HomeMy WebLinkAbout2012-6-12Town of Nantucket
NANTUCKET MEMORIAL AIRPORT
14 Airport Road
Nantucket Island, Massachusetts 02554
Thomas M. Rafter, Airport Manager J _ Commissioners
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
June 12, 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 and Sheila O'Brien Egan. Commissioner David C.
Gray, Sr. was absent.
Also present were Thomas M. Rafter, Airport Manager, Jeff Marks, Airfield Supervisor, William F.
McGrath, Jr., Compliance Officer, David Sylvia, Training /Compliance Coordinator and Janine M. Torres,
Administrative Assistant to the Airport Manager.
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The meeting took place in the 1St Floor Community Meeting Room at the Public Sty
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Fairgrounds Road.
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Chairman Drake announced the meeting was being recorded.
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The Commission M /S /P Unanimously approval of the Agenda.
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The Commission M /S /P Unanimously approval of the May 11, 2012 Minutes.
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Mr. Drake announced the minutes from the May 22, 2012 and May 30, 2012 are still pending.
The Commission M /S /P Unanimously to ratify the June 6, 2012 Warrant.
Public Comment
None.
Gift Shop
Mr. Gasbarro reported he had met with Ms. Kotalac. She is concerned the timing of her extension and
the deadline to place orders for fall merchandise. She is also concerned over the status of the RFP as
well as what will be offered as a new lease term and per square foot charge for rent. Would we
consider an off season shut down, for example? They also talked about a small display case being added
in the FBO to attract GA passengers.
As far as the present Lease, Mr. Gasbarro felt the Commission didn't have much choice but to charge the
original Lease terms going forward.
Mr. Rafter agreed with Mr. Gasbarro on returning to the original rental rate provided by the current
lease and offered a first draft of the RFP ready by the end of next week, asking Ms. Kotalac to put her
thoughts in writing. Mr. Rafter welcomes the idea of a display case in the FBO.
Mr. Drake asked if it was feasible to split the rent payments out seasonally noting he would rather see
that than an off season shut down. It is believed the rent payments could be adjusted seasonally.
Ms. Kotalac shared her inquiry into mid island retail rents with an average of $31.50 per square foot.
Mr. Drake noted there is somewhat of a captive audience in the terminal and that besides the rate,
there was a lot to consider when putting the RFP together and welcomed as much input as possible.
Discussion moved to the present Lease in regards to the rent and expiration taking into consideration
the timing of the RFP between advertising and award.
After brief discussion the Commission M /S /P Unanimously to extend the present Lease term to
10/31/12 at the original lease rate of $2,667 monthly and allow a 1x1x4 display case inside the FBO at a
mutually agreed upon location.
Fuel Pipeline
Mr. Drake announced Mr. Creese of the Great Harbor Yacht Club was unable to attend the meeting and
would like to table this discussion until the next meeting when both Mr. Creese and Mr. Gray would be
in attendance.
July 4th Preparation
Mr. Rafter reported he and Mr. Sylvia attended a meeting with other Town Officials regarding July 4tn
preparations. A request was made to the Airport to supply twelve port -a- potties for Nobadeer Beach;
and, due to the 4th falling on a Wednesday, it is expected there will be a lot of activity both the weekend
before and the weekend after. The issues are the number of port -a- potties requested is significantly
higher than what has been done in previous years as well as the weekend prior falling into this fiscal
year, adding to the budgetary concerns.
The Airport has offered EMS access to the beach from an airfield gate rather than through congested
street, donation a boat reservation, normally used for fuel delivery, for the off - island police support
being considered and housing for any off - island support.
Catering Agreement
Mr. Drake announced the question of the legality of the Airport's Business Fee and catering charge were
raised by the Town's Finance Director to Legal Counsel on the inquiry of a catering company. Mr. Drake
pointed out Legal Counsel's opinion that the charges are legal is provided in the packets.
Mr. Drake does question whether the Airport's process of handling the monetary side of the catering
can be done differently.
Kim Reed, Owner of A Taste of Nantucket, was asked for her comments. Ms. Reed did state she is
satisfied with the current process but does believe Nantucket is the only FBO that doesn't allow direct
billing through NetJets.
6/12/12 Airport Commission Minutes Page 2 of 6
Mr. Drake pointed out Ms. Reed, along with another caterer, was among the vendors that had to wait
nine months to get paid due to the present billing system and end of fiscal year processing last year,
noting the need for a better structure.
Jeanette Topham, an audience member, added she provided catering to the airport for years without
Town involvement and asks if the time and effort required for the bookkeeping is worthwhile. Mr.
