BOARD MEMBERS PRESENT: Jonathan Savage; Russell Hahn; Deborah Thomas; Gregory Pizzuti; Christopher Little

Transcription

1 MINUTES OF MEETING RHODE ISLAND AIRPORT CORPORATION BOARD OF DIRECTORS THURSDAY, FEBRUARY 8, 2018 AT 4:00 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 Chair, Jonathan Savage at 4:02 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 (R.I.G.L et seq.). BOARD MEMBERS PRESENT: Jonathan Savage; Russell Hahn; Deborah Thomas; Gregory Pizzuti; Christopher Little BOARD MEMBERS ABSENT: Heather Tow-Yick; Michael Traficante 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 January 11, The motion was seconded by Ms. Thomas. 2. Open Forum: Mr. Savage asked if anyone present wanted to speak in Open Forum. Mr. Theodore Green II stated he would like to address the Board. Mr. Green introduced himself on behalf of the Green family and noted they agree that the airport name needs to have international in its title and asks that we only add international and not change the entire name. Mr. Green asked if he could be informed of any changes. Mr. Savage confirmed that any updates for the name change will be in public forum and there is currently a discussion on finding significant dedication to Senator Green. Mr. Savage assured Mr. Green that is sensitive to the Green family s concerns and is cognizant of his history. Ms. Nancy Iadeluca stated she would like to address the Board. Ms. Iadeluca introduced herself as the lead negotiator of Local 26 that will be representing the employees of HMS Host as they enter negotiations. Mr. Roger Allinson stated he would like to address the Board. Mr. Allison introduced himself as a shopster with HMS Host and he was attending 1

2 to become more familiar with how the Board meetings work to serve his company better. 3. Report from the President and CEO: Mr. Ahmad presented the President and CEO Report and reported on the following: Mr. Ahmad stated the December 2017 passenger enplanements are up by 19.8%. Since the seat capacity had gone up by 19.0%, this means that the load factors went up in December. Mr. Ahmad noted this dynamic is the result of airlines actively competing right now with each other. This brings the December FYTD enplanements to 15%. Mr. Ahmad stated for the month of November, the airlines cost including landing fees of $154,000 resulting from the new cargo service, is up by 1.4%. Airline cost excluding the cargo landing fees from new service are down by 5.9% and the nonairline revenue is up by 42.5%. This is in line with our business strategy. Mr. Ahmad stated the FYTD Passenger Facility Charges are also up by more than $500,000, which makes for an increase of 17.51%. Mr. Ahmad stated staff met with Air Canada properties and operations staff on January 10 at PVD to prepare for the introduction of their new service to Toronto on May 17, Mr. Ahmad stated Standard and Poor s affirmed its BBB+ rating on the InterLink Senior Lien Bonds with a stable outlook. Moody s affirmed its Baa1 rating on the InterLink Senior Lien Bonds and revised its outlook from negative to stable. The Preliminary Official Statement has been finalized. Mr. Ahmad stated the Air Force One replica aircraft is being prepped to be loaded onto a barge and relocated to New York. The vertical stabilizer has been removed and the engines covered. The heavy lift incorporated contractor is coordinating the effort to barge the aircraft. Mr. Ahmad stated the Jacksonville Jaguars arrived at PVD on a on January 24. The aircraft was parked at the airport over the weekend in the location of the Patriots 767 aircraft. Since the New England Patriots went to the Super Bowl as well, both of the aircraft arrived at PVD and they were used to transport the team and approximately 1,100 boosters to Minneapolis. Mr. Ahmad noted there were several operations to and from MSP using both aircraft to transfer that many people. All of the passengers were screened at the stadium and bussed to the airport. Mr. Ahmad stated the New England Patriots departed from T. F. Green for the Super Bowl on Monday, January 31, This event received press and social media coverage that highlighted T. F. Green. Mr. Ahmad stated United Airlines added a direct flight to and from Minneapolis for 2

