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Home My WebLink About2020-6-9 NANTUCKET TOWN CLERK Town of Nantucket 2121 AUG -3 PK 1: 36 NANTUCKET MEMORIAL AIRPORT 14 Airport Road Nantucket Island, Massachusetts 02554 Thomas M.Rafter,Airport Manager A •h Commissioners Phone:(508)325-5300 Daniel W.Drake,Chairman Fax:(508)325-5306 Arthur D.Gasbarro,Vice Chair Anthony G.Bouscaren Andrea N.Planzer Jeanette D.Topham AIRPORT COMMISSION MEETING June 9,2020 The meeting was called to order at 2:30 pm by Chairman Daniel Drake with the following Commissioners present: Jeanette Topham,Arthur Gasbarro and Anthony Bouscaren. This meeting was conducted remotely by video conference via Zoom app and broadcasted on the Town of Nantucket YouTube Channel consistent with Governor Baker's Executive Order of March 12, 2020, due to the current State of Emergency in the Commonwealth and due to the outbreak of the"COVID-19 Virus". Airport employees present were: Noah Karberg, Assistant Airport Manager, Jamie Sandsbury, Business and Finance Manager, Katy Perales, Office Manager and Lillian Sylvia, Administrative Assistant. Also present was: Rich Lasdin,McFarland Johnson, Inc. Mr. Drake read the Town's virtual meeting statement. Mr. Drake announced the meeting was being audio and video recorded. Mr. Drake asked for comments on the Agenda;hearing none,the Agenda was adopted. Mr.Gasbarro made a Motion to approve the draft minutes dated 5/12/20.Second by Mr.Bouscaren and Passed by the following roll call vote: Mr. Bouscaren-Aye Ms. Topham-Aye Mr. Gasbarro-Aye Mr. Drake-Aye Ms. Topham made a Motion to ratify the 5/13/20 and 5/27/20 Warrants. Second by Mr. Gasbarro and Passed by the following roll call vote: Mr. Bouscaren-Aye Ms. Topham-Aye Mr. Gasbarro-Aye Mr. Drake-Aye Pending Leases/Contracts—Mr.Karberg presented for approval the following contracts: 4- Republic Airways dba American Eagle- Seasonal Airline Lease Agreement in the amount of$20,267. Plus landing fees and stair use as needed. *� SpectaculAir, LLC- Operating agreement for air charter service for an annual business fee of$1,500.Plus landing and ramp fees. • G Jet,Intl. dba Flying Zebra- Operating agreement for air charter service for an annual business fee of$1,500. Plus landing and ramp fees.Fly Blade affiliate. + Lawrence-Lynch Corp.- Contract in the amount of$15,977,304 to reconstruct, mark, light and sign Taxiway E. FAA AIP no. 3-25-0033-07X-2020. Anticipated funding: FAA 95%and MassDOT 5%. + McFarland Johnson, Inc.- Contract for AIP and On-Call Planning and Architectural Services. Task orders are assigned for each project with project amount. This is a three- year contract. + Daedalus Projects,Inc.-Contract amendment in the amount of$19,581.07 for an owner's project manager for the security upgrades project.Amendment no. 1 extends the expiration date to 8/12/2023 and adds funds based on the project being split into two phases. + American Association of Airport Executives- Contract in the amount of$46,200 for interactive employee training learning suite renewal. This is a three-year agreement that expires 6/30/2023. • Grey Wall(Veoci)-Contract in the amount of$99,600 for three-year software subscription for Veoci software. Includes 30 hours of professional servicers each year. + Weston Solutions,Inc.-Contract amendment in the amount of$60,635 for environmental consulting services for site assessment for per- and polyfluoroalkyl (PFAS) substances. Amendment no.2 to the current contract to increase scope and funds. Ms. Topham asked where Lawrence Lynch, Inc. is getting asphalt for the Taxiway E project. Mr. Karberg explained that they will be barging in materials and are currently negotiating to rent the existing asphalt plant located on Bunker Road or they will permit and bring in a temporary asphalt plant,that the Airport would allow to be placed on a corner lot located at the end of Bunker Road. Mr. Bouscaren made a Motion to approve the agreements, contracts and contract amendments as presented. Second by Ms.Topham and Passed by the following roll call vote- Mr.Bouscaren-Aye Ms. Topham-Aye Mr. Gasbarro-Aye Mr.Drake-Aye Pending Matters—Mr.Karberg reported on: • 050916-1 Crew Quarters Development-No change. + 091019-01 Town Government Study Committee-Mr.Karberg reported that the Article 94 in the warrant for Annual Town Meeting(ATM)will not be part of the abbreviated ATM.The town is looking to limit the number of articles that go to ATM The topic will be addressed at the next Special Town Meeting or ATM. 6/9//20 