Muskegon County Airport Airport Advisory Committee Tuesday, October 4, :00 Noon Conference Room

Transcription

1 Muskegon County Airport Airport Advisory Committee Tuesday, October 4, :00 Noon Conference Room The Depot/Convention and Visitors Bureau Agenda 1. Call to Order 2. Approval of Minutes September 6, Informational Items a. Airport Manager s Report September Old Business 5. New Business 6. Adjournment H:\Homan\AA\AAC\MA\ docx Airport Advisory Committee Members Terry Sabo (Commissioner) Term Exp. 12/31/16 Terry Boer (Business Park) Term Exp. 12/31/16 Robert Scolnik (Commissioner) Term Exp. 12/31/16 Anthony Chandler (Norton Shores) Term Exp. 12/31/16 Rachel Stewart (Chamber) Term Exp. 12/31/17 Peggy Foster (Private) Term Exp. 12/31/16 Rillastine Wilkins (Commissioner) Term by Virtue of Office Rich Houtteman (Private) Term Exp. 12/31/17 Robert Wygant (Private) Term Exp. 12/31/17 David Pickard (Public) Term Exp. 12/31/17 Vacant (Business Park) Muskegon County Airport 99 Sinclair Drive Muskegon, MI

2 Muskegon County Airport Airport Advisory Committee Conference Room SEPTEMBER 6, 2016 The Depot/CVB CALL TO ORDER The Airport Advisory Committee meeting was called to order at 12:00 pm. Present: Terry Boer, Peggy Foster, Rich Houtteman, David Pickard, Terry Sabo, Bob Scolnik, Robert Wygant Excused: Dick Dolack, Rachel Stewart, Rillastine Wilkins Staff: Pam Homan, Dianne Hoofman, Bob Lukens, Jeff Tripp APPROVAL OF MINUTES A motion was made by Pickard and supported by Foster to approve the Minutes of August 2, 2016, as written. Motion Carried. INFORMATIONAL ITEMS The Airport Manager s Report for August was included in the packets distributed to the Committee prior to the meeting. The Operations Report for July showed a 5% increase in passenger numbers from July Load factor was at a high of 71% with an increase of 8% YTD passenger activity compared to YTD Sun Country s casino charter flights for September and October are sold out. ACTION ITEMS Approval to Award RFB for Air Service Development and Consulting Services to Mead & Hunt. A motion was made by Scolnik and supported by Pickard to recommend approval to award contract RFB # with Mead & Hunt for Air Service Development, Recruitment, Consulting, and Market Research in a base contract amount of $21, Motion Carried. OLD BUSINESS None. Page 1 of 2

3 Airport Advisory Committee September 6, 2016 NEW BUSINESS The Port of Muskegon and how the Airport can be more involved with the group was discussed. There was some concern about marketing of the airport if the Air Travel Marketing Consultant s hours are shortened. Rich Houtemann also thanked Jeff for the many things he is doing to help the airport in the short time he has been here. ADJOURNMENT There being no further business to come before the Airport Advisory Committee, the meeting adjourned at 12:40 pm. Homan\AA\AAC\2016\Minutes\ docx Page 2 of 2

4 AIRPORT ADVISORY COMMITTEE AIRPORT MANAGER S REPORT October 4, Airline Operations Report August 2016 In August, SkyWest Airlines enplaned 2,192 passengers and deplaned 1,988 passengers for a total passenger count of 4,180. This equated to a passenger load factor of 76%. Calendar year to date, the total number of passengers is 26,573 of which 13,411 have been enplaned and 13,162 deplaned. Through August, the passenger numbers are 6% ahead of the same period of time in CY2015. The September casino charter flight to Laughlin, NV operated by Sun Country enplaned/deplaned 312 passengers. 2. AAC Orientation, Development & Training program TRB Webinar: Renewable Energy Use and Sustainability Practices at Airports. The Transportation Research Board s (TRB) Airport Cooperative Research Program (ACRP) will conduct a free webinar on Thursday, October 20, 2016, from 2:00PM to 3:30PM ET on the financial and public policy benefits of using renewable energy at airports, new case studies on sustainability practices at airports to enhance the Sustainable Aviation Guidance Alliance (SAGA) website, and how to maximize these benefits using business case evaluations. To register, click on the link above. The Airport Manager and the County s Economic Development Coordinator and Sustainability Coordinator have registered for this webinar. 3. Air Service & Charter Programs A. Air Service Consultant Request for Proposals (RFP) The County Board approved the airport s recommendation to award the new Air Service Consulting contract to Mead & Hunt on September 27, subject to final negotiation of the contract. The Board Report and scope of work is attached (Attachment 1). B. SkyWest Airlines The Airport Manager and Air Travel Marketing Consultant met with two representatives from SkyWest Airlines corporate headquarters (St. George, UT) on September 22. Pricing & Revenue Manager Etsushi Shimano and Pricing & Revenue Analyst Doug Gray were visiting MKG to meet with the SkyWest Station Manager. SkyWest graciously offered to meet with airport staff to discuss pricing and scheduling. Staff will provide additional details of the meeting at the October 4 advisory committee meeting. C. Casino Flights i. Laughlin, NV - Sun Country Airlines. The September and October flights are sold out. Airport staff is currently completing Sun Country Airline s Public Charter training curriculum, which is required for all personnel that handle Sun Country flights. Airport staff regularly assists Executive Air with the passenger check-in, baggage loading/unloading, and boarding process. ii. Additional Locations. No additional progress in the past month. D. Air Service Conferences The Airport Manager was scheduled to attend the Sixel Consulting Air Service Development conference in Lexington, KY October prior to the air service consultant contract being awarded to Mead & Hunt. The airport manager cancelled attendance at the Sixel event and will attend a similar Mead & Hunt event at a later date. The primary purpose of these conferences are to provide opportunity for one-on-one meetings between airport representatives

