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HomeMy WebLinkAbout2020-12-8 4, Town of Nantucket2:21 , ,, NANTUCKET MEMORIAL AIRPORT 14 Airport Road Nantucket Island, Massachusetts 02554 Thomas M. Rafter,Airport Manager A r. 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 December 8,2020 The meeting was called to order at 5:18 pm by Chairman Daniel Drake with the following Commissioners present: Arthur Gasbarro, Andrea Planzer, Jeanette Topham 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: Tom Rafter, Airport Manager, Noah Karberg, Assistant Airport Manager, Jamie Sandsbury, Business and Finance Manager, Katy Perales, Office Manager and Lillian Sylvia,Administrative Assistant. Also present were Jed Merrow, McFarland Johnson, Inc., Rich Lasdin, McFarland Johnson, Inc. and Nick Deres, Jacobs Engineering Group, 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 11/10/20 draft minutes. Second by Mr. Bouscaren and Passed by the following roll call vote: Ms. Planzer-Aye Ms. Topham-Aye Mr. Bouscaren-Aye Mr. Gasbarro-Aye Mr. Drake-Aye Ms. Topham made a Motion to ratify the 11/18/20 and 12/2/20 Warrants. Second by Ms. Planzer and Passed by the following roll call vote: Ms. Planzer-Aye Ms. Topham-Aye Mr. Bouscaren-Aye Mr. Gasbarro-Aye Mr. Drake-Aye Pending Leases/Contracts — Mr. Rafter presented for approval the following agreements and contracts: + Joffe Finance Corp.- consent to sublease hangar 5 between Joffe Finance Corp and Old Crow, LLC, Hagedorn Aviation Inc., James Hagedorn. 4- Hyannis Air Service, Inc.DBA Cape Air/Nantucket Airlines- lease amendment No. 1 to the current lease agreement to add charter service to intended uses. + Johnson Controls Fire Protection LP-contract amendment No.2 in the amount of$2,000 to replace alarm panel circuit board, increasing the maximum project amount to $41,168. Stantec Consulting Services,Inc.-task order STANTEC-N-02 in the amount of$11.240 for a seismic certificate to complete new lease for FAA. • Aero Specialties,Inc.-contract in the amount of$42,557 for supply and delivery of JetGo 900 28V ground power unit(GPU). + Water Filtration of New England,DBA Culligan-contract in the amount of$40,700 for the purchase and installation of Point of Entry treatment Systems (POET). This includes five(5) systems for four(4)residences. + Jacobs Engineering Group,Inc:supplemental agreement No.2 in the amount of$29,038 for fuel farm improvements phase II. This project will be rebid. Mr.Bouscaren made a Motion to approve the following as shown on exhibit 1-Joffe Finance Corp, Hyannis Air Service, Inc., Anderson & Krieger, Johnson Controls Fire Protection LP, Stantec Consulting Services,Inc,Aero Specialties,Inc.and Jacobs Engineering Group,Inc. Second by Ms. Planzer and Passed by the following roll call vote: Ms. Planzer-Aye Ms. Topham-Aye Mr. Bouscaren-Aye Mr. Gasbarro-Aye Mr. Drake-Aye Mr. Gasbarro made a Motion to approve the contract with Water Filtration of New England, DBA Culligan, subject to its competition and satisfactory form and to emable the Chairman to sign as sole signatory. Second by Mr. Bouscaren and Passed by the following roll call vote: Ms. Planzer- Aye Ms. Topham- Aye Mr. Bouscaren-Aye Mr. Gasbarro- Aye Mr. Drake- Aye Mr. Rafter explained that Southern Airways, a pending operating agreement on Exhibit 1, has not returned a signed agreement after multiple months of Administration following up and asking. Mr. Rafter explained that the penalty fee for operating without an agreement was waived at the beginning of COVID but asked the commission to now impose the penalty for operating without an agreement. 12/8/20 Airport Commission Meeting Page 2 of 9 Mr. Bouscaren made a Motion to impose the penalty on Southern Airways for operating without an agreement for the months October through December. Second by Mr. Gasbarro and Passed by the following roll call vote: Ms. Planzer-Aye Ms. Topham-Aye Mr. Bouscaren- Aye Mr. Gasbarro-Aye Mr. Drake- Aye Pending Matters—Mr. Rafter reported on: + 091019-01 Capital Approval Process/Home Rule Petition-Mr. Rafter reported that Article 94 in the warrant was passed at Annual Town Meeting(ATM)and has been sent to the state. Mr. Karberg has reached out to State Representatives and have established a frequency schedule to check on progress. 