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HomeMy WebLinkAbout2012-5-8Z o D .-+ Z ^� C � Town of Nantucket m c,, M NANTUCKET MEMORIAL AIRPORT' M 14 Airport Road Z ----q M Nantucket Island, Massachusetts 02554 r- rn ry 41 M w William F. McGrath, Airport Manager Commissions Phone: (508) 325 -5300 Daniel W. Drake, Chairman Fax: (508) 325 -5306 Arthur D. Gasbarro, Vice Chair Sheila O'Brien Egan David C. Gray, Sr. AIRPORT COMMISSION MEETING May 8, 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. Also present were William McGrath, Interim Airport Manager, Jeff Marks, Airfield Supervisor, Tina Smith, Director of Finance, David Sylvia, Training and Compliance Coordinator and Janine Torres, Administrative Assistant. Incoming Manager, Tom Rafter was listening via telephone. The meeting took place in the I" floor Community Meeting room at the Public Safety Facility, 4 Fairgrounds Road. Chairman Drake announced the meeting was being recorded and pointed out NCTV 18 was also taping the meeting which will be available on their website www.nctvI8.org. The Commission M/S/P Unanimously approval of the agenda. The Commission M /S/P Unanimously approval of the April 16, 2012 minutes. Commissioner Egan noted she was not in attendance for the April 26th meeting, but questioned the 6 weeks noted to receive the Forensic Audit. Mr. Gasbarro confirmed it should say 3, not 6. The Commission M/S/P approval of the April 26, 2012 with the correction noted. Ms. Egan abstained. The Commission M /S/P Unanimously to ratify the May 2, 2012 Warrant. Public Comment Carol Dunton expressed her concern of a comment made at last week's BOS meeting where the airport had not provided information to the Finance Department. Ms. Dunton asked if that was a true statement. Mr. Drake responded the statement was largely inaccurate. There might have been some information not given, all items had been previously discussed. Manager Update New Manager Status - Mr. Drake announced Mr. Rafter would be starting on June 4th, but would be visiting the Island this weekend. Interim Manager Status — Mr. Drake reported the Conflict of Interest Law limited Mr. McGrath to a 6 month contract with May l Ot" expiration. The Commission would like Mr. McGrath to overlap a week or so after Mr. Rafter's start date. A reply from Legal Counsel is pending regarding the options to renew. After brief discussion, it was M/S/P with Mr. Drake abstaining, authorizing Mr. Drake to work with Legal Counsel towards an arrangement that would allow Mr. McGrath to continue in some capacity under the same compensation package and name Mr. Marks as interim manager. Mr. Drake asked that a special Commission Meeting to be posted for Friday, May 11th, 5:00 PM at the Administration Office for the purpose of another Manager Status Update. GA /Admin Building Mr. Drake reported the Town is concerned the Airport cannot afford the debt service on the GA building. $1.5M already borrowed will go to long term this year and it is unsure whether the $3M will be long term or short term. The Board of Selectman (BOS) is scheduled to take a vote on the $3M financing. Mr. Drake has sought Town Counsel's opinion on negating the general contract. Town Counsel has provided an opinion that cancelling the contract should be the last resort to avoid litigation. Mr. Drake added leaving the building in its present condition open to the elements will ultimately add to the cost of completing. Should the project move forward, the BOS makes a decision as to whether the project is funded through the airport budget, which is largely unknown until the fall, through a supplemental appropriation at the Special Town Meeting, also this fall, or a transfer from the Town's Reserve Fund. After brief discussion, including the importance of GA operations to our revenue, the Commission needs to see what the BOS decide. Passenger Facility Charge (PFC) Mr. Drake called Karen Frink, a consultant with Hoyle Tanner & Associates, who prepared Barnstable Municipal Airport's PFC application. Ms. Frink included Bob Furrey from her office on the line as well. Ms. Frink explained the length of the application process is a minimum of 6 months. It depends on how many projects are included in the application. All AIP projects are eligible. For terminal projects, only the "public use" space is eligible. Projects can be combined. Ms. Frink is unsure if GA space is eligible and is unfamiliar with the `hardship' clause. Mr. Drake reviewed a draft worksheet showing the potential income on a $1 and $2 PFC and compared it to the debt owed on the terminal showing potential of offsetting that debt. Discussion moved to whether