MBS INTERNATIONAL AIRPORT COMMISSION

 

November 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 1:03 p.m.  Roll was called by Debbie Meisel.

 

COMMISSIONERS

 

Present                           Absent & Excused         Staff                             Guests

Tom Adams                   Bregitte Braddock         Jeff Nagel                     Steve Westerbeke, RS&H

George J. Biltz                                                      Andre R. Borrello        

Greg Branch                                                           Ryan Riesinger             

Darnell Earley                                                       Debbie Meisel         

Brian K. Elder         

Eugene F. Gwizdala                                                                               

Ernie Krygier

Paula Whittington

                                                                                                               

PLEDGE OF ALLEGIANCE 

 

MINUTES:  Mr. Gwizdala made a motion to approve the minutes of the Regular Commission Meeting held on October 21, 2010.  Mr. Krygier seconded the motion.  The motion was unanimously approved by the Board.

 

OCTOBER 2010 WARRANTS AND CASH & INVESTMENT SUMMARIES:  Mr. Gwizdala made a motion to approve the Warrant Registers for the October Payroll Account Check Numbers 85725-85783; the October Operations and Maintenance Check Numbers 40719-40791; and the October Cash and Investment Summaries.  Mr. Branch seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT:  None

 

PASSENGER BOARDING BRIDGE CHANGE ORDER #001:  Mr. Nagel stated that the purchase of four new passenger boarding bridges was included in the first ARRA-Stimulus Grant.  When that grant application was drafted, it also included installation of the bridges.

 

Since the airline parking ramp is now scheduled for completion in 2012, MBS cannot include the installation of the boarding bridges in this contract.  Therefore, a change order is needed to adjust the scope and the cost.

 

In addition to removing the installation, the following items are needed on this change order:

 

-        Modifications to Bridge #4 to allow “power-out” operations.

-        Adding off-load and storage for the bridges.

 

The changes included in this Change Order will actually reduce the amount of the contract by $39,828.00.  The change order and back-up documentation from RS&H was included in the packet. It should be noted that installation of the bridges will be needed at a later date and the airport may need to use local funds to complete this.

 

This change order was discussed with the Operations Committee and they agreed with the recommendation.  Mr. Gwizdala made a motion to approve Change Order #001 with ThyssenKrupp Airport Services for the stated items and authorize the Chairman, or in his absence the Vice Chairman, to sign the related documents.  Mr. Adams seconded and the motion passed unanimously.

 

PASSENGER FACILITY CHARGE CONSULTING SERVICES:  Mr. Nagel stated that MBS has used Peckham Engineering to assist with the Passenger Facility Charge (PFC) program since its inception.  Dennis Jouppe, from the Peckham Engineering Houghton, Michigan office, has been the main contact and has assisted staff with PFC applications, air carrier meetings, and close-out procedures.  Dennis was very helpful in getting the latest PFC application (#7) approved by the FAA.

 

Bob Peckham, principle owner of Peckham Engineering, is slowly re-organizing his operation.  As part of that process, Bob has decided to close his Houghton, Michigan office.  Dennis Jouppe has started his own general consulting firm, Primary Airport Services, to assist airports in numerous activities including PFC coordination.

 

Now that PFC application #7 is approved, staff needs to concentrate on closing out PFC Application #4 and #5.  Although most of this work may be able to be completed in-house, some assistance will be needed from Dennis as staff moves through the process.  A twelve-month contract has been developed with Dennis to assist MBS with closing out PFC #4 and #5.  This should be sufficient to get these two applications closed.  If not, the contract has a month-to-month extension clause.  Billing for this contract will be on an hourly basis as needed.  There is no requirement for a retainer fee.  Costs are reimbursable through a future PFC application.  Mr. Gwizdala made a motion to approve the agreement with Primary Airport Services to assist in the MBS PFC program and authorize the Chairman, or in his absence the Vice Chairman, to sign the related documents.  Mr. Adams seconded the motion. 

