MBS INTERNATIONAL AIRPORT COMMISSION

 

June 16, 2011

 

MINUTES

                                                                           

The meeting was held in the Airport Commission Board Room, 8600 Garfield Road, Freeland, Michigan 48623.  Chairman Darnell Earley called the meeting to order at 1:00 p.m.  Roll was called by Debbie Meisel.

 

COMMISSIONERS

 

Present                        Absent & Excused          Staff                            Other                                 

Tom Adams                George J. Biltz                 Jeff Nagel                   Bill Connellan, C&S Engineers

Bregitte Braddock      Kim Coonan                    Andre R. Borrello          

Greg Branch                Tom Ryder                      Ryan Riesinger            Guests

Darnell Earley                                                      Debbie Meisel             Aaron Aljets, RS&H

Ernie Krygier                                                                                           Mark Wilcer, RS&H

Paula Whittington                                                                                   Steve Westerbeke, RS&H

                                                                                                                                                

PLEDGE OF ALLEGIANCE 

 

MINUTES:  Mr. Krygier made a motion to approve the minutes of the Regular Commission Meeting held on May 19, 2011.  Mr. Adams seconded the motion.  The motion was unanimously approved by the Board.

 

MAY 2011 WARRANTS AND CASH & INVESTMENT SUMMARIES:  Mr. Adams made a motion to approve the Warrant Registers for the May Payroll Account Check Numbers 86201-86254 (Check Numbers 86148 – 86200 will be destroyed once all balances can be transferred to new accounts); the May Operations and Maintenance Check Numbers 41284 - 41360, void check number 41290; and the May Cash and Investment Summaries.  Mr. Branch seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT:  None

 

COMMITTEE ASSIGNMENTS:  The following are the most recent committee assignments.

 

OPERATIONS                           FINANCE                           MARKETING                        PERSONNEL

 

George Biltz, Chairman            Tom Adams, Chairman   George Biltz, Chairman        Darnell Earley, Chairman

Darnell Earley                            Greg Branch                       Tom Ryder                             Paula Whittington

Ernie Krygier                              Kim Coonan                      Bregitte Braddock                 Ernie Krygier

 

Mr. Krygier made a motion to approve the committee assignments.  Ms. Braddock seconded and the motion passed unanimously.

 

HANGAR #1 LEASE:  Mr. Nagel stated that at the December 16, 2010 Airport Commission meeting the commission approved the assignment of the Hangar #1 ground lease to Bierlein.  Bierlein has examined several alternatives to improve the leasehold area.  They have decided to tear down the existing hangar and build a new hangar in its place.  Airport staff has reviewed preliminary plans for the building and Bierlein has submitted the plans to the FAA for the required air space review process.

 

Before Bierlein invests in a new hangar, they are interested in obtaining a longer term lease with the airport.  The lease which they had assigned from the previous tenants expires September 30, 2012.  Both sides have agreed to a 20 year lease with two five-year options.  Bierlein also requires slightly more space as the hangar they plan to build is larger than the current hangar in this location.  Rates and charges for this lease will be consistent with other hangars used for similar purposes.

 

Mr. Krygier made a motion to approve a new lease for the hangar #1 site with Bierlein using a 20 year term with two five-year options.  The lease shall also be large enough to accommodate the additional space needed for the larger hangar.  The effective date of the new lease shall be the first day of the month following the approval of the construction project by the MBS Airport Commission.  The motion shall authorize the Chairman, or in his absence the Vice Chairman, to sign the related document.  Mr. Branch seconded and the motion passed unanimously.

 

MRS AGREEMENT:    Mr. Nagel stated that in April, 2010 the Airport Commission agreed to hire Management Reporting Service (MRS) along with Tom Rockne Travel Resources to assist with several aspects of air service development.  Included in that scope of work was on-time and cancellation monitoring and reporting, assisting with local travel agencies, communication with the incumbent carriers, assistance recruiting a new entrant carrier and fare monitoring and reporting.  The agreement was for 12 months, however, the commission passed a three-month extension at the March 17, 2011 meeting to provide time for the Marketing Committee to meet and discuss this contract.

 

The Marketing Committee met on June 8, 2011 with Patrick McIntyre of MRS and Tom Rockne to discuss the progress made through the past year.  Mr. Nagel updated the board members since Mr. Ryder was unable to attend today’s meeting.  The gap in fares between other airports and MBS is shrinking.  Mr. Rockne definitely keeps pressure on the airlines which is needed.  Although the contacts at the airlines continually change, the travel managers from Dow Chemical and Dow Corning have some of the same contacts so the airlines are being contacted from two different angles and getting the same message.  At this point the Marketing Committee recommends a 12-month extension to keep collecting the data.  Mr. Nagel stated that there is a 60 day out if MBS would want to discontinue.  The cost for the service is $5,500 per month which is in the budget.  This covers all the communication, reporting, and all the efforts to recruit a third carrier into MBS. 