PFC's could be applied seasonally and whether they can be imposed on GA passengers. Ms. Frink added if the GA carriers are filling out the FAA enplanement form, they would be included. Airport Commission Minutes 5.8.12 Page 2 of 6 Ms. Frink added the Airport can also get reimbursed on their local share of projects but adds the FAA prefers no more than five projects. Mr. Rafter added his present airport, Atlantic City, projects receiving reimbursement and PFC monies, the reimbursement monies were used for other projects. Mr. Drake asked Ms. Frink to put together a proposal and timeline with the intent of having the PFC in place for January 1St After more discussion, Ms. Frink will research the hardship provision, the use of a PFC on carriers only flying over a certain amount of miles, and recheck the eligibility of the GA facility. At 6:10 PM, Ms. Frink and Mr. Furrey disconnected from the meeting. Business Manager Position Mr. Drake reported he had hoped to receive comments back from all parties on the draft job description prior to the meeting. Pushing for a classified ad in next week's paper. Energy Audit Mr. Gasbarro gave a brief update explaining the Airport will need to wait until July 1St to move forward with the energy updates in order to take advantage of the collaborative agreement. In addition, some conftision still exists regarding procurement that needs to be clarified. Therefore, the subject was tabled until a future meeting. Lease The Commission M/S/P Unanimous approval of the Lease for Hyannis Air Service, Inc. Mr. Gasbarro reiterated Article 12 regarding compliance with noise abatement routes. Sub - Committee Reports Finance Sub - Committee Mr. Gasbarro reported on a meeting held with Jacobs regarding the Capital Projects on May 2nd • It appears the VALE project isn't going to get support from the FAA. Mr. Drake added the actual cost to date on this project is $174K, and will not be the $297 anticipated. It was hoped the $174 could be reimbursed with the balance of our entitlement funds; but, word came this afternoon it could not. • The task schedule in the SW Ramp Expansion project will be adjusted to reallocate ftmds towards updating the planning process. The memo regarding the transition to MUNIS was tabled to the next meeting. Mr. Drake reported on a meeting with Peter Lamb, the airport's accounting consultant. Mr. Lamb was asked to provide a two part proposal: 1) services to work through current audit, and 2) how he can best service the airport through the change to airport's finance department. In addition, Mr. Lamb suggested tracking receivables outside of MUNIS for the 1St year. Airport Commission Minutes 5.8.12 Page 3 of 6 Mr. Drake is concerned the extra contract piece in MUNIS for the printing and mailing of tax bills might be included in the expense to the airport. Environmental Sub - Committee Mr. Gasbarro had no updates. Financial Report — Tina Smith Ms. Smith prepared a list of comments resulting from her conversation with Mr. Gasbarro and Mr. McGrath regarding the understanding of the capital deficits. She explained the airport does not have a cash deficit problem as being portrayed in the media. There is a $3.3M "free cash" deficit primarily from the lack of bonding. Prior management felt most projects could be funded through airport revenue and did not seek borrowing despite the ATM authorizations requiring bonding. Ms. Smith added the Airport currently has a $4.9M cash balance that will grow to approximately $8.2M once the June borrowing takes place. Ms. Smith also reviewed the 2012 Budget projections. Projected revenue is up $LIM. Projected expenses are $2.1 over budget which includes adjustments by TON for fiends being advanced. Professional Services has the largest increase. Ms. Smith noted a journal entry of $100K with a description of "overspent article" made by TON has not been explained in detail to her. With the Fuel Revolving Account not being in effect until next year, but with the price of fuel backing off, it does appear that there will not be a problem with fuel expenses this year, but it remains a concern. Another concern is the projection of payroll expenses. Even after moving $135K from payroll to expenses, it appears payroll will be over budget by $7K. Operations Report — Bill McGrath • The Part 139 inspection debrief noted a few minor items, most of which were corrected before the inspector departed. The taxiway markings need correcting. The Letter of Correction will include the 6/24 I3IRLS and wind cone issue and will recommend adding a supplemental windsock due to the extension of RW 33. • The parking lot equipment has been serviced