MBS INTERNATIONAL AIRPORT COMMISSION

 

April 21, 2011

 

MINUTES

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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.

 

COMMISSIONERS

 

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

Tom Adams††††††††††††††† Bregitte Braddock†††††††††† Jeff Nagel†††††††††††††††††† Angela Osmond, TSA

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

Greg Branch†††††††††††† †† †††††††††††††††††††††††††††††††††††††††† Ryan Riesinger†††††††††††

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

Darnell Earley††††††††††††††††††††††††††††††††††††††††††††††††††††† ††††††††††††††††††††††††††††††††††† Mark Wilcer, RS&H

Ernie Krygier†††††††††††††††††††††††††††††††††††††††††††††††††††††† ††††††††††††††††††††††††††††††††††† Steve Westerbeke, RS&H

Tom Ryder

Paula Whittington

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PLEDGE OF ALLEGIANCE

 

MINUTES:Mr. Adams made a motion to approve the minutes of the Regular Commission Meeting held on March 17, 2011.Mr. Earley seconded the motion.The motion was unanimously approved by the Board.

 

MARCH 2011 WARRANTS AND CASH & INVESTMENT SUMMARIES:Mr. Earley made a motion to approve the Warrant Registers for the March Payroll Account Check Numbers 86040-86092; the March Operations and Maintenance Check Numbers 41080-41154; and the March Cash and Investment Summaries.Mr. Krygier seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT:None

 

HANGAR #6 MODIFICATION PROJECT:Mr. Nagel stated that last year, Dow Chemical and Avflight exchanged hangars so that Avflight would be operating out of hangars #3 and #4 and Dow Chemical would operate out of hangars #5 and #6.So far, this arrangement has worked well.Dow Chemical has approached the airport with a proposed modification project to hangar #6 which would expand the hangar further out onto the ramp area and add a larger hangar door to better accommodate their aircraft.The project would require commission action to approve the construction and to approve a lease amendment.

 

Construction of the expansion will be coordinated with airport staff.The project requires FAA airspace review/approval as well as various local authorities.There were two airspace requirements; one was the finished project and the other was the cranes during the project.Both have been received from the FAA with no objections.

 

Included in the lease was a section which dictated the number of square feet and the rate for each of the three leased areas:hangar, parking, and ramp.Since this project will extend the building out onto the ramp, the amount of hangar area will expand while the amount of leased ramp space will decrease.The overall net change will be a slight increase in rent paid by Dow.

 

Mr. Branch made a motion to approve the Dow Chemical hangar #6 expansion project subject to staff review, final FAA airspace approval and all appropriate approvals required by local authorities. Mr. Krygier seconded.The vote was seven yeas, zero nays, and Chairman Biltz abstained; motion carried.

 

Mr. Krygier made a motion to approve a lease amendment adjusting the rented areas for the hangar and the ramp, required to accommodate the proposed hangar #6 modification project and authorize the Vice-Chairman to sign the related documents.Mr. Branch seconded. The vote was seven yeas, zero nays, and Chairman Biltz abstained; motion carried.

 

Modifications have been taking place at hangar #4 which is leased by the FBO.Mr. Nagel stated that the local manager for Avflight is going to invite the board members after either the May or June meeting for a tour.

 

PHASE V SPENCE BROTHERS CONTRACT, CHANGE ORDERS #4 & #5:Mr. Earley on behalf of the Operations Committee stated that Mr. Nagel brings the project change orders to the Operations Committee for review.These particular change orders were reviewed and the committee is in agreement with the changes.Mr. Earley deferred to Mr. Nagel for the details.

 

Mr. Nagel stated that the Spence Brothers contract for Phase V of the terminal project is divided into three sections.Each portion of work was given its own Notice-To-Proceed (NTP).The total original contract amount was $20,390,000.Of that amount, Spence has been issued NTP #1 in the amount of $15,340,000 and NTP #2 in the amount of $3,397,000.The reason to split the work in this manner is to coordinate with the finance plan and the FAA grant requirements, in particular the requirement for discretionary grants to be used for a separate, identifiable portion of work.NTP #3 has not yet been issued as staff is awaiting word from FAA if a new grant will be issued for this piece of the contract.

 

In order to keep track of the work assigned under each NTP, staff has decided to dedicate any change orders to the specific NTP.This will help MBS, the State and the FAA follow the funds required for each specific grant.Attached are two new change orders for this contract.It is best to pass separate motions for each change order.

 

Change Order #4:Mr. Nagel stated that this change order only relates to the work authorized under NTP #1.The total of this change order is an increase of $60,328.76 mostly due to requirements of the Saginaw County Health Department for the kitchen area in the food concession area.Unfortunately, these comments were not received until after the formal bid opening.Even with the addition of this change order, the overall work authorized under NTP #1 is still lower than the original amount authorized due to previous change order approvals which had decreased the amount of work.Mr. Earley made a motion to approve Change Order #4 for the Spence Brotherís 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.

