January 20, 2011




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.




Present††††††††††††††††††††††† Absent & Excused††††††††† Staff††††††††††††††††††††††††††† Other††††††††††††††††††††† †††††††††††

Tom Adams††††††††††††††† Greg Branch††††††††††††††††††† Jeff Nagel†††††††††††††††††† Angela Osmond, TSA††††††††

George J. Biltz†††††††††††††††††††††††††††††††††††††††††††††††††††† Andre R. Borrello†††††† †† ††††

Bregitte Braddock††††† †††† ††††††††††††††††††††††††††††††††††† Ryan Riesinger†††††††††††

Kim Coonan††††††††††††††††††††††††††††††††††††††††††††††††††††††† Debbie Meisel††††††††††††

Darnell Earley††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Guests

Ernie Krygier†††††††††††††††††††††††††††††††††††††††††††††††††††††† ††††††††††††††††††††††††††††††††††† Mark Wilcer, RS&H

Tom Ryder††††††††††††††††††††††††††††††††††††††††††††††††††††††††† ††††††††††††††††††††††††††††††††††† Steve Westerbeke, RS&H

Paula Whittington†††††††††††††††††††††††††††††††††††††††††††††† †††††††††††††††††††††††††††††††††††

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



MINUTES:Mr. Krygier made a motion to approve the minutes of the Regular Commission Meeting held on December 16, 2010.Mr. Earley seconded the motion.The motion was unanimously approved by the Board.


DECEMBER 2010 WARRANTS AND CASH & INVESTMENT SUMMARIES:Mr. Earley made a motion to approve the Warrant Registers for the December Payroll Account Check Numbers 85842-85928; the December Operations and Maintenance Check Numbers 40871-40943; and the December Cash and Investment Summaries.Mr. Krygier seconded the motion and the Board unanimously approved it.




WELCOME NEW COMMISSIONERS:Chairman Biltz welcomed Kim Coonan and Tom Ryder to the MBS Airport Commission.Both representatives were appointed by the Bay County Board of Commissioners.


ELECTION OF VICE CHAIRMAN AND SECRETARY:Chairman Biltz stated that with the departure of Eugene Gwizdala in December, the position of Vice Chairman is now vacant.Mr. Krygier made a motion nominating Mr. Earley as Vice Chairman with Mr. Adams seconding.There being no further nominations, the motion passed unanimously.


Mr. Nagel stated that with Mr. Earley becoming Vice Chairman, the position of Secretary is now open.Mr. Coonan made a motion nominating Mr. Krygier as Secretary with Mr. Earley seconding. There being no further nominations, the motion passed unanimously.


LA CONSTRUCTION CHANGE ORDER (PHASE IV CONSTRUCTION):Mr. Nagel stated that Phase IV of the terminal project included the construction of a new aircraft taxiway leading from the current airfield taxiway into the site of the new terminal.This project also included some airfield safety enhancements which were not directly related to the terminal project.


The majority of this work was completed in 2010 and some final punch-list items will need to be completed this spring.Therefore, the calculation of the final change order must be completed.


The single largest item in the change order is the removal of some old existing concrete which was not depicted on past airfield drawings and was unforeseen in this project.The items in the change order are detailed in the attachment.The total increase in the contract is $11,622.82 on a total original contract of $1,322,858.85, which represents an increase of less than 1%.This cost is eligible and will be funded by FAA pending the availability of funds.


The Finance Committee met on January 12th to discuss this item and it is the recommendation of the committee to approve Change Order #001.Mr. Coonan made a motion to approve Change Order #001 (final change order) to the LA Construction contract and authorize the Chairman, or in his absence the Vice Chairman, to sign the related documents.Mr. Adams seconded and the motion passed unanimously.


CCC CHANGE ORDER #3 (GRANT #4009):Mr. Nagel stated that the work under Phase III of the terminal project is quickly coming to the end.There were several contracts in this grant including one for Commercial Contracting Corporation (CCC) to construct the entrance road, the terminal foundation and the structural steel.To complete this contract in the time required to meet the FAA deadline, RS&H has developed Change Order #3.The cover letter from Mark Wilcer explains each item and the impact to the contract.


In summary, the net difference to the contract for this change order is zero dollars.However, the two previous change orders did have a net impact on the contract by increasing the amount by $816.28.These funds are FAA eligible pending the availability of funds from the FAA.If FAA funding does not develop, this increase would be the responsibility of MBS.


The Operations Committee met on Tuesday, January 18th to discuss this change order and the committee recommended that this be brought to the full commission for approval.Mr. Krygier made a motion to approve CCC Change Order #3 and authorize the Chairman, or in his absence the Vice Chairman, to sign the related documents.Mr. Adams seconded the motion.Chairman Biltz, on behalf of the Operations Committee, stated that they had reviewed all of the changes and calculations and feel they are justified.This was added to the agenda because there is a time element for approval with the FAA.There being no further discussion, the motion passed unanimously.


SSP LEASE AMENDMENT:Mr. Nagel stated that SSP America currently operates the food court, gift shop, game room, all the vending machines and the Skyroom.The same lease has been in place, with some adjustments, since 1996.The current lease expires at the end of January and staff has been working with SSP on an extension.


