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HomeMy WebLinkAbout2012-3-27Z ^� D ° Town of Nantucket NANTUCKET MEMORIAL AIRP04V 14 Airport Road -�'i o Nantucket Island, Massachusetts 02554 --� 0 William F. McGrath, Jr., Airport Manager Phone: (508) 325-5300 Fax: (508) 325-5306 z M C') rn_ M a) Connnnissi6r?ers ~ Daniel Wi;rakgChairrnan Arthur D. sbaW, Vice Chair Sheila O'Brien Egan David C. Gray, Sr. Carl D. England, Jr. AIRPORT COMMISSION MEETING March 27, 2012 The meeting was called to order at 5:00 PM by Chairman Daniel W. Drake with the following Commissioners present: Vice Chair Arthur D. Gasbarro, Sheila O'Brien Egan, and David C. Gray, Sr. Carl D. England, Jr. was absent but listened via phone for a portion of the meeting. Also present were Bill McGrath, Interim Airport Manager, Jeff Marks, Airfield Supervisor, David Sylvia, Training and Compliance Coordinator, Tina Smith, Director of Finance and Janine M. Torres, Administrative Assistant. The meeting took place in the 1St Floor Community Room at the Public Safety Facility, 4 Fairgrounds Road. Chairman Drake announced the meeting was being recorded. The Commission Unanimously MISIP approval of the Agenda. The Commission Unanimously MISIP approval of the February 27, 2012 and March 13, 2012 minutes. The Commission unanimously MISIP approval of the April 4, 2012 Warrant. Public Comment None. Manager Search Update & Discussion Janine Torres reviewed the draft schedule of the Assessment Center Weekend scheduled for April 14th through the 16th. Chairman Drake added Doug and Annell Kuelpman of ADK Executive Search will be on Island Tuesday April 3rd to finalize the Assessment Center details and review the short list of candidates with the Commission. This meeting will be held at 4:30 PM in the PSF facility, 1St Floor Meeting Room. Energy Audit The energy audit report from Northern Energy Services (NES) was reviewed and discussed. Mr. Gray was disappointed to see recommendations made on the terminal building which we were told was being built with LEED standards in mind. Mr. Gasbarro pointed out the report indicated an initial capital investment of $68K reduced by a utility co. incentive of $21 K leaving the airport with a project cost of $47K. The report indicates estimated savings in electricity costs per year of $24K which means a two -year payback to the Airport. Mr. Gasbarro added he feels this is a good opportunity for the airport if the funds can be appropriated. NES offers financing at 0% for 24 months. It in unknown of the utility incentive has an expiration date. The report suggests changes in the maintenance building as well as Hangars 2, 3 and 4. Mr. Gasbarro pointed the biggest savings comes from replacing the lights in the hangars with fluorescent lights. Mr. McGrath questions whether explosion proof fixtures need to be in the hangars due to the fuel in the planes and is unsure whether the audit team knew this. Mr. Drake asked if NES was affiliated with National Grid and questions the procurement process to move forward. The subject was tabled to the next meeting pending to allow the procurement and fuel questions to be researched Control Burn Mr. McGrath reported a meeting with the Land Bank took place to discuss mutual aid towards completing required control burns. The Land Bank staff was going to present it to their Commission for approval. Mr. McGrath indicated scheduling seems to be the biggest issue with both parties needing to do burns. The Fire Dept. allows only one burn at -a -time and the length of a burn season with unpredictable weather will make scheduling very difficult. An agreement between governmental agencies makes procurement easier. Janine Torres added and IFB will most likely still be needed for Burn Boss services, but would be scaled back from the original procurement. Mr. Drake asked about the timing, especially for a spring burn season. Mr. McGrath responded the Land Bank already has an aggressive schedule for their burning to be nearly complete by mid May. This would most likely mean a portion of our 176 acres can be scheduled for fall burn with the remaining acres put into some kind of a rotation. Our environmental consultant, Peggy Fantozzi, feels comfortable that National Heritage would accept this timeframe as long as we are able to demonstrate our progress. Mr. Gasbarro asked if there were any issues