July 2013 Meeting Minutes

Open­ing:

The Board Meet­ing of the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict was called to order at 9:00 a.m., July 24, 2013 in the Air­port Board Room by Chair­man Pilcher.

The Invo­ca­tion was giv­en by Ms. Pat­ty Mitchell.

The Pledge of Alle­giance was led by Chair­man Pilcher.

The Exec­u­tive Sec­re­tary called the roll and indi­cat­ed that all Board Mem­bers were present except Mr. Russ Mathis.

Elec­tion of Officers:

The annu­al terms of Board Chair­man and Vice Chair­man are due for elec­tion by mem­bers of the Air­port Author­i­ty Board.

Fol­low­ing Board dis­cus­sion, Mr. Bruett made a motion to retain Mr. Pilch­er as Chair­man. Mr. Scott sec­ond­ed the motion. Mr. Scott made a motion to retain Mr. Bruett as Vice Chair­man. Ms. Moliter­no sec­ond­ed the motion. One vote was tak­en on both motions and both passed unanimously.

Pre­sen­ta­tion:

Mr. Neal Wade with the Bay Eco­nom­ic Devel­op­ment Alliance (EDA) addressed the Board and pro­vid­ed an update on the sta­tus of the EDA attract­ing new busi­ness­es and new projects for job growth oppor­tu­ni­ties to the Bay Coun­ty area as a whole.

Approval of Minutes:

The June 26, 2013 Board Meet­ing Min­utes were approved as distributed.

Reports:

Mr. McClel­lan pre­sent­ed and reviewed the activ­i­ty report. Ms. Hen­der­son pre­sent­ed and reviewed the finan­cial report.

Con­sent Agenda:

a. Res­o­lu­tion for Frank­ford Avenue Parcel

This item pro­vides for Board adop­tion of a Res­o­lu­tion autho­riz­ing the Chair­man or his designee to exe­cute the nec­es­sary doc­u­men­ta­tion to com­plete the trans­fer of the Frank­ford Avenue Parcel.

Fol­low­ing Board dis­cus­sion, Ms. Moliter­no made a motion to approve the Res­o­lu­tion and autho­riza­tion for the Chair­man or his designee to com­plete the trans­fer of the Frank­ford Avenue Par­cel to 10 Acre, LLC fol­low­ing sat­is­fac­to­ry legal review. The vote was tak­en and the motion passed unanimously.

b. Air­port Res­cue and Fire­fight­ing Vehi­cle Repair

This item pro­vides for Board approval and autho­riza­tion for repairs to one of the Air­port Fire Department’s High Per­for­mance Res­cue Vehi­cles by Sun­belt Fire Equip­ment through sole source procurement.

Fol­low­ing Board dis­cus­sion, Mr. Bruett made a motion to approve the sole source pro­cure­ment for Sun­belt Fire Equip­ment to repair the Fire Depart­ment vehi­cle. Mr. Fore­hand sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

c. St. Joe Tim­ber­land Change Order

This item pro­vides for Board approval of a Change Order to the St. Joe Tim­ber­land con­tract to extend the con­tract and to amend the scope of ser­vices at no addi­tion­al cost.

Fol­low­ing Board dis­cus­sion, Ms. Moliter­no made a motion to approve the Change Order to the St. Joe Tim­ber­land con­tract and autho­riza­tion for the Board Chair­man to exe­cute the nec­es­sary doc­u­ments. Mr. Fore­hand sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Busi­ness Items:

a. ZHA Task Order Cross­wind Run­way Topog­ra­phy Survey

This item pro­vides for Board approval of a Task Order with ZHA to per­form a topo­graph­i­cal sur­vey in prepa­ra­tion for con­struc­tion of the cross­wind runway.

Dur­ing the ini­tial con­struc­tion of the new air­port, a lim­it­ed amount of clear­ing and grub­bing was done at the cross­wind run­way site. In order to cap­ture the exist­ing topo­graph­ic con­di­tions of the site and pro­vide ade­quate infor­ma­tion to com­plete the design doc­u­ments, a topo­graph­ic sur­vey is required.

ZHA, the airport’s engi­neer­ing firm, obtained bids before selec­tion of a sub-con­trac­tor to per­form this work. The pro­posed task order uti­lizes the low­er of the bids and includes advi­so­ry and man­age­ment time by ZHA.

