MASSACHUSETTS PORT AUTHORITY MINUTES OF …Dubai service, on the installation of digital roadway...

MASSACHUSETTS PORT AUTHORITY MINUTES OF THE MEETING HELD ON

JUNE 20, 2019 AT 9:00 A.M. ONE HARBORSIDE DRIVE, EAST BOSTON, MA

The meeting of the Members of the Massachusetts Port Authority was held at One Harborside Drive, East Boston, Massachusetts on June 20, 2019. Chairman Lewis G. Evangelidis presided. Warren Q. Fields, Patricia A. Jacobs, John A. Nucci, Sean M. O’Brien, Stephanie L. Pollack, Laura Sen, John P. Pranckevicius, Acting Chief Executive Officer/Executive Director, Reed Passafaro, Acting Chief of Staff, Catherine McDonald, Chief Legal Counsel, Anna M. Tenaglia, Acting Director of Administration and Finance and Secretary-Treasurer, Edward C. Freni, Director of Aviation, Houssam H. Sleiman, Director, Capital Programs & Environmental Affairs, Andrew Hargens, Chief Development Officer, Alaina Coppola, Director, Community Relations and Government Affairs, Hank Shaw, Chief Security Officer, Lisa Wieland, Port Director, Flavio Leo, Director of Aviation Planning & Strategy, Joel Barrera, Director of Strategic & Business Planning, Daniel Gallagher, Director of Aviation Business and Finance, Major Charles W. Atchison, Troop F Commander, Brad Martin, Deputy Director of Aviation Customer Service, and Michael A. Grieco, Assistant Secretary-Treasurer were in attendance. The meeting commenced at 9:05 A.M. Preliminary Screening Committee Report and Recommendation of Finalists Mr. Evangelidis thanked his fellow Preliminary Screening Committee (the “Committee”) Members for their commitment to the process and he announced that the Committee voted unanimously to forward two finalists, Brian Golden and Lisa Wieland, to the full Board for their deliberation and selection of the next Chief Executive Officer of the Authority. Mr. Evangelidis thanked Mr. Pranckevicius for his leadership as Acting CEO and he noted that Mr. Pranckevicius will return to his position as Chief Financial Officer once the new CEO is in place. Ms. Pollack reviewed the process that the Committee followed after the resignation of Mr. Glynn starting with the selection of Isaacson, Miller as the search firm. Ultimately, the Committee selected ten candidates for a first round of interviews in April and May of which five were women and three were people of color. A second round of interviews were held with four of the candidates resulting in the selection of the two finalists. The deliberation and the selection of the Chief Executive Officer by the full Board is scheduled for June 27th.

Massachusetts Port Authority Minutes of the meeting held on June 20, 2019 Ratification and approval of the minutes of the May 23, 2019 Board Meeting

Upon a motion duly made and seconded, it was VOTED:

To ratify and approve the minutes of the May 23, 2019 Board Meeting. Members Evangelidis, Fields, Jacobs, Nucci, O’Brien, Pollack, and Sen voted Yes.

