March 2017 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., March 22, 2017 by Chair­man Mathis.

The Invo­ca­tion was giv­en by Mr. Carey Scott.

The Pledge of Alle­giance was led by Chair­man Mathis.

The Exec­u­tive Sec­re­tary called the roll and indi­cat­ed that all Board Mem­bers were present.

Reports:

Mr. McClel­lan pre­sent­ed and reviewed the Activ­i­ty Report.

Ms. Dar­lene Nel­son pre­sent­ed and reviewed the Finan­cial Report.

Con­sent Agenda:

1. Board Meet­ing Min­utes – Feb­ru­ary 22, 2017

This item pro­vides for Board approval of the Feb­ru­ary 22, 2017 Board Meet­ing Minutes.

FDOT Res­o­lu­tion

This res­o­lu­tion changed the project descrip­tion from reha­bil­i­tate entrance road to air­craft park­ing ramp.

The Entrance Road Reha­bil­i­ta­tion was iden­ti­fied sev­er­al years ago based on traf­fic move­ments and oth­er fac­tors. Staff and ZHA per­formed a visu­al inspec­tion of the Road and it has been deter­mined that the road­way is not in need of a reha­bil­i­ta­tion at this time.

Staff and FDOT dis­cussed alter­na­tive uses of the funds and it has been deter­mined that based on the amount of activ­i­ty that the air­port is receiv­ing with larg­er air­craft and the increased demand for park­ing that a large air­craft park­ing apron would be an appro­pri­ate use of funds.

The Joint Par­tic­i­pa­tion Agree­ment is for $1,600,000 with 50% from FDOT and 50% from local/​airport funding.

By pass­ing this Res­o­lu­tion, this will allow FDOT to pre­pare Sup­ple­ment JPA, which will be FDOT par­tic­i­pa­tion in the Project.

Mr. Scott made a motion to approve the Con­sent Agen­da. Ms. Sims sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Busi­ness Items:

a. Air­line Agree­ment — Presentation

A pre­sen­ta­tion from Ricon­do and Asso­ciates, Inc. was giv­en by Ms. Bon­nie Ossege.

This item was for infor­ma­tion­al pur­pos­es only and required no for­mal action by the Board.

b. FY16 Rates and Charges for Sig­na­to­ry Air Carriers

This item pro­vides for infor­ma­tion to the Board con­cern­ing sig­na­to­ry air­line rates and charges for Fis­cal Year 2016 in accor­dance with the Air­line Use and Lease Agree­ments that went into effect Octo­ber 1, 2015.

The frame­work of the Air­line Use and Lease Agree­ment charges two basic rates, one for land­ing fees and one for ter­mi­nal rent. The land­ing fee rate rep­re­sents the total costs asso­ci­at­ed with oper­at­ing the air­field cost cen­ter and includes all oper­at­ing and main­te­nance costs along with debt ser­vice costs for con­struct­ing the air­field. The ter­mi­nal rental includes both the debt ser­vice and O & M costs in the ter­mi­nal com­plex cost cen­ter and is charged on a rentable square foot cal­cu­la­tion. This busi­ness frame­work also calls for a rev­enue shar­ing pro­gram with the sig­na­to­ry air­lines after annu­al debt ser­vice and all oper­at­ing expens­es have been paid.

In con­junc­tion with the FY 2016 finan­cial audit, rates and charges have been final­ized for the sig­na­to­ry air car­ri­ers and deter­mined the rev­enue shar­ing amount for FY 2016. The air­lines have been briefed on the set­tle­ment, and Staff will send checks for the amount of the set­tle­ment to Delta and South­west before the end of March.

List­ed below are the over­all results for FY 2016 for the Board’s information:

Descrip­tion FY 2016 Bud­get FY 2016 Settlement

This item was for infor­ma­tion­al pur­pos­es only and required no for­mal action by the Board.

c. FY16 Finan­cial Audit Report

This item is sub­mit­ted for Board adop­tion of the Audit Report for the Fis­cal Year end­ing Sep­tem­ber 30, 2016.

Mr. David Tip­ton from Tip­ton, Mar­ler, Gar­ner and Chas­tain CPA Group pre­sent­ed the Board with the Audit Results.

The audit report indi­cates that the finan­cial state­ments present fair­ly, in all mate­r­i­al respects, the finan­cial posi­tion of the busi­ness-type activ­i­ties of the Dis­trict and the changes in finan­cial posi­tion and cash flows there­of in accor­dance with account­ing prin­ci­ples gen­er­al­ly accept­ed in the Unit­ed States of America.

