December 2022 Meeting Minutes

MEET­ING MINUTES

PANA­MA CITY – BAY COUN­TY AIR­PORT AND INDUS­TRI­AL DISTRICT

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Open­ing:

The Board Meet­ing of the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict was called to order at 9:00 a.m., Decem­ber 14, 2022 by Chair Hol­ly Melzer. 

The Invo­ca­tion was giv­en by May­or Mark Sheldon.

The Pledge of Alle­giance was led by Mr. Will Cramer.

Chair Melz­er intro­duced new Board Mem­ber, Ms. Vic­to­ria Williams rep­re­sent­ing the City of Pana­ma City.

Roll was called. In atten­dance were: Mr. Matt Algar­in, Mr. Will Cramer, Ms. Vic­to­ria Williams, Mr. Les McFat­ter, Vice Chair Mark Shel­don and Chair Hol­ly Melzer.

Chair Melz­er asked if there were any Pub­lic Com­ments. There were no Pub­lic Comments.

Chair Melz­er asked if there were any items on the Amend­ed Agen­da, includ­ing the Con­sent Agen­da, that any Board Mem­ber would like to move to a Busi­ness Item for fur­ther dis­cus­sion, and if not, to make a motion to accept the Amend­ed Agenda.

Mr. McFat­ter made a motion to accept the Amend­ed Agen­da, and Mr. Cramer sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Reports:

Mr. Park­er McClel­lan pre­sent­ed the Activ­i­ty Reports. He said that the Air­port con­tin­ues to be in a very good posi­tion, regard­less of what is hap­pen­ing with the econ­o­my. Num­bers are down 5% over our peak year of almost 1.6 mil­lion in total pas­sen­gers. The load fac­tors con­tin­ue to per­form very well. The air­lines have upgauged the air­planes and have con­tin­ued to sup­port the cur­rent mar­ket. Delta has leased approx­i­mate­ly 39 larg­er 737 – 900 planes, some of which are serv­ing our Region. South­west has announced their sum­mer sched­ule and will have 24 flights on Sat­ur­days, so the ​“Super Sum­mer Week­ends” will con­tin­ue. We con­tin­ue to remain at 22% of mar­ket share, and con­tin­ue to com­pare well regionally.

Con­sent Agenda:

a. Approve Board Meet­ing Min­utes – Novem­ber 16, 2022

This item pro­vides for Board approval of the Novem­ber 16, 2022 Board Meet­ing Minutes.

b. Approve Pol­i­cy Change – Gov­ern­ment Required Coverage

This item pro­vides for Board approval of a pol­i­cy change regard­ing Gov­ern­ment Required Coverage.

The cur­rent Pol­i­cy 8.3 – Gov­ern­ment Required Cov­er­age was last approved by the Board effec­tive March 1, 2015. In review­ing Pol­i­cy 8.3, it was deter­mined the Pol­i­cy as cur­rent­ly writ­ten was in con­flict with Pol­i­cy 9.1, Paid Leave. 

Addi­tion­al­ly, Staff has intro­duced the option for a return to work pro­gram with­in the pol­i­cy, updat­ed sev­er­al oth­er areas of the pol­i­cy to bet­ter con­form with anoth­er Air­port pol­i­cy on FMLA, clar­i­fied the sec­tion on Fed­er­al Insur­ance Con­tri­bu­tions Act (FICA) and updat­ed the pol­i­cy to reduce the time off due to injury from 12 months to 6 months. This last change is in line with our Short-Term Dis­abil­i­ty insur­ance that is also reflect­ed as 6 months in length. 

The changes above and oth­er mis­cel­la­neous admin­is­tra­tive changes have been incor­po­rat­ed into the pro­posed Pol­i­cy 8.3 and it has been reviewed and approved by legal counsel.

There is no impact to the Airport’s Oper­at­ing and Cap­i­tal Budget.

Staff rec­om­mends the Board approval of the updates to Pol­i­cy 8.3 – Gov­ern­ment Required Coverage. 

c. Approve Men­zie’s 2023 Bud­get

This item pro­vides for Board approval of the 2023 O&M bud­get for Men­zies Aviation.