Chairman’s Comments Mr. Evangelidis thanked Mr. Pranckevicius for his admirable work as Acting CEO. Mr. Pranckevicius thanked everyone in the room for their support over the last six months and he noted that serving as Acting CEO has been a fabulous experience that has allowed him to grow both personally and professionally. Report of the CEO Mr. Pranckevicius presented information on the one year anniversary of Mr. Nucci receiving a donated kidney, on the passing of Jim King and on his efforts to assist communities impacted by Logan, on Hank Shaw’s testimony on drones at a meeting of the U.S. Senate Subcommittee on Security, on the launch of the expedited airport security Clear program at Terminal A, on the discovery of a handgun by TSA officers at Logan, on an overview of the FY20 Budget, on the preliminary FY19 budget results through May, on the Port of Boston Economic Impact Report, on the twenty-five percent increase in 2018 TNC trips in Massachusetts, on the Official Airline Guide ranking Logan as one of the top ten fastest growing major North American airports, on the acknowledgement of Logan for its enhancements of the passenger experience by innovating on technology, concessions, and physical comfort, on the Authority’s efforts to successfully avoid an FAA downgrade of the New England Region Airports Division, on JetBlue’s reduced fares from Worcester Airport to Fort Lauderdale and JFK, on the June 8th Worcester Valedictorian event, on the Boston Frogman Swim at the Piers Park Sailing Center, on the June meeting of the South Boston Foundation, on the new Logan gas station and neighborhood market, on the Massport Business Diversity Summit event, on the Asian Pacific American Heritage Month event, on employee recognitions, and on an employee initiative. Director of Aviation Presentation Mr. Freni presented information on the 4.7% year-over-year increase in Logan’s May passenger volume and on the 5.2% year-over-year increase in year-to-date passengers, on the TSA’s busiest one day nationwide passenger screening record, on the Terminal B Great Hall Grand Opening event, on the Annual AAAE Conference held in Boston, on Logan being named a coastal hub by Delta, on Delta’s new nonstop seasonal service from Logan to Lisbon and Edinburgh, on Royal Air Maroc’s new nonstop service from Logan to Casablanca, on Emirates use of an A380 aircraft on its Logan to Dubai service, on the installation of digital roadway signs at Logan, and on the retirement of Brad Martin, Deputy Director of Aviation Customer Service. Mr. Martin thanked everyone for all the support he received during his career at Massport. Director of Maritime Presentation

Massachusetts Port Authority Minutes of the meeting held on June 20, 2019 Ms. Wieland presented information on global trade and tariffs, on the proposed twenty-five percent tariff on the new Conley cranes, on the 9% year over year increase in Conley container volume, on the 10,000 TEU ships in THE Alliance service from Asia calling at Conley, on the federal policy banning cruise lines from visiting Cuba, on the Port of Boston 2018 Economic Impact Report event co-sponsored with AIM, and on the first U.S. Maritime Transportation System National Advisory Committee (MTSNAC) meeting held at the USDOT in June. Public Comment There were no requests to speak during the Public Comment Period. Mr. Pranckevicius and Mr. Freni informed the Members that last evening FSS and SEIU signed a Labor Peace Agreement. Strategic Plan Implementation Port of Boston Economic Impact Report Ms. Wieland presented information on the key strategic questions in 2014 to revitalizing the Port of Boston, on the Harbor Dredging Project to be completed in 2021, on the Conley Terminal Modernization Project, on the thriving seafood industry cluster, on the success of Flynn Cruiseport Boston and the Boston Autoport, on efforts to preserve existing truck routes and to build new efficient connections, and on the increase in activity measured in the 2018 Port of Boston Economic Impact Report. Scenario Planning Mr. Barrera noted the goal of this process is to make smart investment decisions regarding how passengers get to and from Logan and on improving Logan’s roadways and curbs. Mr. Leo presented information on a planning framework to assist in the investment decision process, on major trends affecting future scenarios, on a process for identifying solutions, on an initial assessment of Logan’s facility challenges, on solutions to landside challenges currently being implemented, on possible solutions to long term landside and gateway challenges, on prioritizing investment decisions, on use of potential technical experts, and on an overview of potential offsite sessions. Logan Express Update Mr. Gallagher and Mr. Sleiman presented information on the increase in the Back Bay and Braintree Logan Express ridership, on the percentage of Back Bay passengers utilizing the security checkpoint priority pass, on the Framingham Logan Express parking facility capacity expansion project scope and timeline, and on the new North Station Logan Express service bus procurement schedule.

Massachusetts Port Authority Minutes of the meeting held on June 20, 2019 Safety and Security Committee Public Safety Drill Mr. Shaw presented information on the objectives of the Hostile Event Drill held last week at Logan in conjunction with the Authority’s safety and security partners.