5 and the airline planners who make decisions regarding air service levels and scheduling while also providing presentations on air service information directly relevant to the airports. 4. Airport Capital Improvement Projects A. Runway/Taxiway crack sealing and restriping. The Airport received grants from FAA and MDOT for the design and performance of a pavement preservation project to perform runway/taxiway crack sealing and restriping airfield pavement markings. The project was awarded to JJ Cunningham LLC on July 28 in the amount of $262,420 with FAA providing 95% funding ($249,299), MDOT 2.5% ($6,560.50), and the County 2.5% ($6,560.50). The project commenced on Monday, September 12 with a scheduled completion date of September 28 weather and/or other unforeseen conditions notwithstanding. The Airport coordinated the work on Runway 6/24 and Taxiway A to coincide with the required runway closure as part of the FAA MALSR upgrade project to minimize impacts to normal operations to the greatest extent possible. Project notice was sent to all tenants. NEW MARKINGS OLD MARKINGS B. FAA Project Upgrade Runway 24 MALSR and LOC The FAA is continuing its project to upgrade the instrument landing system (ILS) supporting Runway 24. The project has a 75-calendar day schedule and with an estimated completion date in early October. 5. Economic Development A. Request to sell Airport Land to Norton Shores The City of Norton Shores (City Manager & Public Works Director) and the County (CVB Director & Airport Manager) held initial discussions about Norton Shores inquiry about purchasing approximately 20 acres (+/-) of airport property located at 497 Porter Road (between Porter Road and Sternberg Road).

6 MDOT Aeronautics has developed Guidelines for Airport Land Release to assist in the land release process. Additional guidance is available at the MDOT Aero Land webpage. The land release process is intended to ensure communication is established with the MDOT Airports Division (AERO) and the FAA Detroit Airports District Office (DETADO). This will ensure a complete understanding of the purpose of the proposed land release request, the required documentation to support the release request, and the review process action steps that must be completed before AERO and FAA can make a final decision. The first step in the land release process is to complete the Preliminary Land Release Request Checklist and send it to AERO. The Airport submitted a Preliminary Land Release Checklist to AERO on September 17. AERO will review the Preliminary Land Release Request Checklist and forward their recommendation to the DETADO for their approval. This first step will allow both AERO and DETADO to determine the issues associated with the proposed land release request, and determine whether the release is feasible. The most important issue to be resolved in the preliminary review step is whether the proposed release of land will impact the current and future needs of the airport, as depicted on the approved Airport Layout Plan. If AERO and DETADO determine the proposed release is feasible, then the second step will be to complete the process using the Land Release Request Guidelines. Any determination by AERO and FAA that the release request is feasible does not guarantee final approval. The sole purpose of the preliminary feasibility review is to establish communications and screen out any release proposals that definitely cannot be approved. This will eliminate any unnecessary expenditure of resources by the County, AERO, and the FAA. Staff will keep the Advisory Committee informed of our progress with AERO and DETADO. The property is not contiguous to the airport and cannot support aeronautical development without substantial redevelopment of the area to include elimination of a surface road (Porter Road) and construction of a very long taxilane to provide access to the runway/taxiway system. This is not a scenario likely to be approved by Norton Shores, the County, MDOT, or FAA for a multitude of reasons. The County is proposing, subject to approval by FAA and MDOT, to use the proceeds from the sale of this property for one or more of the following capital projects: 1) Purchase two (2) parcels of land located in the Runway 32 Runway Protection Zone (RPZ) not currently owned by the County, 2) Obstruction removal (trees) identified impacting the runway approaches to Runway 6/24, which are eligible for partial federal funding, and/or 3) additional capital projects agreed upon between the County, MDOT, and FAA. The acquisition of the two parcels off the end of Runway 32 is consistent with FAA policy regarding airport sponsors having sufficient interest in RPZ s to protect the RPZ from obstructions and incompatible land use while the removal of obstructions is a necessary project to remove trees that are impacting the airport s primary runway 6/24. B. Airport Business Park The County received five (5) proposals on September 9 for Commercial Real Estate Broker services to represent the County in marketing and negotiating assigned real estate properties of County owned properties, including Business Park North and Airport Business Park. The Airport Manager is participating as a member of the selection committee. 6. Airport Public Relations, Marketing & Advertising A. Public Relations i. Human Peace Sign. 30 Days of Peace Muskegon is a grassroots movement by nonprofit, nonpolitical people, interest groups and organizations of Muskegon County who share a common concern to practice peace, justice and equality with a clear intention to create, cultivate and coordinate 30 Days of nonviolence during the Month of