The avi­a­tion fuel farm con­sists of four 50,000-gallon Jet‑A tanks, four 15,000 avgas tanks, one 1,000-gallon diesel tank and one 1,000-gallon unlead­ed tank. The rental car facil­i­ty con­sists of one 15,000-gallon tank and one 5,000-gallon tank for unlead­ed gas.

The con­tract for man­age­ment, main­te­nance and oper­a­tion of the fuel farm facil­i­ties was award­ed to Men­zies Avi­a­tion in 2019. The ini­tial con­tract term is for five years. There is a sep­a­rate agree­ment between the air­lines and Men­zies for ​“into plane” fueling. 

The con­sol­i­dat­ed fuel farm pro­vides the Dis­trict with full con­trol over the tanks and lim­its envi­ron­men­tal impacts by hav­ing the fuel tanks in one loca­tion. Rev­enue paid to the Dis­trict by the oper­a­tors of the fuel farm includes debt ser­vice for the cost of the fuel facil­i­ty and O&M costs for oper­a­tion of the fuel farm. Cur­rent­ly, the five com­pa­nies that use the fuel farm are Amer­i­can Air­lines, Delta Air­lines, South­west Air­lines, Unit­ed Air­lines and Sheltair Avi­a­tion (the fixed base oper­a­tor on the Air­port) and the O&M expens­es are paid by the fuel farm users.

The bud­get pro­posed for 2023 is $597,933. The 2023 bud­get includes $139,714 paid to the Dis­trict for debt ser­vice for con­struc­tion of the fuel farm used by Menzies. 

Staff rec­om­mends approval of the Men­zies Avi­a­tion — 2023 O&M bud­get as presented.

d. Accept Lease Assign­ment – Mar­ty Hasek to Cir­rus Beach­es, LLC

This item pro­vides for Board approval of the assign­ment of the Fif­teen-Year Land Lease Agree­ment dat­ed Octo­ber 1, 2022, between Mar­ty Hasek and the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict (Dis­trict) to Cir­rus Beach­es, LLC, a Flori­da lim­it­ed lia­bil­i­ty company. 

Staff was recent­ly con­tact­ed by Mar­ty Hasek and informed he had sold his hangar locat­ed at 5241 John­ny Reaver Road M3 to Cir­rus Beach­es, LLC, and Mr. Hasek request­ed con­sent and approval from the Dis­trict to assign the lease to Cir­rus Beach­es, LLC.

Under the cur­rent Land Lease Agree­ment between Mar­ty Hasek and the Dis­trict, Mr. Hasek can­not assign or oth­er­wise trans­fer rights and oblig­a­tions under the lease with­out pri­or writ­ten con­sent from the District.

The approval of this lease assign­ment will have no impact on the Air­port Oper­at­ing and Cap­i­tal Budget.

Staff rec­om­mends the Board approve the land lease assign­ment from Mar­ty Hasek to Cir­rus Beach­es, LLC con­tin­gent upon com­ple­tion of the hangar sale between Mar­ty Hasek and Cir­rus Beach­es, LLC.

Mr. Algar­in made a motion to accept the Con­sent Agen­da, and Mr. McFat­ter sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Busi­ness Items:

a. Adopt Review Com­mit­tee Rank­ing and Accept Bid for Com­pre­hen­sive Jan­i­to­r­i­al Services

This item pro­vides for Board adop­tion of the rank­ing by the Review Com­mit­tee for Com­pre­hen­sive Jan­i­to­r­i­al Ser­vices at the Air­port and accep­tance of the bid.

Mr. McClel­lan explained that after the Board rec­om­men­da­tion at the Board Bud­get Work­shop to pur­sue improved jan­i­to­r­i­al ser­vices, the Staff researched oth­er air­ports with suc­cess­ful jan­i­to­r­i­al ser­vices, cre­at­ed a Jan­i­to­r­i­al RFP, as deter­mined a review process to help choose the com­pa­ny right for our Airport. 

