MBS INTERNATIONAL AIRPORT COMMISSION

 

December 16, 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                            Other                                 

Tom Adams                Ernie Krygier                   Jeff Nagel                   John Allison           

George J. Biltz                                                     Andre R. Borrello       Greg Baldwin                       

Bregitte Braddock                                               Ryan Riesinger            Hilary Gwizdala, Dow Corning

Greg Branch                                                        Debbie Meisel            

Darnell Earley                                                                                          Guests

Brian K. Elder                                                                                         Carole Gwizdala

Eugene F. Gwizdala                                                                                        Mark Wilcer, RS&H    

Paula Whittington                                                                                   Steve Westerbeke, RS&H

                                                                                                                

                                                                                                               

PLEDGE OF ALLEGIANCE 

 

MINUTES:  Mr. Gwizdala made a motion to approve the minutes of the Regular Commission Meeting held on November 18, 2010.  Mr. Adams seconded the motion. The motion was unanimously approved by the Board.

 

NOVEMBER 2010 WARRANTS AND CASH & INVESTMENT SUMMARIES:  Mr. Gwizdala made a motion to approve the Warrant Registers for the November Payroll Account Check Numbers 85784-85841; the November Operations and Maintenance Check Numbers 40792-40870; and the November Cash and Investment Summaries.  Mr. Branch seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT:  None

 

HANGAR #1 ASSIGNMENT:  Mr. Nagel stated that Dr. Tom Light and Ralph Wolpert have owned Hangar #1 since the late 1960’s.  They have reached the decision to sell the hangar which requires an assignment of their lease.  The lease allows for the assignment, with approval from the Commission, which approval cannot be unreasonably withheld.  Dr. Light and Ralph Wolpert have submitted a request to assign the lease to Bierlein.

 

Bierlein plans to house two aircraft in Hangar #1 and also make substantial improvements to the hangar.  They are also interested in negotiating an extension of the lease; however, that item would come back to the Commission at a later date.  Overall, the assignment of the Hangar #1 lease would be a benefit to the MBS general aviation hangar line.

Mr. Earley made a motion to approve the assignment of the Hangar #1 lease from Dr. Thomas Light and Ralph Wolpert to Bierlein and authorize the Chairman or Vice-Chairman to sign related documents.  Ms. Braddock seconded the motion.  Chairman Biltz requested that a new lease be looked at versus an extension because it would be a good time to review the document.  Mr. Nagel stated that this lease was redone in 2007 but that they would review it for any necessary updates.  There being no further discussion, the motion passed unanimously.

 

RESOLUTION OF APPRECIATION – CAROL A. JANKS:  Mr. Nagel stated that Carol Janks has been employed at MBS for 22 years.  Carol has served in the Administration Office and she will be retiring effective December 31, 2010.

 

The attached Resolution demonstrates the appreciation for Carol’s years of service to MBS.  Mr. Nagel stated that the resolution, once approved, would be presented to Carol at her retirement employee luncheon on Friday.  Mr. Gwizdala made a motion to approve the attached Resolution of Appreciation.  Mr. Branch seconded.

 

 

MBS International Airport Commission

Resolution of Appreciation

 

The MBS International Airport Commission

recognizes with great appreciation the dedicated service of

 

CAROL A. JANKS

 

who has served the airport and the owner communities for 22 years. Carol has served her entire career in the airport administration office completing accounting services including payroll and accounts payable.  Among Carol’s additional responsibilities was the organization and control of all airport project drawings.  Carol also assisted with organizing and coordinating meetings and the security ID badging process.

 

Carol will certainly be missed by all of those who have served and worked with her.  The best wishes of her fellow employees and airport management are with her as she retires.

 

This Resolution of Appreciation was unanimously adopted at a regular meeting of the MBS Airport Commission on December 16, 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 Jr.                                George J. Biltz                               Greg Branch

Brian K. Elder                                  Paula Whittington                          Darnell Earley

 

Jeff Nagel, Airport Manager

Andre Borrello, Airport Attorney

 

The motion passed unanimously.  Chairman Biltz asked Mr. Nagel, on behalf of the Commission, to give Ms. Janks their thanks and appreciation.

