BOARD MEMBERS PRESENT: Jon Savage; Russell Hahn; Deborah Thomas; Heather Tow-Yick; Christopher Little; Gregory Pizzuti; Michael Traficante

Transcription

1 MINUTES OF MEETING RHODE ISLAND AIRPORT CORPORATION BOARD OF DIRECTORS WEDNESDAY, SEPTEMBER 27, 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 () Board of Directors was called to order by Mr. Savage at 4:32 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 Act (RIGL et seq.). BOARD MEMBERS PRESENT: Jon Savage; Russell Hahn; Deborah Thomas; Heather Tow-Yick; Christopher Little; Gregory Pizzuti; Michael Traficante BOARD MEMBERS ABSENT: None ALSO PRESENT: Iftikhar Ahmad, President and CEO, and those members listed on the attendance sheet attached hereto. 1. Approval of the Minutes: Mr. Savage asked to postpone the approval of the minutes until later in the meeting. 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 finalized an agreement with the New England Patriots to accommodate one aircraft at T. F. Green airport and one aircraft at Quonset airport. Mr. Ahmad stated we attended the Air Service Development Council (Council) meeting at the Commerce Corporation on September 8, At this meeting the Council approval of a Memorandum of Agreement (MOA) to transfer $2 million to the Rhode Island Airport Corporation () for marketing expenses associated with the new service at PVD. Mr. Ahmad noted that the MOA would not have been possible without the hard work from Chairman Savage. Mr. Ahmad stated we attended the Commerce Corporation s Board of Directors meeting on September 5, Governor Raimondo ran the meeting. They approved the issuance of the 2017 First Lien Special Facility Revenue Refunding 1

2 Bond to refund the 2006 First Lien Special Facility Revenue Bonds related to the Interlink. Mr. Ahmad stated the Rhode Island Department of Environmental Management (RIDEM) has issued the permit for the Solar City site at North Central airport. Negotiations between National Grid and Solar City regarding interconnections are still ongoing. We are still waiting on the land releases from Federal Aviation Administration (FAA). Mr. Ahmad stated a Block Island resident that lives next to the airport is one of the most vocal individuals expressing frustration with helicopter tour operations. He recently complained to the town and Representative Blake Filippi that multiple helicopter tour operators were coming and going. Mr. Ahmad noted the second helicopter he referenced is an individual from Connecticut that owns a helicopter and frequents Block Island the same as any other private pilot. We have conveyed that message to the resident, the town and Representative Filippi and shared that the second aircraft is a personal aircraft. Mr. Ahmad noted we advised the pilot of the sensitivity in the community and identified the noise sensitive areas. The pilot advised that he will cooperate in avoiding these areas. Mr. Ahmad stated we are working on training our Environmental Manager to perform the data retrieval and reporting of air quality sampling to meet our legislative obligation to sample for air quality to eliminate the cost of having an outside contractor. Mr. Ahmad noted the equipment needs to be relocated to satisfy the objective of the two additional years of sampling to focus on the recently extended approach end of Runway 5. Mr. Ahmad stated the short term disability, long term disability and life insurances renew on November 1. Renewal rates from the incumbent were high so our broker put the item out to bid to get competitive quotes. Demonstrations from the two lowest bidders occurred on September 8, Mr. Ahmad stated we have resolved a pending item related to the note payable to the Quonset Development Corporation (QDC) and the Intercompany accounts receivable. will receive the net revenues from the Airport Support Fund properties while the annual note payment to QDC of $235,000 is taken out of the Intercompany accounts receivable currently on the books. Once the balance in the account is exhausted, payments will be taken from the annual revenues until the full amount of the note is paid off in Department Updates: (a) Airport Operations Report Update Mr. Andrade noted that there were increases in both daily carrier seats and daily departures in July Mr. Andrade stated that all categories in the airline passenger activity were up noting a double digit increase. 2