The man­age­ment let­ter of this audit, as pre­sent­ed on page 42 of the audit report, notes the fol­low­ing comments:

• There were no cor­rec­tive actions tak­en to address find­ings and rec­om­men­da­tions made in the pre­ced­ing audit report, as there were no rec­om­men­da­tions made in the pre­ced­ing annu­al finan­cial audit report.
• The Dis­trict oper­ates as an inde­pen­dent spe­cial dis­trict cre­at­ed by an act of the Leg­is­la­ture of the state of Flori­da and is not con­sid­ered a com­po­nent unit of any oth­er local gov­ern­men­tal unit.
• The Dis­trict did not meet any of the con­di­tions described in the Flori­da Statute 218.503(1) regard­ing finan­cial emergency.
• The annu­al report filed with the Flori­da Depart­ment of Finan­cial Ser­vices is in agree­ment with the annu­al finan­cial audit report.
• There were no rec­om­men­da­tions made to improve finan­cial management.
• There were no find­ings regard­ing non­com­pli­ance with pro­vi­sions of con­tracts or grant agree­ments or abuse that have occurred, or that are like­ly to have occurred, that have an effect on the finan­cial statements.

In sum­ma­ry, the auditor’s report express­es an unqual­i­fied opin­ion on the finan­cial state­ments of the Dis­trict and no reportable con­di­tions were dis­closed dur­ing the audit.

Mr. Scott made a motion to adopt the FY 2016 Audit Report. Ms. Sims sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

d. Spring Fertilization

This item pro­vides for Board approval for the pur­chase and appli­ca­tion of annu­al fer­til­iz­er and lime for approx­i­mate­ly 500 acres of Air­port property.

As part of our ongo­ing effort to main­tain site sta­bi­liza­tion, it is nec­es­sary to prop­er­ly apply fer­til­iz­er to cer­tain areas of Air­port prop­er­ty. Slow-release fer­til­iz­er is applied in order to pro­mote healthy leaf and root growth nec­es­sary for soil sta­bi­liza­tion. This prod­uct will pro­vide the high­est lev­el of nutri­ent uniformity.

Dolomite Lime has been applied to Air­port grounds over the past sev­er­al years to sta­bi­lize PH lev­els. PH lev­els had been at lev­els such that growth and strength of Bermu­da and Bahia grass­es were neg­a­tive­ly impacted.

Based on inde­pen­dent soil analy­sis and appli­ca­tion rec­om­men­da­tion, Staff devel­oped bid spec­i­fi­ca­tions for this pur­chase to include both fer­til­iz­er and lime. A com­pet­i­tive bid process was per­formed for sealed bids. As has been the case over the past years, one sealed bid was received through the com­pet­i­tive bid process. It is not­ed that prospec­tive bid­ders either can’t apply the mate­r­i­al because of the large amount and area or will all obtain from the same sup­pli­er who is also a bid­der. The lime will be applied first with the fer­til­iz­er to fol­low in approx­i­mate­ly 2 – 4 weeks, depend­ing on weather.

Mr. Nel­son made a motion to accept the Spring Fer­til­iza­tion bid and give autho­riza­tion for the Exec­u­tive Direc­tor to exe­cute any nec­es­sary doc­u­ments. Ms. Sims sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

e. Trans­porta­tion Net­work Com­pa­ny Oper­at­ing Agreement

This item pro­vides for Board approval of the Trans­porta­tion Net­work Com­pa­ny (TNC) Oper­at­ing Agree­ment for the North­west Flori­da Beach­es Inter­na­tion­al Air­port (ECP).

The ground trans­porta­tion indus­try con­tin­ues to evolve; the most recent evo­lu­tion is the Trans­porta­tion Net­work Com­pa­ny, with com­pa­nies like Uber and Lyft. Recent­ly, Bay Coun­ty and Pana­ma City Beach approved the TNC con­cept of arrang­ing trans­porta­tion via mobile appli­ca­tions. The Air­port staff has been reach­ing out to TNC oper­a­tors and in ear­ly March, Lyft con­tact­ed the air­port ask­ing to oper­ate at ECP begin­ning March 23, 2017. On March 10, 2017, Uber began oper­at­ing in Bay Coun­ty and staff imme­di­ate­ly reached out to Uber to estab­lish an oper­at­ing agreement.