The total cost for this task order, includ­ing fees and expens­es is $28,736. There are suf­fi­cient funds in the cur­rent bud­get to cov­er this cost. It is antic­i­pat­ed that FAA and FDOT funds will cov­er approx­i­mate­ly $25,000 of the cost.

Fol­low­ing Board dis­cus­sion, Mr. Fore­hand made a motion to approve the task order with ZHA and autho­riza­tion for the Exec­u­tive Direc­tor to exe­cute the nec­es­sary documents.

Mr. Scott sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

b. Award Hor­i­zon­tal Con­struc­tion Bid for Cov­ered Parking

This item pro­vides for Board selec­tion of a con­trac­tor to per­form the hor­i­zon­tal con­struc­tion for the cov­ered park­ing project.

The Dis­trict received bids on July 12, 2013 for the hor­i­zon­tal con­struc­tion work for the cov­ered park­ing project. The scope of work in the base bid includ­ed civ­il, elec­tri­cal and struc­tur­al work to sup­port the cov­ered park­ing struc­ture and shade fab­ric pro­vid­ed under a sep­a­rate con­tract with USA Shade.

Addi­tion­al­ly, the com­pa­nies sub­mit­ted an addi­tion­al cost asso­ci­at­ed with com­plet­ing addi­tion­al work under Bid Alter­nate 1, which is to con­ceal the elec­tri­cal wiring in the over­head struc­tures instead of sur­face mount­ed conduit.

Three com­pa­nies sub­mit­ted bids for the hor­i­zon­tal work. The fol­low­ing is a list of the com­pa­nies, along with the base bid amount and Bid Alter­nate 1 amount sub­mit­ted for the hor­i­zon­tal con­struc­tion work:

Fol­low­ing Board dis­cus­sion, Ms. Moliter­no made a motion to approve and accept the base bid and Alter­nate 1 cost sub­mit­ted by Mar­shall Broth­ers Indus­tri­al, and autho­riza­tion to increase the dol­lar amount of the con­tract with USA Shade to include the addi­tion­al cost, if nec­es­sary, and autho­riza­tion for the Board Chair­man to exe­cute the required doc­u­ments. Mr. Fore­hand sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

c. Award Term Loan for Cov­ered Park­ing Project

This item pro­vides for Board selec­tion of a bank to pro­vide a $700,000 term loan to assist with financ­ing of the cov­ered park­ing project.

At the time the cov­ered park­ing project was approved, it was deter­mined that secur­ing a term loan in the amount of $700,000 would be need­ed to assist with the fund­ing of the project.

Although the District’s finan­cial sit­u­a­tion has improved since the financ­ing struc­ture was first con­sid­ered, Staff believes it is in the best inter­est of the Dis­trict to obtain the loan to begin estab­lish­ing a cred­it history.

With the assis­tance of the District’s bond coun­sel, Bryant, Miller and Olive, a Notice of Request for Loan Pro­pos­als and a Sum­ma­ry of Pro­posed Terms was pre­pared. A pro­pos­al pack­age, along with a copy of the Finan­cial Fea­si­bil­i­ty Report pre­pared by Ricon­do & Asso­ciates, the District’s audit­ed finan­cial state­ments for the fis­cal year end­ing Sep­tem­ber 30, 2012 and copies of the SIB Loan Agree­ments between the Dis­trict and FDOT, was pro­vid­ed to the fol­low­ing local lend­ing institutions:

• Cen­ten­ni­al Bank
• Han­cock Bank
• Regions Bank
• Sum­mit Bank
• Sun­Trust Bank

The require­ments under the Sum­ma­ry of Pro­posed Terms were that the Dis­trict pre­ferred no pre­pay­ment pre­mi­um; inter­est would be payable month­ly in arrears on the first day of each month, com­menc­ing with the sec­ond full cal­en­dar month fol­low­ing clos­ing; and that prin­ci­pal will be payable in six equal annu­al install­ments, payable on Octo­ber 1 of each year, com­menc­ing Octo­ber 1, 2014.

The Dis­trict received pro­pos­als from Sum­mit Bank and Sun­Trust Bank. Key fac­tors of the pro­pos­als are sum­ma­rized below:

• Sum­mit Bank – 
  • 1.87% fixed rate
  • No pre­pay­ment premium
  • No cost for bank legal counsel

• Sun­Trust –
  • 1.89% fixed rate with the pos­si­bil­i­ty of a pre­pay­ment premium 
  • 2.05% fixed rate with no pre­pay­ment premium
  • $1,500 for review of doc­u­ments by bank legal counsel

The first inter­est pay­ment will not be due until the next fis­cal year; there­fore, there would be no impact to the cur­rent bud­get. Inter­est costs have been includ­ed in the FY-2014 budget.