Drone Update Mr. Shaw presented information on his testimony before the U.S. Senate Committee on Commerce, Science, and Transportation’s Subcommittee on Security regarding drone security. Mr. Shaw noted the need to empower state and local entities to neutralize potential threats. Human Resources and Compensation Committee Ms. Pollack noted that a Committee Meeting was held earlier this morning and that the Committee received an update on diversity staffing and on the performance appraisal process. Community Outreach Committee Massport CAC Update

Ms. Coppola and Mr. Leo presented information on the June CAC Meeting. Mr. Leo noted that FAA officials made presentations on current federal research and on the status of the RNAV Block 1 implementation. Mr. Leo also noted that the first meeting of the Runway 33L Working Group will be held next week and that MIT will present findings on RNAV Block 2. Real Estate and Strategic Initiatives Committee Parcel H RFP

Mr. Hargens presented information on the RFP release date and schedule, on the selection criteria, on the RFP review by other agencies, and on design guidelines for a Silver Line Stop/Station.

Massachusetts Port Authority Minutes of the meeting held on June 20, 2019 Development Update Mr. Hargens presented information on the Parcel A-2 project permitting process and schedule, on the Boston Sword & Tuna construction schedule, on the Authority’s MMT infrastructure investment on roads and utilities, on the Commonwealth Pier redevelopment project public realm improvements, on the permitting process, on the Impact Advisory Group’s district-wide resiliency comments, and on the project schedule. ICA Watershed Mr. Hargens noted the ICA Watershed began its second season with its featured film exhibit on the implication of climate change to life across the planet. Mr. Hargens also noted that the ICA Watershed has initiated public tours and community days, as well as hosting community related activities. Facilities and Construction Committee Audit and Finance Committee Ms. Sen thanked Anna Tenaglia for all her good work while serving as Acting Director of Administration and Finance and Secretary-Treasurer. FY20 Budget Policy Objectives Ms. Tenaglia presented an overview of the FY20 Operating Budget and provided information on the record business activity, on a projected 10% budget increase in total revenue, on a projected 5.3% budget increase in operating expenses which includes enhanced public safety and Logan ground transportation initiatives, on the $56 million in debt service and paygo costs in support of strategic initiatives in the Capital Program, and on some risks and challenges to achieving the Authority’s strategic initiatives.

Massachusetts Port Authority Minutes of the meeting held on June 20, 2019 FY20 Operating Budget and Funds Flow


Massachusetts Port Authority Minutes of the meeting held on June 20, 2019


Members Evangelidis, Fields, Jacobs, Nucci, O’Brien, Pollack, and Sen voted Yes.

Massachusetts Port Authority Minutes of the meeting held on June 20, 2019 Hanscom Rates and Charges


To establish the following Rates and Charges at L.G. Hanscom Field, effective July 1, 2019:

Civil Air Terminal Rental Rates:

Common Use Area $37.15 PSFPY (Includes Utility Surcharge) Concession Area $30.21 PSFPY Office Area $23.45 PSFPY

Landing Fees – Commercial and Transient Aircraft 0 – 3,000 lbs. $10.00 Flat fee 3,001 – 10,000 lbs. $15.00 Flat fee Over 10,000 lbs. $2.84 per 1,000 lbs.

Transient Aircraft Parking Fees - Each 24 Hour Period or portion thereof 0 – 40 Feet Wing Span $23.00 41 – 55 Feet Wing Span $39.00 56 – 70 Feet Wing Span $108.00 71 – 100 Feet Wing Span $182.00 101 - 121 Feet Wing Span $242.00 Over 121 Feet Wing Span $311.00

Commuter Gate Fee 0 – 4 Hours 4 – 24 Hours

0 – 40 Feet Wing Span $12.44 $18.67 41 – 55 Feet Wing Span $23.43 $35.14 56 – 70 Feet Wing Span $32.21 $64.42 Over 70 Feet Wing Span $48.32 $96.63