7 Peace in September. The group s efforts culminated with a final event on Saturday, October 1 with the formation of a Human Peace Sign on the lawn at the entrance to the airport terminal and Ellis Road. ii. West Michigan Flying Club. The West Michigan Flying Club hosted their annual Landing Contest, Bomb Drop, and Open House on Saturday, September 17 at their facility located at 551 Airport Road. The event was well attended by the general public and the various events occurred smoothly. B. Marketing & Advertising i. Airport website update. The development process is underway with an anticipated launch date in November. ii. Marketing & Advertising Project(s). The Airport Manager and County Economic Development Coordinator will be meeting in October with a professor at Baker College to discuss potential student projects during the winter & spring semesters to assist with airport marketing and advertising efforts. 7. Airport Administration, Operations and Maintenance Programs A. The Michigan Association of Airport Executives and MDOT Aeronautics sponsored a one-day airport management 101 class for small airports designed to help small airport staff, board members, and municipality staff manage and maintain their airport September 21 in Mt. Pleasant, MI. Staff members Pam Homan and Rita Bierman attended. B. Michigan Association of Airport Executives (MAAE) Fall Conference. The Airport Manager attended the fall 2016 MAAE airport conference in Gaylord, MI the week of September 12. This was a good opportunity to meet the various management staff from airports throughout the state as well as a number of MDOT Aeronautics and FAA personnel, and aviation consultants. C. Airport Emergency Plan. The Airport conducted its annual Airport Emergency Plan review on Tuesday, September 20. This FAA required annual review included representatives from the Norton Shores Fire & Police Departments, Muskegon County Sheriff s Office, TSA, the Red Cross, Executive Air Transport, SkyWest Airlines, and Airport. This review allows responding agencies to review the AEP Manual, functional annexes, SOP s, checklists, and Appendices to ensure the plan is accurate and to address changes necessary since the previous review. The airport conducted its triennial full-scale emergency drill in 2015 and will not need to conduct its next full-scale drill until D. Snow and Ice Control Plan. Staff is gearing up for the winter season. The airport will conduct its annual pre-season snow plan review meeting on Wednesday, October 12 at 1:00 PM in the Airport Maintenance Facility, 106 Sinclair Drive. This meeting is open to all tenants and customers. Typically, Executive Air and SkyWest Airline representatives attend. E. Airport Wildlife Hazard Program. Airport Maintenance employee David Haack attended an annual recertification course for wildlife hazard management on September 22. The airport is required to implement an effective wildlife hazard mitigation program to reduce the potential for aircraft incidents caused due to the presence of wildlife. F. Oak Wilt Disease presentation. Airport Maintenance employee Craig Kruzel attended a presentation on oak wilt on September 28. This presentation provided information about the growing problem in Michigan to include what it is, what trees are affected, how it is spread, how to protect trees, removal of diseased trees, and guidelines for hiring a tree service or arborist. Because the airport property contains many trees, including oak, it is important to try to keep abreast of the situation and reduce the potential for tree damage on airport property. 8. FY2017 Airport Operating & Capital Budget

8 A. The airports fiscal year 2016/17 operating and capital budget was approved at the September 27 Board meeting. This budget includes the highlights listed in the September Manager s Report. Staff will provide an update of the full airport budget once posted on the County website. B. AAAE Questions Airline Opposition To Updated PFC (INFORMATIONAL ITEM ONLY) With DOT reporting recently that U.S. carriers collected more than $3.5 billion in baggage and reservation change fees in the first half of 2016, the American Association of Airport Executives (AAAE) once again questioned the continued opposition of U.S. airlines to updating the PFC. According to DOT, the airlines collected more than $1 billion in baggage fees in the second quarter of a new record. The carriers also collected more than $755 million in reservation change and cancellation fees in the second quarter, one of the highest collections for a quarter. Those gains are on top of the record $3.8 billion in bag fees and $3 billion in reservation cancellation and change fees that the airlines collected in Since 2008, the airlines have collected more than $26.8 billion in baggage fees and more than $21.5 billion extra in ticket change and cancellation fees. That total of nearly $50 billion in baggage and ticket change fees does not include other airline ancillary charges such as pet transportation, sale of frequent flyer award miles to airline business partners and standby passenger fees. In comparison, last year airports collectively received about $3 billion from the Passenger Facility Charge (PFC). The federal cap on the PFC has not been adjusted since The $3.8 billion in bag fees that airlines collected in 2015 also exceeds the $3.35 billion the federal government provided for airport grants at all eligible airports across the country in fiscal year 2016 through AIP. Because bag fees are not taxed at the same 7.5 percent excise tax rate applied to base airline tickets, the Airport and Airway Trust Fund lost $153 million in just the first half of Since 2008, the $26.8 billion in bag fees that are not taxed have cost the trust fund more than $2 billion in foregone revenue - money that could have paid for airport capital projects and air traffic control modernization efforts. This program funds the Airport Capital Improvement Program (ACIP) and is how FAA provides project grant funding to the airport. Muskegon Airport charges the maximum $4.50 PFC allowed under the program. The PFCs are being applied to the county s debt service for construction of the Airport Terminal Building. We may want to engage our elected officials for letters of support to Congress to increase the PFC limit in the future. The short AAAE video Fix the Deflated PFC! provides a short overview of the PFC program and its importance to airports. 9. Action Items under NEW BUSINESS A. The Airport is planning to bring the following items to the Transportation Board and Board of Commissioners later this month: None

