June 2024 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., June 26, 2024 by act­ing Chair Mark Sheldon. 

The Invo­ca­tion was giv­en by Mr. Les McFatter. 

The Pledge of Alle­giance was led by Mr. Park­er McClellan.

Roll was called. In atten­dance were: Ms. Vic­to­ria Williams, Mr. Matt Algar­in, Mr. Les McFat­ter, Mr. Glen McDon­ald, and Chair Mark Sheldon.

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

Chair Shel­don 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.

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

Reports:

Mr. McClel­lan report­ed the Activ­i­ty Report is up 19% month over month; 16% for the year. In the month of May 2024, almost 200,000 peo­ple vis­it­ed ECP; this num­ber is up 40,000 from two (2) years ago. Mr. McClel­lan antic­i­pates June and July will be the biggest months due to sum­mer trav­el. Mar­ket shares are main­tain­ing at 24% and load fac­tors are all good. Region­al com­par­i­son shows con­tin­ued growth through­out the Region. Mr. McClel­lan also updat­ed the Board con­cern­ing the chal­lenges on Sat­ur­days dur­ing the Sum­mer due to increased capacity. 

Ms. Dar­lene Gor­don pre­sent­ed the Finan­cial Reports for the eight months end­ing May 31^st. At the end of May, the total cash reflects a decrease of $3.8 mil­lion from April; com­pared to this time 2023, cash has decreased $2.2 mil­lion with a total bal­ance of $41.6 mil­lion. Ms. Gor­don also report­ed that unre­strict­ed cash is $26.2 mil­lion and restrict­ed cash is $15.4 mil­lion. The decrease in cash has been due to the con­struc­tion projects. The Cap­i­tal Improve­ment Pro­gram increased in May $4 mil­lion, with a total of $16.2 mil­lion. Fur­ther­more, the Grants Receiv­able from the FAA also show an increase in May with a total of $7.3 mil­lion. Addi­tion­al grant fund­ing from the FAA will be added back to the bud­get and will be reflect­ed in June’s numbers. 

In May 2024 total lia­bil­i­ties increased $1.4 mil­lion from April due to the pay­ments from con­struc­tion projects. Ms. Gor­don moved on to excess rev­enues over expens­es year to date total $20.4, which is an increase of $5.4 mil­lion dol­lars in the month of May: $1.2 is from total oper­at­ing rev­enue and the oth­er $4.2 is from most­ly cred­its. The oper­at­ing rev­enue make up $6.3 mil­lion, while the non-oper­at­ing rev­enues make up $14.1 million.

The Income State­ment reflect­ed a year to date (YTD) Oper­at­ing Bud­get of $14 mil­lion dol­lar at the end of April, which exceeds bud­get by $917,000 and equates to 107% of bud­get. Both the air­line land­ing fees and ter­mi­nal com­plex rev­enues are exceed­ing bud­get at 113%. Addi­tion­al­ly, the ground trans­porta­tion fees, retail, and beverage/​concession fees are rang­ing 122 – 147% of bud­get. Per­son­al expens­es and Oper­at­ing expens­es are 89% of bud­get YTD. The Air­port cur­rent­ly has five (5) full-time and one (1) part-time posi­tions vacant out of the 81 full-time bud­get approved positions. 

The Air­field and Grounds Account is under bud­get; this month’s pend­ing items will be added to June’s report. The con­sult­ing ser­vices are in bud­get this month due to the Ricon­do Con­sult­ing Ser­vices this month to do the Airport’s Pas­sen­ger Facil­i­ty Charge (PFC) Appli­ca­tion, which was delayed due to the envi­ron­men­tal approval for the Ter­mi­nal Expan­sion. Mar­ket­ing and Pro­fes­sion­al Ser­vices remain under bud­get. Park­ing Man­age­ment is $90,000 over bud­get. The Com­pen­sa­tion Study is well under­way, and the Pro­fes­sion­al Ser­vices Account reflect those costs. Admin­is­tra­tion is cur­rent­ly work­ing on bud­gets for 2025 and will use a zero-bal­ance style bud­get for the upcom­ing fis­cal year. Ms. Gor­don will dis­cuss more about the bud­get at the upcom­ing Bud­get Work­shop. Final­ly, non-oper­at­ing rev­enues have been using the FAA grant funds, which rec­og­nized an addi­tion­al $3.5 mil­lion in FAA in encod­ed grant mon­ey in the non-rev­enue expens­es in May. The Air­port has also seen an increase in inter­est rev­enues, and the CFC and PFC accounts are exceed­ing budget. 