using union personnel off airport property, both in willingness of the employee and in scheduling. Both Mr. McGrath and Mr. Marks didn't think so. Mr. Drake asked about the frequency of our burn requirement. Mr. Marks thought, if all 176 acres were burned in the same year, that we wouldn't have to burn again for five years. Mr. Gray added this would be good training for the airport firefighters. Mr. McGrath added there is an on -line course available to obtain the certification required. At 5:25 PM Mr. England joined the meeting via conference call. Mr. Drake apologized for the tardy connection and reminded Mr. England he could only listen in on the meeting. Contracts /Leases Ocean Wings - Contract for $7,710 expiring November 1, 2012 — Ms. Torres explained this contract was for three charter flights for the ARFF personnel to attend required live burn training at the fire academy in New Hampshire. The Commission Unanimously MISIP approval. EMS & Fires Consultant of Chelmsford — Contract for $38,168.50 expiring May 31, 2015 - Ms. Torres explained this contract covered the required on -site ARFF training for the next three years as well as the required triennial full scale emergency drill scheduled for 2014. The Commission Unanimously MISIP approval. Franklin Paint Company — Contract for $20,652 expiring April 30, 2012 — Ms Torres explained the contract was for supplies needed for airfield painting prior to the part 139 Inspection scheduled for May 7th — 9th. The Commission Unanimously MISIP approval. Nantucket Express — 2012 Lease — Ms. Torres explained this agreement allows Nantucket Express to advertise their charter business inside the terminal where we provide a direct dial charter phone. The Commission Unanimously MISIP approval. Sub - Committee Reports Financial — Mr. Drake reported the financials in the packets were essentially the same as they have seen before. What is not the same is the Summary Sheet in terms of the Net Earnings and Sources and Uses of Funds. The Town plans on advancing $400K from a special fund and $1,545,767 from the General Fund, pending the certification of Free Cash, to pay the Airport's unpaid bills. What is unclear to Mr. Drake, because it has not been clearly explained, is the plan for the Airport to pay back the Town the entire amount by the end of FY2013. What appears to have been a surplus a week ago is now being utilized to cover deficits in the airport capital accounts that were apparently created when the funds that should have gone to the capital accounts went to the operating account. Airport Commission Minutes 3/27/12 Page 2 of 5 Mr. Drake is more comfortable with the 2013 budget. It reflects the fact that a revolving account will be established for aviation fuel. The budget will require scrutiny and will be adjusted if necessary at a special Town Meeting being planned for the fall. Mr. Drake announced a document has been drafted by the Town to explain the situation to the voters but only given to Mr. Gasbarro thus far. It will be shared with the entire Commission as soon as he gets a copy. Mr. Gasbarro commented he e- mailed the Finance Department (FD) last week in the hopes of getting some of his questions answered, specifically in regards to retained earnings. The FD response was that the amounts previously certified as retained earnings erroneously included unspent bond proceeds. These funds should have been in an account, "Reserve for Capital Expenditures ". By comingling capital and operating funds, retained earnings have been skewed by millions of dollars. By removing these un -spent funds, the Airport will have negative retained earnings of $150K for FY11. Mr. Gasbarro asked Tina Smith to explain how the accounting happens and who was responsible for the co- mingling of funds. Ms. Smith noted she could only comment on the Airport's records. Ms. Smith explained once a capital project is funded it does go into the general fund. It is separated and tracked through expenses. The Town funds the capital projects and obtains the bonding. It is the responsibility of the both parties to track and Ms. Smith reported she had been. She is not in agreement with the Airport having a negative fund equity position. She was told by a FD staff member that several journal entries to the airport's capital line items were made in error and that correcting journal entries