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HomeMy WebLinkAbout2012-12-18Town of Nantucket NANTUCKET MEMORIAL AIRPORTRECEiVED 14 Airport Road 2013 AN 14 PSI 10 35 Nantucket Island, Massachusetts 02554 NANTUCKET TOWN CLERK Thomas M. Rafter, Airport Manager - A& Commissioners Phone: (508) 325 -5300 Daniel W. Drake, Chairman Fax: (508) 325 -5306 Arthur D. Gasbarm, Vice Chair David C. Gray, Sr. Sonny Raichlen Jeannette Topham AIRPORT COMMISSION MEETING 12/18/12 The meeting was called to order at 5.04 PM by Chairman Daniel W. Drake with the following Commissioners present, Vice Chair Arthur D. Gasbarro, Jeanette Topham and Sonny Raichlen. David C. Gray, Sr., was absent. The meeting took place in the I" Floor Community Meeting Room at the Public Safety Facility, 4 Fairgrounds Road. Mr. Drake announced the meeting was being recorded. Also, present were Thomas M. Rafter, Airport Manager, David Sylvia, Airfield Supervisor, Ashley Christ, Business Manager, Debra Crooks, Finance Assistant, Irene Larivee, Finance Director of the Town of Nantucket and Matthew Mulchahy, Chairman of the Finance Committee of the Town of Nantucket. The Commission M/S/P Unanimously approval of the Agenda. The Commission M/S/P Unanimously approval of the 12/4/12 minutes with the correction noting the presence of Ashley Christ and Debra Crooks only after the meeting was reconvened. The Commission M/S/P Unanimously approval of the 12/19112 Warrant. Public Comment None. Pending Leases and Contracts Two emergency procurement contracts were presented to the Commission related to the Netlets fuel spill incident in October. Mr. Rafter explained all related costs of this incident will be charged to NetJets insurance company for reimbursement. The Commission M/S/P Unanimously to approve the contracts with Clean Harbors Environmental Services for $21,739.60 and Safety- Kleen Systems for $7,159.00. Pending Matters 100912 -OB Nantucket Flying Association /Aviation Camp - A free screening of the movie Shady Lady will be shown at Dreamland Theater, January 24i6 at 6:00 PM. 103012 -2 B &K Noise Desk Discussion - Mr. Rafter compaired the B &K Noise Desk system to the Passur system and reported moving forward with B &K Noise Desk system and will be setting up a kick off meeting in mid - January. It has been budgeted for the current fiscal year. Chairman Drake asked about the $14,000 FAA fee. Mr. Rafter replied the fee will not go into effect until next year. 121812 -OBI FAA CIP Projects - Mr. Rafter reported speaking to Mary Walsh of the FAA and they may approve the widening of Taxiway Delta in addition to the Master Plan. There was no discussion of the MITLS or other proposed projects. Finance/Budget 121812 -0132 FY2014 Town Capital Request - Mr. Rafter shared the Town's Capital Program Committee's (CPC) Reports of capital projects which includes the Airport's items: Taxiway Delta, Airfield Equipment, PAPI's and REIL's for Runway 33, Airport Master Plan, and replacement of MITL's 12/30 noting the PAR REELS and MITL's will not go forward if the FAA doesn't approve. When asked, Irene Larivee, Town Finance Director, explained the CPC scoring system used in their report to establish a priority of each project. Each individual department/Enterprise Fund can come to the FinCom meeting to explain the need for each Capital submittal. Mr. Rafter had expressed Taxiway Delta and the Master Plan projects are the two of highest priority. Mr. Raichlen asked if the Taxiway Delta project could go ahead upon receipt of approval from the FAA. Chairman Drake responded Capital Projects must be approved at ATM prior to applying for an FAA Grant. Mr. Rafter added it would benefit the Airport if the FAA showed the importance of the proposed Capital projects. 112012 -1 FY2014 Budget Mr. Rafter presented a draft final budget noting Certified Retained Earnings of $1.7M will be reduced by unpaid bills, indirect costs and a $300K proposed contingency fund, primarily for unbudgeted fuel purchases, resulting in net earnings of $59K. Mr. Rafter reported unresolved issues with Debt Service and would like to sit with the Town Treasurer to resolve. Mr. Drake added the Airport has $8.9M outstanding in short term debt. $3M for the GA Building and $I.IM in other projects will be rolled into long term bonds in June. The rest of the debt goes away through grant reimbursements and projects that have been completed. Mr. Drake asked Mr. Rafter if he was comfortable with the budget. Mr. Rafter replied he would like a little more time to make sure the debt service is correct. The Commission concurred noting the need for a special Commission meeting prior to FinCom meeting on January 81h to finalize the budget. Discussion moved to Indirect Costs. Mr. Gasbaro expressed concern the $180K budgeted might be too low. Ms. Larivee suggested a number between $180K and $200K. Mr. Rafter noted costs needs to be examined more closely, police and fire support costs in particular. Ms. Larivee agreed it to revisit. Mr. Gasbaro noted nothing has been added to either the Contingency Reserve or the Budgeted Reserve line items. Ms. Larivee explained if needed a fund transfer from Retained Earnings into the Operating Budgeted can be requested at ATM. If it is not needed, it is simply absorbed into future Retained Earnings. 