HomeMy WebLinkAbout4.9.15 Workshop Minutes
Town of Nantucket
NANTUCKET MEMORIAL AIRPORT
14 Airport Road
Nantucket Island, Massachusetts 02554
Thomas M. Rafter, Airport Manager 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 WORKSHOP
April 9, 2015 The meeting was called to order at 10:36 AM by Chairman Daniel W. Drake with the following
Commissioners present: Arthur D. Gasbarro, Vice Chair, Anthony G. Bouscaren, Andrea Planzer and
Jeanette D. Topham. The meeting took place in the 1st floor meeting room at the Public Safety Facility, 4 Fairgrounds Rd. Nantucket MA.
Airport employees present were: Thomas Rafter, Airport Manager, Jamie Miller, Business & Finance
Manager, Noah Karberg, Environmental Coordinator, Mae Williams, Administrative Assistant, and Janine Torres, Office Manager.
Town of Nantucket employees present were: Brian Turbitt, Town Finance Director and Lauren Sinatra, Energy Coordinator.
Representing Honeywell was Doreen Hamilton, Account Representative, Alisa Montalto, Honeywell
Global Finance, Max Lopp, Energy Engineer, and Dan Harsch, Honeywell Global Finance. Participating by phone was Dave Arthur, Volpe, Alex Epstein, Volpe, Chris Willenborg, Director of
MassDOT Aeronautics, and Nate Rawding, MassDOT Aeronautics. Mr. Drake announced the meeting was being recorded.
This Workshop was to learn about the different financing options of the Carbon Neutral Airport
Program (CNAP) presented by Honeywell Global Finance, an Energy Services Independent Financial
Resource.
Mr. Harsch reviewed the four (4) financing options should the Commission want to move forward with
the Carbon Neutral Program:
• Tax Exempt Lease – Bank or Leasing Company would act as investor. Generally has non-
appropriation language therefore is not Town Meeting related. Paperwork for a lease can generally be put together within 30 days. The Tax exempt lease is not Annual Town Meeting
related.
• New Clean Renewable Energy Bonds (CREB)
• Tax credit bond to investor with lower interest rate to a municipality. Fixed rates when issued. Government opened these bonds on March 5, 2015 with $597 million available. Annual Bond payments are subject to Town Meeting. Advised to use Town Counsel.
Airport Commission Minutes 4/14/15 Page 2 of 2
• Requires application process on a first come first served basis.
• Tax Exempt Bonds – Typically lower rates than a tax-exempt lease with longer terms available; however, fees associated and reduces debt capacity.
• Power Purchase Agreement (PPA) – The solar investor owns the assets and then the power is purchased from them.
Proposed Cash Flow spreadsheets were reviewed showing samples of:
• Combined CREB and Tax exempt lease proposal based on 20 year term – solar assets
• Tax exempt lease only – non-solar assets.
This projects benefits will come from reduced electricity costs, reduced natural gas costs, reduced propane costs, ability to sell renewable energy credits into the current Massachusetts Renewable Energy
Credit (REC) market, and credits toward the Airport and perhaps the Town’s electric bill based on the
amount of kilowatt hours generated. After 10 years, the Solar Renewable Energy Credit (SREC) go away. Net Metering Coupon (NMC) is the credit on the National Grid Electric bill.
Mr. Drake noted $11.2M would be required if we did all the recommended upgrades and $8.2M for just the solar project, plus environmental permitting costs and interconnection agreement.
The solar portion was discussed further including additional maintenance costs, size of solar field, timing including deadline for CREB application and location.
Honeywell’s recommendation is 2 Megawatt solar field financed with a CREB.
Additional information requested Commissioners:
• Complete list of recommended energy upgrades (Honeywell)
• Financing mechanism used by Hyannis (DOT)
• Provide cash flow spreadsheet based on 10-year financing (Honeywell)
• Research SREC options with Bond Counsel (Turbitt)
• Re-examine well vs. Town Water (Honeywell)
The Sub-Committee agreed to meet to review and make recommendation to the full Commission.
Meeting adjourned 12:12 p.m.
Respectfully submitted,
_________________________________ Janine M. Torres, Recorder
Master List of Documents Used
4/9/15 Workshop Agenda Honeywell Financial Overview dated 4/9/15