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HomeMy WebLinkAbout2008-10-22 Transportation and Infrastructure Committee Minutes Transportation & Infrastructure Committee Tuesday, October 22, 2008 Minutes Councilors Attending: Geoffrey Gratwick, Hal Wheeler, Patricia Blanchette, Peter D’Errico, Patricia Blanchette, Councilor Palmer, Frank Farrington Staff Attending: Ed Barrett, Jim Ring, Brad Moore, Rebecca Hupp, Risteen Masters Others Attending: Committee convened at 5:00 p.m. Consent Agenda 1. Sewer Abatement Request: 1120-1122 Ohio Street – Account #094456 2. Sewer Abatement Request: 36 Essex Street – Account #017102 Items #1 & #2 were moved by Councilor Blanchette and seconded by Councilor Wheeler. Regular Agenda 3. Airport Updates: The Airport Department will make a Powerpoint presentation regarding the topics listed below. a. Business Development Efforts – Trade Shows, Events, Community Outreach b. Marketing Campaigns – General Air Service Campaign and Allegiant Specific c. Construction Project Update – Ramp Reconstruction and Terminal Building Addition d. Industry Overview and Financial Report Rebecca Hupp stated they put together a Powerpoint presentation for the Committee, realizing that they did not have the quarterly Strategic Meeting. The presentation was of pictures and updates of things going on at the Airport. They would be going over some of the Capital projects such as renovations to the 1 terminal building, apron reconstruction project going on, and information on renovations at the Sheraton Hotel. Also, presented was a preliminary financial report for September and also a business development report. The Airport sent Risteen to a conference and had an opportunity to meet with several airlines. The Airport also sent some employees to the National Business Aviation Association Annual meeting and conference. Also being presented were the marketing report on passenger statistics and industry updates. She also noted the redesign of the website was completed. Updates on the advertising campaigns involved General Aviation and Allegiant Air. She showed the floor plan and pictures for the renovation, remodeling, and the colors of the new wing and the terminal building. 2009 completion expected. She stated the as built drawings for the project were not accurate resulting in delays and change orders. They’re in the process of evaluating proposal in the Common Use Airline System where each airline could use any jetbridge. Another challenge was the contractor didn’t appropriately weather proof the construction site resulting in damage to the tenant areas and equipment. Councilor D’Errico was pleased to see the improvements of the walkway between the hotel and terminal building and the improvements made to both. Councilor Wheeler asked Rebecca with regards to the contractor’s failure to weatherproof the site, would the contractor be liable for the repairs to damage. Rebecca said the way the wording was in the contract specification, it would be the contractor’s responsibility, or could ask them to do something in lieu. Councilor Blanchette asked Rebecca about the estimated completion date of January, first, middle, last and was it projected to be on schedule? Concerned about spring break with domestic travel, would they be cleaned up and ready for that time of year. Rebecca said that the construction was primarily outside the terminal building, the internal infrastructure had not been significantly impacted; there were some minor impacts, and late January would be expected. Originally anticipated a December completion, but encountered issues with drawings, delays, etc. could expect further delays, could even be February. The apron reconstruction project funded through FAA approved passenger facility charges. The construction was for 23,400 sq. yds. of aircraft parking apron with approximately 2,400 sq.yds. of PCC pavement and 21,000 sq. yds. of bituminous concrete pavement. The project would include modifying the drainage systems to include adding an oil/water separator prior to discharge to the existing storm water system. The estimated cost would be $2.5 million. The whole project would not be completed this year; the contractor had agreed to hold prices. Pictures were provided. The next item was photos of the Sheraton Hotel renovations. Financial report copies were distributed by Rebecca and she said these were not all the final numbers yet. This September compared to last September revenues were down just over 7%, expenses were up slightly, fiscal 09 YTD actual vs. budgeted were at 82.8%. Expended capital projects financed by airport improvement project funds, there was significantly more spent this year vs. last due to terminal project. The aircraft operations air commuter down significantly, 2 general aviation down, and military was actually up by 28%, overall operations were down slightly. Councilor Gratwick asked if minor being less than 5%. Rebecca stated that was correct. The percentage of the whole each represents, some changes. Transit passenger numbers down by about 10%, doesn’t rely on that number because it could include troop movement. Domestic was down due to passenger movement, also the Airport lost American Eagle in September. They did not have Allegiant in September due to annual maintenance of their aircraft. Fuel sales were up at 2.0-2.4 million gallons FY09 YTD. Councilor D’Errico asked if troop rotations were logged as military? Rebecca stated it would be logged as commercial. This was due to commercial contract to transport troops. Rebecca did state that there were military aircraft which were recorded otherwise. Councilor Wheeler asked for clarification up ½% from September of last year and this year. Rebecca stated up 4% from last fiscal year to this. Risteen attended the Aviation Forecast Summit presented by the Boyd Group. Met with airlines Delta, Allegiant, Delta Cargo. She stated Delta was looking at the Altanta service. She offered the opportunity to do co-op marketing with Bangor International Airport, they had not