3 the Super Bowl. Mr. Ahmad stated we are working on making improvements to the restroom experience throughout the terminal. We have brought in vendors to sample alternatives for deodorizers to establish a pleasant scent. Mr. Ahmad noted we have experimented with automatic toilet seat covers in a couple of the women restrooms and are in the process of installing these covers in all of the women restrooms. An RFP is being prepared for a fresh flower bouquet in each of the women restrooms as well. Mr. Ahmad noted we have put together a team to evaluate and offer recommendations to remodel the concourse restrooms, to include maximizing the number of stalls. Mr. Ahmad stated our Police and Fire Department personnel performed with the utmost professionalism in response to an intoxicated female on January 25. Officer Tom Marcello identified and followed a woman as she staggered into the queue for screening and managed to catch her as she fell into the TSA document checker podium in an attempt to support herself. Officer Marcello immediately called for assistance, and tried to get the woman to sit down. She struggled to get away and fell into the stanchions. A female TSA agent was instrumental in assisting Officer Marcello in gaining control of the woman. Lt. Dennis Ray and State Police Officer McKenney arrived and assisted in controlling the woman, at which point she shut down and became unresponsive. A female traveler identified herself as a physician, and assisted in the examination of the woman. Fire Captain John Searle and Fire Fighter Ray Charron arrived and assisted in caring for the woman. Warwick Fire arrived and transported the woman to Kent County Hospital. This is just one example of many events that occur in the terminal, on an aircraft, or anywhere else on the airport property where our first responders have administered First Aid, and in several instances saved lives with the use of Narcan, CPR and/or an airport provided AED. We want to thank Officer Tom Marcello and Lt. Dennis Ray, who are here with us today. Mr. Ahmad recognized Mr. Paul Carroll, a previous board member, for his recent receipt of the 2018 General Aviation Award. Mr. Carroll was one of 11 honorees. Mr. Ahmad noted this award places Mr. Carroll in the top five of all the flight instructors, maintenance technicians, avionics technicians or FAASTeam representatives nationwide. Thank you for your dedication to pilot safety and awareness. Mr. Ahmad advised that will have a working group that Mr. Andrade will restart and that group will allow folks to contribute to that section and make it more successful. Mr. Andrade will work with Mr. Carroll to coordinate these meetings. Mr. Ahmad stated there was a press release today announcing Frontier Airlines new service to Austin, Texas. Frontier Airlines is now the top airline for non-stops at T. F. Green. Department Updates: (a) Airport operations report update 3

4 Mr. Andrade noted that there were increases in both daily carrier seats and daily departures in December Mr. Andrade stated that all categories in the airline passenger activity were up noting a double-digit increase. (b) Airport financial update Mr. Schattle noted there is a continuation of recent trends and a reduction in airline costs. The airline revenue for the month of November was up by 1.4%, including approximately $150,000 worth of additional cargo landing fees. Mr. Schattle explained if the cargo were taken out of the equation, we would have been down by approximately 5.9%. Mr. Schattle noted the non-airline revenue was up by 42.52% as compared to the prior year. Mr. Schattle noted the operating revenues increased by 22.61% noting increases in parking revenue, news and gifts and food and beverage. Mr. Schattle noted the increase in food and beverage was 2.5% and this is a reflection of the increase in the MAG from HMS Host,. HMS Host will be addressing the board later in the meeting. Mr. Savage asked if there were no MAG, what would HMS Host s growth be. Mr. Schattle answered that HMS Host s gross revenues for November were up by approximately 27%. Mr. Ahmad noted we need to fill headroom. Mr. Schattle noted there was a netincrease in the overall operating expenses noting a decrease in overtime and that the federal government section includes the cost related to Customs and Border Protection staffing of the FIS facility. Mr. Schattle noted that the operating income from the general aviation airports is in line with the prior year. Mr. Schattle noted the variances for the InterLink Facility, which include the benefits from the Rental Car Agreement amendment that became effective at the beginning of the year. Mr. Schattle noted the year to date trends continue and further discussed the revenues and expenses. Fiscal year to date airline revenue was down 5.67% and nonairline revenue was up 26.5% as compared to the prior year. Mr. Schattle noted the hangar rent reflects the additional corporate rentals. Mr. Schattle noted that the year to date operating expenses were up approximately 3.40% and included efforts to decrease overtime and the inclusion of federal FIS costs. Mr. Schattle noted the advertising, printing and marketing line item will have a significant amount of activity for the winter months with the marketing efforts ongoing. (c) Overtime update Mr. Andrade noted there is a continued decrease in overtime. Mr. Andrade provided a department break down of overtime. Mr. Little arrived at 4:27 p.m. (d) PVD master plan update 4