3 (b) Airport Financial Update Mr. Schattle noted the following information is fiscal year 2017 results. Mr. Schattle noted there is a continuation of recent trends and a reduction in airline costs. The estimated CPE is approximately $ Mr. Schattle noted the non-airline revenues are up 9.2% as compared to the prior year. Automobile parking revenue is up due to the continued efforts to increase on-airport parking revenues. Mr. Schattle noted that both the food and beverage and news and gift concession revenues continue their positive trends. The increase in food and beverage is primarily due to the increase in the minimum annual guarantee, while the increase in retail has outpaced our enplanement trends. Mr. Schattle noted total operating expenses for the fiscal year were down 0.14% as compared to the prior year. Mr. Schattle noted the overtime and wages overall were higher than the prior year. Mr. Traficante asked about the professional services line item. Mr. Schattle noted that this line item included services and fees from firms such as airport consultants, financial advisors, insurance brokers and rating agencies. Mr. Schattle noted that the prior year amount included a credit received from the insurance broker. Mr. Schattle noted that the operating income from general aviation airports increased over the prior year. Mr. Schattle noted a growth in jet fuel sales. Mr. Schattle also discussed the fiscal year to date non-operating revenues and expenses and the InterLink year to date results. (c) Overtime Update Mr. Andrade noted a drop in overtime fiscal year to date from July through August 2017 and stated we are just under budget. Mr. Andrade and Ms. Penta provided a department break down of overtime. (d) Air Monitoring Update Mr. Andrade provided an update on the air monitoring approved in legislation. Mr. Andrade reviewed photos of the facility and noted the proposed relocation of the equipment. Mr. Andrade noted the in-house Manager of Environmental is being trained to operate this system. Mr. Andrade explained the greenhouse gas survey is performed annually and it is part of the legislation. Mr. Andrade updated on important dates and amounts. Mr. Hahn asked of the data that is collected, what does do with it. Mr. Andrade responded that we have been providing the data all along, but the Rhode Island Department of Health (RIDOH) was supposed to provide a report in 2009 indicating what the data means and has yet to provide anything. (e) Rules & Regulations Update Ms. Jacques provided an update on the rules and regulations modifications. By state law, all state agencies are required to revise their regulations by December 30, 2018 into the uniform Rhode Island Code of Regulations. Ms. Jacques noted that all agencies are required to reduce their regulations by 10 percent. Ms. Thomas asked if we have a sense of how much has been taken out already. Ms. Jacques answered approximately 30 3

4 percent, not counting air quality monitoring. Ms. Jacques stated that the Procurement regulations will require a complete revision. Ms. Thomas noted the Finance and Audit committee would like to review the updated Procurement rules and regulations prior to submittal. Mr. Savage asked that the Ground Transportation regulations be brought to the board for input. Ms. Jacques noted that the Access to Public Records, Advertising, Expressive Activity and Aeronautical Regulations are scheduled for submittal in November. Ms. Jacques stated she will provide the board with the redlined version of the Procurement and Ground Transportation regulations for its review and approval prior to submittal which are scheduled for February (f) Marketing Update Mr. Pimental provided a brief update on activities with Norwegian, Frontier and Allegiant and the focus on promoting the new routes. Mr. Pimental reviewed initiatives that are currently underway to market and promote the services. Mr. Pizzuti asked what the legacy airlines think of the new air service advertising. Mr. Pimental explained that we did the same for them for their new services and would do the same for them in the future should they add eligible new service at PVD (g) Concessions Customer Service Update Mr. Cloutier provided an update on the SI Partners strategic evaluation of the program and the concepts they are using for their benchmarking on the concessions at the airport. Initial assessments should be received within the next 30 days. Mr. Cloutier presented the new operating hours signs reflecting extended hours. Mr. Savage asked if one establishment is closed early will another be open late. Mr. Cloutier answered there will be wayfinding signs when concessions are opened or closed directing passengers to open locations. Ms. Tow-Yick asked if when late or delayed flights for departures or arrivals happen, will there be a clause to accommodate those customers. Mr. Cloutier answered that there will be a clause especially with departure delays. (h) Aircraft Operations Monitoring System (AOMS) Update Mr. Porter provided a detailed description of the Aircraft Operations Monitoring System (AOMS) noting the system helps with complaints from the community and the current providers contract expires in This system provides a quarterly report and this needs to be presented at a public hearing. Mr. Porter presented data on costs for similar airports. (i) Solar City Update Mr. Andrade introduced Ms. Knowlton and Ms. Beckett from Solar City. Mr. Savage explained to the Board that this matter will be discussed in executive session but requested to hear the presentation and asked Solar City representatives to stay during this time and be available to discuss after the executive session. Ms. Beckett noted that Ms. Knowlton took over as account manager and has been working with Mr. Selmanoff on this account. Mr. Savage asked if Mr. Selmanoff is still with Solar City and if he was, should the presentation be postponed to discuss with him. Mr. Savage asked what Mr. 4