9 Muskegon County Airport Operations Report Calendar Year 2016 Avail Comm Load Vs. Air Carrier/ General Vs. Vs. Seats Pass Factor Enplaned Deplaned Total CY2015 Charter Aviation Military Total CY2015 Pounds CY2015 JANUARY % % % % FEBRUARY % % % % MARCH % % % % APRIL % % % % MAY % % % % JUNE % % % % JULY % % % % AUGUST % % % % SEPTEMBER OCTOBER NOVEMBER DECEMBER PASSENGER ACTIVITY AIRCRAFT OPERATIONS CARGO YTD TOTALS % % % % pjh\operations\

10 September 13, 2016 Jeffrey Tripp, A.A.E. Airport Manager Muskegon County Airport 99 Sinclair Drive Muskegon, MI Subject: Proposal and Agreement for Air Service Consulting Services Dear Jeff: It is my understanding that Muskegon County Airport (MKG) is interested in Mead & Hunt assisting with air service consulting services. Attached is a proposal for your review, including a scope of services, compensation and authorization. Scope of Services After acceptance of this proposal, Mead & Hunt shall complete the following tasks: 1. True Market Estimate True market estimates may be shared with airlines and community groups, and it is the foundation information for air service forecasts and pro formas. The true market estimate will quantify by destination the number of air travelers in the market, including those air travelers that drive to an airport other than MKG to originate the air travel portion of their trip. There is no perfect source of data for passenger diversion information, and consultants differ on the best way to estimate the size of an air service market. Mead & Hunt addresses this issue by basing passenger diversion estimates on market and destination data developed from airline ticketed information from Airline Reporting Corporation (ARC) mathematically combined with U.S. Department of Transportation (DOT) reported airline information, creating the best possible estimate for your area. Mead & Hunt uses this method for determining passenger diversion because: (1) It is our judgment that original airline ticketed information, ARC, combined with U.S. DOT airline data is the best method for determining passenger diversion. (2) The survey sample is significantly larger than other methods used for collecting passenger diversion information. (3) ARC data is accepted and used by most airlines.

11 Jeffrey Tripp September 13, 2016 Page 2 of 8 Mead & Hunt will complete an analysis of the airport s primary catchment area using ARC tickets and reported origin and destination data for the most recent 12 months available. The output will provide an estimate of the top 50 domestic true markets and the top 15 to 25 international true markets including passenger retention by destination, diverted origin and destination passengers, and the total estimated true market for all destinations. The output of this effort will be a letter and spreadsheet with the top domestic and international true markets. Mead & Hunt will provide MKG a draft of the true market estimate within 60 days of the date of the signed contract. 2. Airline Headquarters Meetings Mead & Hunt will provide the analysis, preparation, presentation and consulting services associated with a meeting with SkyWest Airlines and United Airlines. It is anticipated that MKG representatives and Mead & Hunt staff will meet with both airlines. Mead & Hunt anticipates that the proposal/presentation to the airlines will include four components: (1) a concise, dynamic presentation about the market served by MKG including demographics, local companies and economic/business activity; (2) a description of specific cost and operations information on MKG; (3) the air service opportunities; and (4) the air service incentive program that MKG may propose to support the desired service. Mead & Hunt will format the entire PowerPoint presentation. MKG will be responsible for providing Mead & Hunt with information about the community and community support elements of the presentation. Mead & Hunt will assist MKG with structuring these elements for the presentation and participate in the meeting with MKG. Mead & Hunt will provide the following professional services and data as necessary in building MKG s business case for air service improvements: Analysis of related historical traffic destinations and volume Analysis of existing service, air carrier route systems, schedules and capacity with regard to the proposed service improvements Historical performance of MKG s air carriers: load factors, average ticket price and yield Air carrier origin-destination traffic market share Assist as necessary with structuring the community component of the presentation and related air service support package/proposal Pre-meeting discussions with the airlines and/or community Assist with planning and scheduling the airline meeting Preparation and presentation of related materials: PowerPoint presentation and supporting handouts Mead & Hunt will work to secure a meeting date with SkyWest and United. Once meeting dates are secured, Mead & Hunt will complete the presentation. The schedule is dependent on MKG s timely