5 Mr. Porter provided an update on the status of the master plan with diagrams of the element process with milestones and forecasts. Mr. Porter noted the inventory milestone is done and the process is now in the forecast for aviation phase. Mr. Porter noted met with Customs and Border Protection (CBP) staff on vision and these meetings will continue on a monthly basis. Mr. Porter stated met with the Federal Aviation Administration (FAA) office regarding the group IV and V aircraft issue. The short-term fix for this item is to submit a Modification of Standard to FAA for approval. Task Order 4 will be brought to the Board in March for approval. Mr. Hahn asked what the runway and taxiway hot spots were. Mr. Porter answered these were areas of focus identified by the Runway Safety Action Team where airplanes enter the runway or taxiway intersection. There are a number of new design standards that the Master Plan will review and apply to this airport where necessary. Mr. Hahn confirmed these are to avoid runway accidents. Mr. Porter answered yes, the FAA wants to us to have breaks in taxiways leading directly from an apron to a runway. Mr. Porter also pointed out the separation standard for Taxiway C east of Runway He advised that the standard is a 400-foot separation from runway to taxiway centerline. The current separation is 300-feet, and the airport currently has a Modification of Standard that will be reviewed in the Master Plan. Mr. Ahmad noted the VOR needs to be relocated. Group V aircraft add a lot more activity on projects. (e) Charging stations update Mr. Andrade provided an overview of the new charging stations in certain passenger hold rooms throughout the concourse. Mr. Andrade noted they were installed using in-house labor and that the back panel can easily be changed for advertisement and marketing. (f) HMS Host update Mr. Schattle noted HMS Host representatives were back to update the Board on the changes implemented to fix issues noted at last month s meeting. Mr. Schattle introduced Mr. Bryan Loden, the Vice President, Business Development and Mr. Rich Kinley, the Vice President, Operations. Mr. Loden thanked the Board for inviting HMS back to the February meeting and noted there is an action plan and next steps in place and Mr. Kinley will explain these items in more detail. Mr. Kinley noted he would like to update on a few items found in the letter that was received. The customer lines have shortened, are moving faster, and we see the progress in transactions at the Dunkin Donuts north with their sales percentages. Mr. Kinley noted this comparison is in the timeframe of December 30, 2017 January 11, Mr. Kinley explained that both Dunkin Donuts are opening on time or earlier than the time posted. Mr. Kinley noted that 36 new associates have been hired. Mr. Kinley noted on the customer service side, HMS Host is in the process of customer service training. They are working on responses to complaints in a quick manner and all complaints will copy back to the associate as well as a copy to corporate for action. Mr. Kinley noted pagers have been installed at Johnny Rockets so when food is ordered the customer can do other things until 5

6 they receive a page that their food is ready to pick up and product units will be installed. There will always be a senior manager on duty and there will be one number for the on call person. Mr. Loden explained the overall plan is a twophase approach with the first being having the appropriate staff and the second being improvements to the restaurants capital. Mr. Pizzuti asked what the root cause is for the long wait-time and what major change has been made to change this. Mr. Kinley answered there is a bigger sense of urgency, appropriate staff and supervision. Mr. Savage noted urges HMS Host to keep this a high priority, as it is a very high priority for us. Mr. Savage thanked HMS Host for the positive movement. (g) Airport app update Mr. Costa provided an update on the airport app reviewing the functions available and where to find them. Mr. Costa explained the QR code feature on the app and that QR codes will be installed throughout the parking facilities to keep track of your parking location. Mr. Pizzuti asked if the frequent parker information will be found on the phone. Mr. Costa answered that we are currently working with our parking vendor and that upgrades will be needed on the parking systems before we can integrate the two. Mr. Ahmad noted we will have it on the app. Mr. Ahmad commended Mr. Costa for getting this app together and ready. 4. Pension Committee Update. Mr. Hahn reported the committee met at 3:00 pm and discussed two action items for approval. Consent Items: (a) (b) Approval to amend the plan with Principal Financial to allow qualified domestic relations orders. Approval to amend the vesting schedule with Principal Financial to fiveyear cliff vesting for any new hires. The items were approved by the Committee. 5. Action Items: (a) Approval to execute a 3-year lease agreement with Ocean State Aviation Services, Inc. in the amount of $349,574 for operational, office and storage space at T. F. Green Airport. Mr. Cloutier noted Ocean State Aviation is a long-term tenant at the airport that provides ground service maintenance along with other functions and a new lease agreement is needed. Mr. Cloutier reviewed the new agreement terms and lease payments. Mr. Savage asked if there is a provision in the lease that gives the ability 6