would be forthcoming. Mr. Drake interjected this is why he has been pushing for the Forensic Audit to expand into the relationship between the Airport's accounting and the Town's accounting so that going forward, we stay on track. The Forensic Auditors are an independent set of eyes who are not already paid consultants. Mr. Gray asked why the Forensic Audit couldn't continue when the Airport was paying the bill. Mr. Drake explained they were hired by the Board of Selectman so it is their decision. He has provided them with a proposed scope of work. Mr. Gasbarro also noted a structural deficit has been on the books since 2010 for $700K and will continue to compound. With that being said, he asked how could the Airport move forward with a $5M building as well as the capital projects that are pending. Mr. Drake concurred there is an issue that needs to be addressed; but the facts need to be ironed out and understood. Discussion moved to Town meeting and how the Commission planned to address questions that will be asked, specifically regarding Article 15 for upcoming capital project funding requests. Mr. Gasbarro asked if the Commission should be prepared to postpone Article 15 projects. Mr. Drake added the $1.6M project listed in Article 15 is coming from our FAA entitlement funds, not discretionary funds, and will be 95% reimbursed. Mr. Gasbarro asked if entitlement funds can be rolled over. Mr. Drake said he understands they could be, but adds maintaining the safety of the airfield is a top priority. Mr. Gray commented on the need for public education in regards to the importance of safety at the airport. When asked by Mr. Gasbarro, Ms. Smith said none of the Airport's Capital Projects are running a deficit. The reconciled reports were sent downtown and verified by FD staff and reportedly sent to DOR. Any claimed deficits were caused by erroneous entries recorded by the FD. Mr. Drake added the Management Letter from the Town Auditors comments has, for the 3rd year in -a -row, expressed concerns over the Airport's Capital accounts on the Town books. Both Mr. Drake and Mr. McGrath commented on Mass DOT — Aeronautics study indicating that Nantucket Airport plays a major economic role not only for the Cape & Islands, but for the State. Operations Mr. McGrath reported on the following projects: • RW 33 extension - The paving of the extension has been completed a week ahead of schedule. The repaving of the intersection will be next. A decision will be made no later than April 9th to determine if the work will be done now or wait till fall. It will require a RW shut down for approximately four days and the goal would be to finish before Daffodil Weekend. • GA/Admin Building — The 15t floor walls are up and the trusses for the 2nd floor should be completed by the end of the week. Some minor plan changes have been discussed to reduce cost, but the numbers are not significant. • Control Tower — nothing new to report. Still waiting for the FAA's business plan. • Infield TW — the meeting with the FAA to continue discussion on the infield location was cancelled and has yet to be rescheduled. Airport Commission Minutes 3/27/12 Page 3 of 5 Mr. McGrath asked and received permission to extend the gift shop's lease beyond its May 31St expiration on a month -to- month bases until the end of September to allow better timing of the RFP as to not impede the busy season. Mr. McGrath gave a brief history of the gift shop lease rate and intends to bring the rate back to the original amount to stay in line with the Airport's Fee Structure. Mr. McGrath proposed $1,000 annual rent for Cape Air to use a dedicated electric car charging station. Cape Air indicated their understanding of annual rent from previous management was $152 annually. Annual parking permits are sold for $2,000. This is a one year trial and would like to cooperate with Cape Air. The Commission agreed with his proposal. The Operations Supervisors have proposed for the first section of the south ramp, between the FBO and the ARFF building, to have two rows of parked aircraft face southeast exposing their engines towards the fence. The Supervisors have prepared a list of safety reasons for the change and Mr. McGrath agrees with them. Mr. McGrath would like to try this on a trial basis through Daffodil Weekend adding the staff will take a stronger approach to