Typically in the airport industry, when a food service lease expires, the airport issues a Request for Proposal and solicits input from companies who are interested in running the operation.In addition, once an agreement is reached with a new company, the airport is usually responsible for the cost of any upgrades required to accommodate the new tenant.In talking with several airports, these costs can be in the $100,000 - $150,000 range.Both SSP and MBS do not think such an expense is the best use of resources at this time.SSP has expressed an interest in staying at MBS; however, because of the short-term nature of this lease amendment SSP would like to see MBS pay a management fee for them to operate these entities.After some negotiations, it has been agreed that a $24,000 annual management fee be paid by MBS to SSP.This arrangement would keep a first class food service provider here at MBS and help reduce the overall cost which would have been associated with procuring a new vendor.This was discussed with the Finance Committee and they agreed with the proposal.This also was discussed with the Operations Committee which had a meeting this week.All agreed that it should be brought to the full board.


One other request that SSP had was permission from MBS to close the current gift shop.The use of astand-alone gift shop is an old style design and is not very common in todayís airport environment, especially in airports the size of MBS.SSP agreed that they would move some of the most popular items, candy, newspapers and magazines over to the food court location.This was also discussed with both committees and was agreed to as well.Mr. Nagel stated that he is working with SSP on the term of the agreement.They currently have about 60 events scheduled for the Skyroom in 2011.†† Mr. Earley made a motion to approve a lease extension with SSP including the payment of a management fee and the permission to close the stand-alone gift shop and authorize the Chairman, or in his absence the Vice Chairman, to sign the related documents.Mr. Krygier seconded the motion.


Mr. Earley stated that a condition should be in the contract that financials be furnished monthly or quarterly.Mr. Krygier asked if there are any expenses involved in closing the gift shop.Mr. Nagel stated that there are not any costs to closing it; however he is looking into what can be done with that space and making it an enhancement to the terminal which would be at the airportís expense.Mr. Coonan asked whether there is any way that SSP could leave after a couple of months.Mr. Nagel stated that Mr. Borrello will be drafting an agreement that will include a commitment for the term of the agreement.Chairman Biltz stated that it is important how the exit clause is written so that the 60 events will not be affected.Ideally, it would best if SSP could stay until the transition to the new terminal.Mr. Nagel stated that negotiations are ongoing.Mr. Borrello asked if it was the Boardís desire to negotiate a lease that will get MBS through until the new terminal is ready and if not try to get as much flexibility towards that aspect.Chairman Biltz stated that it up to the entire Board but that would be his opinion.Mr. Nagel stated that the goal is to have flexibility but also protection.Once MBS can get commitment from the FAA, it will be easier to have a target date.Mr. Borrello summarized that the agreement should include a condition that the financials be provided on a monthly or quarterly basis and draft the amendment to accommodate the transition in the best interest of the airport.There being no further discussion, the motion passed unanimously.


OLD BUSINESS: Mr. Nagel stated that the delivery has taken place of the hold room furniture and it is being stored in an insulated facility in Saginaw.Mr. Wilcer has worked with the FAA and they have informed the airport that the cost of the storage for a year is an eligible cost under the grant.




Washington, D.C.:Mr. Nagel stated that he and Mr. Wilcer are going to Washington, D.C. next week.They will be meeting with elected officials to update them on the project.They are very interested and supportive.Mr. Nagel stated that they also have a meeting at FAA Headquarters with the Manager of the Airport Improvement Program regarding the funding.It is good to get a meeting at that level.Hopefully he will come back with a good idea of where the airport stands in the eyes of the elected officials and the FAA.Mr. Nagel stated that they are pushing an aggressive funding program to speed up the completion of the project.They are not going back to increase the amount of money but to change the phasing of the project.Letís get the project done sooner rather than later.The furniture, boilers, and jet bridges have been all been delivered and have been stored.


Chamber of Commerce:Mr. Nagel stated that the airport is a member of all three Chambers of Commerce.The airport does advertising in the local directories but typically it does not sponsor chamber events but does attend.Mr. Nagel received several phone calls from the Saginaw Chamber and local businesses to support the Chairmanís Ball which is on Saturday, February 19th.This year they are honoring Dow Chemical.The businesses want to show Dow Chemical their importance to the region and also to Saginaw.Mr. Nagel stated that he spoke with Bolger & Battle and the airport does have money in the marketing account to cover the sponsorship.A table at the ball is included. Mr. Nagel stated that if anyone is interested in attending on a first come first serve basis the Saginaw Chamber of Commerce Chairmanís Ball please contact him.He will send out a letter with more details.†††† ††††


ADMINISTRATIVE MATTERS:Chairman Biltz stated that with the change in Commissioners, there are a couple of openings on the committees.He stated that if the new Commissioners have a preference between Marketing, Operations, Finance, or Personnel to please let Mr. Nagel know.†††


Next regular meeting is scheduled for February 17, 2011.


ADJOURNMENT:There being no further business, Mr. Krygier made a motion to adjourn.Mr. Earley seconded and the Board unanimously passed the motion.The meeting adjourned at 1:25 p.m.



††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† ††††††††††††††††††††††† ††††††††††††††††††††††††††††††††††††††††††††††††††††††††††† Ernie Krygier, Secretary