Mr. Richard McConnell explained the review process and the find­ings, which led to the Review Committee’s rec­om­men­da­tion. The RFP was post­ed nation­wide on an online bid­ding plat­form (Demand­Star). There was a manda­to­ry Pre-Pro­pos­al Meet­ing on Novem­ber 17, 2022. There were 7 com­pa­nies that attend­ed the meet­ing and the pro­posers were informed of what the Air­port need­ed from a jan­i­to­r­i­al contractor. 

Fol­low­ing the review, the Com­mit­tee ranked each pro­pos­al in accor­dance with the Request for Pro­pos­al. The rank­ings are as fol­lows in descend­ing order (the Rank­ing and Scor­ing Matrix were attached):

COM­PRE­HEN­SIVE JAN­I­TO­R­I­AL SER­VICES PRO­POS­AL RANKING

1	FCS Facil­i­ty Ser­vices, Lake Mary, FL
2	Flag­ship Air­port Ser­vices, South­lake, TX
3	Amer­i­can Facil­i­ty Ser­vices, Alpharet­ta, GA
4	Jani-King, Pen­saco­la, FL
5	Nation­al Avi­a­tion Ser­vices, Mooresville, NC
6	Gen­er­al Build­ing Main­te­nance, LLC, Atlanta, GA
7	One Stop Jan­i­to­r­i­al Ser­vices, LLC, La Feria, TX

The con­tract term is for three years with a start date of Feb­ru­ary 1, 2023. There are two addi­tion­al one-year options, and annu­al pric­ing was includ­ed in the pro­pos­als. The con­tract pric­ing includ­ed options for the Pub­lic Safe­ty Build­ing and Main­te­nance Office, along with the Ter­mi­nal and Air Traf­fic Con­trol Tow­er. Pric­ing also includes all sup­plies, mate­ri­als and equipment.

FCS Annu­al Cost Break­down (Per Con­tract Years 1 – 3, Years 4 – 5 Option Years)

Year 1 – $1,225,678.74

Year 2 – $1,262,449.11

Year 3 – $1,301.207.23

Year 4 – $1,365,311.22*

Year 5 – $1,401,818.67*

On Decem­ber 12, 2022 there was a Review Com­mit­tee Meet­ing with the legal coun­sel in atten­dance. At that time, the Com­mit­tee reviewed each pro­pos­al in detail and then used a scor­ing matrix, which was includ­ed in the RFP doc­u­ment, to devel­op an over­all rank­ing for each com­pa­ny. The Board expressed con­cern over the rank­ing process and asked Mr. McConnell to explain the rank­ing and scor­ing process. There was a great deal of dis­cus­sion over the broad rank­ing and scoring. 

The Com­mit­tee reviewed each proposer’s staffing lev­els, costs, and under­stand­ing of the require­ments of the Air­port. The top-ranked com­pa­ny had the low­est cost per FTE, but pro­posed to uti­lize more staffing. There were con­sid­er­a­tions oth­er than cost that affect­ed the scor­ing. The Board asked how many jan­i­to­r­i­al employ­ees were need­ed and how many shifts that it would take to suc­cess­ful­ly ser­vice the Air­port. Mr. McConnell said that nor­mal­ly there are two ​“Respond­ing Shifts” for the day-to-day clean­ing, and one overnight shift. 

Mr. McClel­lan said Good­will was orig­i­nal­ly at 24 – 25 employ­ees, but is hav­ing staffing issues, is cur­rent­ly clos­er to 20. Also, as it gets clos­er to the end of their term of their con­tract, their staffing is con­tin­u­ing to decrease. He advised that it would take 6 – 8 employ­ees per shift. It is esti­mat­ed the jan­i­to­r­i­al con­trac­tor would need approx­i­mate­ly 25 – 27 employ­ees. Present­ly, Good­will staffing is low and they are chal­lenged to meet the expec­ta­tions of the con­tract. Staff has reviewed the inter­nal inspec­tion process and has made changes to ensure con­tract compliance. 

Addi­tion­al­ly, the Board expressed con­cern about the pro­posed select­ed com­pa­ny com­ing in over the cur­rent­ly approved bud­get and for the Air­port being locked into a con­tract for 3 years. The Board also ques­tioned if the com­pa­ny could be ter­mi­nat­ed at any time dur­ing their con­tact if it does not per­form as expect­ed. The Board asked legal coun­sel whether or not we could nego­ti­ate the con­tact amount and terms, and whether or not an RFQ should have been done instead of an RFP.