12 Jeffrey Tripp September 13, 2016 Page 3 of 8 response to Mead & Hunt requests for airport and community provided information. Likewise, airline management availability and the ever-changing airline environment may impact the schedule. 3. Additional Services Additional services may be requested by the MKG that are not described above. Additional services may include but are not limited to: the preparation of ad hoc reports; communication with airlines; coordination with the MKG; and other elements as identified on an as needed basis. Compensation Mead & Hunt will be compensated for the work described under Scope of Services as set forth below: 1. True Market Estimate Mead & Hunt will be compensated on a lump sum basis and will invoice based on the percent of project completed. True market estimate including ARC data... $8, Airline Headquarters Meetings Mead & Hunt will be compensated on a lump sum basis for the airline presentation preparation and meetings. Due to the similar nature of the meetings, the presentation will be used for meetings with both SkyWest and United. Mead & Hunt will invoice for related expenses (e.g. air transportation, lodging, meals, printing, miscellaneous) at cost. Airline presentation preparation... $3,700 Presentation/meeting SkyWest Airlines... $2,960 Presentation/meeting United Airlines... $1,480 Expenses (estimated $900 per meeting)... $1,800 Subtotal (lump sum plus expense)... $9, Additional Services Additional services provided by Mead & Hunt not described above or in other supporting documentation will be accommodated with a separate task order or billed in accordance with the Standard Billing Rate Schedule, attached hereto and incorporated herein by reference. The following are Mead & Hunt s Standard Billing Rates for services billed on a time-and-materials basis. Standard billing rates are subject to annual adjustments in January of each year. Mead & Hunt reserves the right to change billing rates based on increases in unforeseen operational costs.

13 Jeffrey Tripp September 13, 2016 Page 4 of 8 Standard Billing Rates Clerical Accounting/Administrative Assistant Technical Editor Senior Editor Consultant Senior Consultant Expenses Company or Personal Car Mileage Air and Surface Transportation Lodging and Subsistence Out-of-Pocket Direct Job Expenses $73.00 / hour $88.00 / hour $ / hour $ / hour $ / hour $ / hour IRS rate Cost Cost Cost Authorization The Scope of Services and Compensation stated in this proposal are valid for a period of thirty (30) days from date of submission. If acceptance of this proposal is not received during this period, this proposal may be withdrawn or modified by Mead & Hunt. Signatures of authorized representatives of MKG and Mead & Hunt shall constitute an Agreement between the two parties, and receipt of one, signed electronic copy shall represent authorization to proceed with the work described in the Scope of Services. All services shall be performed in accordance with the General Terms and Conditions for Air Service Consulting Services included as Attachment A and which is made a part of this proposal. Please send all correspondence to my attention at the following address: Mead & Hunt, Inc. 959 Redcedar Way Coppell, TX Phone: jeffrey.hartz@meadhunt.com We appreciate the opportunity to submit this proposal to MKG. Respectfully submitted, MEAD & HUNT, Inc. Jeffrey Hartz Senior Consultant

14 Jeffrey Tripp September 13, 2016 Page 5 of 8 Accepted by: MUSKEGON COUNTY AIRPORT Approved by: MEAD & HUNT, INC. By: Name: Title: The above person is authorized to sign for Client and bind the Client to the terms hereof. By: Joseph Pickering Vice President Date: Date: September 13, 2016

