Berlin Airport Authority
September 28, 2010
Members Present: Chair Paul Grenier, Commissioners Bob Danderson, George Pozzuto, and Michael Rozek; absent were: Commissioners Landry, Cayer and Brady
Others present: Pat MacQueen, Eric Kaminsky
Minutes
Commissioner Danderson moved to accept the minutes; Commissioner Rozek seconded and the motion carried.
Financials
Mr. Kaminsky distributed the financials for September. Chair Grenier noted that the airport is struggling to meet projections on the revenue side. Mr. Kaminsky commented that the revenues are at 19% and expenditures are at 20%; July and August have traditionally been the busiest months; however this year September has been better. Chair Grenier stressed that all department heads will need to run lean budgets. There is no room to make up an airport shortfall in the City’s operating budget.
Mr. Kaminsky reported that the airport is purchasing a plow truck through the FAA and the old one is slated to be sold. The snowblower can also be sold if the new piece of equipment arrives; it is hoped to get $30,000. There is also a land sale in the works. Chair Grenier agreed that this will help but none are sustainable income. Commissioner Danderson confirmed that the Authority voted to keep leases at their current rate for two years.
Commissioner Danderson moved to accept the financial report up to and including September; Commissioner Rozek seconded and the motion carried.
Update CIP
Equipment - Mr. Kaminsky explained that there is an update obtained from Oest Associates (AMEC) on the grant projects the airport applied for. There is a “made in America” clause for equipment and companies bidding have to substantiate that 60% of their product is made in the USA. Eventually the FAA will appropriate the money and the airport will get the equipment; however it will not happen before the snow flies. He affirmed that he cannot give up the plow truck to the school department until the new equipment is received. Chair Grenier asked Mr. Kaminsky to contact Corinne Cascadden and update her on the status.
Pavement Construction Project - Mr. Kaminsky indicated that the paving was not completed when the SRE building was done and there is money in this grant round to complete the paving.
Lease on the Reception Building
Mr. Kaminsky distributed a letter from Mr. Drobny received this afternoon where he is offering to pay half or $250 per year for the lease for the reception building. He contends that he will pay .10 per square foot on the building but does not want to pay the full amount for the paved areas. Commissioner Rozek confirmed that he is current on his other leases. He went on to say that access to the paved areas could be removed and jersey barriers relocated so that there would be no further access. Commissioner Pozzuto confirmed that Mr. Drobny owes the airport for past use. It was his responsibility to check on what was involved when he made his purchase of the reception building. He owes for the past and he needs to come clean. The question then becomes, do we want to reduce his lease area as
he is requesting?
Authority members agreed that he first has to pay what he owes which is $505.50. He has asked that the Authority exclude the paved area and there was consensus that the Authority could consider blocking off the area and lease only the occupied space. This building is not hangar space and Authority members conceded that the minimum amount due would be $250. The airport manager will not plow the paved area surrounding the reception building other than to keep the common areas of the airport safe and free from snow.
Commissioner Danderson expressed dismay that there would be such controversy in paying for this lease. He said that if he agrees to the $250 lease cost, there will in no way be any use of the land whatsoever. Jersey barriers are to be moved to the parking area and the paved area is not for his use in any form or manner. It was the consensus of the Authority that nobody will pay any less than $250.
Chair Grenier surmised that as much as he doesn’t want to bend on this, he agreed that the Authority could lease the building space only; they will block off access to the runway; plow in front; and the $505.50 from last year has to be paid. Mr. Kaminsky asked if the Authority would allow Mr. Drobny to keep what he has with no maintenance for the $250 and Authority members were not in favor.
Chair Grenier noted that the access road will be blocked off and the building will be accessed from the other way. Commissioner Rozek noted that the pavement surrounding the hangar would be treated like green space. The airport manager will plow a safe distance from the reception building. Authority members indicated that this is a reasonable alternative and Commissioner Pozzuto pointed out that this is not a negotiation.