 

Mr. Krygier asked if with the second year there would be a way to analyze the investment to the monetary gain MBS is receiving.  Mr. Nagel stated that the Marketing Committee is looking into that and they also wanted Mr. Nagel to look into the benefit of bringing someone on staff.  At this time Mr. Nagel is not ready to recommend that but if it changed, he would bring a request to the Personnel Committee to add a person to staff.  Mr. Krygier made a motion to approve a 12-month extension of the MRS/Tom Rockne Travel Resource agreement and authorize the Chairman, or in his absence the Vice Chairman, to sign all related documents.  Mr. Adams seconded and the motion passed unanimously.

 

PHASE X BIDS (AIRCRAFT RAMP & PERIMETER ROAD):  Mr. Nagel stated that as reported at the May 19, 2011 Airport Commission meeting, the FAA had requested MBS to receive bids for the aircraft ramp and perimeter road phase of the project.  The bid results needed to be provided to the FAA by mid-June in order to submit for a 2011 FAA AIP discretionary grant to fund this portion of the project.  In order to meet the FAA timeline, RS&H advertised the project in all three local papers as well as on the State website.  A pre-bid meeting was held on May 20, 2011 and bids were received on Wednesday, June 8, 2011.  A letter from RS&H was attached to the Exhibit which states their recommendation to award.  There was one alternate to the bid which is a concrete screen wall that would separate the parking lot from the ramp.  The recommendation is to include the alternate in the overall package. 

 

Mr. Branch made a motion to direct the Airport Manager to submit an AIP grant application for Phase X and to approve the bid of Walter Toebe Construction Company in the amount of $6,685,783.90 contingent on receiving FAA funding.  The motion authorizes the Chairman, or in his absence the Vice Chairman, to sign the related documents.  Mr. Krygier seconded and the motion passed unanimously.

 

PHASE X CONSTRUCTION ADMINISTRATION AGREEMENT:  Mr. Nagel stated that the proposed contract for RS&H is to provide construction administration services during Phase X, which includes the aircraft ramp and the perimeter road.  As with past phases of the work, the C/A agreement is needed to provide the required supervision of the work being performed.  Among others, the contract includes the following tasks:

 

-  Construction Administration Services                                -  Project Reports

-  Resident Project Engineer Services                                     -  Review Test Results

-  Pay Application Review                                                       -  Prepare “Record Drawings”

-  Attendance at Regular Construction Meetings

 

There are two costs associated with this contract.  The base amount for RS&H to conduct these services is $613,000.  The price for the construction administration for the bid alternate is an additional $18,000 bringing the total contract to $631,000.

 

Ms. Braddock made a motion directing the Airport Manager to add the RS&H construction administration costs to the Phase X FAA grant application and to approve the RS&H construction administration contract for $631,000 contingent on receiving an FAA grant to fund this phase of work.  The motion also authorizes the Chairman, or in his absence the Vice Chairman, to sign all the related documents.  Mr. Adams seconded and the motion passed unanimously.

 

PHASE XI BIDS (BUILDING ALTERNATES):  Mr. Nagel stated as reported at the May 19, 2011 Airport Commission meeting, the FAA had requested MBS to receive bids for the building alternates phase of the project.  These alternates were originally bid in 2010 and Spence Brothers was required to hold their pricing for a period of four months.  Unfortunately, FAA funding did not develop within this timeframe so it is required to re-bid this work. 

 

The list of alternates includes the building flagpoles, millwork, building finishes and the baggage conveyor system.  The bid results need to be provided to the FAA by mid-June in order to submit for a 2011 FAA AIP discretionary grant to fund this portion of the project.  In order to meet the FAA timeline, RS&H advertised the project in all three local papers as well as on the State website.  A pre-bid meeting was held on May 20, 2011 and bids were received on Wednesday, June 8, 2011.  A letter was attached to the Exhibit from RS&H which states their recommendation to award.

 

Mr. Branch made a motion to direct the Airport Manager to submit an AIP grant application for Phase XI and to approve the bid of Graham Construction Corporation in the amount of $4,326,500 contingent on receiving FAA funding.  The motion also authorizes the Chairman, or in his absence the Vice Chairman, to sign the related documents.  Mr. Adams seconded and the motion passed unanimously.

