MBS INTERNATIONAL AIRPORT COMMISSION

 

November 17, 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 1:02 p.m.  Roll was called by Debbie Meisel.

 

COMMISSIONERS

 

Present                        Absent & Excused          Staff                               Guests                             

Tom Adams                George J. Biltz                 Jeff Nagel                      Mark Wilcer, RS&H

Bregitte Braddock      Greg Branch                    Andre R. Borrello          Steve Westerbeke, RS&H

Kim Coonan                Ernie Krygier                   Ryan Riesinger               Bill Hogan, RS&H

Darnell Earley                                                      Debbie Meisel                Pat Frame, RS&H

Tom Ryder                                                                                                

Paula Whittington                                                                                      Other

                                                                                                                    Angela Osmond, TSA

                                                                                                                    Jake Bolitho, Midland Daily News

                                                                         

PLEDGE OF ALLEGIANCE 

 

MINUTES:  Mr. Adams made a motion to approve the minutes of the Regular Commission Meeting held on October 20, 2011.  Ms. Braddock seconded the motion.  The motion was unanimously approved by the Board.

 

OCTOBER 2011 WARRANTS AND CASH & INVESTMENT SUMMARIES:  Mr. Ryder made a motion to approve the Warrant Registers for the October Payroll Account Check Numbers 86532-86588; the October Operations and Maintenance Check Numbers 41677-41756, void Check Number 41319; and the October Cash and Investment Summary.  Mr. Coonan seconded the motion and the Board unanimously approved it.

 

PUBLIC COMMENT:  None

 

PHASE V CHANGE ORDER #11 AND #12:  Mr. Nagel stated that the Spence Brothers contract for Phase V of the terminal building includes three separate Notice-To-Proceeds (NTPs).  NTP #1 is the bulk of the contract and is being paid with FAA grants, local funds and a small amount of State matching dollars.  NTP #2 is for $3,397,000 and is being funded entirely by the second ARRA grant through the FAA.  This grant covers specific portions of the project.  NTP #3 is for the remaining part of this contract and this is being paid for with Passenger Facility Charge revenue (PFC).  The payment of this contract is in compliance with the plan of finance approved by the Airport Commission on August 19, 2010.

 

The ARRA grant (NTP #2) has some very specific language regarding the term of this work and the close-out procedure required.  In essence, the work was supposed to be completed by the end of September, 2011.  The contractor ran into issues locating a certain finish that will be part of the interior ceiling.  Therefore, RS&H needed to locate a suitable substitute material, which they did and that substitute material received concurrence from the Operations Committee. Unfortunately, the lead time for the new ceiling material is 15 weeks and the grant cannot be kept open for that long. Therefore, the close-out process for NTP #2 and for this FAA grant needs to begin. 

 

As has been done throughout this project, each NTP that requires a change will receive its own change order, even though the Spence contract is technically one contract.  This is to help audit the amount of money allocated to each NTP.

 

Change Order #11 will remove the copper material that was originally selected and will remove some close-out items required for the roof from NTP #2. 

 

Change Order #12 will show that the installation of the new copper material will now be in NTP #1 and will move the roof system close-out items into NTP #1 as well.

 

The overall net financial impact of these two change orders is zero.  The change orders are only being submitted to move items from NTP #2 to NTP #1 so the grant close-out process can continue and the grant requirements for the second ARRA grant can be met.

 

Letters were included in the packet from Mark Wilcer, of RS&H, which explains both Change Orders in more detail.

 

The Operations Committee was unable to meet this month due to several schedule conflicts so the committee has not had the opportunity to review this Change Order.  That being said, it is important to act on this change so the close-out of this grant can continue. 

 

Chairman Earley stated that Mr. Nagel has been empowered to move forward on issues if they are time sensitive or if the Operations Committee is unable to meet.  Chairman Earley has no problem for Mr. Nagel, staff, and the consultants to work out the issues.  The accountability will be when it is brought to the full commission. 

 

Mr. Ryder made a motion to approve Spence Brothers Change Order #11 and #12 and authorize the Chairman, or in his absence the Vice Chairman, to sign the related documents.  Mr. Coonan seconded and the motion passed unanimously.   

 

OLD BUSINESS: 

 

MERS:  Mr. Nagel stated that last month a request was made by one of the commissioners in regards to discussing and/or setting a policy for employees purchasing time from MERS.  The Personnel Committee planned to meet to discuss the issue but due to the schedules of the Personnel Committee members and the MERS representative, the meeting was unable to be held prior to this commission meeting.  The Personnel Committee does have a meeting set for later in November including the MERS representative.  A report will be presented at the December meeting.

   

AIP:  Mr. Nagel stated that Mr. Riesinger found an excellent article that discusses the short-term extension of AIP and also talks about the impact of projects during this time.  The MBS terminal project has definitely been impacted by the lack of a long-term AIP program.  The project has been substantially chopped up with Phase 12 and 13 approved at the last meeting.  Mr. Nagel gave credit to RS&H who has found ways to use any dollars that the FAA has had available.

                                                                                                                                                            NEW BUSINESS:  Mr. Nagel stated that Allegiant started service on November 3rd.  TV5 had a reporter on the plane flying to Orlando.  There were also some community leaders that went out on the first flight which was nearly full.  The lobby had about 100 people for the first flight.  A pair of tickets for a future flight was given away with a random drawing.  Mr. Nagel stated that he is hearing good reports about the loads.  The airport has entered into another cooperative advertising agreement that is in compliance with the Service Incentive Program to market the flights.  Mr. Nagel stated that he feels strongly that the airport needs to sell the service and people need to use the service.  He is very pleased with the initial reports back from Allegiant.

  

ADMINISTRATIVE MATTERS:  Next regular meeting is scheduled for December 15, 2011.

 

ADJOURNMENT:  There being no further business, Mr. Coonan made a motion to adjourn.  Mr. Ryder seconded and the Board unanimously passed the motion.  The meeting adjourned at 1:14 p.m.

 

 

                                                                                                                                                            Ernie Krygier, Secretary