Drake agreed that is part of what needs to be examined, whether the 25% fee the Airport collects covers
both the expense of handling the catering and the time and effort on the accounting side.
After brief discussion, Mr. Drake asked Mr. Rafter to reach out to NetJets on alternative billing methods.
FY2012 Budget Review
Mr. Rafter reviewed the report prepared by the Ms. Smith shows a projection of approximately $7K over
budget. Mr. Drake noted this is not the official record and was not able to obtain the Finance
Department's most recent projection. Mr. Rafter added Ms. Smith did send her information downtown
but did not hear back. Mr. Gasbarro asked for and received confirmation the $7K overage was for the
budget in its entirety, not just fuel.
Mr. Drake added the Finance Committee had on their Agenda last week, $117K transfer from our
operating expense budget to payroll expense to cover recent payouts as well as some other items. This
item did appear on the BOS Agenda as well but has since been removed due to the transfer not being
discussed with the Airport. Airport projects approximately $33K transfer needed.
Mr. Gasbarro expressed his frustration that the two departments' numbers are so different and there
continues to be a lack of communication. Mr. Drake agrees and hopes they have their answers next
week.
General Aviation /Administration Building Costs
Mr. Drake reported he has not yet received from the Finance Department the detail on the $300K
journal entries they made. This amount is part of the $400K over - budget projection made by Town
Counsel at a recent Board of Selectmen's meeting. A portion of this amount is valid for 'soft costs',
architectural, OPM and engineering testing. It appears $150K in entries is unrelated costs and $170K is
still unknown. All parties are still working on ways to cut costs.
An appropriation at a future Town Meeting will most likely still be needed.
ATCT
Mr. McGrath reported a meeting with the FAA is scheduled for 6/26/12 to hear their presentation of the
case study comparing a new tower, keeping the tower as is, or rehabbing the existing tower.
Mr. McGrath reported he, Mr. Rafter and Mr. Drake visited with the Hyannis Airport Manager today and
toured their new tower. Mr. Rafter added Hyannis is a'contract tower' run by a private operator under
agreement with the FAA, as opposed to our tower which is staffed by FAA personnel. Security
requirements are less stringent for a contract tower. Mr. Drake added the cost of the Hyannis tower
was roughly $7.6M and was partially by the FAA, stimulus money and an earmark of $3M.
Mr. Gasbarro confirmed that Site 2 has been taken off the table as an unacceptable site by the FAA.
6/12/12 Airport Commission Minutes Page 3 of 6
Noise Monitoring
Mr. Rafter reported the process of changing over to the new system requires keeping the Passur system
running concurrently for a brief period. Ms. Torres noted the contract with the new company has not
yet been drafted.
Mr. Drake mentioned Hyannis recently installed a system where noise monitoring sites were established
at a cost of $94K per year. Mr. Rafter added the system we are moving to offers a similar module that
can be added.
Pending Contract /Leases
After brief discussion the Commission M /S /P Unanimously to approve the Professional Services contract
with Jacobs Engineering for the RW 6/24 HIRLS project in the amount of $268,424 subject to
confirmation of all reimbursements. Mr. Gasbarro noticed the parallel taxiway was mentioned in the
contract heading and needs to be removed.
Mr. Rafter reported Fresh Air Services would like to renew their Agreement to provide plane detailing
services however has asked for waiver to pay the Business Fee in installments. Additionally, it is
recommended we obtain a waiver of liability document to replace the Workers Comp insurance
requirement they are not legally required to obtain as an LLC. Upon the recommendation on Mr. Rafter,
this item is tabled until the Business Fee is paid in full and the liability waiver is resolved.
The Commission M /S /P Unanimously to approve the Seasonal Lease Agreement with US Airways for
Terminal office space.
Operations Report
Mr. Rafter reported:
• Jacobs Engineering has provided a bid recommendation be awarded to KOBO Utility
Construction Corp, the sole bidder on the RW 6/24 HIRLS project. Mr. Flecchia of Jacobs added
the next step would be to award the Contract and issue a Notice to Proceed. Mr. Flecchia
confirmed Mr. Gasbarro's question regarding the inclusion of the bid alternate for the LED
fixtures but noted the FAA had yet to make a decision on the LED eligibility for funding.
• The final inspection of the RW 15/33 project is scheduled for tomorrow
• A meeting to cut costs from the electronics package of the GA /Admin Building took place and a
new plan has been given to the Architect to update the plan to allow pricing to occur. The
project itself is back on schedule.