15 Attachment A Mead & Hunt, Inc. General Terms and Conditions for Air Service Consulting Services 1. Mead & Hunt, Inc. will begin services upon written authorization to proceed. Receipt of a signed Contract (Contracts, Proposal, or Letter) will be considered written authorization to proceed. 2. Mead & Hunt, Inc. will bill the Client monthly, according to the payment method set forth in the Contract, with net payment due in thirty (30) days. The quoted fee will control until it is amended. Past due balances shall be subject to an interest charge at a rate of 1% per month. In addition, Mead & Hunt, Inc. may, after giving ten (10) days written notice, suspend service under any agreement until the Client has paid in full all amounts due it for services rendered and expenses incurred, including the interest charge on past due invoices. The fees or rates stated in the attached contract does not include any applicable state and local sales or use taxes or gross receipts taxes. Any such taxes shall be the sole responsibility of the Client to pay. 3. The quoted fees and scope of services constitute the best estimate of the fees and tasks required to perform the services as defined. This agreement, upon execution by both parties hereto, may be amended only by written instrument signed by both parties. For those projects involving conceptual or process development service, activities often cannot be fully defined during initial planning. As the project progresses, facts uncovered may reveal a change in direction which may alter the scope. Mead & Hunt, Inc. will inform the Client in writing of such situations so that changes in this agreement may be made as required. In addition, if the Client requests significant modifications or changes in the scope of the project, the time of performance of Mead & Hunt, Inc. s services and the fees shall be adjusted before Mead & Hunt, Inc. undertakes the additional work. Mead & Hunt, Inc. is not acting as a Municipal Advisor as defined by the Dodd Frank Act. 4. The Client shall be liable for and shall indemnify and hold Mead & Hunt, Inc. harmless for all costs and damages incurred by Mead & Hunt, Inc. for delays caused in whole or in part by the Client s interference with Mead & Hunt, Inc. s ability to provide services, including, but not limited to, Client s failure to provide specified facilities or inaccuracies in documents or other information required to be provided by the Client to Mead & Hunt, Inc. Mead & Hunt, Inc. reserves the right to renegotiate the contract because of any unforeseen delays caused by events beyond Mead & Hunt, Inc. s control, such as funding for the project. 5. The Client agrees to provide such legal, accounting and insurance counseling services as may be required for the project. 6. Mead & Hunt, Inc. will maintain insurance coverage for: worker s compensation, general liability, automobile liability, and professional liability. Mead & Hunt, Inc. will provide information as to specific limits upon written request. If the Client requires coverages or limits in addition to those in effect as of the date of the agreement, premiums for additional insurance shall be paid by the Client. 7. The liability of Mead & Hunt, Inc. to the Client for any indemnity commitments or for any damages arising in any way out of performance of this agreement is limited to a period of twelve (12) months from the date of the last bill from Mead & Hunt, Inc. to the Client, regardless of whether or not such bill was paid by Client, and the extent that any liability including all damages (direct, consequential, indirect, incidental, or other damages), claims, costs, expenses and legal fees of Mead & Hunt, Inc. (including its current or former employees, officers, directors, or shareholders) and its sub-consultants to the Client or any and all third parties is limited to the amount of the fees billed by Mead & Hunt, Inc. to the Client during the 12-month period prior to the date of the last bill being first submitted to the Client. 8. Client and Mead & Hunt, Inc. shall not, during the term of the Contract or after the termination of the Contract for a period of one year disclose any Confidential Information to any person or entity, or use any Confidential Information to any person or entity, or use any Confidential Information for the benefit of Client or Mead & Hunt, Inc. as the case may be, or any other person or entity, except with the prior written consent of Mead & Hunt, Inc. or the Client, as the case may be, or as required by law. The term Confidential Information means information marked or designated by Mead & Hunt, Inc. or the Client as confidential. Confidential Information includes, but is not limited to, General Terms and Conditions/1-16 Page 6 of 8 Air Services Copyright Mead & Hunt, Inc. (No copying or use without written permission)

