HomeMy WebLinkAbout2018-3-16 Town of Nantucket
NANTUCKET MEMORIAL AIRPORT'2i ; G 23 AM I r
14 Airport Road
Nantucket Island, Massachusetts 02554
Thomas M.Rafter.Airport Manager A ►. 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 MEETING
Executive Session Minutes
March 16,2018
(Re-Scheduled due to Weather Cancelation on March 13, 2018)
The meeting was called to order at 3:55 pm by Chairman Daniel Drake with the following
Commissioners present: Vice Chair Arthur Gasbarro, Andrea Planzer, Jeanette Topham and Anthony
Bouscaren.
The meeting took place in the 1"floor Community room at the Public Safety Facility,4 Fairgrounds Rd.
Nantucket MA.
Airport employees present were: Thomas Rafter,Airport Manager and Janine Torres. Office Manager.
Review of Pending Minutes
Hold approval and release for future meeting due to pending matters.
Leases
• CPI/Fair Market Value
The Rafter briefed the Commission that the newer land leases rent adjustments call for an annual
CPI increase with a five-year Fair Market Value (FMV) appraisal clause. Many leases executed
five years ago are now due for the FMV increase. This will cause an increase of over 100%. The
Airport is very concerned over the monetary impact to the tenants; but does not want to violate its
Grant Assurances.
Mr. Rafter reported speaking with FAA Compliance Officer, Jorge Pantelli, for guidance on Fair
Market Value (FMV) increases on non-aeronautical leases. Mr. Pantelli acknowledged there is no
industry best practice, and added Nantucket and Martha's Vineyard are a unique situation when it
relates to land market rates. Mr. Pantelli suggested the Airport submit a proposal on lease increase
adjustments for the FAA to consider.
After lengthy discussion,the Commission agreed to a FMV increase cap of 10%, subject to change
should FAA Compliance disapprove of the policy.
In discussing the timing of appraisals, the Commission establishing a 3-year cycle for appraisals
which would be pro-rated for the affected leases.
• Sun Island Road
Mr.Rafter briefed the Commission on interested parties for Sun Island Road property and suggested
re-advertising all five acres at the appraised value to entice participation.
After brief discussion the Commission agreed to re-advertise all five acres at the appraisal rate of$1.77
psf.
AIP 65-Public Address System
Mr. Rafter updated the Commission on the dispute between Jacobs Engineering Group and the
Contractor, Infax. Infax, is proceeding with completing the project despite Jacobs' unwillingness to
contribute to the cost of the change order. Mr. Rafter noted Jacobs wrote a performance spec that called
for additional engineering, but did not give a monetary allowance for the additional work. Mr. Rafter
called Jacobs Manager, Steve Pelham, and expressed the Airport's displeasure and noted if the FAA
agrees to fund the change order, it deducts from the Airport's entitlement monies that could be used for
another project. Mr. Pelham indicated Jacobs would be contributing something.
Mr. Rafter added the ATM Article for fund transfers includes $75K for this project should the Airport
find itself in need of contributing to the added cost of the project. The Commission supported a
contribution by the Airport if Jacobs does not step up and share in the added financial costs since Infax
appears to have acted in good faith.
Having no further business, Mr. Gasbarro made a Motion to adjourn. Second by Mr. Bouscaren and
Passed unanimously by the following roll-call vote:
Ms. Planzer- Aye
Ms. Topham -Aye
Mr. Bouscaren-Aye
Mr. Gasbarro -Aye
Mr. Drake-Aye
Meeting adjourned 4:45 pm.
Respectfully submitted,
Janine M. Torres, Recorder
Master List of Documents Used
3/13/18 Executive Session Agenda
2/13/18 Draft Executive Session Minutes
Airport Lease CPI Information
Sun Island Road Appraisal
3/16/18 Airport Commission Executive Session Page 2 of 2