BOARD MEMBERS PRESENT: Jon Savage; Russell Hahn; Heather Tow-Yick; Christopher Little and Gregory Pizzuti

Transcription

1 MINUTES OF MEETING RHODE ISLAND AIRPORT CORPORATION BOARD OF DIRECTORS WEDNESDAY, MAY 24, 2017 AT 4:30 PM IN THE MARY BRENNAN BOARD ROOM T. F. GREEN AIRPORT 2000 POST ROAD, WARWICK, RHODE ISLAND The meeting of the Rhode Island Airport Corporation (Corporation) Board of Directors was called to order by Chair, Jon Savage at 4:30 p.m., in the Mary Brennan Board Room at 2000 Post Road, Warwick, Rhode Island, in accordance with the notice duly posted pursuant to the Open Meetings Law. BOARD MEMBERS PRESENT: Jon Savage; Russell Hahn; Heather Tow-Yick; Christopher Little and Gregory Pizzuti BOARD MEMBERS ABSENT: Michael Traficante and Deborah Thomas ALSO PRESENT: Iftikhar Ahmad, President and CEO, and those members listed on the attendance sheet attached hereto. 1. Approval of the Minutes: A motion was made by Mr. Hahn to approve the minutes of the Board of Director s Meeting of April 26, The motion was seconded by Mr. Little. The motion was passed unanimously. 2. Open Forum: Mr. Savage asked if anyone present wanted to speak in Open Forum. No one came forward. 3. Report from the President and CEO: Mr. Ahmad presented the President and CEO Report and reported on the following: Mr. Ahmad stated we announced Frontier Airlines service today. They will provide new service from Providence to Orlando and Providence to Denver on August 14, Mr. Ahmad explained the Orlando service will be year round and the Denver service will be seasonal for now, likely through New Year. Mr. Ahmad thanked Ms. Seabury, Ms. Melone, Mr. Schattle, Mr. Andrade, Ms. Goldstein and Mr. Pimental for their hard work. Mr. Ahmad stated the announcement was heavily attended and the speaker s line up included Governor Raimondo, House Majority Leader Shekarchi, Senate Majority Leader McCaffery, Mayor Avedesian and our very own Chairman Jon Savage. Mr. Ahmad stated the sponsor of the Air Force One Project at Quonset Airport has 1

2 purchased the aircraft and executed the lease and operating agreement that was approved at the April Board Meeting. Mr. Ahmad confirmed that they have paid their past dues and provided $100,000 into an escrow fund. The project will now move forward. Mr. Ahmad stated we are working with the owners of the Comfort Inn property on a new walkway access for customers through Garage A. This project is part of their plans to rebrand the hotel and update their current facilities. Mr. Ahmad noted that meetings have begun to review the design and ensure safety, security and customer service. Mr. Ahmad stated in light of last week s cyber-attacks, our IT department has circulated refresher guidance to employees about protecting themselves and the corporation from phisher attacks. Mr. Ahmad noted the team also confirmed s multiple levels of protection as well as reviewed our computer software updates to confirm that we have the latest critical security upgrades from Microsoft. Mr. Ahmad stated the Runway 5 extension project is ahead of schedule. The contractor is working both day and night with no disruption to airport operations. Mr. Wiggin and Mr. McDonough will be presenting an update. Mr. Ahmad stated the FIS rehabilitation project is moving along rapidly and we are now to the point where every area associated with the FIS is in construction. Mr. Ahmad indicated the final overall plan design has been submitted to the CBP Program Manager and we are waiting on her approval. Mr. Ahmad noted that we are near the point where demolition is complete and the risk of discovering unknowns is behind us. We are confident in the contractor s ability to complete the project on time. Mr. Ahmad explained receiving the CBP Information Technology and Security information is critical to the completion date and we have been working closely with CBP to get those details. Mr. Ahmad stated the United relocation is near completion. The office space is complete and their LAN is currently being relocated. The contractor is assisting in relocating all of their equipment. Mr. Ahmad noted the hold room and boarding bridge arrangements are being worked out to move their operations from Gate 7 & 8 to Gate 11. Mr. Ahmad stated Mr. Seabury will be presenting an update. Mr. Ahmad stated all aircraft registration annual renewals are due on July 1, Airport Operations and Aeronautics are preforming their annual review to ensure accuracy of aircraft based in Rhode Island before invoicing. Mr. Ahmad asked Ms. Goldstein to provide an update on the ACI-NA Jumpstart Conference. Ms. Goldstein noted the ACI-NA Jumpstart Conference is approaching quickly, June 4 7, There are many registrations including airports and airlines. Ms. Goldstein stated there is a welcome event the first day of the conference that Governor Raimondo and Mr. Ahmad will be welcoming the guests to Rhode Island. There are 2

