MINUTES
MassDOT BOARD MEETING OFOCTOBER 3, 2012
At the call of the Chair, a Meeting of the Board of Directors of the Massachusetts Department of Transportation was held at the North Adams City Hall, 10 Main Street, North Adams, MA on Wednesday, October 3, 2012.
There were present: Messrs. Jenkins, Davey, Alvaro, Bonfiglio, Macdonald and Miss Loux, being a quorum of the Board of Directors of the Massachusetts Department of Transportation.
Also present were Acting General Manager and Rail and Transit Administrator Davis, Rachael Rollins, MassDOTand MBTA General Counsel by phone, Frank DePaola, Administrator of the Highway Division, Rachel Kaprielian, Administrator of the RMV Division, Christopher Willenborg, Administrator of the Aeronautics Division, Owen Kane, Senior Counsel to the Board, and Paula Fallon, Recording Secretary.
The Chairman, Mr. Jenkins, presided.
Chairman Jenkins called the Open Meeting to Order at 1:05 p.m. and presented the order of business. The Chairman thanked Mayor Alcombright from North Adams and Mayor Bianchi from Pittsfield for hosting us. He introduced Mayor Alcombright as the first speaker.
Mayor Alcombright welcomed the Board to North Adams. He also thanked MassDOT, the MBTA, Pan AM and anyone else responsible for bringing the Veterans Coach and he noted that he was impressed that the coach had already had the star of 21 year old Michael DelMarsico who was tragically killed in Afghanistan. He was the first soldier lost in the City of North Adams since the Vietnam conflict. The Mayor also thanked the Governor, Secretary, the Board for their swift and complete response to our Route 2 issues after Hurricane Irene. The Mayor also thanked the Aeronautics Division, the Registry, Rail and Transit and the Highway Division.
Next Mayor Bianchi from Pittsfield said a few words. The Mayor thanked the Secretary for all of their help and he appreciated how he hears Pittsfield and the Berkshires in the talks when discussing transportation. He also noted how closely his offices work with District One office on projects. He finished thanking the Board for being there.
The next speaker was Gary Shepard from the Berkshire Regional Transit Authority. Mr. Shepard also thanked the Board for coming to the North Adams. Mr. Shepard discussed the routes of the BRTA. He stated that they provide six day a week service and Saturday service. They provide no transportation on Sunday. He noted that 65% of their customers do not own a car and most use the buses on weekly basis to go to work, medical appointments and shopping. They want seven days a week service and later evening service along with more timely service. He would like the Berkshires to be thought of as a four season destination not just two seasons because they have people who work and live there year round that have transportation needs as well. Director Loux asked about the Berkshire Rides program and asked if they are tasked with getting people to and from work. Mr. Shepard stated that it only provides service in Northern Berkshires and not in Central Berkshire.
Next Representative Farley made a few comments. She thanked the Board for coming to the Berkshires. The Representative noted that she tried to take the bus here but would have had to leave at 10 am for a 1 pm meeting from Pittsfield. She is very interested in working with MassDOT and the Commonwealth on figuring out a solution on getting more transportation to the area.
Chairman Jenkins opened up the meeting for public comment.
The first speaker was Mark Germanowski from the Pittsfield Municipal Airport. Mr. Germanowski is the airport manager, he mentioned that the Board back in 2010 approved a $13.5 million toward a $22.5 million project to make a safer and more operable airport, adding safety grids and setting the runway. They are looking to completion in December 2012.
The next speaker is Jen Crous. Ms. Crous is a local resident and she asked that when projects are designed to include it to be standard to have designs that are pedestrian friendly and not just automobiles.
The next speaker was Jim Stakenas from the Massachusetts College of Liberal Arts. He noted that the better the transportation in the more likely students in Berkshire County can get to their college and to be a part of the county itself.
Next Secretary gave his report. He noted that September kicked off their series of public meetings around the Commonwealth entitled “ Your Vision, Our Future.” These meetings will allow us to meet directly with our customers and talk about our initiative and other priorities, but more importantly, to listen to what their priorities and suggestions are noting that our biggest challenge is how we will fund our system, noting that it has become clear, the system we have, we cannot afford. The Secretary welcomed the new Rail and Transit Administrator and General Manager Beverly Scott and he also thanked Jon Davis for the outstanding job he did and is still doing as General Manager. Mr. Davis’s contributions have been absolutely invaluable in the past 12 months and we are thankful he will remain with the MBTA. The Secretary also gave an update on Employee Recognition announcing Robert Willoth as the winner. In the Employee Innovation Campaign the winner was Eileen Mattis for her idea for the “Hotel Driven Sales” and AlexyBelov came in second for her idea of “Cut the Cord.” The Secretary gave updates on the Small Bottleneck Grant Program, the annual Car Free Week. He also announced that on September 14th MassDOT dedicated a stretch of Route 53 in Weymouth for the late Stephen T. O’Donnell who was a long time MassDOT employee. Also in September Lt. Governor Murray released the “Transforming the Rail Network for Economic and Community Development,” outlining the achievements and the positive impacts we are already seeing as a result of our historic agreement with CSX. The Secretary ended with thanking the people who brought the Gold Star Coach and coordinated the train ride through the Hoosac Tunnel and also Peter Niles for the tour of Route 2. He also thanked Gary Shepard for his comments today. Director Loux appreciated the Board coming to the Western part of the state noting that it is often hard to get attention out in this part of the State.