 

RESOLUTION OF APPRECIATION – BRIAN K. ELDER:  Mr. Nagel stated that Brian Elder has served as a member of the MBS International Airport Commission since February of 2004.  The December 16, 2010 meeting is Brian’s last as an Airport Commissioner.  The attached Resolution demonstrates the appreciation for Brian’s years of service to MBS.  Mr. Earley made a motion to approve the attached Resolution of Appreciation.  Mr. Branch seconded. 

 

 

MBS International Airport Commission

Resolution of Appreciation

 

The MBS International Airport Commission

recognizes with great appreciation the dedicated service of

 

BRIAN K. ELDER

 

who has served the airport and the owner communities as an Airport Commissioner since February of 2004.  During his time on the Commission, Brian has shared his talent and skills as a member of the Marketing Committee and as Chairman of the Finance Committee.

 

Brian’s counsel and support will be missed by all of those who served and worked with him.  The best wishes of the airport staff and the Airport Commission go with him as he leaves us for other opportunities.

 

This Resolution of Appreciation was unanimously adopted at a regular meeting of the MBS Airport Commission on December 16, 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

                                                         Paula Whittington                        Greg Branch

 

Jeff Nagel, Airport Manager

Andre Borrello, Airport Attorney

 

 

The motion passed unanimously.  Mr. Nagel presented Mr. Elder with the framed resolution and picture of the new passenger terminal.  Mr. Nagel stated he wanted to do something a little extra for any member that has served the Commission for five or more years and made the decision to show appreciation by giving them a framed picture of the airport.  Chairman Biltz thanked Mr. Elder for all his efforts during the past seven years.  Mr. Elder stated that it has been an honor to serve on the Commission.

 

RESOLUTION OF APPRECIATION – EUGENE F. GWIZDALA:  Mr. Nagel stated that Gene Gwizdala has served as a member of the MBS International Airport Commission since January of 1997.  The December 16, 2010 meeting is Gene’s last as an Airport Commissioner.  The attached Resolution demonstrates the appreciation of Gene’s years of service to MBS.  Mr. Adams made a motion to approve the attached Resolution of Appreciation.  Mr. Branch seconded.

 

MBS International Airport Commission

Resolution of Appreciation

 

The MBS International Airport Commission

recognizes with great appreciation the dedicated service of

 

EUGENE F. GWIZDALA

 

who has served the airport and the owner communities as a member of the Airport Commission since January of 1997.  During his time on the Airport Commission, Gene has shared his talents and skills as Chairman of the Operations Committee and by serving as Secretary, Vice-Chairman and Chairman of the Commission multiple times.

 

Gene’s dedication and devotion will be missed by all who served and worked with him.  The best wishes of the airport staff and Airport Commissioners go with Gene as he leaves us for other opportunities.

 

This Resolution of Appreciation was unanimously adopted at a regular meeting of the MBS Airport Commission on December 16, 2010 and shall be retained in the permanent minutes of the Commission.

 

MBS INTERNATIONAL AIRPORT COMMISSION

 

Bay County                                                  City of Midland                                          City of Saginaw

Brian K. Elder                                Tom Adams                                     Bregitte Braddock

Ernie Krygier                                   George J. Biltz                                 Darnell Earley

                                                      Paula Whittington                           Greg Branch

 

Jeff Nagel, Airport Manager

Andre Borrello, Airport Attorney

 

The motion passed unanimously.  Mr. Nagel presented Mr. Gwizdala with the framed resolution and picture of the new passenger terminal.  Mr. Gwizdala stated that it has been a pleasure to work with all the people that have served on the Commission.  He stated that he also had received awards from the Bay County Board of Commissioners and thanked Brian Elder for all his support on that board.  Chairman Biltz thanked Mr. Gwizdala on behalf of the current Board and past members during Mr. Gwizdala’s fourteen years of service.    

 

AUDIT SCOPE LETTER:  Mr. Nagel stated that included in the packet is the annual Audit Scope Letter from Andrews Hooper & Pavlik.  AHP has begun their preliminary work at MBS and will be onsite again in early February to conclude the audit.  This letter details their planned scope of work. Mr. Branch made a motion to receive the 2010 Audit Scope Letter from Andrews Hooper & Pavlik and Mr. Gwizdala seconded.  The motion passed unanimously.