16 Attachment A ideas, specifications, techniques, models, data, programs, documentation, processes, know-how, and financial and technical information. 9. Termination of this agreement by the Client or Mead & Hunt, Inc. shall be effective upon ten (10) days written notice to the other party. The written notice shall include the reasons and details for termination. Mead & Hunt, Inc. will prepare a final invoice showing all charges incurred through the date of termination; payment is due as stated in paragraph 2. If the Client breaches the Contract or any other agreements entered into between Mead & Hunt, Inc. and the Client or if the Client fails to carry out any of the duties contained in these terms and conditions, Mead & Hunt, Inc. may, upon ten (10) days written notice, suspend services without further obligation or liability to the Client. 10. The completed documents shall become the property of the Client, but shall remain in the custody of Mead & Hunt, Inc. and Client grants, without reservation, an irrevocable paidup license to Mead & Hunt, Inc. to use completed original drawings and master specification sheets. Reuse by Client of any documents and/or services pertaining to this project or extensions of this project or on any other project shall be at the Client s sole risk. The Client agrees to defend, indemnify, and hold harmless Mead & Hunt, Inc. from all claims, damages, liabilities, losses, and expenses, including attorneys fees and costs, arising out of such reuse of the documents and/or services by the Client or by others acting with the consent of the Client, whether or not such claim arises out of and/or has been caused in whole or in part by negligence on the part of Mead & Hunt, Inc. 11. Mead & Hunt, Inc. will provide professional services in accordance with ordinary generally accepted air service consulting services. Mead & Hunt, Inc. disclaims all warranties and guarantees, express or implied. The parties agree that this is a contract for professional services and is not subject to any Uniform Commercial Code. Similarly, Mead & Hunt, Inc. will not accept those terms and conditions offered by the Client in its purchase order, requisition, notice of authorization to proceed, or any other contractual document except as set forth herein or expressly agreed to in writing. Written acknowledgment of receipt or the actual performance of services subsequent to receipt of such other contractual document is specifically deemed not to constitute acceptance of any terms or conditions contrary to those set forth herein. Nothing in the Contract and/or General Terms is intended to create, nor shall it be construed to create, a fiduciary duty owed by either party to the other party. 12. If the Client is a municipality or state authority or any government authority/agency, the Client agrees to indemnify and hold harmless Mead & Hunt, Inc. for all claims arising out of or related in any way to acts done by Mead & Hunt, Inc. in the exercise of legislative or quasi-legislative functions. 13. Mead & Hunt, Inc. is not liable, in contract or tort or otherwise, for any special, indirect, consequential, or liquidated damages including specifically, but without limitation, loss of profit or revenue, loss of capital, delay damages, loss of goodwill, claim of third parties, or similar damages. Mead & Hunt, Inc. shall not be liable for any loss due to terrorism. 14. This agreement cannot be changed or terminated orally. No waiver of compliance with any provision or condition hereof shall be effective unless agreed in writing duly executed by the waiving party. 15. This agreement contains the entire understanding between the parties on the subject matter hereof and no representations, inducements, promises or agreements not embodied herein (unless agreed in writing duly executed) shall be of any force or effect, and this agreement supersedes any other prior understanding entered into between the parties on the subject matter hereof. This Agreement does not create any benefits for any third party. No waiver of compliance with any provision or condition hereof shall be effective unless agreed in writing duly executed by the waiving party. 16. Mead & Hunt, Inc. may release data, models, plans, CAD files, and/or drawings electronically or by any other means to any other party involved in the project; and if such release is not provided for in the Scope of Services, fees may be adjusted before the documents are prepared for electronic submittal. Electronic files (data or image) are part of Mead & Hunt, Inc. s instruments of service and shall not be used by Client or anyone else receiving these data through or from Client for any purpose other than for the referenced project. Any other use or reuse by Client or by others will be at the Client s sole risk and without liability or legal exposure to Mead & Hunt, Inc. Differences may exist between these electronic files and corresponding hard-copy documents. Mead & Hunt, Inc. makes no representation regarding the accuracy or completeness of the General Terms and Conditions/1-16 Page 7 of 8 Air Services Copyright Mead & Hunt, Inc. (No copying or use without written permission)

17 Attachment A electronic files provided. In the event that a conflict arises between the signed or sealed hard-copy documents prepared by Mead & Hunt, Inc. and the electronic files, the signed or sealed hard-copy documents shall govern. Because information presented on the electronic files can be modified, unintentionally or otherwise, Mead & Hunt, Inc. reserves the right to remove all indicia of ownership and/or involvement from each electronic display. Under no circumstances shall delivery of the electronic files for use be deemed a sale by Mead & Hunt, Inc., and Mead & Hunt, Inc. makes no warranties, either express or implied, of merchantability and fitness for any particular purpose. In no event shall Mead & Hunt, Inc. be liable for any loss of profit or any consequential damages as a result of use, reuse, or unauthorized changes to electronic files or any data therein. 17. To the fullest extent permitted by law, the Client agrees to indemnify and hold harmless Mead & Hunt, Inc. and Mead & Hunt, Inc. s sub-consultants from any liability, damages, claim, costs, expenses, or legal fees, for injury or loss arising from errors, omissions or inaccuracies in documents or other information provided by the Client to Mead & Hunt, Inc. or for any other injury or loss caused by the Client, its employees, agents, other consultants, and/or the Property Client, and to indemnify and hold harmless Mead & Hunt, Inc. and Mead & Hunt, Inc. s sub-consultants (including its officers, directors, employees, former employees, agents, and partners) to the extent that the total aggregate of any and all liabilities (including all damages (direct, consequential, indirect, incidental or other damages), claim, costs, expenses, legal fees of any party) of Mead & Hunt, Inc. and its sub-consultants to the Client exceeds Mead & Hunt, Inc. s fee for services rendered for the PROJECT. 18. The invalidity of any provision of this Agreement shall in no manner affect the validity of any other provision of this Agreement and the remainder of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 20. If a dispute arises out of or relates to the Contract and/or General Terms, or its breach, the parties shall endeavor to settle the dispute first through direct discussions. If the dispute cannot be settled through direct discussions, the parties shall endeavor to settle the dispute by mediation. If mediation is unsuccessful, then the parties may exercise their rights at law. 21. The parties agree that Mead & Hunt, Inc. s services in connection with the Contract and General Terms shall not subject any of Mead & Hunt, Inc. s current or former employees, officers, directors or shareholders to any personal legal liability for any breaches of this agreement or for any negligence in performing any services in connection with this agreement even if such claim arises out of and/or has been caused in whole or in part by negligence on the part of Mead & Hunt, Inc. s current or former employees, officers, directors or shareholders. Therefore, notwithstanding anything to the contrary contained herein, the Client agrees that the Client s sole and exclusive remedy, for any breach of contract or any negligent performance of services in connection with this agreement shall be a claim against Mead & Hunt, Inc., and any claim, demand, suit, or judgment shall be asserted only as against Mead & Hunt, Inc. s corporate entity, and not against any of Mead & Hunt, Inc. s current or former employees, officers, directors, or shareholders, and the Client covenants not to sue these individuals. Each of Mead & Hunt, Inc. s current and former employees, officers, directors or shareholders are made express beneficiaries of this Paragraph. 22. This agreement shall be construed and interpreted in accordance with the laws of the state of Wisconsin. No action may be brought except in the state of Wisconsin. 19. None of the rights and/or obligations of either party hereunder may be assigned except with the prior written consent of the other party, and any attempted assignment without such consent shall be void. General Terms and Conditions/1-16 Page 8 of 8 Air Services Copyright Mead & Hunt, Inc. (No copying or use without written permission)