5 Selmanoff s role is at the company. Ms. Beckett answered that Mr. Selmanoff is a senior manager but based upon the questions from the last meeting, they believed they we would be better served to respond. Mr. Savage asked why Mr. Selmanoff is not at the meeting if he is working closely on this project. Ms. Beckett answered that he could be available but she doesn t believe he would be helpful today. Ms. Beckett explained the current outside operational date and the proposal to extend to a later date with the most conservative schedule Solar City can meet. Mr. Savage asked if the unforeseen project delays are what they are discussing. Ms. Knowlton noted she wanted to highlight the reasons for the extension. Mr. Savage asked why there was a delay on the first item. Ms. Knowlton explained the HMMH data that was received was not factual requiring them to redo some of the project. Mr. Andrade explained the first assessment was done by HMMH. Mr. Savage asked if Solar City has done airports previously and understands it is not uncommon to do a glare analysis. Ms. Knowlton answered yes but this project was slightly different as they had to conduct this study after, due to the wrong information originally. Mr. Savage asked if they lay out the site first. Ms. Knowlton answered that this case was different. Ms. Knowlton went over the estimated additional costs including third party costs and the several specific delays. Mr. Savage asked if Solar City has a break down by site. Ms. Knowlton answered yes but not on the powerpoint being shown. Mr. Savage asked if they knew the total. Ms. Beckett noted over $700,000 with mostly Newport airport site. The costs are utilities on interconnections, site surveys, redesigns, etc. Mr. Savage asked if this was why Newport airport was delayed. Ms. Knowlton noted one to two redesigns is normal on a project. 1. Approval of the Minutes: A motion was made by Mr. Hahn to approve the minutes of the Board of Directors Meeting on July 26, The motion was seconded by Mr. Traficante. A motion was made by Mr. Little to approve the minutes of the Board of Directors Meeting on August 23, The motion was seconded by Mr. Hahn. The motions were passed unanimously. 4. Action Items: (a) Approval to Execute an Insurance Contract with Standard Insurance for Short Term Disability, Long Term Disability, Life Insurance and Accidental Death & Dismemberment Coverage Effective November 1, Mr. Little recused himself and stepped away from the table. Ms. Penta provided an update on the renewal of the insurance coverage noting the chosen company, Standard Insurance, was the second lowest bidder with a little higher than budgeted bid due to the first bidder not mirroring our current plan. A motion was made by Mr. Traficante and seconded by Ms. Thomas to approve the recommendation. 5

6 The motion was passed unanimously. Ms. Heather Tow-Yick left the meeting at 5:49 pm. (b) Approval of a Consultant Task Order 1 with C&S Companies in the amount of $171,904 for the T. F. Green Airport Master Plan Data Mapping Collection Effort Mr. Porter provided an update on the data mapping collection effort for the airport master plan. Mr. Porter reviewed the maps of the Airport Layout Plan (ALP) and the financial summary for this effort. Mr. Hahn asked if there was only one bidder for this effort. Mr. Porter noted this is based on qualifications and C&S Companies was chosen in a previous PSA. A motion was made by Mr. Traficante and seconded by Mr. Little to approve the recommendation. The motion was passed unanimously. (c) Approval to Enter Into a Marketing Agreement Related to the New England Patriots for Marketing and Advertising Rights in Exchange for Waived Airport Fees at T. F. Green and Quonset Airport. Mr. Schattle provided an update on the New England Patriots agreement noting the benefits of being identified as the official airport of the New England Patriots and the alignment of the Patriot s fan base with our catchment area. Mr. Schattle noted there are several marketing opportunities. Mr. Schattle discussed the parking locations of the planes. Mr. Hahn asked about the term of the agreement. Mr. Schattle noted the agreement is expected to be less than one year but there is discussion for a longer term arrangement. Mr. Little asked what the planes will do off season and if they will do private charters. Mr. Schattle explained that the fee waivers will be associated with Patriots activities and a limited number of additional operations. Ms. Thomas asked if we know the expected marketing value. Mr. Schattle noted that the marketing value is estimated to be approximately $1 million. A motion was made by Mr. Traficante and seconded by Mr. Hahn to approve the recommendation. The motion was passed unanimously. (d) Approval of the Sale of 1910 Post Road, Warwick, Rhode Island to 1910 Airport Post Road, LLC for the Sum of One Million Six Hundred Thirty-Five Thousand Dollars ($1,635,000) and to Authorize the President and CEO, or His Designee, to Execute a Quit-Claim Deed and any other Transfer Documents that are Customary and Necessary to Effectuate Said Sale. 6

