Legal spending has climbed sky high at the Island's only commercial airport.
Ray Ewing

Airport Commission Legal Bills Soar

<p>The Martha&rsquo;s Vineyard Airport expects to spend nearly 11 times as much as it budgeted in legal fees during the fiscal year that closed last week. Unusually high legal spending led to a last-minute scramble to adopt a supplemental budget for the airport.</p>

The Martha’s Vineyard Airport expects to spend nearly 11 times as much as it budgeted in legal fees during the fiscal year that closed last week, financial records show.

Unusually high legal spending led to a last-minute scramble to finalize a supplemental budget for the airport, which was approved at a joint meeting of the county advisory board, county commission and airport boards last Thursday, three days after the close of the fiscal year.

Records show that the airport incurred approximately $271,191 in legal expenses during fiscal year 2014. The budget called for spending $25,000 on legal services.

High legal spending at the airport is linked to several ongoing disputes between the airport and its employees and Dukes County.

The airport commission recently filed a lawsuit against the county commission asking a judge to declare its legal autonomy in managing airport affairs. Separately, the airport has also been the subject of a tangled workplace dispute involving a former employee and airport manager Sean Flynn.

Supplemental budget was approved last week to cover legal bills totaling more than $270,000.
Ray Ewing
Supplemental budget was approved last week to cover legal bills totaling more than $270,000.
Ray Ewing

The largest legal invoice received so far came from Susan M. Whalen, a Charlestown attorney who has regularly attended meetings of the airport commission and has advised the board on personnel matters. In recent months, she was working to prepare a draft personnel policy for airport employees.

Ms. Whalen billed the airport $87,907.36 for her services this past year, according to a report prepared by county treasurer Noreen Mavro Flanders. Other legal bills anticipated by the airport, which included a June bill from Ms. Whalen and May and June invoices from the firm Anderson and Krieger, were still outstanding and not included in the report.

Airport commission chairman Connie Teixeira did not return calls from the Gazette on Monday seeking comment.

At a meeting of the airport commission last month, concerns were raised about legal spending and the commission voted to create a subcommittee to vet legal services.

“My concern is cost,” said commissioner Richard Michelson at the time. “I think we need a general discussion or we can try to work on keeping those bills down as much as we can.”

Commissioner James Coyne agreed, but was skeptical that money could be saved on legal expenses in the near future.

“It is a big issue and I think certainly the responsibility of the board is to try to reduce legal costs generally, although a lot of the costs that are legal we don’t have control over,” he said.

Acting general manager Deborah Potter said much of the airport’s use of counsel had been advisory in nature. This past year, the airport has worked to revise leases for counter space inside the terminal building. Ms. Potter said the airport often hires off-Island attorneys.

“A lot of the lawyers, we either can’t use because they have a conflict of interest with someone they already represent on the Island, or they don’t have the aviation experience that is necessary to give us the best information for our industry,” she said.

She agreed that the airport should try to keep its expenses to a minimum.

“Sometimes you have to do your due diligence to support the organization,” she said.

Attorney Whalen, who participated in the meeting via conference call, said she felt the legal services were way too high, and that she supported the creation of a committee to look at legal costs.

In a draft $3.89 million budget for fiscal year 2015, the airport has budgeted $75,000 for legal services.

At the end of every fiscal year since at least 2008, the airport has closed its books with a surplus between $126,000 and $894,000. The funds are deposited in a reserve fund, and used toward capital improvements, said county manager Martina Thornton. This year, the budget surplus is listed at zero, but the county treasurer has projected a modest surplus once the books are closed for the month of June.

Ms. Thornton said Thursday’s meeting was the first time she has seen the three major county boards sitting together in one room. She said Arthur Smadbeck, an Edgartown selectman and member of the county advisory board, spoke to the group about working together in the best interest of the people they represent.

Comments

Submitted by Anonymous (not verified) on Mon, 07/07/2014 - 19:53

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Nathan Durawa Edgartown.

I would love to see just how much the lease lawyers charged. It's important to note that the MV Airport is a public entity and not Private. This is unreal. 87,000 dollars to advise. What's it going to cost when all this mess goes to court ? Where does it end and who will be held accountable for this waste of money.

Submitted by Anonymous (not verified) on Mon, 07/07/2014 - 20:11

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BillyB OB

Holy bank acccount! Almost $300K in legal bills and still counting. And more wasteful spending, hello, on LAWYERS, to come since the last 3 months of bills aren't in and all of this mess continues. Where does this end with lawyers? $500k? A Million bucks to lawyers? More millions? What a debacle. This Board should be ashamed. What a classless airport we are being left with.

Herbert Roskind Ok Bluffs

Our suit was part of their bills last year. Had the Airport Commisson agreed agreed to meet us, there would have been no suit and no costs.

Submitted by Anonymous (not verified) on Mon, 07/07/2014 - 20:28

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Jim McCarthy Oak Bluffs

Do other airports have this much conflict? What a joke! Can we see some bench-marking with Nantucket, Hyannis maybe? I would love to see what their legal bills are.

Submitted by Anonymous (not verified) on Tue, 07/08/2014 - 09:01

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J.P. Bretl Edgartown

What is the "tangled workplace dispute," that one can only presume gave rise to the legal work on "personnel matters?" Add to that what would seem to be a related dispute over airport autonomy, and it seems that there is a root cause of the spending that has not been (fully) disclosed.

Submitted by Anonymous (not verified) on Tue, 07/08/2014 - 15:34

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David West tisbury

Every man, woman and child resident just got a $200.00 bill from legal people they don't need for a commission they don't need, struggling with employees no one wants.

Katama's grass field is looking better every y ear.

Submitted by Anonymous (not verified) on Tue, 07/08/2014 - 18:53

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Peterpeter Edgartown

That's not true David. The airport pays for itself. It is paid for by the users of the airport and the holders of the leases. They receive no local tax money. Yes, they receive federal grants (no need to explain to me that's our tax money being used in the federal grant, I know) but nothing directly from "every man, woman and child resident, just not true.

What really should irk people is the Connie Texiera bull quote and that Asst Manager's comments. crazy denial.

Submitted by Anonymous (not verified) on Wed, 07/09/2014 - 15:48

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Paul DC

I'm not selling anything but simple business insurance can protect the budget and make most of this "go away". The insurance company would make sure that Ms. Whalen's rate and amount billed to this matter was reasonable, that is not a fight that the airport should assume.

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