 

GREAT LAKES LOONS PROPOSAL:  Mr. Nagel stated that MBS has been a proud partner with the Great Lakes Loons for the past two seasons.  This has proven to be a strong partnership as MBS continues to support local events in all three communities.  Staff continually receives positive feedback on the airport’s involvement with the Loons.  Because of this success, the Loons were asked to provide a proposal to cover the next three seasons. 

 

In summary the elements include Loons radio ads, Major League Baseball radio ads, MBS “Stolen Base” promotion, and the MBS ball launch on firework nights.  Total investment per season is 2011- $15,500; 2012-$15,500; and 2013-$16,000.  The 2010 sponsorship package was $15,500 so the Loons have done a good job holding costs in line for the term of this agreement. 

 

The proposal has been reviewed and endorsed by Bolger & Battle, the airport’s marketing/PR firm.  The MBS Marketing Committee has also reviewed and endorsed the proposal.  Mr. Gwizdala made a motion to approve the three-year partnership with the Great Lakes Loons and authorize the Airport Manager to sign all related documents.  Ms. Braddock seconded the motion.  Mr. Nagel stated that the Marketing Committee reviews the various marketing proposals.  Sponsorships include the Spirit in Saginaw and Tall Ships in Bay City.  Previous years it has been River Roar and the Pig Gig.  Mr. Nagel said the radio and TV spots do well but the local sponsorships create goodwill.  There being no further discussion, the motion passed unanimously.

 

SAGINAW COUNTY SHERIFF CONTRACT:  Mr. Nagel stated that MBS has contracted with the Saginaw County Sheriff Department to provide law enforcement support for the airport.  The current agreement expires on December 31, 2010.  When the amendment was brought to Mr. Borrello for review, it brought up more discussion since Gilbert, Smith & Borrello, P.C. does work also for Saginaw County.

 

Mr. Borrello advised the Board that their law firm serves as civil counsel to the Sheriff of Saginaw County.  As such, they execute agreements on behalf of the Sheriff and MBS as to form.  In this circumstance, his firm drafted form agreements that are used by the sheriff in providing services to various entities, including MBS.  His firm has not been and will not be involved in negotiating any changes to the substance of the agreement, as it is their understanding those discussions will take place between the parties directly.  His firm is informing MBS of this circumstance and has informed the Sheriff accordingly, and seeks consent from the parties for the attorneys to execute the agreements as to form only and only after the parties have agreed to the terms.  Should the parties fail to reach an agreement, then the firm will not represent either party, solely relating to this agreement.

 

Mr. Gwizdala made a motion acknowledging the scope of representation of Gilbert, Smith & Borrello, P.C. as to the Sheriff and MBS as described, consent to said representation; acknowledgement that such consent can be withdrawn at any time; and to authorize the Airport Manager to execute such acknowledgement and consent.  Mr. Elder seconded.  Chairman Biltz asked that if the airport found that legal counsel was needed in regards to terms and conditions, it would need to find counsel elsewhere because of conflict.  Mr. Borrello stated that the rules say they can with all the parties’ consent but he does not think that would be in the best interest of the airport or the county, to have his firm placed between two clients.  The motion passed; seven yes, Ms. Braddock abstained. 

 

Mr. Nagel stated that discussions have been ongoing regarding a new agreement between SCSD and MBS.  The goal of the Sheriff Department is to provide these services on a “pass through” basis and not use the contract as a source of enhanced revenue.  The only upcharge MBS pays is a 5% administrative cost to cover SCSD attendance at various meetings, security for special circumstances and VIP visits.

 

In an effort to get the most accurate costs possible, it was agreed to coordinate the contract with the county fiscal year, which begins on October 1, 2011.  To make this happen, an extension of the existing contract must take place.  The Sheriff Department has offered a nine-month extension of the existing contract at the same rate $28,600/month.  This proposal was discussed with the Finance Committee and the committee agreed with the recommendation.

 

Between now and October 1, 2011 MBS and SCSD will negotiate a new contract which will require Airport Commission approval.  Mr. Adams made a motion to extend the existing MBS-Saginaw County Sheriff Department contract at the current rate for nine months and authorize the Chairman, or in his absence the Vice-Chairman, to sign all related documents.  Mr. Gwizdala seconded the motion.  Mr. Earley asked when the contract will be brought back to the Board.  Mr. Nagel stated that the contract was a three year contract and had been renewed prior to this extension.  A whole new contact will be presented to the Board before the extension expires.  Chairman Biltz stated that it would behoove the airport to have an attorney help with the terms and conditions so that the airport has some representation.  There being no further discussion, the motion passed; seven yes, Ms. Braddock abstained.   