071420-03 Per-a polyfluoroalkyl substances(PFAS)Investigation Update-Mr. Rafter reviewed an updated PFAS template showing numbers for Madequecham Valley Road, Monohansett and Nobadeer Way in the following categories- • Access Agreements • Sampling Status • Test Results • POETs winterized • Homes closed/unoccupied • Residences with Bottled Water • Connections to Town Water Mr. Rafter explained that the water main will be installed with using the trench and fill,to avoid having to obtsin easements. Consultants have presented the concept and proposed mitigation strategies to Natural Heritage and are waiting for their review. Mr. Rafter explained that consultants will be contacting individual residents on Noabdeer and Evergreen way for water service,and plan on holding a virtual webinar. Mr. Rafter asked for a Commissioner to be assigned or volunteer to join the webinar. Mr. Drake asked that any Commissioner interested in attending to contact Mr. Rafter directly. Mr. Rafter provided an update on the Airport's Immediate Response Action(IRA), which has been uploaded to the Airport's PFAS website and the Department of Environmental Protections (DEP's)website. Through the consultant,the Airport submits these monthly to the DEP. This document identifies the above information in more detail. Mr. Rafter reported that consultants are conducting new and ongoing water sampling and soil sampling on release sites on Airport property. as well as sampling for surface water and soil groundwater on the leasehold of an airport tenant.. Results for these samples are expected within the next two weeks. Mr. Rafter reported that the Airport is working with the Town and their consultants on the town wide issues regarding PFAS. 12/8/20 Airport Commission Meeting Page 3 of 9 120820-1 Final Environmental Assessment and Environmental Impact Report(EA/EIR)- Mr. Rafter reported that links for the EA/EIR were sent to all Commissioners. The consultant included the construction of the earth berm as a preferred alternative and enhancement to reduce ground noise from the south apron expansion. A funding source or specific schedule for construction of the berm are not included, but it is noted that the berm could be constructed within the same time period as the projects. Mr. Gasbarro expressed his concern that one of the major categories related to the environmental permitting is noise and that the noise study that was conducted demonstrated that there will be an impact on the properties along the fence. Essentially the Airport is not proposing mitigation for the increase of noise and believes that if the Airport is going to propose the South Apron expansion,there should be a commitment to the construction of the noise berm to mitigate the increase in noise to those properties. Mr. Rafter explained that the berm is identified in the EI/EIR as a preferred alternative and discusses the benefits and reduction of noise and that the only thing missing is funding and the construction schedule. Mr. Drake asked the cost of the berm. Mr. Rafter confirmed with the consultant that the mitigation is about$470,000 and the construction is about$620,000. If the berm is vegetated with shrubs and trees that could cost an additional $45,000. Mr. Gasbarro doesn't believe it's fair to the property owners along the fence for the Airport to commit to the apron expansion but not to commit to the noise berm.. Mr. Drake explained that the Airport is currently dealing with some serious financial uncertainties, which include PFAS,reconstruction of the fuel farm, issues with the Taxiway E project and more. Mr. Drake recommended not committing to the berm at this time since a final decision will likely not be required for two or three years so the fiscal circumstances of the Airport at that time can be consideredbefore making a final decision.. Mr. Bouscaren and Ms. Planzer both agreed with not currently committing to the berm. Mr. Gasbarro asked the consultant if it would be possible to determine from Natural Heritage the level of mitigation that may or may not be required if the berm were to be constructed. Mr. Merrow said that they have directly asked Natural Heritage this question, and they have not received a formal answer. It could be considered a temporary impact,which would require less mitigation, or it could be considered a permanent impact which would put the Airport over the five(5)acre threshold of impact to the shrub and tree habitat,which would require mitigation. A public meeting will be scheduled for the week of January 11-15, 2021 to review the EA/EIR submission. Mr. Bouscaren made a Motion to approve the EA/EIR submission as is. Second by Ms. Planzer and Passed by the following roll call vote: Ms. Planzer-Aye Ms. Topham-Aye Mr. Bouscaren-Aye Mr. Gasbarro-No Mr. Drake-Aye 12/8/20 Airport Commission Meeting Page 4 of 9 120820-2 Airport Lighting Policy-Mr. Rafter reported that the policy references a model lighting ordnance(MLO),which is a Background, Uplight, Glare( bug)classification that has been developed by the International Dark Sky's Association in conjunction with the Illuminating Engineers Group. This helps municipalities develop lighting standards. The Commission recommended adding a reference of Chapter 102 of the Town bylaws and voting on the policy at the January meeting. Finance- Mr. Rafter reported on: 071420-4 Lease Payment Abatement/Deferment Discussion-Met with Crosswinds Restaurant and are continuing to work to obtain a solution to the impacts that they have faced with COVID. 