MEET­ING MINUTES

MEET­ING MIN­UTES

PANA­MA CITY – BAY COUN­TY AIR­PORT AND INDUS­TRI­AL DIS­TRICT

_______________________________________________________________

Open­ing:

The Board Meet­ing of the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict was called to order at 9:00 a.m., July 27, 2022 by Chair Glen McDon­ald.

The Invo­ca­tion was giv­en by Vice Chair Hol­ly Melz­er.

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

Roll was called. In atten­dance were: May­or Mark Shel­don, Mr. James John­son, Mr. Les McFat­ter, Mr. Will Cramer, Vice Chair Melz­er and Chair Glen McDon­ald.

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

Chair McDon­ald pre­sent­ed the AAAE 2022 Lead­er­ship Award to Mr. Park­er McClel­lan, giv­en by the Amer­i­can Asso­ci­a­tion of Air­port Exec­u­tives and the U.S. Con­tract Tow­er Asso­ci­a­tion and Pol­i­cy Board as a ​“thank you” for his ded­i­ca­tion and com­mit­ment.

Chair McDon­ald asked if there were any items on the 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 Agen­da.

Vice Chair Hol­ly Melz­er made a motion to accept the Agen­da, and Mr. James John­son sec­ond­ed the motion. The vote was tak­en and the motion passed unan­i­mous­ly.

Dis­trict Admin­is­tra­tive Items:

a. Elec­tion of Offi­cers:

Chair McDon­ald asked if there were any nom­i­na­tions for Chair.

May­or Mark Shel­don made a motion to nom­i­nate Hol­ly Melz­er as Chair, and Mr. Will Cramer sec­ond­ed the motion. The vote was tak­en and the motion passed unan­i­mous­ly and the gav­el was passed.

Chair Melz­er asked if there were any nom­i­na­tions for Vice Chair.

Mr. Will Cramer made a motion to nom­i­nate May­or Mark Shel­don as Vice Chair, and Mr. Glen McDon­ald sec­ond­ed the motion. The vote was tak­en and the motion passed unan­i­mous­ly.

b. Annu­al Review of Guide­lines

Review of Board Oper­at­ing Pro­ce­dures: Mr. Park­er McClel­lan informed the Board that the guide­lines have been reviewed and that no changes are need­ed to the Board Oper­at­ing Pro­ce­dures oth­er than chang­ing the year from 2020 to 2021 in the Admin­is­tra­tive sec­tion under Vot­ing Respon­si­bil­i­ties in the appen­dix. Oth­er than that, there are no mod­i­fi­ca­tions that need to be made. No vote was need­ed.

Reports:

Mr. Park­er McClel­lan pre­sent­ed the Activ­i­ty Reports. We are still hav­ing pos­i­tive growth for the year, despite the impacts of the econ­o­my. Increased fuel prices and infla­tion are con­tin­u­ing to impact dis­cre­tionary trav­el for some, so there has been a reduc­tion over our peak of last year, but Mr. McClel­lan says there should be no need for con­cern. Con­sid­er­ing that last year was a rather high year, and we may ​“nor­mal­ize” over the next two years. The load fac­tors are still very good and the air­lines are antic­i­pat­ing a good sum­mer next year. As we look to the future, the growth of the West End of Pana­ma City Beach, with Lat­i­tude Mar­gar­i­taville adding 700 homes to the area, will be a pos­i­tive impact on our ser­vice and we may see that there will be less of a sea­son­al mar­ket. We con­tin­ue to main­tain 23% of the mar­ket share. Des­tin, Fort Wal­ton and Pen­saco­la are expe­ri­enc­ing a sim­i­lar mar­ket.

Mrs. Dar­lene Gor­don pre­sent­ed the Finan­cial Reports for the 9 months end­ing June 30, 2022. Our cash increased $1.6 mil­lion in the month of June. Our total cash bal­ance is $35.7 mil­lion; a $8.1 mil­lion increase over this time last year. Rev­enues con­tin­ue to out­per­form bud­get. Year to date, our Oper­at­ing Rev­enues are at 130% of bud­get. There were 33% few­er com­mer­cial pas­sen­ger flights in June of this year than there were for last year. We are still in good shape as air­line rev­enues are still 107% of bud­get.

Income from the Rental Cars is at 142%, and Park­ing Fees are up 150%. TURO sub­mit­ted their first report to us and we received $13,000.00 in con­ces­sion fees from them for June. Per­son­nel expens­es are at 87%, and Gen­er­al oper­at­ing expens­es are at 92% of bud­get.

Con­sent Agen­da:

Approve Board Meet­ing Min­utes – June 29, 2022

This Item pro­vid­ed for Board approval of the June 29, 2022 Board Meet­ing Min­utes.