 

2011 BUDGET:  Mr. Nagel thanked Ms. Meisel for her help on the budget especially since the office was short handed over several months.  The proposed budget was presented to the Finance Committee with all of the members in attendance.  Several accounts were discussed at length at the meeting.  Those accounts have been highlighted and a summary page detailing them was sent with the proposed budget.  As done in the last several years, the budget compares each line item with the 2010 Budget and shows the percentage difference.  The final year-end 2010 numbers will be presented in the financial audit.

 

This budget process proved to be just as difficult as the recent years.  Expenses continue to be a focus and most items were either cut or held to 2010 levels.

 

Once again, the total amount of the budget is much larger than usual.  This is caused by the large local share which will be spent on the terminal in 2011.  MBS has consistently pledged approximately $10 million local and another $3.3 million from our PFC accounts.  Although MBS has been very successful in obtaining FAA assistance for this project, the 2011 phase of work calls for a large sum of local money, in line with the finance plan which the Commission approved in August.

 

The Finance Committee met on December 6, 2010 and their recommendation was that this budget be presented to the full Airport Commission for approval.  Mr. Gwizdala made a motion to approve the 2011 Budget with Mr. Adams seconding.  Chairman Biltz thought the explanations, rationale and thought process was very well done.  Mr. Earley had a question regarding the increase in the law firm line item.  Two major issues have caused substantial increases; one was the Dow Chemical/Avflight lease swap which was far more complicated than anticipated and now union negotiations are in process.  Mr. Nagel added that if union negotiations are completed earlier in the year, the line item will be over budgeted.  There being no further discussion, the motion passed unanimously.

 

OLD BUSINESS: 

AIP Program:  Mr. Nagel stated that the House of Representatives passed a Continuing Resolution until the end of the fiscal year but he is not sure what the Senate will do.  He does not think that a multi-year bill will be passed in the near future.  Staff continues to work with the FAA on the funding of the airport project.  Mark Wilcer from RS&H and Mr. Nagel met with the FAA in Detroit on Tuesday.

 

Tom Rockne Contract:  Mr. Nagel stated that the Marketing Committee met and discussed Tom Rockne’s contract.  It has been approximately six months and some results are being seen.  They are monitoring airline performance and passenger loads which are increasing slightly.  They are also tracking fares and the differential in various markets.  The committee made some recommendations in terms of tracking more of the leisure fares with advance purchase.  Mr. Nagel and the committee agree that it has been a worthwhile effort and to continue the contract for the remaining six months. Before the expiration of the contract the committee will do another review.  Chairman Biltz added that Mr. Nagel and Mr. Rockne continue to have discussions with other carriers however there is no progress to report.  With the current economy, none of the carriers are expanding but when the airlines do look for new markets the airport wants to be in position.

 

First Stimulus Grant:  Mr. Nagel stated that the contractor for the first stimulus grant was Commercial Contracting.  That grant will be closed out in February.  There was an allowance to purchase hold-room seating for the new terminal building.  The FAA is adamant that the furniture be non-moveable or permanent.  Two manufacturers that were looked at were Arconas and Herman Miller, a Michigan based company.  The furniture was reviewed for several factors including comfort, aesthetic appeal, durability, maintainability, and cost.  It was not strictly a cost factor.  Both quotes were under the allowance amount.  Based on the review process Herman Miller was selected. This was discussed with the Operation Committee and does not need Board approval.  Both manufacturers were requested to include a cost to store the furniture in a climate control facility.  Herman Miller has offered an area in their warehouse.  Arconas did not provide that cost.  Mr. Nagel stated that the cost to store the furniture is $21,888 for 12 months.  It is being investigated to determine if this amount is FAA eligible.  If not, it may require local funds and would be considered part of the project.  This is above Mr. Nagel’s $10,000 limit.  Ms. Braddock made a motion to authorize the airport manager to pay for storage of the hold-room seating if needed.  Mr. Earley seconded and the motion passed unanimously.