T-Hangar Rates

A Row $804.00 per month B & C Row $804.00 per month D, E, F, H & J Row $796.00 per month G 1 – 7 Row $1,734.00 per month G 8 $1,981.00 per month1 Storage Units $147.00 per month

1 Plus Utilities


Tie-Down Rates

Single Engine 1 – 10 Tie-Downs $147.00 per month 11 – 20 Tie-Downs $120.00 per month 21 or more Tie-Downs $98.00 per month Twin Engine $175.00 per month

Reserved Automobile Parking Fee $70.00 per Space /Month

Fuel Flowage Fee $0.20 per gallon for Jet A Fuel $0.11 per gallon for Avgas 100LL Fuel $0.14 per gallon for Automotive Fuel

T-Hangar Wait List Fee $100.00 every 24 months

Customs Cost Recovery Program Base Fee After-Hours Fee Over 75,000 lbs. $664.00 $378.00 30,001 – 75,000 lbs. $465.00 $378.00 15,001 – 30,000 lbs. $412.00 $378.00 8,001 – 15,000 lbs. $338.00 $312.00 0 – 8,000 lbs. $83.00 $238.00



Worcester Rates and Charges


To establish the Rates and Charges at Worcester Regional Airport, effective July 1, 2019: Terminal Rental/Use Rates General Terminal Area $13.72 PSFPY Counter Area $17.88 PSFPY Avio Bridge Use $17.88 per outbound use

Landing Fees – Commercial/Transient Aircraft 0-5,000 lbs. $0.00 5,001-10,000 lbs. $11.13 flat rate Over 10,000 lbs. $1.22 per 1,000 lbs. Aircraft Parking Fees - Commercial/Transient Aircraft 0-40 Feet Wing Span $12.24 5-24 hrs. 41-55 Feet Wing Span $30.06 0-24 hrs.

56-70 Feet Wing Span $45.64 0-24 hrs. 71-100 Feet Wing Span $72.36 0-24 hrs.

Over 100 Feet Wing Span $109.09 0-24 hrs.

*Scheduled Commercial Aircraft are exempt for scheduled same day turns

T-Hangar Rates $342.00/month Tie-Down Rates Single Engine $75.00 per month Twin Engine $100.00 per month

Fuel Flowage Fee $0.10 per gallon Jet A Fuel $0.05 per gallon AvGas

Aerodrome Permits $25.00 per sticker per year Rental Car Charges

Terminal Counter $17.88 per square foot Wash Bay $333.95 per month Ready Car Parking $14.84 per space per month

Commercial Parking Rates $7.00 per day

$42.00 per week Members Evangelidis, Fields, Jacobs, Nucci, O’Brien, Pollack, and Sen voted Yes.

Massachusetts Port Authority Minutes of the meeting held on June 20, 2019 South Boston Parking Meter Rates


WHEREAS, the Authority owns and operates 107 on-street parking meter spaces in the South Boston Waterfront; and WHEREAS, in order to meet the short-term on-street parking needs of customers of businesses in the area, and to keep Massport’s parking meter rates consistent with market conditions, the Authority desires to increase the hourly on-street parking meter rate. NOW, THEREFORE, BE IT RESOLVED AND VOTED THAT:

The hourly on-street parking meter rate for metered parking spaces in the South Boston Waterfront be increased to $3.00 ($0.60 per 12 minute period), to be effective as of September 1, 2019.

This Vote shall authorize the Chief Executive Officer and Executive Director, the Director of Administration and Finance/Secretary-Treasurer, the Assistant Secretary-Treasurer, the Port Director and the Chief Legal Counsel (or any such officer serving in such position in an “acting” capacity), or their respective designees, each acting jointly or singly, to take such actions as may be necessary and appropriate to implement the provisions of this Vote.

Members Evangelidis, Fields, Jacobs, Nucci, O’Brien, Pollack and Sen voted Yes.


