2001 - Saginaw County

Board of Commissioners November 13, 2001
FROM: COMMITTEE ON COUNTY SERVICES -- 1.5 NOVEMBER 13, 2001
Your committee has considered communication 11-13-3 from Michael
Thompson, Administration Director forwarding a recommendation from
the Saginaw County Airport Committee to accept a proposed plan
that privatizes H.W. Browne Airport (Airport) operations.
We met with Mr. Thompson who informed us the Airport's 2001/02
budget includes salary and fringe benefit expenses covering one
full time position and one half time position. These expenses will
increase with each ensuing budget year. Privatization would reduce
expenses while, at the same time ensure that all necessary
operational functions continue. The proposed plan is as follows:
1. Both of the existing employees would retire effective
1/1/2002. At that time the County would no longer have any
Airport employees on its payroll.
2. One of the former employees, Alan R. Kaufman, would enter
into a contractual agreement with Saginaw County to provide
all of the necessary operational services at the Airport. Mr.
Kaufman has indicated that he would hire the other former
employee, Mr. Al Mack, to continue providing services at the
airport.
Under this arrangement, the Airport would continue to benefit from
the services of skilled and experienced individuals while reducing
its costs. A summary of the annualized first year airport cost
savings under this privatization plan is as follows:
2001/02 Budgeted Salary & Fringe Benefit Expenses $82,008
First Year Operational Services Contract 50,400
First Year Annualized Airport Budget Savings $31,608
38.54%
The proposed contract would be for January 1, 2002 through
December 31, 2004 at the following annual rates: $50,400, $52,800,
and $55,200, for calendar years 2002, 2003, and 2004,
respectively.
It is the recommendation of your committee that the Board approve
the privatization plan under the terms of a three-(3) year
contract with language subject to review and approval of the
Chairman of the Board, County Controller and County Civil Counsel.
Respectfully submitted,
COMMITTEE ON COUNTY SERVICES
Todd M. Hare, Chair
Raymond F. Bartels, Vice-Chair
Kenneth B. Horn
Michael P. O'Hare
Carl E. Ruth
Robert L. Fish
APPROPRIATIONS AUTHORIZATION: It is the recommendation of your
committee to concur with the above.
James M. Graham, Chair
Connie D. Smith, Vice Chair
By Commissioner Hare: That the Report of the Committee be received
and the recommendations contained therein be adopted. Approved.
FROM: COMMITTEE ON COUNTY SERVICES -- 1.6 NOVEMBER 13, 2001
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