Airport Commission Meeting Page 2 of 8 060920-1 EA-EM McFarland Johnson,Inc Presentation(15-20 mins)-Mr.Karberg introduced Rich Lasdin,Project Manager from McFarland Johnson, Inc.who is overseeing the five-year environmental permitting. Mr.Lasdin reviewed a presentation on the following EI-EIR Airport Layout Plan(AIP)projects- o Relocate stub taxiways and rehabilitate runway 6-24 o Decommission runway 12-30 and convert to taxiway C o Replace airfield lighting home run cables o Construct a highspeed taxiway or additional right angle exit taxiway for runway 6-24. o Construct south apron expansion o Relocated taxiway G o Relocate perimeter road and fence o Construct Nobadeer Farm crew quarters o Construct ground service equipment building Potential land lease property adjacent to marine storage facility on Sun Island Road. Mr. Gasbarro will call an Environmental Subcommittee meeting to discuss these projects further. 060920-2 Nantucket Regal Group/Crosswinds Restaurant Discussion Regarding Outside Dining Provisions- Mr. Karberg reported that Crosswinds Restaurant has requested the Commission to allow Crosswinds to work with Airport staff to come up with a plan to allow for outdoor dining in the grass area next to the restaurant and the gazebo.This is in response to COVID- 19 requirements and allowing Crosswinds to maintain service capacity. Mr. Gasbarro made a Motion to authorize Airport staff to work with Regal Group/Crosswinds to establish outdoor seating and other service arrangements for its operations through the end of the calendar year subject to approval by the chairman. Second by Ms. Topham and Passed by the following roll call vote- Mr. Bouscaren-Aye Ms. Topham-Aye Mr. Gasbarro-Aye Mr.Drake-Aye 060920-3 MassDOT ASMP Grant Award-Purchase Dump Truck-$49,869.20 Mr. Gasbarro made a Motion to accept the Grant for the purchase of the Dump Truck for $49,869.20. Second by Ms.Topham and Passed by the following roll call vote- Mr.Bouscaren-Aye Ms. Topham-Aye Mr. Gasbarro-Aye Mr. Drake-Aye 060920-4 General Fund Repayment Proposal and Discussion of In-Kind Services- $228,010.65- Mr. Drake reported that this falls under the repayment schedule that the Airport is committed to from advances from the Town to the Airport back in 2011 and 2012. Ms. Topham made a Motion to authorize the repayment of$228,010.65. Second by Mr. Gasbarro and Passed by the following roll call vote- Mr.Bouscaren-Aye Ms. Topham-Aye Mr. Gasbarro-Aye Mr.Drake-Aye 6/9//20 Airport Commission Meeting Page 3 of 8 Finance-Mr.Karberg reported on: 051220-1 FAA CARES Act Grant-Update on Reimbursement-The Airport submitted an application to the FAA for$6.2 Million under the Coronavirus Air,Relief and Economic Security (CARES)Act,to which the Airport was entitled.The Airport has submitted payroll reimbursement requests for April and May and does not anticipate submitting any payroll reimbursement requests for June. The amount of the four payrolls for April and May is$560,097. The Airport intends on submitting reimbursements for 70%of payroll expenses on a monthly basis,for a total of$3,470,380 for FY21. $2,172,801 would remain available for FY22 and beyond. The ATM ACK FY 2021 enterprise fund budget will only show$1.4 Million for personnel expense,resulting from netting out the committed CARES Act funding. (The actual gross amount would be$4.9 Million,before reimbursement) 041420-1 FY20 Financial Impacts Discussion-Updated FY20 impacts due to the COVID-19 health crisis are projected as follows: Revenues are expected to be about$110,000 less than budgeted,driven by$207,000 reduction of fuel revolver contribution to the operating budget,Net operating revenue is currently projected to be $97,000 over budget. The Airport saved$242,000 in expenses by not backfilling open positions.However,expenses are largely fixed and increased due to COVID-19 response,rent deferrals and PFAS efforts.Expenses came in$183,000 over budget with total expenses$59,000 less than anticipated.After no longer transferring$400,000 from the fuel revolver that was supposed to take place at ATM but continuing with the yearly standard transfer of$400,000 from the PFC account and$560,000 CARES Act funding,it results in a surplus of$508,000. This surplus does not include the approved Contract Amendment with Weston Solutions in the amount of$60,635.After the paydown of certain capital projects from Retained Earnings,ACK's Retained Earnings balance at fiscal year end should be about $1.7 Million. 