Approve ZHA Task Order #51‑C – Gen­er­al Plan­ning Ser­vices

This item pro­vides for the Board’s approval of Task Order #51‑C to ZHA as the Airport’s con­tin­u­ing engi­neer­ing con­sul­tant to per­form var­i­ous pre­lim­i­nary plan­ning ser­vices to assist Staff in eval­u­a­tion of var­i­ous cap­i­tal projects and devel­op alter­na­tives.

Over the last sev­er­al years, we have devel­oped con­cepts for numer­ous projects and devel­oped poten­tial alter­na­tives for cap­i­tal projects uti­liz­ing a vari­ety of avail­able funds. The Task Order allows for staff to devel­op alter­na­tives and con­cepts for cap­i­tal devel­op­ment projects and oth­er relat­ed activ­i­ties.

Addi­tion­al­ly, it will allow for addi­tion­al plan­ning ser­vice includ­ing, but not lim­it­ed to, exhib­it devel­op­ment and project cost esti­mat­ing.

The over­all cost of this task order is $30,000 and it is con­tained in the FY 2022 Oper­a­tion and Main­te­nance Bud­get.

Staff rec­om­mend­ed Board approval of the task order for engi­neer­ing con­sult­ing ser­vices for plan­ning ser­vices for pro­posed and poten­tial cap­i­tal projects.

Approve Audit Engage­ment – Tip­ton, Mar­ler, Gar­ner & Chas­tain

This item requests approval by the Board for the accep­tance of a Let­ter of Engage­ment with Tip­ton, Mar­ler, Gar­ner & Chas­tain (“TMGC”) to per­form the FY22 finan­cial audit.

TMGC has pro­vid­ed audit ser­vices to the Air­port in an effi­cient and pro­fes­sion man­ner for sev­er­al years. TMGC has sub­mit­ted an audit pro­pos­al and an Engage­ment Let­ter which details their audit pro­ce­dures. The audit will meet or exceed the require­ments spec­i­fied by Flori­da Statute for Spe­cial Dis­tricts.

Staff believes it to be in the best inter­est of the Dis­trict to con­tin­ue its work­ing rela­tion­ship with TMGC and is sat­is­fied with the audit ser­vices pro­vid­ed.

A bud­get of $26,296 is pro­posed for this work effort. Fund­ing will be pro­vid­ed in the Air­port FY23 Oper­at­ing and Cap­i­tal Bud­get.

Staff rec­om­mend­ed approval of an audit Engage­ment Let­ter with Tip­ton, Mar­ler, Gar­ner & Chas­tain.

d. Approve Deep Well Instal­la­tion – Bur­kett and Son’s Well Ser­vice

This item pro­vides for Board approval for the pur­chase and instal­la­tion of a deep-water irri­ga­tion well in accor­dance with North West Flori­da Water Man­age­ment Dis­trict (NWFWMD) guide­lines.

The Air­port owns and oper­ates sev­er­al deep wells locat­ed on Air­port Prop­er­ty. These wells are used pri­mar­i­ly for land­scape irri­ga­tion activ­i­ties. In coor­di­na­tion for the com­ple­tion of the State Road 388 Realign­ment and Round­about Project, and addi­tion­al planned land­scap­ing activ­i­ties along West Bay Park­way, a new well instal­la­tion was request­ed from the Water Man­age­ment Dis­trict in 2019. This well is to be installed pri­or to the com­ple­tion of the Round­about.

It was orig­i­nal­ly antic­i­pat­ed that this well instal­la­tion would be sched­uled for fis­cal year 2023, how­ev­er, favor­able work con­di­tions have put the Round­about Project ahead of sched­ule. The Project Gen­er­al Con­trac­tors (Supe­ri­or Con­struc­tion and FDOT) have request­ed the well instal­la­tion as soon as pos­si­ble in antic­i­pa­tion of the Round­about com­ple­tion.

In accor­dance with Air­port Pur­chas­ing Pol­i­cy, writ­ten quotes were recent­ly request­ed for the instal­la­tion of the well. Three quotes were received as fol­lows:

Bur­kett and Son’s Well Ser­vice — $13,400

Pol­lard Well Drilling — $16,500

Cul­li­gan Water — $14,250

This pur­chase is an unbud­get­ed cap­i­tal item. Fund­ing capac­i­ty is avail­able in the Airport’s cur­rent FY 2022 Oper­at­ing and Cap­i­tal Bud­get.

Staff rec­om­mend­ed Board approval of the pur­chase for acqui­si­tion and instal­la­tion of a deep-water irri­ga­tion well from Bur­kett and Son’s Well Ser­vice of Youngstown, Flori­da in an amount not to exceed $13,400.