 

NEW BUSINESS: 

 

Dow Corning Donation:  Mr. Nagel stated that this is a follow-up on a conversation at last month’s meeting regarding corporations or foundations showing an interest in assisting with the MBS terminal project.  There have been some developments during this week.   A marketing meeting was held last week with discussions about potential donations and the letters were received this week. 

 

The first letter is from Don Sheets, CFO of Dow Corning donating $750,000 toward the project.  It states in the letter that it demonstrates their commitment to continued economic growth and improved quality of life in the Great Lakes Bay Region.  In 2006 when the Board made the motion to move forward with this project, some of the same thoughts were echoed by members of the Commission.  FAA encourages private/public partnerships for projects.  The money would be used to assist MBS in the local/non-federal share of the project.  This was discussed with the Marketing Committee.  Mr. Elder made a motion to accept the Dow Corning donation to assist with the local/non-federal portion of the MBS new terminal building project.  Mr. Gwizdala seconded the motion.  Chairman Biltz stated that the Marketing Committee is very pleased that the community is willing to step forward to do this.  The motion passed; seven yes, Chairman Biltz abstained.

 

Dow Chemical Donation:  Mr. Nagel stated that he received a letter from Bo Miller, Director of Corporate Citizenship of The Dow Chemical Company and President of The Dow Chemical Company Foundation.  Combined, they also see the value in MBS and in the foresight of the new terminal project.  In their letter they state “the critical role MBS plays in serving this region’s air transportation needs and as an asset for businesses, visitors and residents alike.”  Mr. Nagel stated that it cannot be said any better than that.  In that, they have offered a $2 million donation to assist with this project.  Mr. Nagel stated that he is very grateful to The Dow Chemical Company and The Dow Chemical Company Foundation and very much appreciates this offer.  This also was discussed with the Marketing Committee.  Mr. Elder made a motion to accept The Dow Chemical Company/The Dow Chemical Company Foundation donation to assist with the local/non-federal portion of the MBS new terminal building project.  Mr. Gwizdala seconded.  The motion passed; seven yes, Chairman Biltz abstained.

 

The Dow Chemical Advertising Agreement:  Mr. Nagel stated Dow Chemical approached him expressing an interest in advertising in the new terminal.  The advertising would be a very dynamic non-typical display which involves a number of flat-screen monitors.  A couple of different scenarios and two locations were looked at; one will be selected.  The basis of the agreement with Dow is 10 years of advertising; assist with development of the space; Dow responsible for the install, maintenance and repair of the display; MBS provides power required; and approval of content by airport manager which is typical of the MBS Airport advertising agreements.  Mr. Nagel stated that this is a win/win for MBS and Dow Chemical and add an impact to the terminal.  Total value to MBS is $1 million.  This also was discussed with the Marketing Committee.  Mr. Gwizdala made a motion to approve the MBS-Dow Chemical new terminal building advertising agreement and authorize the Vice Chairman to sign the related documents.  The agreement is subject to the review and approval as to form by the airport attorney.  The airport manager is authorized to invoice for the first installment in 2010.  Ms. Braddock seconded.  Chairman Biltz added that there are two installments with the first one in December and the balance in the first part of the year.  Full payment is made up front with a ten year obligation to provide space.  Mr. Nagel added that there is not an issue with the FAA and that it is not exclusive.  There being no further discussion, the motion passed; seven yes, Chairman Biltz abstained.

 

Chairman Biltz stated that this is really good news.  This amounts to $3.75 million that is coming at the peak spend time for the airport.  Mr. Nagel thanked Chairman Biltz and the committee for their time in handling these donations.  Chairman Biltz stated that with the successful acceptance of these gifts and the contract for the space, there will be press releases on behalf of the Board when this meeting ends.  Dow Corning and Dow Chemical also have press releases.  Hopefully this will inspire other foundations or businesses in the area to look for advertising or for the foundations to offer to be part of the program.        

                                                                    

ADMINISTRATIVE MATTERS:  Next regular meeting is scheduled for January 20, 2011.  Chairman Biltz wished everyone a very happy holiday season.

 

 

ADJOURNMENT:  There being no further business, Mr. Gwizdala made a motion to adjourn.  Mr. Adams seconded and the Board unanimously passed the motion.  The meeting adjourned at 1:45 p.m.

 

 

                                                                                                                                                            Darnell Earley, Secretary