Chair Shel­don clar­i­fied the park­ing expens­es show increase in rev­enue of $330,000, which is a net of $140, 000 to the good. 

Chair Shel­don called for addi­tion­al ques­tions. Mr. McDon­ald asked about job appli­cants. Dis­cus­sion ensued sur­round­ing the appli­cants and housing. 

Chair Shel­don called for addi­tion­al ques­tions. There were no oth­er ques­tions con­cern­ing the reports. 

Con­sent Agenda:

a. Approve Board Meet­ing Min­utes – May 29, 2024 

This item pro­vides for Board approval of the May 29, 2024 Board Meet­ing Minutes.

b. Approval for Use of For­fei­ture Funds for FDLE Com­put­ers and Serv­er Purchase

This item pro­vides for Board approval for the use of law enforce­ment for­fei­ture funds to pur­chase a serv­er, three com­put­ers and a back­up sys­tem for han­dling sen­si­tive law enforce­ment infor­ma­tion and to bring the Air­port into com­pli­ance with CJIS policy.

c. Approval of Sole Source Com­mon Use Pas­sen­ger Pro­cess­ing Sys­tem (CUP­PS)

This item pro­vides for Board approval to Sole Source Pro­cure­ment of the Com­mon Use Pas­sen­ger Pro­cess­ing Mod­ule with Aero­Cloud, Inc.

d. Approval of Sole Source for Flight Infor­ma­tion Dis­play Sys­tem (FIDS)

This item pro­vides for the Board approval of a sole source, three-year Main­te­nance and Ser­vice Agree­ment with Altel Sys­tems Group, Inc. for the Air­port Flight Infor­ma­tion Display/​Public Address system.

e. Approval of John D. Stark Lease Termination

This agen­da item pro­vides for the ter­mi­na­tion of Land Lease at the Air­port with Stark Avion­ics, LLC.

Ms. Williams made a motion to Accept the Con­sent Agen­da, and Mr. McDon­ald sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Busi­ness Items:

a. Approval of Loan Agree­ment with Flori­da Depart­ment of Transportation- 

State Infra­struc­ture Bank (SIB) and Adopt Res­o­lu­tion 2024-02

Mr. McClel­lan intro­duced the busi­ness item giv­ing the floor to Ms. Gor­don to explain in more detail. Ms. Gor­don updat­ed the Board on the Flori­da Depart­ment of Transportation — 

State Infra­struc­ture Bank (SIB) Loan, which was orig­i­nal­ly applied for in June 2022 with the Board’s approval. The SIB Loan was approved in April 2023, but the Dis­trict has until June 30, 2024 to accept the funds. Ms. Gor­don requests the Board accepts the loan, and the loan

funds be used to start con­struc­tion in a phased approach, in order to take advan­tage of the

avail­able funding.

Mr. McClel­lan not­ed that Chair Hol­ly Melz­er has already signed the Agree­ment in keep­ing with con­sis­ten­cy of the pre­vi­ous­ly signed agree­ment and will be for­ward­ed upon approval.

Mr. McDon­ald made a motion to approve the Loan Agree­ment with Flori­da Depart­ment of Trans­porta­tion-State Infra­struc­ture Bank (SIB) and Adopt Res­o­lu­tion 2024-02, and Mr. Algar­in sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

b. Approval of Sheltair Lease Amend­ment #7

Mr. McClel­lan explained Amend­ment #7 is a wrap-up to the lease with Sheltair, which will now be effec­tive July 1. Sheltair has plans for con­tin­ued growth in build­ing out their 26-acres. Mr. McClel­lan asked for approval of the Sheltair Lease Amend­ment # 7. 

Ms. Williams made a motion to approve the Sheltair Lease Amend­ment #7, and Mr. McFat­ter sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Con­struc­tion Updates (infor­ma­tion only)

a. Ter­mi­nal Buildout 

Mr. Richard McConnell pre­sent­ed pic­tures to describe the Ter­mi­nal Build­out con­struc­tion updates, which includ­ed the recent instal­la­tion of the ceil­ing grid and the inspec­tion of rein­forc­ing bar that was com­plet­ed on the sec­ond floor. The ter­raz­zo com­pa­ny will be com­ing this week to do a floor lay­out, and the sec­ond floor/​exit lane ceil­ing is now approved to be poured lat­er this week.

b. Bag Make-Up Expansion 

Mr. McConnell pre­sent­ed pic­tures to describe the Bag Make-Up Expan­sion con­struc­tion updates. The pro­posed sched­ule for con­di­tion­al accep­tance of the facil­i­ty is July 15, 2024, which will allow the air­lines to oper­ate off the new belt and com­plete tie-in of old belt. Pro­ject­ed sched­ule com­ple­tion date is mid­dle-end of August. 