responded, as yet, the meeting wasn’t long ago. She also had conversations with the Delta Cargo Manager regarding opportunities in belly cargo and extensive medical opportunities. Allegiant Air stated they were extremely happy with Bangor the schedule for the holiday season forward was very aggressive. Risteen said they sent someone to the National Business Aviation Meeting held in Orlando from October 6th-8th. It had approximately 30,000 attendees and 1,200 exhibitors. A booth was shared by the Bangor International and Avitat, Exxon Mobile. Passenger statistics for September were down by 27%, as previously stated. The Airport and Allegiant Air had conversations regarding opportunity for northbound marketing and packaging product with Allegiant to make up for the loss of American Eagle. Load factors were higher from last year. Risteen returned to discussing the AFS meeting. Mr. Boyd predicted shrinking fleets, fleets continuing to look at the regional jets. Network carriers expect no growth in 2009-2010, capacity reduction to continue- expecting 30% reduction. For low cost carriers, fuel prices had caught up, expansions were on hold. Allegiant was doing a lot of review in service, cancel in some locations and addition in other areas they felt would have better results. For the regional airlines fuel over $3 materially affects the number of 50 seaters need and viability. Suspect it would be along time before there would be a rebound. Some growth could occur as fleets were to be shifted. Airlines expect less potential for new service, more potential for reduced service, and a certainty of higher fares. General and business aviation shrinking at the top and the bottom and the solution to look at wider economic applications, new market, ways to make money. Councilor Wheeler asked if there had been an in impact in airlines that charged for check baggage and if that were a factor that played into the 3 long range picture as an alternative to higher fares. Risteen said the thought at the conference was that those baggage fees won’t go away and revenue accrued from that was the “tip of the iceberg” in making up losses. The projection was that once there was a revenue maker like that it would be hard to take it away. Councilor Wheeler asked how many of the significant carriers in the country presently not charging for the first bag, if not at all. Risteen said before she went to the conference, she checked all the airlines and Continental was the only one that wasn’t about six weeks ago. Councilor Wheeler asked about Southwest. Risteen stated he was correct Southwest didn’t, but out of the Airport’s airline service, Continental didn’t. Councilor Blanchette offered concern about no idea what’s going to happen to the airline industry. Can’t raise their fares, and was there a back-up plan to downsize operations at Bangor International should the airlines go down. She stated general aviation was down because people couldn’t afford them. Try to branch out to some of the belly operations and make it cargo? Rebecca said she was optimistic that things would turn around and some progress might be seen. Bangor’s revenue, the airline is a significant part, but not the only part, corporate international traffic, military transit traffic, military department of defense traffic, cargo traffic. Last year the Airport reached the FAA’s designation of cargo airport, resulting in additional grant funds. She said there were non aeronautical revenues, which should be looked at and developed moving forward. In the future, looking at changes the way things are done and reduction in operations. Councilor Blanchette asked if there was a winding down of the war, how would that affect the fuel pumped for the Guard? Depending on that? Rebecca said there was a planning window of opportunity to make a transition and going forward there would be likely some need. There weren’t any numbers at that time, but it was reviewed annually for the past three or four years. Airport, in anticipation of that, continue to make investments in the infrastructure and continuing to set money aside in the Airport Trust Fund. Councilor D’Errico asked for explanation on the General Aviation side with private and corporate activity, half of the corporate flights land in Bangor, which was significant number. Rebecca explained they do receive a significant portion of European corporate traffic; they stop here, clear customs, get fuel, and go to their final destination. Councilor Wheeler said he concurred with Rebecca that there would be continued military operations for some time. In the long term, when talking with experts was there any discussion, thought, or predictions made about the possibility of federal subsidies for airlines serving smaller but significant markets in States like Maine. Rebecca said there was a program called the Essential Air Service Program that served and subsidies very small communities. There are four airports subsidized, currently in Maine they are Bar Harbor, Presque Isle, Augusta, and Rockland. That program had met resistance in the existing administration. Risteen stated they launched a new fall campaign on the radio and some online in Maine, New Brusnwick, US, and Canada. The advertisement was played for the Committee. Allegiant’s fall campaign in late September and early October on the radio and in the newspaper. What they tried to do with the grant for Allegiant marketing was to have them on air and in the marketplace at different times. 