7 to relocate at our option. Mr. Cloutier answered yes; there is a 30-day termination clause in the contract. A motion was made by Ms. Thomas and seconded by Mr. Little to approve the recommendation. The motion was passed unanimously. (b) Approval to execute a third amendment with Northstar Aviation Inc. to provide a mutual option to extend the Full Service Fixed Base Operator Agreement at T. F. Green Airport for an additional four year period in return for additional monthly rent in the amount established at $2, as adjusted by CPI. Mr. Schattle provided an update on the proposal from Northstar Aviation Inc. noting their facility is located on the north ramp and there was an amendment in 2012 to extend its facility lease term through December A portion of the existing rent was to be paid only through December Mr. Schattle noted this new proposal will continue those payments, in the amount of $ per month, throughout the term in exchange for a mutual option to extend the term for a four-year period.. A motion was made by Mr. Hahn and seconded by Mr. Pizzuti to approve the recommendation. The motion was passed unanimously. 6. Executive Session: At approximately 4:50 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) Motion to approve the minutes of the executive session held January 11, (a), (2) and (7); and Investment of public funds where premature disclosure would be detrimental to the public interest (Air Service Development and Marketing) (a)(7); and Discussion related to the acquisition or lease of real property for public purposes, or of the disposition of publicly held property wherein advanced public information would be detrimental to the interest of the public (a)(5); and (d) Discussion related to one potential non-public litigation matter (a)(2); and (e) Motion to Return to Open Session. 7

8 By the following roll call vote, the motion was passed unanimously. YEAS: NAYS: ABSTAIN: Christopher Little Deb Thomas Jon Savage Russell Hahn Greg Pizzuti None None At approximately 6:12 pm, a motion was made by Mr. Hahn and seconded by Mr. Pizzuti to return to Open Session. The motion passed unanimously. 7. Post Executive Session Actions and Announcements: (a) Motion to Seal the Minutes of the Executive Session Held on January 11, A motion was made by Mr. Hahn and seconded by Ms. Thomas 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: ABSTAIN: Christopher Little Deb Thomas Jon Savage Russell Hahn Greg Pizzuti None None (b) Report on Actions Taken in Executive Session. During the Executive Session, a motion was made Mr. Hahn and seconded by Mr. Pizzuti to approve the sealed minutes of the Executive Session held on January 11, The motion was passed unanimously. 8. Future Meetings: The next Board Meeting will be held on Thursday, March 8, 2018 at 4:00 pm in the 8

9 Mary Brennan Board Room, T. F. Green Airport, Warwick, Rhode Island. 9. Adjournment: Ms. Thomas moved to adjourn at approximately 6:14 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 THURSDAY, FEBRUARY 8, 2018 NAME Brian Schattle Alan Andrade Alicia Seabury Donna Melone Sherri Ann Penta Timothy Pimental Annette Jacques Dan Porter David Cloutier Eric Seabury Doug Dansereau Jeff Wiggin Steve Cahill Randy Costa Leo Messier Jeff Goulart Nicole Williams Theodore Green II Sean Lampert Hannah Barnard AFFILIATION Constituent ProPark ProPark Nancy Iadeluca Local 26 10

11 PUBLIC ATTENDANCE SHEET RHODE ISLAND AIRPORT CORPORATION MEETING OF THE BOARD OF DIRECTORS THURSDAY, FEBRUARY 8, 2018 NAME AFFILIATION Jenna Karlin Local 26 Martine Caleo Local 26 Rodger Allison Rich Kinley Bryan Loden Tim Slaney Younces Abuirmeleh Bob Goff Steve Berardo Paul Carroll HMS Host HMS Host HMS Host HMS Host HMS Host New England Parking Jacobs Constituent 11

12 The minutes of the Executive Session of the Board Meeting February 8, 2018 have been sealed in accordance with R.I.G.L