Mr. Rafter requested permission to attend the Massachusetts Airport Manager's Association meeting
being held in Hyannis in October as well as an AAAE Past President's meeting, also on the Cape, later this
month. The Commission M /S /P Unanimously to approve Mr. Rafter's attendance at both conferences.
Mr. Rafter's reported the interviews for both the Business Manager and Administrative Assistant have
been completed and job offers have been verbally accepted. Steve McCluskey has been offered the
Business Manager position at an annual salary of $70K and Ashley Christ has been offered the
Administrative Assistant position at an annual salary of $55K. Mr. McCluskey may be available to start
by week's end and Ms. Christ is expected to start in two weeks.
6/12/12 Airport Commission Minutes Page 4 of 6
After brief discussion the Commission M /S /P Unanimously to accept Mr. Rafter recommendations to
hire Mr. McCluskey as the Business Manager at an annual salary of $70K and Ms. Christ as the
Administrative Assistant at an annual salary of $55K.
Mr. Drake added he has received an opinion from Legal Counsel on the role the Commission should play
in the hiring process and will be added to a future agenda. The opinion provides three options: 1) The
Commission participates fully in the interviews and hiring process, 2) Delegate to the Manager full
authority to do the hiring, or 3) Delegate to the Manager authority to do the hiring with ratification by
the Commission. The termination process will also need to be discussed.
When asked by Ms. Egan, Mr. Rafter reported a new organizational chart will be forthcoming.
Sub - Committee Reports
None.
Commissioner's Comments
Mr. Gasbarro asked the Forensic Audit be placed on the next Agenda. Mr. Drake concurred and formally
announced the Forensic Audit has been released and commented that he report is good, clears the air
and allows us to move forward.
Mr. Drake asked if the July 24th meeting could start earlier due to some travel plans. Ms. Torres will
check with Mr. Gray and the meeting room availability for a 4:00 start.
Mr. Drake thanked Mr. McGrath for his assistance over the past 7 months. Mr. Rafter added the
community is extremely lucky to have Mr. McGrath.
Mr. Gasbarro asked the Jacobs representatives had any news to report. Mr. Bill Richardson only
requested an Environmental Sub - Committee meeting to discuss pending issues.
Public Comment
Bob Walsh, owner of Nantucket Express approached the Commission regarding the relocation of his
charter operation to the North Ramp. Mr. Walsh gave a brief history of his operation since 2000. Mr.
Drake noted this is an operational issue and asked Mr. Walsh to meet with the Airport Manager to
resolve his issue and shouldn't involve the Commission unless the situation cannot be resolved.
Jeannette Topham asked if the $55K offered to the new Administrative Assistant is the going starting
rate for Town employees and does it include the benefits. Mr. Drake responded the salaries offered for
both positions was passed by Human Resources who did mention the $55K for the Administrative
Assistant position was on the high end, but the qualifications of the individual offered the position
warranted the higher rate. There are no comparable positions currently in the Town so it's hard to
measure. The salary does not include the cost of the benefits.
Having no other business, the Commission M /S /P by the following vote to enter into Executive Session,
not to reconvene in Open Session, to review the Executive Session minutes of 3/1/12, 3/13/12, 3/27/12,
4/3/12, 4/19/12, 4/26/12, 5/8/12 and 5/22/12 for possible release and to discuss strategy with respect
to collective bargaining or litigation, which if held in Open Session may have a detrimental effect on the
bargaining or litigation.
6/12/12 Airport Commission Minutes Page 5 of 6
Chairman Daniel W. Drake —Aye
Vice Chair Arthur D. Gasbarro —Aye
Sheila O'Brien Egan —Aye
Meeting adjourned 6:25 PM
Resp ctfully submitted,
Janine . Torres, Recorder
Master List of Documents Used
6/12/12 Agenda
5/11/12 Meeting Minutes
6/7/12 Email from Arthur Gasbarro to Dan Drake, Bill McGrath and Tom Rafter re the Gift Shop
5/25/12 Email from Janine Torres to the Commission re Gift Shop RFP
Nantucket Airport Gifts Chron History
Denby Real Estate 5/25/12 Opinion on terminal rental rate
Marsha Kotalac's mid - island rental rate survey
5/31/12 Email from GHYC to Dan Drake re fuel pipeline
6/4/12 email string from Dan Drake to John Giorgio re catering fees
Master Catering License Agreement
Airport's Projected FY2012 Budget (Handout)
Jacobs Professional Services Agreement: RW 6/24 HIRLS
Fresh Air Services License Agreement
US Airway's Lease Agreement
Jacobs Bid Recommendation RW 6/24 HIRLS
MAMA Annual Conference Announcement
6/12/12 Airport Commission Minutes Page 6 of 6