Mr. Davis said that chang­ing to an RFQ would require restart­ing the process. He advised if the award was not made, we could issue an an RFQ, which would be a lengthy process. An option of tabling the deci­sion was pro­posed to allow for more data to be reviewed, but Respect/​Goodwill had already giv­en a notice to the Air­port that Jan­u­ary 31, 2023 would be their last day, so tabling it until the Jan­u­ary Board meet­ing would pose a prob­lem with a tran­si­tion plan.

The Board also asked whether or not all of the com­pa­nies had expe­ri­ence work­ing for air­ports. Some com­pa­nies had expe­ri­ence at air­ports and oth­ers did not. The top-ranked com­pa­ny is cur­rent­ly at Pen­saco­la Inter­na­tion­al Air­port, Jack­sonville, Tam­pa and Orlan­do. Ms. Dar­lene Gor­don said that in some cas­es, they only clean for an air­line, or a cer­tain num­ber of gates, so there are a lot of vari­ables to look at. 

The Board asked why the expan­sion space was not includ­ed in the RFP. Mr. McClel­lan said that when the RFP was put togeth­er, the FAA had still not approved the Grant that would pay for a major por­tion of the expan­sion project, and that the Air­port did not get approval for that fund­ing until Novem­ber. A square foot cost for jan­i­to­r­i­al ser­vices would be includ­ed in the con­tract for each year and the Air­port would have the option to bid out the addi­tion­al services. 

Mr. Davis sug­gest­ed approv­ing autho­riza­tion to Staff and legal coun­sel to nego­ti­ate with FCS in order to bring the con­tract to the Spe­cial Meet­ing on Jan­u­ary 13^th for approval.

Mr. Cramer made a motion for the Board to adopt the Review Com­mit­tee Rank­ing and accept the Bid for Com­pre­hen­sive Jan­i­to­r­i­al Ser­vices, with the stip­u­la­tion of bring­ing the nego­ti­at­ed con­tract to the Jan­u­ary 13^th meet­ing for final approval, and Mr. Algar­in sec­ond­ed the motion. The vote was tak­en and all mem­bers vot­ed yes except Vice Chair Shel­don, who vot­ed no.

There was a 5‑minute recess and the Board Meet­ing reconvened.

b. Approve Air­field Light­ing Con­trol Sys­tem Upgrade

Mr. McConnell explained that dur­ing last year’s FAA Annu­al Inspec­tion, it was rec­om­mend­ed that we upgrade the com­put­er por­tion of the air­field light­ing con­trol system. 

The North­west Flori­da Beach­es Inter­na­tion­al Air­port owns and oper­ates an elec­tri­cal air­field light­ing sys­tem con­sist­ing of sev­er­al hun­dred air­field run­way, taxi­way, approach, and ramp light fix­tures along with con­stant cur­rent reg­u­la­tors, cir­cuit con­di­tion mon­i­tor­ing, and emer­gency back­up pow­er gen­er­a­tion capa­bil­i­ties. Per Fed­er­al Avi­a­tion Admin­is­tra­tion (FAA) require­ments, this light­ing sys­tem must pos­sess and main­tain the capa­bil­i­ty of being mon­i­tored and con­trolled via com­put­er­ized con­trol sys­tem at all oper­a­tional times. The cur­rent con­trol sys­tem is at ​“end of ser­vice life” and is requir­ing replace­ment. The Air­port is in the pro­cure­ment process for upgrad­ed replace­ment light­ing con­trol sys­tem com­put­ers, soft­ware, and oth­er com­po­nents in sup­port of the ​“oper­a­tion crit­i­cal” air­field light­ing sys­tem. The upgrad­ed con­trol sys­tem will replace exist­ing con­trol sys­tem com­po­nents locat­ed in the ECP Air Traf­fic Con­trol Tow­er, Air­field Light­ing Con­trol Vault, and Air­port Main­te­nance Facility.