May­or Mark Shel­don made a motion to accept the Con­sent Agen­da, and Mr. Glen McDon­ald sec­ond­ed the motion. The vote was tak­en and the motion passed unan­i­mous­ly.

Busi­ness Items:

Approve Pol­i­cy Change – Pur­chas­ing Pol­i­cy

The Air­port Pur­chas­ing Pol­i­cy estab­lish­es the pol­i­cy of the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict (the ​“Author­i­ty”) regard­ing pur­chas­es by employ­ees.

The cur­rent Pol­i­cy 3.8 – Pur­chas­ing Pro­ce­dures was last updat­ed and approved by the Board effec­tive Feb­ru­ary 1, 2019. The updates made to the pol­i­cy at that time changed pur­chas­ing lim­it require­ments and more clear­ly defined prop­er pur­chas­ing prac­tices.

Staff has revised Pol­i­cy 3.8 to update the pur­chase lim­it require­ments and clar­i­fy cer­tain lan­guage and prac­tices. The pro­posed pur­chas­ing lim­its reflect price increas­es due to the Pan­dem­ic and infla­tion, are in line with oth­er munic­i­pal­i­ties in our area, will increase the effi­cien­cy of staff, and great­ly improve the abil­i­ty to obtain goods and ser­vices in a time­ly man­ner.

Mr. McClel­lan explained that due to the increase of the cost of goods, it was sug­gest­ed that we review the sig­na­ture author­i­ty of the Exec­u­tive Direc­tor with­in the Pur­chas­ing Pol­i­cy. It is request­ed that the lim­it be increased to $50,000. Mr. McClel­lan gave com­pa­ra­ble lim­its to show that the amount request­ed is in align­ment with the region; City of Pana­ma City Beach is at $25,000, City of Pana­ma City is at $100,000, Bay Coun­ty is $150,000, Sarasota/​Manatee Air­port Author­i­ty is $150,000, and Mel­bourne Air­port Author­i­ty is at $35,000. All of the items have been reviewed and approved by legal coun­sel.

Staff has revised Pol­i­cy 3.8 to update the pur­chase lim­it require­ments and clar­i­fy cer­tain lan­guage and prac­tices. The pro­posed pur­chas­ing lim­its reflect price increas­es due to the Pan­dem­ic and infla­tion, are in line with oth­er munic­i­pal­i­ties in our area, will increase the effi­cien­cy of staff, and great­ly improve the abil­i­ty to obtain goods and ser­vices in a time­ly man­ner.

The pro­posed changes to Pol­i­cy 3.8 have been reviewed and approved by legal coun­sel.

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

Staff rec­om­mend­ed the Board approval of the update to Pol­i­cy 3.8 – Pur­chas­ing Pol­i­cy.

Mr. Will Cramer made a motion to approve the Pol­i­cy Change – Pur­chas­ing Pol­i­cy, and Mr. Les McFat­ter sec­ond­ed the motion. The vote was tak­en and the motion passed unan­i­mous­ly.

b. Approve and Adopt Res­o­lu­tion for One Time Bonus for Dis­trict Employ­ees

This item pro­vides for the approval and adop­tion of a Res­o­lu­tion for a Non-Recur­ring Longevi­ty Incen­tive Pay­ment to cur­rent Dis­trict employ­ees.

The ded­i­ca­tion of our staff to ensure the con­tin­ued eco­nom­ic via­bil­i­ty and the suc­cess of the Air­port is rec­og­nized every day. In today’s eco­nom­ic envi­ron­ment, it is a dif­fi­cult and chal­leng­ing time for employ­ers and employ­ees with increas­es in cost of goods, infla­tion and high prices of fuel. The Senior Staff and Board want to reward our employ­ees and thank them for their efforts.

This one-time non-recur­ring longevi­ty pay­ment is based on numer­ous fac­tors and it is a great oppor­tu­ni­ty to rec­og­nize our employ­ees for their con­tri­bu­tions to the suc­cess of ECP. The pro­posed amounts are as fol­lows:

$2,500 for those employed on or before March 1

$1,250 for those employed March 2 – June 1

$625 for those employed June 2 and after

This item is fund­ed with­in the District’s FY22 Oper­at­ing and Cap­i­tal Bud­get and the cost to pro­vide this Non-Recur­ring Longevi­ty Incen­tive Pay­ment is esti­mat­ed to be $167,250.

Staff rec­om­mend­ed the Board approve and adopt the Res­o­lu­tion 22 – 04 for a Non-Recur­ring Longevi­ty Incen­tive Pay­ment.

Mr. Glen McDon­ald made a motion to approve and adopt the Res­o­lu­tion for One Time Bonus for Dis­trict Employ­ees, and Mr. James John­son sec­ond­ed the motion. The vote was tak­en and the motion passed unan­i­mous­ly.

