate options for providing food and beverage service in the new terminal and bring those suggestions back to the Finance Committee at a later date.

 

The Finance Committee took into consideration the amount of capital improvements made to the facility by SSP and the fact that the current lease expires in January, 2011.  Mr. Elder made a motion to approve the recommendations from the Finance Committee.  Mr. Adams seconded and the motion passed unanimously.

 

RS&H OFFICE LEASE:  Mr. Nagel stated that in March, 2009 the Airport Commission approved a lease with RS&H for a vacant office located in the Airport Administration Building.  The lease was for one year at a rate of $15.05 per square foot, which is consistent with the rates for US Customs and the FAA in the Administration Building.

 

RS&H has expressed an interest in extending the lease for two more years.  They have been an excellent tenant and having their office in the Administration Building has been beneficial.

 

The Finance Committee met on February 1, 2010 to discuss the potential for a lease extension.  After discussion, the committee recommended a two-year extension at the same rate, which is also consistent with FAA and Customs as they require a fixed term rate for their leases.  It was also recommended that language be added to the lease which allows for an optional additional extension at a negotiated rate.  Mr. Branch made a motion to approve a two-year extension to the RS&H office lease at a rate of $15.05 per square foot and add option language for a possible lease extension at a rate to be negotiated in the future.  Mr. Krygier seconded and the motion passed unanimously.

 

OLD BUSINESS: 

 

AIP Authorization:  Mr. Nagel stated that AIP is authorized through the end of March and will most likely be extended thru September which is the end of the government’s fiscal year.  Mr. Nagel said that at the MAAE Conference, the Legislative Committee reported that they don’t feel that there will be a multiyear bill passed at least through the fall since there is an upcoming election.  Mr. Nagel stated that he continues to work on airport funding with RS&H, the Operations Committee and the Finance Committee for the terminal project.  This will not slow the airport down in terms of planning.  Mr. Nagel stated that he hopes to have an update for the Board at the next Commission Meeting.  Chairman Biltz asked if both the entitlement dollars and discretionary go through the AIP bill.  Mr. Nagel stated yes.  He had thought that a multiyear bill would be in place before ground was broken but that has not happened.  Chairman Biltz pointed out to the new members that the airport has a four or five year terminal building program and that the Board is relying on year to year funding from the FAA.  The Board as a group takes some risk if the project is to move forward not knowing if the funds would come out of the airport funds, bonds, bank loans, or the FAA when the funding is only extended six months at a time.

 

Air Service Assistance:  Mr. Nagel stated that the RFP for air service assistance was drafted and reviewed by the Personnel Committee.  It has been advertised for two weeks.  Mr. Nagel has received a couple of phone calls in the office and has received some responses.  He will get back with the Personnel Committee some time after March 1st when the responses are due.       

 

Construction Process:  Mr. Nagel stated that the foundation work is ongoing.  A steel pre-construction meeting is scheduled for tomorrow.  Steel work should start in the next week or two.  Construction is very close to being on schedule.

 

Roadway Access:  At the beginning of the terminal project there was assistance with the Great Lakes Bay Regional Alliance.  It was decided that the Airport Manager/Commission would focus on the airport terminal within the airport property and the Great Lakes Bay Regional Alliance would focus on the roadways and improvements of the roadways.  This would help to eliminate any confusion in Washington in regards to funding.  Mr. Nagel stated that John Lore, Executive Director of the GLBRA, has been very proactive in the roadway issue and has been working with Bay County.  Mr. Nagel stated that Mr. Elder has also been involved and asked him to comment.  Mr. Elder stated that Federal earmarking was requested and Bay County voted unanimously to be the local sponsor.  He feels that there is a good chance of getting the request since it is a well supported project.  It has been talked about at various meetings such as the DOT and the Bay County Road Commission.  Mr. Krygier added that he had spoken with Laura Olgar, Bay County’s environmentalist, who had worked with John Lore in submitting the paperwork.  She has been in contact with Bart Stupak’s office.  There are only minor adjustments that need to be made to the application but it sounds very optimistic.  Mr. Elder explained that this is a separate request out of the Federal budget versus the budget that comes from the Federal budget to the State DOT.  Part of the reasoning for applying now is that this project would be good to have done on the same timeline as the new terminal.  Chairman Biltz asked if it would be beneficial to have elected officials of both parties of the Senate and House of Representatives to jointly sign one letter of support. Mr. Elder stated that he would check with John Lore.           

 

NEW BUSINESS:

 

Snow Storm:  Mr. Nagel stated that on February 10th the airport received nine and one half inches of snow.  The airport remained open.  Although flights were reported canceled this resulted because of Detroit and Chicago.  When MBS does close it is either because staff cannot keep up which rarely happens or the airport closes down overnight between shifts letting the night shift go home and the day shift comes in early enough to get the airport open. Mr. Nagel stated that staff not only kept the airport open but the status of the runways were good. 

 

Vice-President Biden:  Mr. Nagel stated that last Friday staff received a phone call from Secret Service stating that Vice-President Biden was coming into MBS on Tuesday.  It created quite a bit of activity at the airport preparing for the arrival.  Mr. Nagel presented pictures to the Board of Air Force Two, a 757 aircraft.  Vice-President Biden went directly from Air Force Two to his motorcade and then to his destinations.  There were no activities or press at the airport.        

 

ADMINISTRATIVE MATTERS:  Mr. Lynch asked when it would be formalized as to what will be done with the existing passenger terminal.  Mr. Nagel stated that there have been discussions with Mark Wilcer as to how RS&H will help with information to make that decision.  The findings will be presented to the Operations Committee and should they want more than what RS&H provides, then staff will follow the committee’s direction.  Mark Wilcer stated that they should be able to have information for the Operations Committee in the next two to three months.      

 

Next regular meeting is scheduled for March 18, 2010.

 

ADJOURNMENT:  There being no further business, Mr. Elder made a motion to adjourn.  Mr. Krygier seconded and the Board unanimously passed the motion.  The meeting adjourned at 1:24 p.m.

 

 

                                                                                                                                                            Darnell Earley, Secretary