The pro­posed pur­chase is for replace­ment computer/​software com­po­nents which must ful­ly inte­grate with exist­ing light­ing sys­tem com­po­nents that are not being replaced. Eaton equip­ment is com­pat­i­ble and is pro­vid­ed by Coop­er Crouse-Hinds, LLC Air­port Light­ing. These com­put­er con­trol sys­tems are deliv­ered pre-loaded with pro­pri­etary soft­ware and inter­nal com­mu­ni­ca­tion capa­bil­i­ties allow­ing com­mu­ni­ca­tions across all, new and cur­rent sys­tem com­po­nents. New con­trol sys­tem com­po­nents must be ful­ly inte­grat­able and com­pat­i­ble with exist­ing light­ing sys­tem com­po­nents not being replaced, and meet or exceed Fed­er­al Avi­a­tion Admin­is­tra­tion (FAA) per­for­mance require­ments for such com­mu­ni­ca­tion and con­trol systems.

Today, the com­put­er is run­ning on VGA cables and very slow and sus­cep­ti­ble to not being sup­port­ed by the com­put­er soft­ware sys­tem. Because we only want to upgrade the com­put­er por­tion of the sys­tem, this went out as a sin­gle source pro­cure­ment. We post­ed in accor­dance with statute and in coor­di­na­tion with legal coun­sel. We obtained one quote from the com­pa­ny that pro­vides the system.

This item pro­vides for Board approval of a sin­gle source pur­chase for replace­ment and instal­la­tion of Con­trol Sys­tem Com­po­nents for the Airport’s Air­field Light­ing System. 

This pur­chase is a line-item bud­get­ed cap­i­tal project pro­vid­ed for in the Air­port FY2023 Oper­at­ing & Cap­i­tal Budget.

Staff rec­om­mends approval of the sin­gle source pur­chase from Coop­er Crouse-Hinds, LLC Air­port Light­ing for replace­ment of Air­field Light­ing Con­trol and Mon­i­tor­ing Sys­tem equip­ment amount not to exceed $76,733.

Mr. Cramer made a motion for the Board to approve the Air­field Light­ing Con­trol Sys­tem Upgrade, and Mr. Algar­in sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Con­struc­tion Update (infor­ma­tion only):

a. Air­port Entrance Round­about and State Road (SR) 388 Realignment

Mr. Richard McConnell report­ed on the S.R. 388/​Airport Entrance Round­about. He pre­sent­ed a video from FDOT that explained the new flow of traf­fic through the round­about. FDOT has opened the west­bound sec­tion of the project and is now mov­ing for­ward with the east­bound por­tion of the project. The project is mov­ing along well. 

b. Park­ing Lot Expansion

Mr. Richard McConnell report­ed on the Park­ing Lot improve­ments. He pre­sent­ed pic­tures of the vehi­cles that were parked dur­ing Thanks­giv­ing week­end. There were over 787 cars parked in the over­flow park­ing lot. There were 2 shut­tle busses avail­able to accom­mo­date the pas­sen­gers and the process went a lot smoother than last year. The Notice to Pro­ceed has been issued for the Park­ing Lot Expan­sion Project and the lay­down and stag­ing areas have been estab­lished and the con­trac­tor is sched­uled to mobi­lize onsite next week. 

c. Ter­mi­nal Build Out

Mr. Richard McConnell report­ed on the Ter­mi­nal Expan­sion Project. The con­trac­tor, Dominguez Design-Build has been issued the Notice to Pro­ceed. The lay­down and stag­ing area has been estab­lished near the rental car area. They are sched­uled to mobi­lize onsite Jan­u­ary 9, 2023. 

d. Bag Make­up Expansion

Mr. Richard McConnell report­ed on the Bag Make­up Expan­sion. Notice to Pro­ceed has been grant­ed. The lay­down and stag­ing areas have been estab­lished and they have already moved into the area because they are also doing the park­ing lot improve­ments. The con­trac­tor is sched­uled to mobi­lize for that project on Jan­u­ary 12, 2023. 

Oth­er Project updates: Anoth­er project that will be start­ing is Ver­i­zon and it has mobi­lized to expand their ser­vice qual­i­ty here at the air­port. It will not impact us much. They need­ed to add some improved inter­nal sig­nal expansion. 