Summarizing, Chair Grenier stated that in order to obtain a lease for the reception building, Mr. Drobny will need to pay $505.50 for the year outstanding; $250 will be the cost to lease the footprint of the reception building with no other use of pavement; access to the building will be by East Milan Road but not from the other side. The lease will be offered for $250 per year for two years. Commissioner Rozek added that if the $755.50 is not paid in 30 days steps will be taken to raze and/or remove the reception building.
Request to Purchase Property
Mr. Kaminsky reported that Bob Chapman wants to buy land adjacent to a property he owns from the airport. It is a ten acre parcel that he wants to buy and AMEC did the preliminary work in the last sale so they were contacted to review this proposal. The property has no aeronautic value to the airport. Commissioner Danderson confirmed that this property is on the river side of the road.
Mr. MacQueen questioned whether the State was informed and he asked if funds from the sale would have to go back to the FAA. Mr. Kaminsky indicated that in the last sale, the airport received the proceeds from the sale; however he had not checked for this particular parcel, noting that he would call Carol Niewola.
Mr. Kaminksky reported that the price from AMEC was not to exceed $25,000. We don’t know what the property is valued at. Commissioner Possuto commented that if this purchase will increase Mr. Chapman’s scrap metal business, he is already outside of his authorized uses and Milan has a prohibition against junk yards. There was also concern about the snowmobile trail and if it is being infringed upon, the snowmobile club should not pay to move the trail. Mr. Kaminksy stated that if the trail is on the piece being purchased, there could be an easement. Commissioner Rozek confirmed that the purchase will not affect the ball field. Commissioners reasoned that the exact location of the piece is still unknown and the airport cannot sell a parcel without knowing what they are selling.
Commissioner Pozzuto commented that with shoreline protection, it is not likely that Mr. Chapman will be able to develop the land. Chair Grenier suggested adding that the sale is “subject to a final appraised value of the property” to the agreement. Mr. Kaminsky worried that Mr. Chapman would have money into the agreement without the final approval of the Authority. Commissioner Pozzuto indicated that the agreement is to spend up to $25,000 to identify the property and establish a value.
Chair Grenier acknowledged that there is a process to determine value and the airport authority would likely be in favor of selling ten acres of land but it would also depend on the selling price. Mr. Kaminksy added that the sale has to be done according to a complex set of FAA guidelines. The State has made us aware that there are only a limited number of qualified appraisers in the State to make an acceptable determination of value. Commissioner Pozzuto suggested that Mr. Chapman could hire a surveyor of his choice to outline the parcel and the Authority conceded. Once the location of the parcel is clear, a path forward can be drawn up.
Airport Manager’s Report
Mr. Kaminsky reviewed an LPV approach reporting that it is a global position satellite (GPS) based approach that uses satellite technology to relay runway information to an approaching airplane. There is nothing additional that needs to be done by the airport. There were trees that needed to be cut and with permission of the owners, the trees were cut. The airplanes need instrumentation to use the new approach. The FAA will publish the new designation on the precision approach which gives vertical and horizontal guidelines; however it could take up to 24 months to get published.
Milan Old Home Days.
Mr. Kaminsky reported that he held an open house during Milan Old Home Days and it was great. The Home Days Committee wants the airport to do it again next year. Commissioner Rozek mentioned that such an event could be advertised as a “fly-in”. Mr. MacQueen noted that Mr. Kaminsky has been in touch with the Balsams, Mountain View Grand and others and at some point it will click and things at the airport will turn around.
Commissioner Danderson moved to accept the report; Commissioner Rozek seconded and the motion carried.
Other – none
Public Comments – none
Commissioner Rozek moved to adjourn; Commissioner Pozzuto seconded and the motion carried. The meeting ended at 7:50 pm.
Respectfully Submitted,
Susan Tremblay
Administrative Assistant
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