enforce minimum APU usage. The Commission agreed to allow on a trial basis but notes the trial should continue into summer conditions for more accurate results. Mr. McGrath will share the safety letter with the Commission. Mr. McGrath reported the next project scheduled is the replacement of the edge lights on RW 6/24, replacement of signage and 5,000 feet of perimeter fencing. The bid documents should be advertised shortly and the project start date is planned for fall. Mr. Drake added the FAA Grant application is due by May1 st. Mr. McGrath added the State share may be increased to 7'/2% leaving the Airport's cost at 2'/z %. Mr. Sylvia gave the February statistic reports: • YTD Operations were 13,069, down 12% from the base year (1986), but up 1.9% from last YTD. Operations for February were 6,103. • YTD Enplanements were 13,776, up 32% from the base year and down 19% down from last YTD. February enplanements were 7,047. Mr. Drake added research shows the numbers from the two air taxis are flat. What appears to be changing the numbers is the absence of the Shuttle where that traffic has gone elsewhere. • Freight was 244,646 Ibs, down 35% from base year (2007) but up 13% from last YTD. February had 117,287 Ibs of freight • There were 4 noise complaints for February (all from same person) making the YTD total 10. Last YTD was 2. • Noise Incentive award: Island Air was the overall winner of the Noise Abatement Award for February. Both air taxis achieved the 85% goal and will receive the 15% lading fee rebate. There were 13 non - compliant flights out of 1,724 flights observed. Mr. Drake added he has obtained Steamship statistics. Vehicle traffic coming on to the Island is up slightly from last year. Vehicle excursion trips from Nantucket are way down. Statistics also show that the 20' or larger trucks are up around 12 %, hopefully indicating economic recovery. Mr. McGrath has asked Mr. Sylvia to breakdown the stats to show airline destinations in future reports. Mr. Gasbarro questioned 'over the top' departures from RW 15 and their compliant versus non - compliant status. After brief discussion, the policy will be reviewed so everyone is on the same page. Commission Meeting Schedule After brief discussion, the Commission has reestablished a two meeting per month schedule starting in May with meetings to be held the 2nd and 4th Tuesday of each month. In addition, the April 24th meeting will be rescheduled to Thursday, April 19th. Commissioners Comments Mr. Gasbarro asked Stephen Flecchia from Jacobs Engineering if he had any more information on the VALE project status. Mr. Flecchia intends to work with Mr. McGrath to push the FAA for feedback by April 2nd in order to have time for the May 1St grant application deadline. Otherwise the project will have to wait for next fiscal. Will report on status at next meeting. Mr. Drake announced the print the airport was given is now on display in the air taxi departures area of the terminal and will send a note of thanks to Mr. Wolfe. Airport Commission Minutes 3/27/12 Page 4 of 5 Mr. Drake asked Mr. McGrath to approach Mass DOT — Aeronautics for any discretionary funds that may be available now that the fiscal year is winding down. Public Comment Bruce King added enplanement numbers are down due to airline ticket costs rising making the ferries the preferred method of travel. It was M /SIP by the following vote to adjourn into Executive Session to discuss A) Review and determine whether to release the 3/13/12 executive session minutes. B) To conduct a general strategy session for possible negotiations with non -union personnel; and with respect to collective bargaining. Chairman Daniel W. Drake — Aye Vice Chair Arthur Gasbarro — Aye Commissioner Sheila O'Brien Egan — Aye David C. Gray, Sr. - Aye Meeting Adjourned 6:47 PM R pectfully Submitted, Janine M. Torres, Recorder Master List of Documents 3/27/12 Agenda 2/27/12 Fin Ccm /Commission Minutes 3/13/12 Minutes 4/4/12 Warrant (Batches 6339, 6343, 6372) Assessment Center Weekend Draft Schedule Northern Energy Services — Energy Audit dtd 3.14.12 Ocean Wings Contract EMS & Fire Consultant Contract Franklin Paint Contract Nantucket Express 2012 Lease Thomas Berry Beach License Agreement Draft Budget Commission meeting schedule 4/3/12 — 12/18/12 February Statistic Reports Airport Commission Minutes 3/27/12 Page 5 of 5