The new FBO for South­ern Sky is also mov­ing for­ward. The South­ern Sky team is await­ing their devel­op­ment order and are eager to pro­ceed. They are con­cerned about long lead times on mate­ri­als, but are set up and ready to begin con­struc­tion as soon as they are able to pro­ceed. Their orig­i­nal goal to open was March 1, 2024, but with the devel­op­ment order tak­ing so long it may be April 2024. 

Bay EDA Update (Infor­ma­tion Only):

Bay EDA Pres­i­dent, Ms. Bec­ca Hardin, was unable to attend the meet­ing. Mr. McClel­lan updat­ed on their progress with Project Stam­per, a final assem­bly facil­i­ty, and Project Maple which is an MRO. Both of those projects are very active and Mr. McClel­lan and Ms. Hardin are still work­ing on them. 

The Moore Agency Update (Infor­ma­tion Only):

Ms. Katie Spill­man of The Moore Agency report­ed on mar­ket­ing. There is a new ad that is going to be placed in the Jan­u­ary issue of Influ­ence Mag­a­zine. ECP is the offi­cial air­port spon­sor of the 2023 30A Song­writ­ers Fes­ti­val, and the spon­sor of the Cal­iza Stage in Alys Beach. She pre­sent­ed the design that will go in the offi­cial fes­ti­val pro­gram with the slo­gan, ​“When you Choose to fly, make ECP your ​“pick”.”

She also went over the research and tools that their team uses and want­ed to take a clos­er look specif­i­cal­ly at ECP pas­sen­gers, what they are inter­est­ed in, what they are research­ing and buy­ing, and how that helps with our strate­gies. The major­i­ty of our social audi­ence is female, age 45 – 54. Our top 5 cities are Pana­ma City, Pana­ma City Beach, Lynn Haven, San­ta Rosa Beach and Tal­la­has­see. Our web­site users tend to be a 50/50 split of male to female, ages 35 – 44. The top 5 cities vis­it­ing our web­site are Orlan­do, Pana­ma City, Pana­ma City Beach, Jack­sonville and Mia­mi. Most of them are inter­est­ed in non-stop and direct flights. They are also look­ing at South­west the most, Amer­i­can Air­lines, and Unit­ed Air­lines; in that order. Over 85% of the web­site users over the last year were new users, with 15% being return users. Most of them are access­ing the web­site from a mobile device. 

Research indi­cates that the fol­low­ers with­in our ECP audi­ence are pas­sion­ate about trav­el, food and din­ing, cook­ing, beau­ty and well­ness, bank­ing and finance, and tend to be busi­ness professionals. 

Exec­u­tive Direc­tor Report:

Mr. McClel­lan gave the Exec­u­tive Direc­tor Report. He was in Wash­ing­ton D.C. last week with Steve Souther­land to bring aware­ness for get­ting addi­tion­al fund­ing for the Air­port. It was a very effec­tive trip. We attend­ed 4 House meet­ings and an FAA Head­quar­ters meeting. 

He remind­ed the Board that the ECP Hol­i­day Lunch is next Thurs­day, Decem­ber 22^nd at 11:00am and extend­ed an invi­ta­tion to them. 

Mr. McClel­lan will be meet­ing with Ms. Spill­man from Moore about out­reach relat­ed to all of the upcom­ing projects because they will be very inva­sive and will have an impact on our pas­sen­gers, so we want to make sure that we are get­ting the word out as well as we can to make it as easy as possible. 

Pub­lic Comments:

There were no Pub­lic Comments.

Adjourn­ment:

The Board meet­ing was adjourned at approx­i­mate­ly 10:43 a.m.

Reminder: Spe­cial Meet­ing for Jan­i­to­r­i­al Ser­vices Con­tract Review and an update on the Ter­mi­nal Expan­sion will be on Jan­u­ary 13, 2023 at 9:00 a.m.

Next meet­ing is sched­uled: Jan­u­ary 25, 2023 – Board Meet­ing 9:00 a.m.

________________________________ ________________________________

Lisa Brady, Exec­u­tive Assis­tant Hol­ly Melz­er, Chair