101320-04 FY22 Final Budget-Mr. Rafter reviewed the proposed FY 2022 budget with minimal changes from the draft that was submitted at the 11/10/20 commission meeting. With $2.172,000 CARES Act funding, a balanced budget for FY22 can be presented. The CARES Act fund will be depleted after FY22. Budgeted Revenue for FY20 was$10 Million. After COVID-19 the FY21 budget was revised down to $5.5 Million. Based on actual results from this current fiscal year, FY22 revenues are expected to be $7.6 Million. Expenses for FY20 were $9.3 Million. After the revised COVID-19 budget,expenses increased to $9.4 Million. The expense budget for FY22 is proposed to be$10 Million,driven primarily by moving forward with filling positions that have been deferred and need to be backfilled as well as increased professional services associated with PFAS, resulting in a projected net earnings deficit of$2.5 Million,which will be covered by the usual $400,000 PFC transfer and the$2.1 Million CARES Act funding. Retained earnings have been certified and as of July 1, 2020,there are $2.889 Million. The fuel revolver balance is projected to be about$1.2 Million for FY20 and a large portion will be used to fund the fuel farm rehabilitation project. Continuing to fund the stabilization fund,which has a beginning balance of $442,000 for FY21 and looking for a recommendation to transfer this money later in the year. PFC balance has been through September 30th and the FY21 ending balance is projected to be $1.39 Million. The PFC audit identifies its history and current status. Debt service for PFAS will be a in the form of A Bond Anticipation note in FY22,with long-term debt service beginning in FY23. Jamie Sandsbury, Business and Finance manager explained that the PFC transfer was lowered to $250,000 because of the low PFC reliance. Mr. Bouscaren made a Motion to approve the FY22 budget as submitted. Second by Ms. Planzer and Passed by the following roll call vote: Ms. Planzer-Aye Ms. Topham-Aye Mr. Bouscaren-Aye Mr. Gasbarro-Aye Mr. Drake-Aye 120820-3 Certified Retained Earnings-Mr. Rafter reported that the retained earnings were certified at$2.889 Million. This is down from the previous certified retained earnings of$3.58 Million. 12/8/20 Airport Commission Meeting Page 5 of 9 120820-4 Fuel Farm Rehabilitation Second Supplemental Capital request-Mr. Rafter reported that bids for the Fuel Farm Rehabilitation project were received higher than anticipated. The Airport will request 2021 Annual Town Meeting(ATM) adding$1.5 Million to a previously approved FY22 capital request. The current proposed funding sources would be as follows- $1 Million from the fuel revolver, $201,678 from retained earnings and a borrowing authorization of $300,000, increasing the borrowing on the project to a total of$800,000. if it is necessary. Mr. Bouscaren made a Motion to approve the supplemental budget of$1.5 Million for the Fuel Farm Rehabilitation. Second by Ms. Topham and Passed by the following roll call vote: Ms. Planzer-Aye Ms. Topham-Aye Mr. Bouscaren-Aye Mr. Gasbarro-Aye Mr. Drake-Aye 120820-5 Passenger Facility Charge (PFC) Audit- Mr. Rafter reviewed the PFC audit which identifies its history and current status. 120820-6 Thanksgiving Holiday Sales Results- Mr. Rafter reported that FBO sales were down by 7% or$7,783 from last year. 120820-7 Targeted Salary Adjustments-Mr. Rafter reported that after conducting some research into other Airports and the salaries associated with the Assistant Airport Manager's position and Finance Director's position, he found that those current positions at Nantucket Airport are paid below the low and the average salary ranges. Based on this information Mr. Rafter requested to increase the Finance Director's salary by 9% and the Assistant Airport Managers salary by 12% over a two-year period effective 1/1/2021. Mr. Rafter noted that the Assistant Airport Manager never received the $5,000 increase that he was supposed to have received when he obtainedhis accreditation. Ms. Topham doesn't believe giving these raises during COVID-19 is appropriate. Mr. Gasbarro commented that he believes this is the managers decision and appreciates Mr. Rafter informing the Commission. Mr. Gasbarro shares the same state of concerns with the economy as Ms. Topham but believes giving these raises over a two-year period alleviates those concerns. Mr. Bouscaren made a Motion to increase the Assistant Airport managers Salary by 12 °A) and the Finance Managers salary by 9% over a two-year period, effective January 1, 2021. Second by Ms. Planzer and Passed by the following roll call vote: Ms. Planzer- Aye Ms. Topham-No Mr. Bouscaren-Aye Mr. Gasbarro-Aye Mr. Drake- Aye Manager's Report Project Updates—Mr. Rafter reported: + Taxiway E-Project shut down for the season.A portion of phase II remains uncertain due to subsurface issues that were uncovered. The Airport has been working closely with MassDOT, FAA and consultants to develop a three-pronged approach plan- 1) open a 12/8/20 Airport Commission Meeting Page 6 of 9 portion of phase II to minimize operational impacts. 