 

Chairman Biltz asked whether the rates included in the contract are competitive rates.  Mr. Nagel stated that these are in line with the rates that Peckham charged for these services and Peckham has always charged reasonable rates.  Chairman Biltz also asked for clarification on how PFC applications are initiated when some applications are still open.  Mr. Nagel explained that it is not unusual to have several applications open because there can be one project or several projects on an application.  The application cannot be closed until all projects that are included in that application are completed or determined that the particular project will not be done.  It is important to have enough PFC application projects approved before closing out any of the completed PFC applications, otherwise the collection would stop and the airport would have to apply to collect again.  PFC #7 was generically written to include all phases of the new passenger terminal; however, it cannot include any ineligible items, such as a parking lot, but it can be used for part of the Spence contract.  There being no further discussion, the motion passed unanimously.  

 

OLD BUSINESS:

 

Existing Terminal:  Mr. Nagel stated that discussion took place at the Operations Committee meeting regarding the existing terminal report from RS&H.  Mr. Nagel stated that he was not comfortable to take the report to the committee for recommendation to the full Board since there were some changes he wanted to see in the report.  Mr. Nagel stated he would rather it be a solid report than rush it through when there isn’t any time restriction on it.

 

Terminal Planning:  Mr. Nagel stated that the airport had its ten-year planning meeting with the FAA and the state.  The first three years are all terminal related.  He is still working closely with the FAA on the finance plan and met with the manager of the FAA office yesterday in Lansing.  The plan may be presented at the December Commission Meeting.

 

Michigan Aviation Funding:  Mr. Nagel stated that in his role with the Michigan Association of Airport Executives they are working desperately with the State Aeronautics and the Michigan Business Aviation Association to try and increase funding.  Aviation funding is funded through three cents per gallon of gas tax on aviation fuel.  It’s been three cents since 1929.  Various methods have been tried to get an increase but with the turmoil in Lansing they aren’t sure that they will be successful.  The programs here at MBS have been cut such as airfield painting, crack and seal, and fire training which has resulted in the airport taking a larger local share of the cost.  The latest effort is to have a portion of the sales tax on aviation fuel and aviation products go to State Aeronautics. 

 

MRS Tom Rockne:  Mr. Gwizdala asked if there has been any contact with MRS.  Mr. Nagel stated that he is in communication with the group at least once a week.  There will be a Marketing Committee Meeting on December 10th.  Tom Rockne and Patrick McIntyre will be attending that meeting and give a formal update at that time and possibly come back to the Board after that.  In May when they were hired it was decided that they would come back to the Board in six months.      

 

NEW BUSINESS:

 

December Meeting:  Mr. Nagel stated that the Board members are good about letting staff know if they are unable to attend a meeting, however, with the holidays coming up please be sure to call if you are unable to attend the December 16th meeting since there will be a full agenda including the 2011 Budget.

 

Michigan Aeronautics:  Mr. Nagel stated that the State offered an early retirement package.  The State Bureau of Aeronautics is losing between 10-15% of their employees.  Aeronautics serves an important role for the airport.  During the grant process they look at the contracts and make sure they are in line with the consultants and process pay applications among many other duties.  Mr. Nagel is working with members of the Airport Association as to how this will impact Michigan airports.  One of the employees to retire is Rob Abent who is the Director of Aeronautics.  He attended the terminal design unveiling and has been very supportive of MBS and their projects.  Mr. Nagel will continue to monitor this.

 

Foundation Donations:  Chairman Biltz wanted to make everyone aware that there is some interest on the part of certain foundations in the area to perhaps contribute money towards the construction at MBS. It is still in the formative phase.  Any such grants or gifts would come before the Board to accept or not accept.  There have been some questions and some interest being shown to the Operations Committee.  The foundations may want to donate to help the airport move the construction faster. 

 

Darnell Earley:  Mr. Earley stated that besides being on the MBS Commission, he is also on the Saginaw Midland Water Authority and at the end of October completed his tenure as president of the International City and County Management Association (ICMA).  This association is a group of 9,000-10,000 city and county managers.  Between those responsibilities he has not always been able to attend the commission meetings but now will be available.  Mr. Earley stated that he has grown professionally and personally from the experience and will use this information in the activities he is involved with now.  Mr. Earley is thankful for the opportunity to be a part of the Airport Board.

                                                                    

ADMINISTRATIVE MATTERS:  Next regular meeting is scheduled for December 16, 2010.

 

ADJOURNMENT:  There being no further business, Mr. Krygier made a motion to adjourn.  Mr. Gwizdala seconded and the Board unanimously passed the motion.  The meeting adjourned at 1:20 p.m.

 

 

                                                                                                                                                            Darnell Earley, Secretary