Fol­low­ing Board dis­cus­sion, Mr. Scott made a motion to approve the term loan in the amount of $700,000 from Sum­mit Bank and autho­riza­tion for the Board Chair­man to exe­cute the nec­es­sary doc­u­ments. Mr. Fore­hand sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

d. Accep­tance of Offer for Lisen­by Avenue Parcel

This item pro­vides for Board accep­tance of an offer from St. Andrew Bay Land Com­pa­ny, LLC (SABLC) for the pur­chase of the par­cel of land locat­ed at 3127 North Lisen­by Avenue (Lisen­by Avenue Par­cel) and Board approval to adopt a Res­o­lu­tion autho­riz­ing the Chair­man or the Vice Chair­man to exe­cute the nec­es­sary doc­u­men­ta­tion to com­plete the sale and trans­fer of the Lisen­by Avenue Parcel.

The Dis­trict recent­ly received noti­fi­ca­tion from the State of Flori­da that the Lisen­by Avenue Par­cel revert­ed back to the Dis­trict effec­tive July 1, 2013 and the Deed would be received in approx­i­mate­ly 90 days, fol­low­ing the exe­cu­tion by the State.

SABLC offered to pur­chase the par­cel ear­li­er this year and in response, Staff request­ed that two

(2) inde­pen­dent appraisals be under­tak­en to val­i­date the offer. The results of the two appraisals are as follows:

Chan­dler and Asso­ciates $585,000

Giles Appraisal Group $375,000

Fol­low­ing a review of both appraisals, it was deter­mined that a counter offer of $375,000 and all clos­ing costs would be appro­pri­ate for this prop­er­ty. Accep­tance of this offer would afford advan­tages to the Dis­trict includ­ing avoid­ing car­ry­ing costs asso­ci­at­ed with the build­ing, real­tor com­mis­sions and clos­ing costs, as well as hav­ing the abil­i­ty to close and trans­fer this prop­er­ty quickly.

Accep­tance of this offer would have a pos­i­tive impact to the budget.

Fol­low­ing Board dis­cus­sion, Mr. Scott made a motion to accept the offer from St. Andrew Bay Land Com­pa­ny, LLC for the Lisen­by Avenue Par­cel and approval of the Res­o­lu­tion to exe­cute the nec­es­sary doc­u­ments to com­plete the close and trans­fer of this par­cel. Mr.

Bruett sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Exec­u­tive Direc­tor Reports:

Ground Trans­porta­tion Update: Mr. McClel­lan updat­ed the Board regard­ing the ground trans­porta­tion kiosk with Sun­shine Shut­tle. He stat­ed that Staff is work­ing with both Sun­shine Shut­tle and the taxi own­ers in an effort to strength­en the work­ing rela­tion­ship between the two entities.

Stormwa­ter Man­age­ment Sys­tem Aug­men­ta­tion Project Update: Mr. McClel­lan updat­ed the Board regard­ing the sta­tus of this project. He stat­ed the project is near­ing com­ple­tion and is expect­ed in ear­ly August.

Bay Air­craft Own­ers Hangar Door Update: Mr. McClel­lan updat­ed the Board regard­ing the sta­tus of repair to the hangar door.

Deputy Exec­u­tive Direc­tor Search Update: Mr. McClel­lan updat­ed the Board regard­ing the can­di­date select­ed for the Deputy Exec­u­tive Director’s posi­tion. He advised that Mr. Richard McConnell, A.A.E. will join the Air­port August 19, 2013 to assume that position.

Pub­lic Comments:

Mr. Jeff Knight, man­ag­er of Bee­line Taxi, addressed the Board regard­ing the amount of busi­ness his com­pa­ny has lost since Sun­shine Shut­tle began the kiosk ser­vice at the Airport.

Mr. Jim Van Dommlen, own­er of Lib­er­ty Shut­tle, addressed the Board regard­ing the rate struc­ture cur­rent­ly approved for Sun­shine Shuttle.

Adjourn­ment:

The meet­ing was adjourned at approx­i­mate­ly 10:05 a.m.

Pat­ty Mitchell, Exec­u­tive Sec­re­tary John Pilch­er, Chairman