 

PHASE XI CONSTRUCTION ADMINISTRATION AGREEMENT:  Mr. Nagel stated that the Scope of Services and Proposal for RS&H to perform construction administration services for Phase XI, Building Alternates includes the following services:

 

-  Shop Drawing Review                     -  Airport and Agency Coordination                                                               

-  Review All Change Orders              -  Site Visits

-  Contractor Inquiries                        -  Close-out and As-Built Review

 

The total contract cost for this work is $411,080.

 

This agreement has been sent to the State Project Manager for her review and comment.

 

Mr. Branch made a motion to include the RS&H construction administration contract cost in the FAA grant application for Phase XI and to approve the RS&H cost pending receiving FAA funding for this phase.  The motion also authorizes the Chairman, or in his absence the Vice Chairman, to sign the related documents.  Mr. Krygier seconded and the motion passed unanimously.

 

AIP GRANT RESOLUTION (GRANT #4511 & #4611):  Mr. Nagel stated that the FAA and the State require a formal Resolution from the commission for each AIP grant.  Once the previously approved costs are submitted for a discretionary grant, the approval timeline may be very fast.  Because the FAA requested two grant applications, the commission should pass separate grant Resolutions, one for Grant #4511 and one for Grant #4611.  Based on FAA funding, the airport may get one grant, two grants or possibly no AIP discretionary grants this year.  In any case, it is best to pass both grant resolutions to be prepared.  Mr. Krygier made a motion to approve the attached Resolution for AIP Grant #4511 and AIP Grant #4611. 

 

RESOLUTION

(AIP Grant #4511)

 

RESOLUTION ADOPTING AND APPROVING THE EXECUTION OF THE GRANT APPLICATION, GRANT AND ALL RELATED DOCUMENTS BY THE MBS AIRPORT COMMISSION, A SPECIAL STATUTORY BODY, ACTING AS SPONSOR FOR THE CITY OF MIDLAND, CITY OF SAGINAW, AND COUNTY OF BAY, MICHIGAN, AND THE UNITED STATES OF AMERICA, FEDERAL AVIATION ADMINISTRATION, FOR THE PURPOSE OF OBTAINING FEDERAL AID FOR THE DEVELOPMENT OF THE MBS INTERNATIONAL AIRPORT, UNDER PROJECT NO. 3-26-0083-4511.

 

BE IT RESOLVED by the members of the MBS International Airport Commission,

Freeland, Michigan:

 

Section I.  That MBS International Airport Commission, on behalf of the City of Midland, the City of Saginaw and the County of Bay, Michigan, shall submit a Grant Application and enter into a Grant Agreement for the development of the MBS International Airport, and that such Grant Documents shall be set forth hereinbelow:

 

Section II.  That the Chairman or Vice-Chairman of the MBS International Airport Commission, is hereby authorized and directed to execute said Grant Application, Grant Agreement, and all other related documents in (4) copies on behalf of the City of Midland, City of Saginaw, and County of Bay, Michigan, and the Airport Manager is hereby authorized and directed to impress the official seal and to attest said execution:

 

Section III.  That the Grant Application/Agreement referred to as Project 3-26-0083-4511.

 

 

RESOLUTION

(AIP Grant #4611)

 

RESOLUTION ADOPTING AND APPROVING THE EXECUTION OF THE GRANT APPLICATION, GRANT AND ALL RELATED DOCUMENTS BY THE MBS AIRPORT COMMISSION, A SPECIAL STATUTORY BODY, ACTING AS SPONSOR FOR THE CITY OF MIDLAND, CITY OF SAGINAW, AND COUNTY OF BAY, MICHIGAN, AND THE UNITED STATES OF AMERICA, FEDERAL AVIATION ADMINISTRATION, FOR THE PURPOSE OF OBTAINING FEDERAL AID FOR THE DEVELOPMENT OF THE MBS INTERNATIONAL AIRPORT, UNDER PROJECT NO. 3-26-0083-4611.

 

BE IT RESOLVED by the members of the MBS International Airport Commission,

Freeland, Michigan:

 

Section I.  That MBS International Airport Commission, on behalf of the City of Midland, the City of Saginaw and the County of Bay, Michigan, shall submit a Grant Application and enter into a Grant Agreement for the development of the MBS International Airport, and that such Grant Documents shall be set forth hereinbelow:

 

Section II.  That the Chairman or Vice-Chairman of the MBS International Airport Commission, is hereby authorized and directed to execute said Grant Application, Grant Agreement, and all other related documents in (4) copies on behalf of the City of Midland, City of Saginaw, and County of Bay, Michigan, and the Airport Manager is hereby authorized and directed to impress the official seal and to attest said execution:

 

Section III.  That the Grant Application/Agreement referred to as Project 3-26-0083-4611.