3 various breakout sessions with various topics. The following day consists of airline meetings with incumbent carriers and new carriers and each airline has one or many tables. Mr. Hahn asked who will be representing. Ms. Goldstein answered Mr. Ahmad, Mr. Schattle and Mr. Pimental. Ms. Goldstein explained we will have a table promoting the airport at the event and there will be various signage at the airport and at the event location as well as a looping video showcasing the best of Rhode Island. Ms. Goldstein noted there is a reception on the Tuesday evening that planned. Ms. Tow-Yick asked what the economic impact will be. Ms. Goldstein indicated that we will get back to her on that information. Mr. Ahmad asked Mr. Andrade to provide an update on the March Operations Report. Mr. Andrade noted there were increases in both daily carrier seats and daily departures in March 2017, which show signs of future increases. Mr. Andrade stated that all three categories in the airline passenger activity were up slightly. Mr. Andrade noted the increases in the levels of activity should bring the numbers up. Mr. Ahmad asked Mr. Schattle to provide an update on the Statements of Revenues and Expenses. Mr. Schattle explained that overall revenue has increased over the prior year by approximately 5.13% for the month of March. Mr. Schattle noted that the food and beverage increase is primarily due to the increase in the minimum annual guarantee. Mr. Schattle explained that news and gifts has a positive trend for both the month and fiscal year to date. Mr. Schattle noted the continuation of growth for on-airport parking revenue with an increase of 10.68% for the month. Mr. Schattle noted that tie down and hangar rent revenue includes additional revenue from a corporate hangar tenant. Mr. Schattle noted total operating expenses for the month were down 5.01%. Mr. Hahn asked about the increase in the Insurance Expense. Mr. Schattle noted there was a prior year adjustment to an accrual in the month and that the fiscal year to date amounts show a slight decrease year on year. Mr. Hahn confirmed that it is reflected in the year to date comparisons. Mr. Schattle noted that the non-operating revenue and expenses can fluctuate based on timing of capital projects and related funding. Mr. Schattle explained the interest expense for the bonds included an adjustment in the prior year based on the refunding s and that the year to date comparisons reflect the positive results of the refunding s. Mr. Schattle noted that fiscal year to date airline and non-airline revenues have increased over the prior year. Mr. Schattle discussed several line items including food and beverage and auto parking. Mr. Schattle discussed the wages and overtime year to date expenses noting that the operations groups are reviewing opportunities to decrease overtime in their departments. Mr. Schattle noted the non-operating revenue streams fluctuate from year to year based on the timing of capital projects and related funding. Mr. Schattle discussed the Interlink Facility revenues and expenses. Department Updates: 3

4 (a) Runway 5 Extension Construction Update Mr. Wiggin noted the construction for the Runway 5 Extension began in June Mr. Wiggin explained this work consisted of the connection of the two runways and the FAA NAVAID and Approach Lighting construction. Mr. Wiggin noted as of May 2017 work began around the clock. Mr. McDonough noted the 55 hour shut down allowed work to be done all in one week as opposed to seven weeks. Mr. McDonough explained they finished 10.5 hours early, as well as installed the lighting. Mr. McDonough explained the construction milestones and indicated the project is under budget. The runway will be open for visual approaches around August 15 th. (b) FIS Facility Update Mr. Seabury reviewed the FIS exhibit noting 90% of the facility is in construction. Mr. Seabury noted Phase 2 has started and the project will be competed in 44 calendar days. Mr. Seabury stated there are 40 construction workers working daily. Mr. Seabury explained the photos exhibited along with an estimate table. (c) Enhanced WIFI Service Update Mr. Costa noted the WIFI service update started December 2016 and finished March Mr. Costa explained the enhancement included additional coverage in areas of the terminal that did not exist and increased speed. Mr. Costa reviewed the coverage exhibit noting the old and new areas. Mr. Costa indicated there was a large rise in usage and the new program allows to review reporting of many categories. 4. Action Items: (a) Approval of an Amendment to the Baggage Handling System Management Agreement with JBT Corporation Providing for a One-Year Extension Under the Same Terms and Conditions. Mr. Andrade explained the connectivity from the ticket counter to the airline goes through the current inline system. Mr. Andrade noted the request was to extend the agreement with the current provider to allow more time to evaluate the replacement of the Baggage Handling System s computerized control system. Mr. Andrade noted as an incentive, the current provider will maintain two aircraft boarding bridges that are currently owned by United and we will acquire. Mr. Andrade indicated the fee will be locked in at the 2015 rate noted. Mr. Savage asked if because it is a one year extension, no RFP is needed. Ms. Jacques and Mr. Andrade indicated it was ok. Ms. Tow-Yick if the one year is to establish a new RFP. Mr. Andrade answered yes. Ms. Tow-Yick questioned what that RFP would entail. Mr. Andrade explained that it will be an operating system with a new system established for boarding bridges. A motion was made by Mr. Little and seconded by Mr. Hahn to approve the recommendation. The motion was passed unanimously. 4