The next item items on the agenda are procedural items. The first item we have is election of the officers of the Board. The first is to nominate Janice Loux as Vice Chair of the Board for the next year.
On motion duly made and seconded, it was unanimously
VOTE: To appoint Janice Loux as Vice Chair of the MassDOT Board of Directors for a term of one year.
Next Chairman Jenkins nominated Joseph Bonfiglio to serve as Secretary to the Board for the next two years.
On motion duly made and seconded, it was unanimously
VOTED: to appoint Joseph Bonfiglio as Secretary to the MassDOT Board for a term of two years.
Next Chairman Jenkins nominated Alan Macdonald for the position of Treasurer.
On motion duly made and seconded, it was unanimously;
VOTED: to appoint Alan Macdonald as Treasurer to the MassDOT Board of Directors for a term of two years.
Next Frank DePaola, Administrator of Mass Highway gave his report. Mr. DePaola began by welcoming everyone to District One where Peter Niles is the District Highway Director. He noted that the Route 2 project the Secretary mentioned in his report is a great example of the dedication of the staff in Mr. Niles’ office. He added that this project has been nationally recognized by the American Public Works Association as the project of the year. Director Loux gave Mr. Niles and his group appreciation for all the work they did in the amount of time they completed the project. Mr. DePaola also announced that they will be declaring the Neponset Avenue Bridge reconstruction substantially complete. Also in November they expect to have a groundbreaking event for the Fore River Bridge in Quincy. Me. DePaola ended with an update on the Federal fiscal year.
Next Rachael Kaprielian, Registrar of the Registry of Motor Vehicles gave her report. She discussed the dashboard and noted that wait times were up in September because traditionally it is typically a busy month as well as dealing with some staffing shortages. She noted that they also had some managers from the bigger branches go to other parts of the state to get some good management advice out it. She gave an update on the road test noting that they are behind but working on adding Saturday which will save the Commonwealth some money by having the examiners work schedule be from Tuesday to Saturday adding that they do have tests on Sundays when they are particularly busy. Next the Registrar gave an update on ALARS the Registry modernization plan;she stated that they are working to come to the Board in December but they are still negotiating.
Next Chris Willenborg, Administrator of Mass Aeronautics began his presentation by giving an update on the three public-use general aviation airports that serve the Berkshire region and play an essential role in the statewide system of airports throughout the Commonwealth. He began with Harriman-and-West Airport located in North Adams. He stated it is municipally owned airport facility that is characterized as a corporate business airport in our Massachusetts statewide airport system plan with approximately 30 based aircraft. The airport largest tenants include Turboprop East, an aircraft maintenance facility. Next he talked about Pittsfield Municipal Airport also characterized as a corporate business airport with two intersecting runways. The airport can accommodate a wide range of aircrafts including business jets. He noted that Line Aviation is the fixed based operator at this airport that provides aircraft fueling and maintenance, flight training, tie-down hanger storage and other ancillary ground support services. Mr. Willenborg ended talking about the Walter J. Koladza Airport also known as the Great Barrington Airport which is privately owned and operated by Berkshire Aviation Enterprises. The airport is a community business airport with over 40 based aircrafts.
Next is the Report from the Rail and Transit Administrator Jon Davis. He began with noting that the final two bridges of the MassDOT clearance work to accommodate double stack trains into Massachusetts were cleared in September. This project will increase freight capacity and reduce the cost to ship freight and provide Massachusetts companies better access to national and Asian markets.
In the Transit Division the Worcester Regional Transit Authority received a Federal Clean Fuel’s Competitive Grant for $4.4 million. The grant with be used to purchase three all electric transit buses, a charging station, shop equipment, and installation.
Mr. Davis gave an update on his trip to Korea noting that it was very informative and the discussions were productive. He stated he had two meetings with Hyundai Rotem’s President and Chief Executive Officer, Mr. M. H. Lee where at both meetings he reiterated his commitment to deliver the coaches on in accordance with the most recent schedule. He stated that he made it very clear to Mr. Lee that the commitment of resources need to continue in Korea and Philadelphia. Mr. Davis ended with thanking the Board and the Secretary with the opportunity to serve as Acting General Manger. He stated that he is a believer in that you are only as good as the people that support you.