2) investigate the extent of the subsurface issue that exists at Taxiway E and A intersection. 3) develop a more thorough testing for subsequent phases to avoid and/or address any future potential issues. + Security Project Phase II- Work continues. Conduits are being installed in the terminal and FBO buildings. + Fuel Farm Rehabilitation- Received bids that came in $1.4 Million over the project estimate. Will be rebid. Commission approved the Airport to request to the capital committee and through Annual Town Meeting(ATM)adding$1.5 Million to a previously approved FY22 capital request. • EAJEIR- was discussed earlier in this agenda and was approved by the Commission to submit. + ALP Geometry- scope of work is being reviewed by FAA and MassDOT. + Hangar Development- Submitted a request for a warrant article to the town allowing for forty (40)year lease terms for development of hangars. Working with possible interested parties on various types of hangar development. Reviewing draft leases with legal. RFP/IFB Bid Status—Mr. Rafter reported on: + Fuel Farm Rehabilitation- Previously discussed. Letters have gone out to bidders regarding canceling of initial bid. + Bunker Road Land- Request for Proposal (RFP) for additional land located on Bunker Road is available December 9, 2020. Bids are due January 8,2021. + Aircraft Tug-reviewing bids. + Security System Maintenance Program-developing an RFP for a long-term maintenance program of the security system. + Car Rental Agreements- working with town on addressing issues with current bylaws relating to rental cars.Once these issues are addressed an RFP will be developed for Airport operators. Mr. Gasbarro asked for more detail regarding the car rentals. Mr. Rafter explained that he is working with the Town to set up a meeting to discuss issues regarding medallions. Mr. Rafter explained the current Town bylaw for rental cars has a cap of seven hundred (700) of which all appear to be acquired. There is a concern that if the Airport were to issue an RFP for rental car agreements and a new entrant were selected, the new entrant could be precluded from operating because they cannot obtain the necessary medallions. There is also confusion of how the medallions are being used and whether current operators are using all the medallions. + Delta Fields- a land release request was never submitted to FAA for this parcel. Ms. Topham made a Motion to approve converting the Delta Field land from aeronautical to non- aeronautical use. Second by Ms. Planzer and Passed by the following roll call vote: Ms. Planzer-Aye Ms. Topham-Aye Mr. Bouscaren- Aye Mr. Gasbarro-Aye Mr. Drake-Aye Operations—Mr. Rafter reported: • OPS is working with FAA to review various documents as part of a virtual certification inspection. 12/8/20 Airport Commission Meeting Page 7 of 9 + Mr. Karberg working with FAA to obtain a category one (1) special authorization for Runway 24, which will lower the minimums for pilots operating in instrument flight conditions. + Continue preparing for winter using and the Airport's snow and ice plan. + Working on drainage concerns with taxiway E. + JetBlue discontinues servicefor the season on January 3, 2021. + Working with Air Traffic Control to update the lighting control touch screen in the tower. Statistics—Mr. Rafter reported that monthly stats will be reviewed at the January Meeting. Personnel Report-Mr. Rafter reported: + Hired Fiona Johnson as a new customer service representative in the FBO. Commissioners Comments- Ms. Topham expressed concern about Cape Air's customer service. 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 determined that an open session may have detrimental effect on the bargaining position of the Airport Commission. Clause 3: To Discuss Strategy with Respect to Pursuing Legal Claims against Manufacturer of Polyfluoroalkyl Substances (PFAS), where the Chair has Determined that an Open Meeting May have a Detrimental Effect on the Litigating Position of the Airport Commission. Second by Mr. Bouscaren and Passed unanimously, by the following roll-call vote: Ms. Planzer-Aye Ms. Topham-No Mr. Bouscaren- Aye Mr. Gasbarro-Aye Mr. Drake-Aye Meeting adjourned at 6:40pm. Respectfully submitted, Lillian Sylvia,Recorder 12/8/20 Airport Commission Meeting Page 8 of 9 , Master List of Documents Used 12/8//20 Agenda including Exhibit 1 (Handout) 11/10/20 Draft Minutes 11/18/20 Warrant Approvals 12/2/20 Warrant Approvals Joffe Finance Corp Consent to Sublease Hyannis Air Service, Inc. Lease Amendment Anderson&Krieger Letter of Agreement(Handout) Johnson Controls Fire Protection LP Contract Amendment Stantec Consulting Services, Inc. Task Order STANTEC-N-02 Aero Specialties,Inc. Contract Water Filtration of New England Contract Jacobs Engineering Group, Inc. Supplemental Agreement No.2 PFAS Update Airport Lighting Policy FY22 Final Budget Fuel Farm Rehabilitation Second Supplemental Capital Request PFC Audit 12/8/20 Airport Commission Meeting Page 9 of 9