12.18.12 Airport Commission Minutes Page 2 of 5 Mr. Drake would like 2013 and 2014 budget to be looked at together by Finance Committee. Mr. Mulcahy noted typically they would be looked at separately but will consider it. Mr. Drake asked Ms. Larivee for clarification of how unpaid encumbrances affect the budget. Ms. Larivee explained open encumbrances from FY12 carry over into FY13 budget. When open Purchase Orders (PO) are liquidated, the amount goes back into the prior years unreserved fund balance and used towards the calculation of retained earnings. Ms. Larivee, to answer Mr. Drakes's question, noted encumbrance amounts are not included in the numbers to base your next budget. Ms. Larivee offered to create a report to show the open PO's that we did not liquidate in 2012 and compare them to what was physically spent to aide in obtaining s more accurate number. Mr. Drake had a question on the appearance of double interest payment on the bonds on the debt schedule. Mr. Larivee explained interest is charged twice per year and principal once per year. Discussion moved back to the line items called Contingency Reserve and Budgeted Reserve. Ms. Larivee clarified any Expense item noting the word "reserve" would require FinCom's approval to use; whereas a line item called simply "contingency" or "unallocated would not. Mr. Gasbanm felt strongly a $300K contingency be added to the FY 2013 budget which can be voted upon at ATM and not have to force a STM. When asked, Mr. Mulcahy agreed to postpone the Airport's presentation to the FinCom until January 10 at 4:00 PM to allow the Airport to finalize the budgets. GA/Administration Building Project Update Mr. Rafter reported the Airport terminated the contract with Baybutt on December 12, 2012. On December 17, 2012 a representative from independent construction company working for the Surety came I to view the building. They will provide a report to the bonding company of the status of the project and what it would take to complete. Mr. Drake read an e-mail between the Surety Counsel and Town Counsel setting up a conference call for tomorrow. Mr. Drake and Mr. Rafter will participate in the call. Manager's Report Projects Update • 6/24 HIRLS pre- construction meeting took place with the contractor, Kohn Utility Construction Corp. Materials will begin arriving soon. The project will most likely begin next month. • Master Plan - continuing to develop the Scope. • Energy Conservation — Northern Energy will be taking another tow tomorrow looking at non - lighting items including the performance of the GEO Thermal System. RFF/ id Status • Will begin with Lease negotiations with UPS on the RFP for 143 Old South Rd • Bids to replace the JetA Sump Separator were received. The apparent low bidder was Lakes Region Environmental. • Bunker Road lots have been advertised. Proposals are due January 21 ". • The Gift Shop RFP is still being amended. • The HVAC RFP is still pending. 12.18.12 Airport Commission Minutes Page 3 of 5 Operations Update • Met with a representative from The Taylor Hanger regarding the condition of the hangar and will assist in coordinating a letter to the Taylor's. • Will meet with Harbor Fuel regarding their proposal submitted in 2010 for an additional acre in the Bunker area. • Prescribed bum on took place on December 13'h and 14a The Airport burned 18 -20 acres and all went well. • Repairs to the pavement from the Nedets fuel spill as well as the driveway to the new GA building were completed. • Met with Bill McGrath regarding the Advisory Committee both its makup as well as its role in the Master Plan process. • Reviewing the operations of Tradewind Aviation to see if they comply with the Rules and Regulations of the Airport. • Mr. Rafter announced he will be on vacation from December 20a to the 31 '. David Sylvia will be the overseer in his absence. Statistics Mr. Sylvia reported: • Operations through November were 118,65 1. Up 4.71% over last YTD. Operations for November were 8,624 compared to 7,892 last year. • Enplanements through November were 166,773. Down 3.38% from last YTD. Mr. Drake would like if we compared fiscal year instead. • Freight through November was 2,289,859 lbs. Up 13.57 %. • There were four Noise complaints for the month of November and 107 total for the year. Sub - Committee Report None. Commissioner's Comments Mrs. Topham asked if the lights could be lowered new Daffodil Lane. Mr. Rafter replied the lighting complies with FAA criteria. Mr. Drake requested that we get that information to the Surfside and Madequesham Associations. Mrs. Topham inquired why the FAA has reserved parking spaces in the front of the visitors' parking lot Mr. Rafter responded it is most likely in their contract. Mrs. Topham thanked the Airport for painting the cement posts along the parking lot walkways white. Public Comment None. The Commission M/S/P to enter into executive session, not to reconvene in open session, to discuss the minutes from December 0 and I ls' by the following vote: Chairman Dan Drake -Aye Vice Chair Arthur Gasbarm -Aye Jeanette Topham -Aye Sonny Raichlen -Aye 12.18.12 Airport Commission Minutes Page 401`5 Meeting adjourned at 6:30 PM. Respectfully Submitted, AC.t.O- Debra Crooks, Recorder Master List of Documents 12/18/12 Agenda 12/4/12 Draft Minutes Clean Harbors Contract Safety-Kleen Systems Contract FY2014 Capital Program Committee Report to BOS and FinCom Executive Summary FY2013 Revised / FY2014 Budget (Handout) Debt Schedule (Handout) November Statistics Report (Handout) 12.18.12 Airport Commission Minutes Page 5 of 5