Addi­tion­al­ly, the milling and lay­down of asphalt is ten­ta­tive­ly sched­uled for June 27, 2024, weath­er permitting. 

c. Admin Lot

Mr. Nick Har­well pre­sent­ed pic­tures to describe the Admin Lot con­struc­tion updates. Only a few punch list items are remain­ing that will wrap up by next week.

Mr. McConnell also showed pic­tures on the updates that have been com­plet­ed to the Over­flow Park­ing Lot, which includ­ed three (3) LED light poles, light­ed signs on the park­way, and park­ing check-in points. Grav­el will be installed once all per­mits have been acquired. 

Mr. McDon­ald inquired about con­struc­tion delays. Mr. McConnell explained in detail the rea­son for delays. Dis­cus­sion ensued con­cern­ing liq­ui­dat­ed damages. 

Plan­ning Update (infor­ma­tion only)

a. North Ter­mi­nal Expansion

Mr. McClel­lan dis­cussed the North Ter­mi­nal Expan­sion, which will use the SIB Loan to fund projects includ­ing loop road improve­ments, rental car facil­i­ty, and oth­er such expan­sion plans.

b. Project InSPIRE

Mr. McClel­lan updat­ed the Board that the Air­port has been suc­cess­ful with Con­gress­man Neal Dunn’s office to put in a grant for the infra­struc­ture for the improve­ment for the inter­sec­tion and the site. It is now in the fund­ing process with the Fed­er­al Government. 

Addi­tion­al­ly, the Air­port is now in the process with the FAA to release part of the land under Sec­tion 163 of the FAA Reau­tho­riza­tion Act of 2018.

Bay EDA Update (Infor­ma­tion Only):

Ms. Bec­ca Hardin with Bay EDA report­ed six (6) prospects that are look­ing at to work with the Air­port or Ven­ture Cross­ings: Project Joe, Project Der­by, Project Goose, Project Super Bowl, Project Opal, and Project Anatomy.

Ms. Hardin also informed the Board that she will meet with sev­er­al of these prospec­tive projects in the upcom­ing weeks. Bay EDA will be prepar­ing for the Farn­bor­ough Inter­na­tion­al Air­show in Lon­don held July 22 – 26, 2024. 

The Moore Agency Update (Infor­ma­tion Only):

Ms. Katie Spill­man shared her report from the Moore Agency, which includ­ed some fol­low up cov­er­age on the Airport’s 14^th Year Mile­stone in the News Her­ald. Ms. Spill­man also shared pic­tures and a short video that was fea­tured on social media from the Boston Inau­gur­al Flight. These images showed pas­sen­gers that were greet­ed by a water can­non salute, hand-deliv­ered swag bags pro­vid­ed by TDC part­ners, and a per­son­al note from Chair Melz­er. Final­ly, Ms. Spill­man updat­ed the Board on July’s Wheel’s Up Sum­mer Music Series that will pro­vide pas­sen­gers music from 10am-2pm every Sat­ur­day in July. 

Exec­u­tive Direc­tor Report:

Mr. McClel­lan pre­sent­ed a frame pic­ture gift­ed from the TDC part­ners tak­en at the recent Air­show. The next Air­show is ten­ta­tive for April 2026.

Mr. McClel­lan also gave updates on the Over­flow and Admin Park­ing Lots. On a final note, Mr. McClel­lan sug­gest­ed on behalf of Chair Melz­er that the Board mem­bers vis­it the Air­port on a Sat­ur­day between 10am-2pm to see the increase in capacity. 

There were no addi­tion­al pub­lic comments.

Next meet­ings sched­uled: July 24, 2024 — Board Meet­ing 9:00 a.m.

The meet­ing was adjourned at approx­i­mate­ly 9:50am.

_________________________________ ________________________________

Park­er W. McClel­lan, Jr., AAE Mark Shel­don, Chair

Exec­u­tive Director