18 EXHIBIT 1 AIR SERVICE CONSULTANT MEAD & HUNT SCOPE OF WORK - Year 1 October 1, 2016 to September 30, 2017 A. True Market Estimate $ 8, B. Route Forecast $ 4, C. Messaging and Presentation Packages $ 3, D. Airline Headquarters Meetings $ 3, E. Industry Conference support $ 1, F. Passenger Survey $ 2, G. Airline Incentive Program (SCASDP grant) $ 9, H. Ongoing Data $ 1, I. Performance Monitoring $ 4, J. On Call Research $ - SUBTOTAL: $ 40, FY17 Airport Marketing Budget $ 30, Amount Budget Short of Needed Funding: $ (10,385.00) Leaves no additional funds for any other marketing & advertising

19 EXHIBIT 2 AIR SERVICE CONSULTANT MEAD & HUNT SCOPE OF WORK - Year 1 - Base Contract October 1, 2016 to September 30, 2017 A. True Market Estimate $ 8, B. Route Forecast $ - C. Messaging and Presentation Packages $ - D. Airline Headquarters Meetings $ 9, E. Industry Conference support $ - F. Passenger Survey $ - G. Airline Incentive Program (SCASDP grant) $ - H. Ongoing Data $ - I. Performance Monitoring $ - J. On Call Research $ 2, SUBTOTAL: $ 21, FY17 Airport Advertising Budget $ 30, Minus Mead & Hunt Approved Services $ (21,455.00) Available for General Advertising & Marketing $ 8, If Airport receives FY2017 MDOT Grant, then: MDOT Air Service Grant $ 20, Minus SCASDP Application submittal (Item G above) $ (9,990.00) Plus General Advertising & Marketing $ (above) $ 8, Available for General Advertising & Marketing (total) $ 18,555.00

20 MUSKEGON COUNTY AIRPORT Advisory Committee Members 09/23/16 MUSKEGON COUNTY COMMISSIONERS Rillastine Wilkins, Chair Transportation Committee th Street Muskegon Hts, MI (home) (Term by Virtue of Office) Terry Sabo Transportation Committee 1188 N. Robinwood Drive Muskegon, MI (home) (Term Expires 12/31/16) Bob Scolnik Transportation Committee 4460 Cherrywood Court Muskegon, MI (home) (Term Expires 12/31/16) AIRPORT BUSINESS PARK TENANTS Terry Boer 2210 Leonard Street, NE Grand Rapids, MI (home) (work) (Term Expires 12/31/16) VACANT (Term Expires ) CHAMBER OF COMMERCE Rachel Stewart 81 Hamilton Avenue, Apt. 38 Muskegon, MI (home) (work) rstewart@muskegon.org (Term Expires 12/31/17) PUBLIC SECTOR David Pickard PO Box 272 Montague, MI (home) dlperiod@aol.com (Term Expires 12/31/17) PRIVATE SECTOR Rich Houtteman 6705 Shari Whitehall, MI (home) (work) richard.houtteman@cmsenergy.com (Term Expires 12/31/17) Robert Wygant 1287 Scenic Drive Muskegon, MI (home) bobamr@aol.com (Term Expires 12/31/17) Peggy Foster 24 N. Wolf Lake Road Muskegon, MI (home) (work) garysguns2000@yahoo.com (Term Expires 12/31/16) NORTON SHORES Anthony Chandler City of Norton Shores 4814 Henry Street Norton Shores, MI x1379 (work) achandler@nortonshores.org (Term Expires 12/31/16)

21 Airport Advisory Committee Meeting Calendar 2016 JANUARY FEBRUARY MARCH APRIL S M T W T F S S M T W T F S S M T W T F S S M T W T F S MAY JUNE JULY AUGUST S M T W T F S S M T W T F S S M T W T F S S M T W T F S SEPTEMBER OCTOBER NOVEMBER DECEMBER S M T W T F S S M T W T F S S M T W T F S S M T W T F S Meetings are at 12:00 noon - The Depot/Convention & Visitors Bureau - Conference Room Airport Advisory Committee meetings are held the first Tuesday of the month. ** NOTE - The March 8 meeting will be held at the Airport Administration Building **