Maritime Department Tariff Rates and Container Incentive Programs Renewals


1. To increase and make other changes to the Marine Terminals Tariff rates for

services at:

(a) the Paul W. Conley Marine Terminal as more particularly set forth under Container Tariff No. 1 (a/k/a the “Conley Terminal Tariff”) attached hereto as Schedule A and incorporated herein by reference, to be effective as of October 1, 2019; and

(b) the Flynn/Cruiseport Boston at the Black Falcon Terminal and all other marine

terminal facilities of the Authority that are regulated by the Federal Maritime Commission as more particularly set forth under Terminal Tariff No. 2 (a/k/a the “Flynn/Cruiseport Boston Tariff”) attached hereto as Schedule B and incorporated herein by reference, to be effective as of January 1, 2020 unless otherwise specifically set forth therein; and

2. To renew for an additional year from July 1, 2019 through June 30, 2020, the

“Container Volume Incentives” program set forth in R67 of the Conley Terminal Tariff attached hereto as Schedule A; and to authorize the Chief Executive Officer/Executive Director, Director of Administration & Finance and Secretary-Treasurer or Assistant Secretary-Treasurer (or any such officer serving in such position in an “acting” capacity), each acting singly (each, an “Authorized Officer”), or their respective designees to take such steps as may be necessary and appropriate to implement the Incremental Container Volume Incentive program, which shall be consistent with and contain substantially similar terms and conditions as those described in said R67, and such other terms and conditions as are not inconsistent with this Vote, but are deemed necessary or desirable by the aforesaid parties.



Marketing/Advertising Agency Services Contract Amendment


To authorize the Chief Executive Officer/Executive Director, Director of Administration & Finance and Secretary-Treasurer or Assistant Secretary-Treasurer (or any such officer serving in such position in an “acting” capacity), each acting singly (each, an “Authorized Officer”), to execute on behalf of the Authority an amendment to the full service marketing agency agreement with Boathouse Group, Inc. Under the terms of the amendment, the not-to-exceed amount will be increased by $1,000,000.00 resulting in a total not-to-exceed amount of $12,000,000.00 for the period ending June 30, 2020. The amendment shall contain such other terms and conditions as the Authorized Officer executing the amendment in accordance with this vote deems necessary or desirable.

Members Evangelidis, Fields, Jacobs, Nucci, O’Brien, Pollack, and Sen voted Yes. Agreement with the City of Chelsea


To authorize the Chief Executive Officer/Executive Director, Director of Administration & Finance and Secretary-Treasurer or Assistant Secretary-Treasurer (or any such officer serving in such position in an “acting” capacity), each acting singly (each, an “Authorized Officer”), to execute on behalf of the Authority an Amendment to the Agreement with the City of Chelsea to extend the term through June 30, 2019 and provide for a payment of $600,000 to the City of Chelsea. The amendment shall contain such other terms and conditions as the person executing the amendment in accordance with this vote deems necessary or desirable. Members Evangelidis, Fields, Jacobs, Nucci, O’Brien, Pollack, and Sen voted Yes.

Massachusetts Port Authority Minutes of the meeting held on June 20, 2019 Covered Services Minimum Wage at Logan


WHEREAS, the Authority implemented a minimum wage policy (“Policy”) for covered services provided by Commercial Service Operators (CSO) and Aviation Service Operators (ASO) to airline carriers at Boston Logan International Airport (“Airport”) in order to encourage a long-term and stable workforce that would benefit the safety and security of the Airport, effective January 1, 2015 (“2014 Vote”); and WHEREAS, since the 2014 Vote, the Authority has increased the minimum wage rate for CSO and ASO covered services such that as of January 1, 2019 the minimum wage rate required by the Authority’s Policy is $14.00, currently two dollars more than the state minimum wage rate; and

WHEREAS, there are limited circumstances where the Authority contracts for the covered services, including without limitation baggage handling services in Terminals B, C and E. NOW, THEREFORE, BE IT RESOLVED:

The Authority’s minimum wage for covered services, as shown in Addendum A, shall apply to contracts entered into by Massport at Boston-Logan International Airport for such covered services, provided that the covered services are not subject to the wage provisions of any collective bargaining agreement or prevailing wage rate. The Chief Executive Officer and Executive Director, the Director of Administration & Finance and Secretary-Treasurer and Assistant Secretary-Treasurer, the Director of Aviation, and the Chief Legal Counsel (or any such officer serving in such position in an “acting” capacity), each acting singly (each, an “Authorized Officer”), are hereby authorized and directed to do all acts and things and to negotiate, execute and deliver any and all agreements, documents, certificates and other instruments, not inconsistent with this Vote, necessary or desirable to effectuate the policy amendment contemplated by this Vote.



ADDENDUM A COVERED SERVICES

• Wheelchair assistance, cart drivers, queue control, skycaps, and ticket agents; • Non-management dispatch duties and/or driving duties (driving vehicles on the ramp to

transport cleaning personnel and/or baggage/cargo/mail to aircraft or terminals) by workers who primarily perform work identified in this section;

• Airline club service janitorial/cleaning and bartending/serving/ • Baggage handlers (“jammer mechanics”, “carousel clearance”), agents, screeners, delivery

and runners; • Aircraft cleaning and lavatory/water service; • Ramp agents, warehouse agents, cargo agents/handlers and mail service; • Escort, janitorial, non-TSA security, and non-TSA screening

Massachusetts Port Authority Minutes of the meeting held on June 20, 2019 2019 B & C Bond Issue Ms. Tenaglia noted that the Authority’s AA Bond Rating has been affirmed by Moody’s Investor Service. Ms. Tenaglia also noted the projects to be financed with the $470 million bond issue.


Massachusetts Port Authority Minutes of the meeting held on June 20, 2019 Assent Agenda Direct Paid Roaming and WiFi System Support Services at Logan


To authorize the Chief Executive Officer/Executive Director, Director of Administration & Finance and Secretary-Treasurer or Assistant Secretary-Treasurer (or any such officer serving in such position in an “acting” capacity), each acting singly (each, an “Authorized Officer”), to execute on behalf of the Authority an agreement with Advanced Wireless Group, LLC (“AWG”) for a five-year period to provide Direct Paid Roaming and WiFi System Support Services at Logan Airport. Under the financial terms of this agreement, AWG will pay Massport the greater of the following: (i) a minimum annual guarantee (“MAG”) in the amount of $300,000; or (ii) 45% of the adjusted annual revenues. The agreement shall contain such other terms and conditions as the person executing in accordance with this vote deems necessary or desirable.


Massachusetts Port Authority Minutes of the meeting held on June 20, 2019 Risk Management Annual Assessment No discussion. Motion to Enter Executive Session

Upon a motion duly made and seconded, it was

VOTED:

That the Authority enter executive session to consider the purchase, exchange, lease or value of real property, specifically regarding the American Airlines lease amendment, the Logan employee parking facility lease, the U.S. Army parcels, Charlestown maritime industrial use, 776 Summer Street, and south of Summer Street land use, since a discussion in open session may have a detrimental effect on the negotiating position of the Authority. That the Authority enter executive session to discuss litigation strategy, specifically regarding a litigation update, since a discussion in open session may have a detrimental effect on the litigating position of the Authority.

Members Evangelidis, Jacobs, Nucci, O’Brien, Pollack, and Sen voted Yes.

Member Fields was out of the room. Mr. Evangelidis stated that the Authority will not reconvene after Executive Session. The public session adjourned at 11:30 A.M.

________________________ Michael A. Grieco Assistant Secretary-Treasurer


List of Documents and Other Exhibits Used in Public Session 1. Board Book 2. PowerPoint Presentation Slides 3. Public Safety Drill Video

MASSACHUSETTS PORT AUTHORITY MINUTES OF …Dubai service, on the installation of digital roadway...

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