It was deter­mined fol­low­ing a deci­sions with legal coun­sel that it would be in the best inter­est of the air­port to estab­lish an agree­ment in ​“prin­ci­ple” with both com­pa­nies and devel­op a TNC Oper­at­ing Agree­ment, Uber agreed in ​“prin­ci­ple” to the pro­posed agree­ment and it was not nec­es­sary for Lyft to agree as they are not oper­at­ing on the airport.

Staff and legal coun­sel have worked with both TNCs to estab­lish an oper­at­ing agree­ment that is agree­able to all par­ties and allows for the TNCs to imme­di­ate­ly begin oper­a­tion at the Air­port. The Oper­at­ing Agree­ment des­ig­nates a vehi­cle stag­ing area, a pas­sen­ger pick up loca­tion, a per trip charge for trips from the air­port, con­tains com­pli­ance report­ing with audit capa­bil­i­ties, oth­er oper­at­ing rules and the abil­i­ty to mod­i­fy or ter­mi­nate the agree­ment with a 30 day notice.

In addi­tion, all par­ties agree that upon pass­ing of leg­is­la­tion relat­ing to TNCs the agree­ment will be mod­i­fied to reflect the changes to ensure full compliance.

ECP will pro­vide sig­nage for pas­sen­gers iden­ti­fy­ing the pick-up loca­tion and will mon­i­tor the TNC activ­i­ty as well as the oth­er ground trans­porta­tion ser­vices to ensure a safe and effi­cient operation.

After Board dis­cus­sion, Mr. Scott made a motion to adopt the TNC agree­ment and autho­rize staff to uti­lize this agree­ment for future TNCs with a pro­vi­sion that after 90 days the eco­nom­ic impact of TNCs to the oth­er ground trans­porta­tion com­pa­nies will be reviewed and addressed. Ms. Sims sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

f. Ground Trans­porta­tion Rules & Reg­u­la­tions – Revision

This item pro­vides for Board approval of a revi­sion to the Air­port Ground Trans­porta­tion Rules and Reg­u­la­tions regard­ing TNCs.

In March of 2017 Trans­porta­tion Net­work Com­pa­nies began oper­at­ing in Bay Coun­ty. This update will add a sec­tion to the cur­rent Ground Trans­porta­tion Rules and Reg­u­la­tions to address the oper­a­tion of Trans­porta­tion Net­work Com­pa­nies on the Airport.

Mr. Lee made a motion to approve the revi­sion to the North­west Flori­da Beach­es Inter­na­tion­al Air­port — Ground Trans­porta­tion Rules and Reg­u­la­tions with an effec­tive date of March 22, 2017. Mr. McDon­ald sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Oth­er Business:

Mr. Nel­son asked Staff when employ­ees could expect to see mer­it rais­es on their paychecks.

Fol­low­ing a sug­ges­tion from John Rob­bins, of Bay Solu­tions rep­re­sent­ing SheltAir Pana­ma City, LLC and Sun­shine Shut­tle, dis­cus­sion was had over adding an awning over the park­ing tick­et machines to help pro­tect vis­i­tors to the air­port from the rain. Staff will pro­vide infor­ma­tion regard­ing cost at the next Board meeting.

Mr. McDon­ald rec­og­nized Delta – ECP for out­stand­ing and per­son­al­ized cus­tomer service.

Mr. Math­is con­grat­u­lat­ed Bec­ca Hardin for her suc­cess and recent announce­ment of GKN’s estab­lish­ment of a new facil­i­ty in Bay County.

Exec­u­tive Direc­tor Report:

Ms. Bec­ca Hardin, with the Bay EDA, addressed the Board regard­ing upcom­ing events in Orlan­do, Ger­many and Paris that are relat­ed to the Pom­pano Project.

Ms. Jor­dan Jacobs from Moore Com­mu­ni­ca­tions Group was avail­able to answer ques­tions con­cern­ing the Com­mu­ni­ca­tions Activ­i­ty Report.

Mr. Mike Ler­ma gave a Gen­er­al Avi­a­tion update.

Pub­lic Comments:

No pub­lic comments.

Adjourn­ment:

The meet­ing was adjourned at approx­i­mate­ly 10:55 a.m.

Tal­isa Price, Inter­im Exec­u­tive Sec­re­tary Russ Math­is, Chairman