MBS INTERNATIONAL AIRPORT COMMISSION

 

July 15, 2010

 

MINUTES

†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††

The meeting was held in the Airport Commission Board Room, 8600 Garfield Road, Freeland, Michigan 48623.Vice-Chairman Eugene Gwizdala called the meeting to order at 1:00 p.m.Roll was called by Debbie Meisel.

 

COMMISSIONERS

 

Present†††††††††††††††††††††††††† Absent & Excused†††††††† Staff††††††††††††††††††††††††† Guests

Tom Adams†††††††††††††††††† George J. Biltz†††††††††††††† Jeff Nagel††††††††††††††††† Mark Wilcer, RS&H

Bregitte Braddock†††††††† Darnell Earley††††††††††††††† Andre R. Borrello††† Steve Westerbeke, RS&H

Greg Branch†††††††††††††††††† Brian K. Elder††††††††††††††† Ryan Riesinger†††††††† Paula Whittington, City of Midland

Eugene F. Gwizdala††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Debbie Meisel†††††††††

Ernie Krygier††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††

Jon Lynch††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††

††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† †††††††††††††††

PLEDGE OF ALLEGIANCE

 

MINUTES:Mr. Krygier made a motion to approve the minutes of the Regular Commission Meeting held on June 17, 2010.Mr. Adams seconded the motion.The motion was unanimously approved by the Board.

 

JUNE 2010 WARRANTS AND CASH & INVESTMENT SUMMARIES:Mr. Krygier made a motion to approve the Warrant Registers for the June Payroll Account Check Numbers 85463-85551, including void check number 85479; the June Operations and Maintenance Check Numbers 40433-40512; and the June Cash and Investment Summaries.Mr. Lynch seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT:Mr. Nagel stated that he wanted to add Exhibit #5 to the agenda.

 

FARM LEASES:Mr. Nagel stated that MBS currently has six leases with local farmers to farm portions of the airport property.This works out well as MBS generates some revenue and saves costs by not having to maintain the property with personnel.

 

Four of the leases expire at the end of this year.The leases require that new terms and conditions be agreed to prior to August 1st of the year in which the lease expires.

 

Mr. Nagel discussed the leases with the four farmers and all have voiced their interest in renewing their lease.All four have also agreed to a three-year term with a 3% increase per year.This works out well as these farmers are experienced at MBS and they know the rules and the challenges of the operations.Mr. Adams made a motion to approve three-year agricultural leases with a rate increase of 3% per year for the following leases:John Wirtz & Sons, Edward Hensler, Gerald and Janice Langley, and Paul B. Knoerr and authorize the Airport Manager to sign the related documents.Mr. Krygier seconded and the motion passed unanimously.

 

SAGINAW SPIRIT PARTNERSHIP:Mr. Nagel stated that MBS has been a sponsor of the Saginaw Spirit for several years.The partnership has worked well for the airport as it demonstrates local community support.Plus, the efforts with the Spirit have given MBS some excellent exposure in the Dow Event Center.

 

Bolger and Battle has met with representatives of the Spirit to discuss a 2010 sponsorship.In summary, the proposal includes the following elements:

 

-        In-Ice Logo

-        Pocket Schedule Ad

-        Spirit Year-Book Ad

-        Four Season Tickets (New this Year)

-        Website Ad

-        Game Day Blimp

-        MBS Skycam (Also New this Year).

 

The one-year package price is $20,952 which is higher than MBS paid last year ($15,000) although there are additional elements.However, if the airport agreed to a three-year commitment, the annual cost would drop to $17,143 per year.Bolger and Battle recommends that MBS sign a three-year agreement as proposed.This information was sent to the Marketing Committee and they too agreed to support a three-year package.Mr. Krygier made a motion to approve a three-year sponsorship package with the Saginaw Spirit including the above mentioned elements for $17,143 per year.Ms. Braddock seconded.Mr. Lynch stated that he had a conflict with this agenda item since his spouse currently is employed by Bolger and Battle.He requested that he abstain from the vote.There being no further discussion voting took place with five yes, zero no, and one abstained.

 

AIRFIELD CRACK SEAL MAINTENANCE:Mr. Nagel stated that in the past, MBS utilized a 50/50 State/Local Grant Program to perform airfield crack seal maintenance.This maintenance is critical as water can do much damage to the pavement.Several years ago, the State dropped this program so the total cost is 100% local money.Staff has continued to budget for this work and has been diligent in keeping up on the crack sealing.

 

In an effort to perform the work this year, the following three bids were received:

 

††††††††††† American Seal Coating†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† $.39/foot

††††††††††† Scodeller Construction†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† $.41/foot

††††††††††† Asphalt/Concrete Services††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† $.50/foot

 

The 2010 budget has $15,000 for this work.That would seal approximately 38,000 feet of cracks.Once the work is started, it can be determined if the entire amount is necessary.If not, the work may be able to be scaled back.However, it is recommended that the airport be able to use the full amount if needed.Ms. Braddock made a motion to approve the bid of American Seal Coating at $.39/foot to provide pavement crack sealing services and to authorize the Airport Manager to spend up to $15,000 for this work and also authorize the Airport Manager to sign the contract with attorney review and concurrence.Mr. Lynch seconded and the motion passed unanimously.