5 (b) Approval for to Request the Director of the Rhode Island Department of Transportation to Exercise its Power to Condemn Roads, Properties and Avigation Easements Necessary, or Advisable, to Complete the Airport Improvement Program and to Allow the Rhode Island Airport Corporation to Enter Into a Memorandum with the Rhode Island Department of Transportation to Agree to Pay the Costs Associated with the Condemnation Process. Ms. Jacques provided some background on the condemnation process stating the Rhode Island Department of Transportation handles condemnation on behalf of, with the Board s approval to do this. Ms. Jacques noted has made every effort to acquire an avigation easement from the homeowner voluntarily but due to time-constraints, it must condemn the avigation easement which will allow us to clear obstructions in order to maintain our runways CAT 1, 2 and 3. Ms. Jacques stated this authority would allow us to prepare an MOA with RIDOT to reimburse the cost associated with the condemnation, including any resulting litigation in the future. Mr. Savage asked if we offered to buy the entire property or just the avigation easement to get rid of trees. Ms. Jacques responded that has made the offer to purchase the property, the easement, or any combination which would allow to remove the obstructions. Ms. Tow-Yick asked if there are reasons why the homeowner has refused the various offers. Ms. Jacques responded that this is a lifelong resident who has difficulty making a decision. Mr. Hahn asked if the homeowner can change their mind once this condemnation gets processed. Ms. Jacques answered they cannot once it is finalized by filing the documents in the City of Warwick. Mr. Hahn asked if there was financial compensation for easements and confirmed if we get the trees, this will get the CAT 1, 2 and 3 status. Ms. Jacques answered yes, and if he comes back and wants to sell his house we will try. Mr. Hahn asked if we can try and get this done as peacefully as possible. Ms. Jacques responded that due to the pending opening of the runway, we no longer have time to continue to negotiate. RIDOT will take over and as part of its process, it will also make an attempt to negotiate a purchase. A motion was made by Mr. Hahn and seconded by Mr. Little to approve the recommendation. 5. Executive Session: At approximately 5:13 p.m. a motion was made by Ms. Tow-Yick and seconded by Mr. Little to go into Executive Session for the purpose of discussing the following items: The Board will seek to go into Executive Session for the following stated purposes: (a) (b) Motion to Approve the Minutes of the Executive Session held on March 22, (a), (2) and (7); and Investment of Public Funds Where Premature Disclosure Would be Detrimental to the Public Interest (Air Service Development and Marketing Program) R.I.G.L (a)(7); and 5

6 (c) Discussions Regarding Security (FIS Renovations) R.I.G.L (a)(3); and (d) Discussions Related to One Potential Non-Public Litigation Matter (Construction Dispute) R.I.G.L (a)(2); and (e) Discussion Related to Collective Bargaining R.I.G.L (a)(2); and (f) Motion to Return to Open Session. By the following roll call vote the motion was passed unanimously. YEAS: NAYS: ABSTAIN: Heather Tow-Yick Christopher Little Russell Hahn Jon Savage Greg Pizzuti None None At approximately 6:30 pm, a motion was made by Ms. Tow-Yick and seconded by Mr. Little to return to Open Session. The motion passed unanimously. 6. Post Executive Session Actions and Announcements: (a) Motion to Seal the Minutes of the Executive Session Held on April 26, A motion was made by Mr. Little and seconded by Mr. Hahn to seal the minutes of the Executive Session in accordance with R.I.G.L By the following roll call vote the motion was passed unanimously. YEAS: NAYS: Heather Tow-Yick Christopher Little Jon Savage Russell Hahn Greg Pizzuti None (b) Report on Actions Taken in Executive Session. During the Executive Session a motion was made by Ms. Tow-Yick and seconded 6

7 by Mr. Hahn to approve the sealed minutes of the Executive Session held on March 22, The motion was passed unanimously. 7. Future Meetings: The next Board Meeting will be held on Tuesday, June 20, 2017 at 5:00 pm in the Mary Brennan Board Room, T. F. Green Airport, Warwick, Rhode Island. 9. Adjournment: Mr. Hahn moved to adjourn at approximately 6:34 pm. Mr. Little seconded the motion. The motion was passed unanimously. Respectfully submitted, Jon Savage, Chair Rhode Island Airport Corporation 7

8 PUBLIC ATTENDANCE SHEET RHODE ISLAND AIRPORT CORPORATION MEETING OF THE BOARD OF DIRECTORS WEDNESDAY, MAY 24, 2017 NAME Brian Schattle Alan Andrade Alicia Seabury Donna Melone Sherri Ann Penta Paul McDonough Timothy Pimental Bruce Wilde Annette Jacques Dan Porter Doug Dansereau Steve Cahill David Cloutier Eric Seabury Jeff Goulart Patti Goldstein Randy Costa Jack Thomas Nicole Williams Robert Goff Andy Nielsen AFFILIATION New England Parking Governor s Office 8

9 NAME Nicole Reis Kevin Blais Joe White Joe Barra AFFILIATION Allied Court Reporters Constituent Robinson & Cole Robinson & Cole 9

10 The minutes of the Executive Session of the Board Meeting May 24, 2017 have been sealed in accordance with R.I.G.L