 

Mr. Branch seconded and the motion passed unanimously.

 

OLD BUSINESS:  Mr. Nagel stated that the Marketing Committee met and had discussion regarding a potential name change for the airport.  He also stated that he has been approached by other individuals in the region regarding various names for the airport.  The feeling of the Marketing Committee was that name change in the 90’s from Tri City International Airport to MBS International Airport was due to some confusion with various Tri Cities including one in Tennessee and other airports throughout the country. The committee felt that at this time and with the newness of the Great Lakes Bay Regional Alliance name there could be some substantial confusion with other various bays in the region.  The committee does not bring forward a recommendation at this time to change the name of the airport.  Mr. Nagel stated that the committee wanted him to inform the board that they will continue to discuss that and possibly bring a recommendation back to the board in the future.  Chairman Earley asked if there should be a formal response from the committee or the board in regards to the name change request.  Mr. Nagel stated that he is not opposed to that but would discuss it with the Marketing Committee.  Chairman Earley stated that it should be a part of the minutes for future requests. 

 

NEW BUSINESS:  None

 

ADMINISTRATIVE MATTERS:  Mr. Borrello wanted to note for the record that he was not in attendance at the last board meeting as stated in the minutes but rather Bill Smith, his partner was in attendance. 

 

Chairman Earley made the following

 

First, just let me say that it is indeed an honor and a privilege to represent the City of Saginaw as chairman of the Commission, during this pivotal point in the history of the Midland Bay Saginaw International Airport.

 

Many years ago, the foresight and vision of the cities of Saginaw and Midland, along with Bay County were critical in establishing what we know today as the Midland Bay Saginaw International Airport Commission. This regionalized approach to air transportation has been a successful endeavor on the part of many people. It is also indicative of the kinds of regional efforts that will need to be explored today as local units of government struggle with how to provide the most efficient and effective services in a time of dwindling resources and high demands for services. It is a model that clearly illustrates how intergovernmental relations can work collaboratively to bring solutions to the many challenges of providing public services to our individual stakeholders.

 

I would imagine that when the decision was made to come together and to collaborate on the issue of air transportation in the region, there was a lot of excitement, some trepidation, and even more skepticism. But perhaps most of all, great expectations for the region, as it bustled with the industrial and manufacturing hum of major industries, swelling populations and world-class educational institutions.  Those days were filled with opportunities and challenges that were met then and today, have carried us to the next phase of national and International air travel in the Great Lakes Bay Region.

 

Today, we see many of the same opportunities and challenges as we embark upon a new $48.3 million terminal project, seek more competitive airfares and market strategies, provide multi-faceted travel options and services, and encourage innovative public/private partnerships to stimulate business growth and economic development, tourism and worldwide access to advanced health care and treatment options throughout our region. Ours is the largest population center north of Flint and its Bishop International Airport.  We have the market, we have the resources, and we have the capacity to make MBS an air travel destination for most of Central and Northern Michigan. 

 

As we enter this new era in the life of MBS International Airport, I want to share with you some of my perspectives as Chairman of the Commission, on how we can be the very best, the safest, and most competitive airport service available to the traveling public:

 

 

 

 

Finally, our goal must be to make MBS the preferred business and leisure travel option for the Great Lakes Bay Region, as well as for the traveling public north of the region.  Airfares, services, convenience and the efficient implementation of effective safety measures necessary for air travel in a post 9/11 environment, will be the benchmarks for determining how successful we are at meeting this goal.  All employees, service agents, and partner agencies are critical to this end.  Furthermore, this Commission will give its full support to the efforts of the Airport Manager and his staff to make MBS the very best that it can be, because the day to day management of the airport is solid and its organization is sound.  As we enter this period of continued service to the region, I am confident we will meet that goal and MBS’s status as a world-class international airport will be validated for decades to come!

 

Darnell Earley

Chairman

Midland Bay Saginaw International Airport Commission

 

Next regular meeting is scheduled for July 21, 2011.

 

ADJOURNMENT:  There being no further business, Mr. Krygier made a motion to adjourn.  Mr. Branch seconded and the Board unanimously passed the motion.  The meeting adjourned at 1:35 p.m.

 

 

                                                                                                                                                            Ernie Krygier, Secretary