 

Chairman Biltz summarized that there are three contracts with Spence Brothers that covers the work to be done through December.There will be constant change orders during this process which covers about 40% of the project.When this is done, there will be three things left to do on the terminal; the apron, finishing work on the inside, and the parking lot.The timing on that will depend on the financing with the FAA.Chairman Biltz said that this is the overall view of the design.Mr. Nagel agreed.The portion with Spence Brothers is complicated and will require the most changes.The funding with different grants complicates it more.The parking lots are done at the end since those are 100% local dollars.††††

 

Changer Order #5:Mr. Nagel stated that this Change Order only relates to the work authorized under NTP #2.The total of this change order is a decrease of $31,103.15.However, it should be noted that the overall work authorized under this NTP is still $58,896.85 higher than originally approved due to the work authorized in previous change orders ($90,000 for the premium roofing systems).The additional costs are eligible expenses and a grant modification request will be submitted at the end of the contract.Mr. Earley made a motion to approve Change Order #5 for the Spence Brotherís contract and authorize the Chairman, or in his absence the Vice Chairman, to sign the related documents.Mr. Krygier seconded and the motion passed unanimously.

 

OLD BUSINESS:

SSP/Sullivans Transition:Mr. Nagel stated that the transition of SSP to Sullivans is ongoing.†† Staff has contacted the attorney and is working through the process of amending the liquor license.Sullivans is preparing to operate under the management agreement with SSP.All are working towards the May 1st date.Since there is going to be a transition, the Health Department required a more thorough inspection.They found approximately 60 items that needed to be corrected before the transition.MBS, SSP, and Sullivan staff worked on the items.Re-inspection was last Tuesday and Health Department was very impressed that all 60 items had been corrected.

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AIP:Mr. Nagel stated that there has been some progress in Washington in regards to AIP.The House has passed their version of the bill and the Senate has passed their version of the bill.Both have until May 31st when the 18th extension of the bill expires to compromise, get a new bill passed and have the President sign it.If not, there may be a 19th extension.The two bills are over 700 pages and there are a couple of items that need to be negotiated.There is one item that is included that is not FAA related which is how votes are taken for organized unions.Mr. Nagel stated that he had included a Wall Street Journal article regarding that in the packet and urged the board to read the article since that issue could impact FAA funding.

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NEW BUSINESS:

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Michigan Aeronautics:Mr. Nagel stated that the Michigan Aeronautics Commission meets every other month.They approve state fund transfers for the grants.They see the grants from all of the airports in the state that process through the FAA and have seen quite a few transfers for the MBS Airport terminal project.They are interested in the project and are coming to MBS on May 18th to hold their bi-monthly meeting in the Skyroom.Typically the meetings are held in Lansing.The meeting here will be at 10:00 a.m.If anyone is interested it is a public meeting and anyone is welcome to attend.Mr. Nagel is coordinating with the Bureau of Aeronautics how to do lunch and give them a tour of the new passenger terminal.Chairman Biltz asked Mr. Wilcer whether the work at the construction site could be suspended for a half hour so a tour could be accomplished.Mr. Wilcer felt that Spence Brothers would be accommodating.

MBS Golf Outing:Mr. Riesinger stated that invitations to the annual golf outing were sent out this week.He had invitations available for those board members that would like to participate.The outing is Friday, June 3rd at Beech Hollow with an 8:00 a.m. shotgun start.Players may submit as an individual or as a team.Mr. Nagel stated that it is a self sufficient event and is not funded by MBS.

 

ADMINISTRATIVE MATTERS:Chairman Biltz asked about the airline on-time and canceled flights report and was wondering if it was going to continue.Mr. Nagel stated that it would continue but quarterly versus monthly.The information comes from Tom Rockne and Mr. Nagel will check on the status.

Chairman Biltz referred to the airport comparison report and asked Mr. Nagel what is the driver that results in Lansing having such massive increases in passengers.Mr. Nagel stated that they recruited Sun Country Airlines that flies non-stop to Orlando, Cancun, and Jamaica.They have a Federal custom station so passengers can fly directly into Lansing.Mr. Nagel stated that there is some kind of a financial arrangement but he does not have any details.The percentage of increase is also a result of the substantial decrease they had had the year before.Mr. Nagel also stated that he thinks that Sun Country stops service in May and takes the summer off.Chairman Biltz asked if MBS can look into something like that.Mr. Nagel stated that it has and will continue to be looked at.It will also be discussed at the next Marketing Committee meeting. †††

 

Next regular meeting is scheduled for May 19, 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 1:20 p.m.

 

 

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