and believes the issue has been resolved. • The GA building project is back on schedule. • The runway grooving on the runway paving project will take place next week between 9:00 PM and 5:00 AM • The installation of the electric vehicle charging stations should e complete on Thursday and will include some training. • The FAA's case study on the control tower is near complete. • We have asked for clarification on the bill from the ATCT Design consultant. • Jacobs has indicated the leftover supply of paving material on the paving project belongs to the airport. Looking options on using or selling. Ms. Smith pointed out you can't sell if the FAA has reimbursed. Mr. Drake interjected the FAA Inspector was very complimentary of the Airport Staff and the level of training and record keeping. Mr. Gasbarro added the Inspector comments on using our standards as "best practices" when speaking with other airports. Airport Commission Minutes 5.8.12 Page 4 of 6 Mr. Gasbarro asked Mr. Rafter to comment on the Inspector's recommendation to use digital NOTAMS. Mr. Rafter responded his airport was the 1st in nation to have digital NOTAM. While it is a great system, his concern is leaving too much liability on the airport when it comes to self certification. Mr. Gray asked about the taxiway painting done by the State. Mr. McGrath reported there were two simultaneous painting projects, the painting associated with the 15/33 project which was done by the contractor, and the State, which came over the weekend to re -paint the taxiway markings. The later was a State funded project. Mr. McGrath expressed his concerns over the IT services and ongoing concerns of the network. After meeting with our IT vendor, the Commission needs to be aware that our computer equipment is old and a plan needs to be put in place to start upgrading our IT equipment. Mr. McGrath provided information on the Administrative Coordinator, her duties when she first started with the airport in comparison to her current responsibilities, as well as the salary history. Mr. McGrath recommends a 5% increase and a better defined job description. Mr. Drake stated if an adjustment were to take place, it would have to be as of July 1st, and if it is allowed, retroactive back to today. After brief discussion, Mr. Drake asked Mr. McGrath to relay their appreciation to Ms. Taylor and let her know something will be forthcoming after July 1st Ms. Egan mentioned the Commission had discussed a new Organizational Chart. It was the consensus to wait until Mr. Rafter started. Commissioners Comments Mr. Gasbarro asked about staff housing. The airport currently has 2 out of the 8 beds taken. The Airport has been approached about offering out to other Town Departments, specifically, the lifeguards. After brief discussion, the Commission agreed to revisit. Public Comment Jeannette Topham asked Ms. Egan her thoughts, as a travel agent, on the PFC. Ms. Egan responded it was not going to be well received. Ms. Topham asked what the Business Manager position is. Mr. Drake explained the position will replace Ms. Smith, who is retiring. Ms. Topham asked if all airport employees received a 5% step increase in addition to a cost of living increase. Mr. Drake indicated it had been a past practice for the first 5 years of service but has since been eliminated. It was M /S/P by the following vote to adjourn into Executive Session, not to reconvene in open session, to conduct strategy session with respect to collective bargaining or litigation, which if held in open session, may have a detrimental effect on such bargaining or litigation. Chairman Daniel W. Drake — Aye Vice Chair Arthur D. Gasbarro — Aye Sheila O'Brien Egan — Aye David. C. Gray, Sr. — Aye Meeting adjourned 7:15 PM Airport Commission Minutes 5.8.12 Page 5 of 6 ectfully submitted, Janine Torres, Recorder�� Master List of Documents Used 5/8/12 Agenda 4/16/12 Minutes 4/26/12 Minutes 4/30/12 E -mail from John Giorgio re GA Building Contract Question 5/1/12 E -mail from John Giorgio to Diane O'Neil re PFC Application Procurement 12/2010 Barnstable Airport's PFC Application PFC Scenario Worksheet (handout) 4/20/12 E -mail from Diane O'Neil re Energy Audit Procurement VFS Technologies Contract USDA Wildlife Training Contract Hyannis Air Service Lease US Airways Lease 5/4/12 Financial Sub -Cttee Memo re MUNIS System 4/27/12 Draft of Finance Dept. Summary of Airport Projects/Borrowing Tina Smith's comments re Reconciled Expenses and Classifications (handout) Tina Smith's Projected Fiscal Year End Budget (handout) GA /Admin Building Construction Summary Report for April 2012 Airport Commission Minutes 5.8.12 Page 6 of 6