 

AIRFIELD PAINT MARKING:Mr. Nagel stated that maintaining the airfield paint markings is required to comply with FAA regulations.Over the years, the airport has used a 50/50 State/Local program, the AIP program or a 100% local only program to fund this work.A few years ago the State suspended their program so staff has relied on the AIP program or local money to complete the painting.In 2009, nearly the entire airfield was painted using the AIP program.This year there are some areas to touch up to ensure compliance with the regulations.The local budget has $20,000 to complete the work this year.

 

The following unit prices were received to perform the paintings (price is per square foot).

 

†††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Black††††††††††††† White††††††††††† Yellow

 

†††††††††††††† Kenmark††††††††††††††††††††††††††††††††††††††††††††††††††††††††† .17†††††††††††††††††† .20†††††††††††††††††† .17

†††††††††††††† PK Contracting††††††††††††††††††††††††††††††††††††††††††††††† .27†††††††††††††††††† .27†††††††††††††††††† .27

 

Kenmark is also the subcontractor to LA Construction, which is the general contractor currently constructing the connector taxiway to the new terminal location.Therefore, Kenmark is already scheduled to be at MBS later this year.Mr. Branch made a motion to approve the quote of Kenmark to perform airfield paint marking and authorize the Airport Manager to spend up to $20,000 for this work.The motion also authorizes the Airport Manager to sign the contract after review and concurrence by the Airport Attorney.Mr. Lynch seconded and the motion passed unanimously.

 

COMMERICAL CONTRACTING CORPORATION CHANGE ORDER #2:Mr. Nagel stated that

Commercial Contracting Corporation (CCC) is the general contractor performing the work on Phase III of the terminal project.

 

Change Order #002 is included with the exhibit and relates to the purchase of the backup generator for the new building.The increase in cost is due to the increased size of the fuel tank which will allow the generator to run 24 hours without requiring MBS personnel to add fuel and an automatic transfer switch.

 

The original cost of the CCC contract was $7,107,316, however Change Order #001 decreased the contract by $17,714.30.Change Order #002 will increase the contract by $18,530.58.

 

The execution of this change order will not necessarily increase the final grant amount.RS&H continues to work with CCC and the other contractors under this grant to determine if future change orders are needed.

 

These change order costs are eligible and staff is working with the FAA to provide the necessary funding should the completed contract cost exceed the original grant amount.

 

Mr. Krygier made a motion to approve CCC Change Order #002 and authorize the Commission Chairman, or in his absence the Vice Chairman, to sign the related documents.Mr. Branch seconded and the motion passed unanimously.

 

OLD BUSINESS:

 

AIP Funding:Mr. Nagel stated that the AIP funding was slated to end on July 3, 2010.He was hoping for a Congressional extension to the end of the fiscal year which would have been the end of September however they extended it to August 1, 2010.Mr. Nagel continues to work with RS&H and the FAA for the grants for the next phase and hopes to bring a recommendation to the August Commission Meeting.The current phase is going well.The steel work should be finished by next week.The tour that was discussed at the last meeting will not take place today but may be scheduled for the August meeting.

 

Mr. Nagel stated that he has met with Mr. Wilcer and submitted his comments in regards to the current terminal review study.It will be presented to the Operations Committee upon completion.

 

NEW BUSINESS:Mr. Nagel stated that the Legislative Caucus was held on Tuesday, July 13th. Representatives Bill Caul, Ken Horn, and Jim Stamas and Senator Roger Kahn were in attendance.Jeff Mayes out of Bay City had a mix-up and appeared at 7:30 a.m. and was unable to attend at 9 a.m.He has been a big supporter of the airport and regretted being unable to attend.

 

The agenda included updating them on how MBS operates and the terminal project.Then Mr. Nagel, on behalf of MAAE, updated them on State Aviation funding which is in crisis mode.Many programs have been cut from the State including paint marking and crack sealing.There is talk that if things continue the way they are, the State may not be able to provide their 2 Ĺ% match for federal grants. He wanted to bring it to the Congressmenís attention that as they are debating transportation legislation in Lansing such as the roads, railroads, and bike trails, please donít forget aviation.Mr. Nagel felt it was well received and asked Mr. Adams who also was in attendance for his comments.Mr. Adams was impressed with the knowledge that the legislators had on the topics and that they felt it was worth their time to be there.††††

 

 

ADMINISTRATIVE MATTERS:Mr. Lynch stated that this would be his last meeting so that he can attend to other obligations.He introduced Paula Whittington who is the Assistant City Manager for Human Resources from the City of Midland.The City Council has appointed Ms. Whittington to represent the administration of the city.Mr. Lynch said that he has enjoyed working with the commissioners and if he can be of any assistance in any way, please contact him.Vice-Chairman Gwizdala thanked Mr. Lynch for his service and stated that it had been a pleasure working with him.

 

Next regular meeting is scheduled for August 19, 2010.

 

ADJOURNMENT:There being no further business, Mr. Krygier made a motion to adjourn.Mr. Adams seconded and the Board unanimously passed the motion.The meeting adjourned at 1:18 p.m.

 

 

††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† ††††††††††††††††††††††† ††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Darnell Earley, Secretary