Con­struc­tion Update (infor­ma­tion only):

Air­port Entrance Round­about and State Road (SR) 388 Realign­ment

Mr. Richard McConnell report­ed on the S.R. 388/​Airport Entrance Round­about. The approved well instal­la­tion will be one of the final por­tions of the project. He pre­sent­ed an aer­i­al image of the Round­about and explained the even­tu­al flow of traf­fic. He expects the project to be com­plet­ed near the end of the cal­en­dar year. Ms. Melz­er asked when there would be new guid­ance released to the pub­lic about the flow of traf­fic. Mr. McConnell said that FDOT has a pub­lic rela­tions firm that is putting togeth­er the infor­ma­tion on the flow of the Round­about and the change in the traf­fic pat­tern and it will be released as soon as it is com­plete.

Bay EDA Update (Infor­ma­tion Only):

Bay EDA Pres­i­dent Ms. Bec­ca Hardin report­ed that they had just returned from a 3‑day trip to the Farn­bor­ough Inter­na­tion­al Air Show. They part­nered with Enter­prise Flori­da, Flori­da Pow­er and Light (FPL) and Florida’s Great North­west to spon­sor a booth. They had more than 17 one-on-one meet­ings. Stan­dard Arrow, GE Avi­a­tion, Embry Rid­dle, Tri­umph Avi­a­tion Group, Unit­ed Tech­nolo­gies-Pratt Whit­ley, Spir­it Arrow and Air­bus were some of the com­pa­nies that they were able to meet with. It was a pro­duc­tive show and she is excit­ed that Bay Coun­ty is now rec­og­nized inter­na­tion­al­ly, and with the upcom­ing addi­tion of the new FBO, South­ern Sky Avi­a­tion, there should be many new devel­op­ments at the Air­port.

The Moore Agency Update (Infor­ma­tion Only):

Ms. Katie Spill­man of The Moore Agency report­ed on mar­ket­ing efforts. Since the last meet­ing, the ​“Wheels Up Sum­mer Music Series” has con­tin­ued. The last per­for­mance will be this Sat­ur­day. The month­ly newslet­ter went out, as well as an announce­ment about the music series. Social media is doing well, and our online pres­ence is well above aver­age. The new adver­tise­ments will be going out around Labor Day and will run in The Tal­la­has­see Mag­a­zine, Emer­ald Coast Liv­ing, and Influ­ence 100. There will also be ads going up on local dig­i­tal bill­boards. She said that they are also final­iz­ing a tele­vi­sion spot.

Exec­u­tive Direc­tor Report:

Mr. McClel­lan gave the Exec­u­tive Direc­tor Report. He announced that on Octo­ber 12, 2022 at 2:00 pm., there will be a ground­break­ing cer­e­mo­ny for South­ern Sky Avi­a­tion, LLC, so every­one should save the date.

Wal­ton Coun­ty is expect­ed to appoint the new Tourism Direc­tor as our new Board Mem­ber at their next meet­ing, so Mr. Bri­an Kel­len­berg­er will no longer be the Wal­ton Coun­ty Rep­re­sen­ta­tive on the Board.

The Cares fund­ing is begin­ning to roll out. We were not able to get the first round of ATP fund­ing, only three air­ports in Flori­da received fund­ing. Mr. McClel­lan will be pre­sent­ing a plan at an upcom­ing Board Meet­ing on how to try to get ECP rec­og­nized for fund­ing in the next round. We are still wait­ing on AIG mon­ey and are hop­ing to get some monies soon to be able to begin at least a cou­ple of projects next month.

Our num­bers are down a lit­tle, but slow­ing down allows more time to make sure we are doing the right thing for our com­mu­ni­ty and our Air­port.

Pub­lic Com­ments:

There were no Pub­lic Com­ments.

Adjourn­ment:

The Board meet­ing was adjourned at approx­i­mate­ly 10:00 a.m.

Next meet­ing is sched­uled: August 24, 2022 – Board Meet­ing 9:00 a.m.

Ethics Train­ing:

Air­port Author­i­ty legal coun­cil Cole Davis pre­sent­ed the Ethics Train­ing. The Board Mem­bers present includ­ed: Chair Hol­ly Melz­er, Mr. Les McFat­ter, and Mr. James John­son. Staff present includ­ed: Mr. Park­er McClel­lan, Mr. Richard McConnell, Ms. Dar­lene Gor­don, Mr. Mark Adams, Mr. Mikko Hut­tunen, Ms. Beth Har­less and Ms. Lisa Brady.

The Ethics Train­ing was adjourned at approx­i­mate­ly 2:00 p.m.
________________________________ ________________________________

Lisa Brady, Exec­u­tive Assis­tant Hol­ly Melz­er, Chair