4 The website’s up and running which was divided into two, Airline and General Aviation. The site focuses on “Where’s Monty”. Resources if flying to Bangor are CVB, etc. and if flying from Bangor, listed are the top destinations and links. Councilor Blanchette remarked on the picture of Mt. Katadin was breathe taking. When designing the website did they think of placing a picture of the standpipe in light “watercolor”? Risteen said the home page does rotate and has local/regional pictures on it as well. Councilor Blanchette said when flying - the standpipe is the first thing they see when flying in/out of Bangor. Risteen said they had a customer appreciation day last Friday at the GA terminal. She spoke of a “rotating wall” in the hall that will have different framed displays of dignitaries, film stars, etc. displayed. They gave customer appreciate packages to the crews of the military flights, corporate charters, and corporate jets that came through that day. Other items participated in were: hosting a golf tournament, and having conversations with MPBN about the trooper greater movie premier and the Airport’s involvement. 4. Amending Ordinance, Chapter 271-29 of the Code of Ordinances – Utility Location Permits. Staff is proposing an Ordinance change to process utility location Permits for public utility installation in public ways more efficiently. Ed said the last Agenda had six Bangor Gas Utility Location Permits and in processing them it takes a lot of clerical time and Jim’s time just to get that material on the agenda. Frequently, by the time it gets to the Agenda the utilities are already up and doing the installations. Jim said seldom, Ed said sometimes they’re out there doing it when they know Engineering had approved it. It was rare that the Council has any questions or concerns about them, because Engineering had been dependent upon to put in the right place. They have the right to be there under State law, it’s just making sure they do not conflict with anything. Given the number of applications being received it has become a burden. So Staff thought it would make some sense to authorize the City Engineer to approve those permits rather than going through the Council process. After putting this together, he was looking at the Code and realized the City Engineer already had the authority to issue the permits, and for some reason procedurally had not been and going through the Council process. Already covered elsewhere in the Code, but it would be the intent to go ahead and have Engineering use that authority to authorize Utility Location Permits. This only applied to those utilities in the right-of-way, if there was an easement on City property required, that would still go to the Council, just as with the service to the new Courthouse, if there was anything unusual Staff would keep Council informed. He said this was a very routine process; it just created a certain amount of paperwork and potential delays with utility installation. Staff believed it would be simpler if there were no objection. Councilor Blanchette said the City Engineer wouldn’t do anything that wasn’t in the best interest of the City. She said the City was extremely lucky to have him and one day he will retire and we wouldn’t have him. What was being done with utility pole permits, they don’t have to go to the Council to be enacted. Councilor Blanchette 5 requested that if it could be required once a month or twice a year information on where the utility locations have gone, just for informational purpose for the Council. Councilor Gratwick said that was reasonable. Jim said that would be something that could be done very easily. This draft change to Ordinance primarily had to do with permitting procedures with a lot of focus on underground utility locations. There was another part of the Code that dealt with organizational structure that provided that authority. He said he appreciated what Councilor Blanchette said it would be very easy if the Council was very comfortable to periodically, monthly, or whatever interval would be useful just to send you just a listing of Utility Location Permits issued. We do that currently with Blasting Permits. Currently there is an interest in gas service, this is probably the busiest time with regards to underground utility locations for a long time. It wouldn’t be burdensome for Staff, if that would be useful to the Council. Councilor Gratwick stated to leave it to Staff to bring up a protocol to bring it back here. Council Blanchette asked if it needed to be moved. Ed stated it hadn’t even appeared on the Agenda, wanted to bring it to the Committee first. It would be helpful if the Committee went on record with a motion authorizing the implementation procedure already in the Ordinance that hadn’t been using. Councilor D’Errico moved the suggestion of the City Manager and Councilor Blanchette seconded. Councilor Gratwick stated that he appreciated the installation performed by Bangor Gas on Union by his office, but pretty much destroyed the sidewalk. They didn’t put the tar patch in very well. Jim said Ed mentioned in the background about going to the 1:00 meeting, what that referenced was an onsite meeting with our folks, Bangor Gas, and Public Works, Bangor Gas’ contractors on that very subject. They are not complete with their work up there, and that certainly wasn’t a condition the City finds acceptable. The impacts were inherently disruptive for both the public and businesses. They had the right by statute to locate but the City had the right to tell them exactly where, unless it’s totally unreasonable. He stated that if they were out in the street, which sometimes happens in the esplanade concerned about impacts on the street trees, sidewalks. In some streets, even though not seen, were getting quite cluttered with utilities. When steering locations, it’s with a long view benefit as well as integrity of there system. That particular job is very temporary. Councilor Blanchette asked Jim if Bangor Gas and the City Engineer’s office coordinate so that the citizens know when disrupting a sidewalk. She suggestion that coordination be done when there are a large gathering of elderly who might not be able to maneuver the potholes. Jim stated yes, but one thing being focused on was how to improve that, not only with Engineering but with the Public Works Department who’s out there in conjunction with other projects. Very often any utility or private contractor tended to have a focus on the work to get done, but would have continued discussion on impacts. Motion made and seconded to adjourn. 6