7 Ms. Jacques provided an update on the sale of 1910 Post Road noting that in April 2016 the Board of Directors authorized the Proccacanti Group a one-year option to purchase the Atwood Grill. In that agreement they were required to demolish the building, which has been done. Mr. Savage confirmed that this was previously approved by the Board. Ms. Jacques confirmed but stated that the title attorney has requested that the Board provide an updated approval for the sale to the Proccacanti Group s assignee 1910 Airport Post Road, LLC. A motion was made by Mr. Traficante and seconded by Ms. Thomas to approve the recommendation. The motion was passed unanimously. 5. Executive Session: At approximately 6:00 p.m. a motion was made by Mr. Hahn and seconded by Ms. Thomas 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) (c) (d) Motion to Approve the Minutes of the Executive Session held August 23, (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 Discussions Related to Three Potential Non-Public Litigation Matters (Construction Dispute and Two Contract Disputes) R.I.G.L (a)(2); and Motion to Return to Open Session. By the following roll call vote the motion was passed unanimously. YEAS: NAYS: ABSTAIN: Michael Traficante Russell Hahn Jon Savage Deb Thomas Christopher Little Greg Pizzuti None None At approximately 6:52 pm, a motion was made by Ms. Thomas and seconded by Mr. Hahn to return to Open Session. 7

8 The motion passed unanimously. 3. Solar City Update (i) Mr. Savage thanked Solar City for waiting and noted there is an issue on unforeseen project delays and is not getting a lot of comfort from Solar City on these delays. The other item of concern is the lack of independent review from Solar City at the beginning of the project. Mr. Savage explained the Board was having a discussion with Mr. Selmanoff last month and he was asked if he could be in attendance at the next meeting and he confirmed. Ms. Beckett advised the Board that Mr. Selmanoff is a sales person and she has seniority over these types of matters. Ms. Beckett asked the Board to give her more clarity on what they are looking for with him and she will make the decisions. Mr. Savage noted he wanted to continue the conversation with Mr. Selmanoff as the situation is not sitting well with the Board. Ms. Knowlton noted that it was relayed that Solar City needs to have representation at the next board meeting but not specifically with Mr. Selmanoff. Mr. Savage noted the Board s expectation is to have is to have Mr. Selmanoff return and Ms. Beckett is encouraged to come as well. 6. Post Executive Session Actions and Announcements: (a) Motion to Seal the Minutes of the Executive Session Held on September 27, A motion was made by Mr. Hahn and seconded by Mr. Savage 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: Michael Traficante Russell Hahn Jon Savage Deb Thomas Christopher Little Greg Pizzuti None (b) Report on Actions Taken in Executive Session. During the Executive Session a motion was made Mr. Hahn and seconded by Mr. Little to approve the sealed minutes of the Executive Session held on August 23, The motion was passed unanimously. 8

9 7. Future Meetings: The next Board Meeting will be held on Wednesday, October 25, 2017 at 4:30 pm in the Mary Brennan Board Room, T. F. Green Airport, Warwick, Rhode Island. 8. Adjournment: Mr. Little moved to adjourn at approximately 6:59 pm. Mr. Hahn seconded the motion. The motion was passed unanimously. Respectfully submitted, Jon Savage, Chair Rhode Island Airport Corporation 9

10 PUBLIC ATTENDANCE SHEET RHODE ISLAND AIRPORT CORPORATION MEETING OF THE BOARD OF DIRECTORS WEDNESDAY, SEPTEMBER 27, 2017 NAME Brian Schattle Alan Andrade Alicia Seabury Donna Melone Sherri Ann Penta Timothy Pimental Annette Jacques Dan Porter David Cloutier Eric Seabury Jeff Goulart Nicole Williams Doug Dansereau Jack Thomas Bruce Wilde Jeff Wiggin Steve Cahill Bob Goff John Hill Millie Knowlton AFFILIATION New England Parking Providence Journal Solar City 10

11 PUBLIC ATTENDANCE SHEET RHODE ISLAND AIRPORT CORPORATION MEETING OF THE BOARD OF DIRECTORS WEDNESDAY, SEPTEMBER 27, 2017 NAME Anastasia Beckett Woody Creswell AFFILIATION Solar City Paradies 11

12 The minutes of the Executive Session of the Board Meeting September 27, 2017 have been sealed in accordance with R.I.G.L