041420-2 FY 21 Budget Approval-Mr.Karberg reviewed the revised FY21 budget.By breaking out functional sections of the operation and applying an increasing rate of monthly recovery,revenue is anticipated to decrease from$9.3 million to$5.5 million. Expenses will decrease by$319,000,resulting in a$4 million shortfall. There is a$3.4 million reliance on available CARES Act funding.No reliance on retained earnings.Fuel revolver cap was lowered to$2 million, anticipating a$458,000 contribution to operating revenue. Regarding PFAS investigation and remediation,work has begun in anticipation of the benefit of$250,000 transfer to be considered at ATM. The goal is to transfer funds over the course of several years to manage project cash flow. Ms. Topham made a Motion to approve the revised FY21 budget. Second by Mr. Bouscaren and passed by the following roll call vote: Mr.Bouscaren-Aye Ms. Topham-Aye Mr. Gasbarro-Aye Mr. Drake-Aye Manager's Report Project Updates—Mr. Karberg reported: + Airfields Markings-For runways 15-33 and 12-30.Project was awarded to HiWay Safety and is 80%funded by MassDOT. Work will begin 6/10/2020 and will take 4-5 days. 4- Crack Sealing and Seal Coating- 100%funded by MassDOT. Phase 1 for crack sealing was completed and phase 2 for sealcoating will take place on 6/21/2020. 6/9//20 Airport Commission Meeting Page 4 of 8 + Seasonal Hold Room- Tent has been raised and is operational. This was completed by Airport staff. + Security Project Phase I- Work is 95% complete. Close-out meeting is planned for the week of 6/15. + Security Project Phase II- work to begin in the fall of 2020, pending appropriation approval at ATM. + Taxiway E-Bid was awarded to Lawrence Lynch. Grant application will be filed shortly. Notified by FAA that the Airport is eligible for 100% FAA funding. Material will begin being barged over in preparation for work. + ALP Update- Runway 12-30, which will show the decommissioning of the runway to remain as a full-time taxiway.Awaiting FAA signature. Scope of design for stub taxiways is being reviewed by FAA. • EA/EIR-Projects were reviewed in presentation by Mr.Lasdin,McFarland Johnson Inc. + Thompson House POET System-Point of Entry Treatment(POET)system for water has been installed in the Thompson House regarding Ploy-Fluoroalkyl Substances(PFAS).The system was tested and came back at .5 parts per trillion which is the limit of detection. A follow up sample was performed to ensure a zero detect. + Electric Car Charger-Is at Historic District Commission(HDC)for review and approval. • PFC Application #2- Air carrier coordination meeting was held on April 14, 2020 via Skype. Delta participated. Airline comment period closed May 14, 2020 and the public comment period opened April 16, 2020 and closed May 18, 2020. The application anticipates revenue of$1.1 Million, from proposed effective date is May 1, 2024through its expiration date of June 1,2029. 4- PFC Application#1-Through the end of last year the Airport collected$3.2 Million,with a remaining$3.7 Million to collect before the current authority expires in 2024. RFP/IFB Bid Status—Mr. Karberg reported on: + Request for Expression of Interest-Hangar Development-On hold. + Request for Expression of Interest(REOI)-Freight Hangar-On hold. + On-Call Engineering-Has been awarded to Stantec and McFarland Johnson, Inc. 4- On-Call Planning-Has been awarded to McFarland Johnson,Inc. + Automated Door Maintenance-Received one bid and is under review. + Fuel Farm Rehabilitation- Owners Project Manager(OPM) is being advertised starting June 11,2020 and is due June 26,2020 at 2:00PM.Information For Bids(IFB)is scheduled to go out to bid in July. Operations—Mr.Karberg reported: 9- Administration received a special events application from the charitable group Nantucket Neighbor, to work with Crosswinds Restaurant to provide meals to unemployed and underemployed individuals.The Commission came to the conclusion that a special events application is not needed because it is additional business at the Crosswinds Restaurant pick up window,who is already a tenant at the Airport. + Daffodil weekend sales were down 82%, Wine Festival sales were down 75% and Memorial Day Weekend sales were down 66%. + Working to establish new billing rate for reduction of the town repayment.The Airport has large chunks of pavement that another town entity may take,and a recovery rate would be set. • Working with Town to co-manage beach license agreements making sure to follow COVID-19 requirements. + FAA Certification Inspection has been postponed till further notice. 