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.
Present Absent &
Excused Staff Guests
Eugene
F. Gwizdala
Ernie Krygier
Paula Whittington
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