Chairman Jenkins noted that he wanted to recognize that Rachael Rollins is joining us via telephone.
The next item on the agenda is the approval of the Administrator’s salary presented by Secretary Davey. The Secretary referenced a memo from Bill Perez outlining the Patrick/ Murray Administration’s 3% cost of living adjustment to managers in the state government which they haven’t had a raise in five to six years. He noted that he can’t give it to the Administrators without the approval of the Board.
On motion duly made and seconded, it was unanimously;
VOTED: That the Board of Directors of the Massachusetts Department of Transportation hereby approves the salary of Highway Division Administrator Frank DePaola in the amount $149,350.00, Registrar Rachel Kaprielian in the amount $137,253.94 and Aeronautics Division Administrator Christopher Willenborg in the amount of $102,485.00 per year, as determined by the Secretary pursuant to M.G.L. c.6C,§29(c).
The next item on the agenda is the review of the MBTA audited financial statements for fiscal year 2012 presented by Joe Connolly. Mr. Connolly introduced himself along with Brock Romano from KPMG, the firm that conducts the MBTA’s annual financial audit. Mr. Connolly gave a brief review and explaination of differences between the audited financial results for fiscal year 2012, and the quarterly results presented to the Finance Committee throughout the year. He then allowed Mr. Romano to go into more detail about the audit. He did mention that the staff had done very well with accelerating the process so they would be able to present to them today. He stated that they will focus on the financial statements and his discussion. Mr. Romano highlighted a couple of significant areas in the audit. Director Loux asked if the initial letter to the Board is considered the management notes. Mr. Romano noted that they are not done with the management letter yet. He stated it will focus on our observations of the Authorities internal controls. Director Alvaro asked Mr. Romano to go over some of the issues in the management letter. Mr. Romano stated that the management letter will not contain any material weaknesses which are the most severe. It will include their comments on items that they just discovered during the audit, including past comments on interest rate assumptions. There will also be some comments on the manual controls on cash reconciliations, reconciling of the AFC system data, as well as some comments on the IT security that has been mentioned before. Chairman Jenkins asked that they come back when they have the management letter ready. Director Loux requested to see the original version of the management letter before things are sorted out with management.
On motion duly made and seconded, it was with Director Loux abstention;
VOTED: To approve the MBTA audited financial statements for fiscal year 2012.
The next item on the agenda is the update on the Commuter Rail Positive Train Control (PTC) presented by Brad Kessler. Mr. Kessler went through his presentation reviewing their goals, timeline, work plan, methodology, the progress and the funding. He noted that PTC is the latest version of how trains will operate, how trains will move. He stated that after a deadly crash in California FRA mandated PTC for passenger railroads, freight railroads that are signaled, and anywhere you’re going to move Hazmat chemicals. There are two types of PTC systems, ACSES, which is advanced Civil Speed Enforcement Systems which we currently have, and then you have IETMS, which a majority of the freight railroads have. The difference is that ACSES is designed for highspeed rail. He noted that all MBTA rolling stop is currently equipped for ACSES. They have already turned in the implementation plan which was approved by FRA, then they turned in the development plan which came back with a number of comments. He noted that the deadline for the PTC is December 31, 2015. The estimated cost is between $300 and $500 million. Chairman Jenkins asked who is going to pay for this FRA? Mr. Davis answered that they don’t have the money for the project yet. The Secretary stated that this is an unfunded mandate from Congress. Mr. Davis noted that they have set some money aside to start the project and to look at what type of technology we would use. The Secretary noted that technology isn’t the issue , it’s a question of, you’d have to cease our entire capital program for the entire MBTA for two years except install PTC which is required by Congress. Chairman Jenkins noted the obsticals to overcome, especially the funding.
Secretary Davey stepped out for the next subject on Commuter Rail.
Next Mr. Kessler gave an update on the Commuter Rail Procurement. Mr. Kessler updated the Board on where we are and where we are going. He referenced the briefing paper that was passed out which goes over the differences, improvements, changes, along with the draft RFP. He noted the draft RFP was set to go out the next day. He stated that three weeks from today comments are due back from the bidders, noting that if they stay on schedule the bids will be due in February 25, 2013.
On motion, duly made and seconded it was unanimously;
VOTED: to adjourn.
Documents relied on in meeting:
Staff Summaries for items 7-11
Minutes for July 11, 2012
Officer Election Descriptions
Administrator Salary Memo
MBTA Audited Financial Statements for Fiscal 2012
Commuter Rail PTC Powerpoint
Commuter Rail Memo
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