6/9//20 Airport Commission Meeting Page 5 of 8 + Air Traffic Control hours are still reduced. There have been no incidents or word on resumption of traditional hours. + Continue to work on "Return to Work Program". Temporary vinyl decals will be placed around the terminal to follow social distancing and reflect Massachusetts State policy. Some employees are still working modified work schedules due to childcare situations. + Working with FAA on an appropriate scope of soils engineering work,related to Taxiway E construction.The FAA has indicated that investigation work associated with Taxiway E construction should be AIP eligible and waiting for FAA to advise. + Air Service Update(subject to change): o JetBlue will not be operating in June.July Start to be determined.Pulled LaGuardia and White Plains flights.Now anticipating 2-3 daily flights. o American Airlines will be running their regular proposed schedule. o Delta will have one flight daily on Fridays, Saturdays and Sundays. o United will be flying one flight on Saturdays only,June 6th through mid-August. + Allies Air, who subleased Hangar 8 from McGrath Family Trust, has ended freight operation and will maintain 135 operation.McGrath Family Trust has terminated month to month lease and possession of the Hangar has reverted back to the Airport. + Discussing resumption of counter freight with Cape Air.A term sheet is being developed. Statistics—Mr. Karberg reviewed the April 2020 statistics: + Operations are down 60.38%from April 2019; and up 13.05%from last FYTD. • Enplanements are down 93.83%from April 2019;and up .52%from last FYTD. + Jet A Gallons are down 76.28%from April 2019; and up .56%from last FYTD. + Jet A Gallons are down 58.21%from May 2019. • AvGas Gallons are down 37.62%from April 2019; and down 4.24%from last FYTD. • AvGas Gallons are down 76.09%from May 2019. + Freight is down 34.30%from April 2019; and down 5.38%from last FYTD. + 0 Noise complaints were filed for April 2020 compared to 0 in April 2019. Personnel Report-Mr.Karberg reported: + Interviewing for Maintenance Technician Level II position. + Seasonal staff have started.About half the number of seasonal staff as last year. Commissioners Comments- Mr.Gasbarro asked PFAS to be added to the Environmental Subcommittee Agenda. Mr.Drake explained no action is being recommended for salary increases for non-union staff until the union contract is resolved/No negotiations have taken place with the union due to COVID-19, but should resume shortly. Public Comment- None. Having no further business for Open Session, Ms. Topham made a Motion to go into Executive Session,under G.L. Chapter 30A, Section 21A,not to return to Open Session,to review Executive Session Minutes as enumerated on the Agenda; Clause 3: To discuss strategy with respect to the litigation regarding the Gatto claim,where the Chair has determined that an open session may have detrimental effect on the litigating position of the Airport Commission.; Clause 3: To discuss strategy with respect to the litigation regarding Walsh,where the Chair has determined that an open session may have detrimental effect on the litigating position of the Airport Commission; Clause 3: To discuss strategy with respect to collective bargaining,where the Chair has 6/9//20 Airport Commission Meeting Page 6 of 8 determined that an open session may have detrimental effect on the bargaining position of the Airport Commission. Second by Mr. Gasbarro and Passed unanimously,by the following roll- call vote: Mr.Bouscaren-Aye Ms. Topham-Aye Mr. Gasbarro-Aye Mr. Drake-Aye Meeting adjourned at 3:39pm. Respectfully submitted, Lillian Sylvia,Recorder Master List of Documents Used 6/9//20 Agenda including Exhibit 1 5/12/20 Draft Minutes 5/13/20 Warrant Signature Page 5/27/20 Warrant Signature Page Republic Airways dba American Eagle Lease Agreement SpectaculAir,LLC Operating Agreement G Jet,Intl.Operating Agreement Lawrence-Lynch Corp.Contract McFarland Johnson,Inc.On-Call Planning&Architectural Services Contract Daedalus Projects,Inc.Contract Amendment American Association of Airport Executives Contract Grey Wall Contract Weston Solutions,Inc.Contract Amendment Email Correspondence w/Legal-Weston Solutions Amendment EA-EIR Presentation Mass DOT ASMP Grant Award-Purchase of Dump Truck(Handout) FY20 Financial Impacts FY21 Budget Electrical Car Chargers HDC App April 2020 Monthly Statistical Report 6/9//20 Airport Commission Meeting Page 7 of 8 6/9//20 Airport Commission Meeting Page 8 of 8