May 2019 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., May 22, 2019 by Chair­man Lee.

The Invo­ca­tion was giv­en by Mr. Russ Mathis.

The Pledge of Alle­giance was led by Chair­man Lee.

The Exec­u­tive Sec­re­tary called the roll and indi­cat­ed all the Board mem­bers were present except Vice Chair­man Glen McDon­ald and Mr. Ken Nelson.

Mr. Math­is made a motion to approve the Agen­da. Ms. Sims sec­ond­ed the motion. The vote was tak­en andthe motion passed unanimously.

Reports:

Mr. Park­er McClel­lan pre­sent­ed and reviewed the Activ­i­ty Reports and dis­cus­sion ensued.

Ms. Dar­lene Nel­son pre­sent­ed and reviewed the Finan­cial Reports and dis­cus­sion ensued.

Con­sent Agenda:

a. Board Meet­ing Min­utes – April 24, 2019

This item pro­vides for Board approval of the April 24, 2019 Board Meet­ing Minutes.

b. Approve Land Lease for N850J, LLC

This item pro­vides for Board approval of the Land Lease between N850J, LLC and the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict. No rent will be col­lect­ed until the Cer­tifi­cate of Occu­pan­cy is received; the lease term is 30 years; rents will be cal­cu­lat­ed at the rate of $.35 per square foot per year, with an annu­al adjust­ment based on the CPI; proof of gen­er­al lia­bil­i­ty, casu­al­ty and auto­mo­bile insur­ance is required, with Dis­trict named as an addi­tion­al insured; area leased will be approx­i­mate­ly 36,244 square feet, to be con­firmed by sur­vey. Month­ly rev­enue gen­er­at­ed would be approx­i­mate­ly $1,057.00 ($12,684.00 annually).

c. Rat­i­fi­ca­tion of Amend­ment One of the Con­sult­ing Ser­vices Agree­ment with Ever­green Solu­tions, LLC

This item pro­vides for the Board’s rat­i­fi­ca­tion of Amend­ment One to the Con­sult­ing Ser­vices Agree­ment with Ever­green Solu­tions, LLC in the amount of $5,500.00. The cur­rent con­tract is for ser­vices to con­duct a sur­vey and pro­vide the Dis­trict with infor­ma­tion regard­ing its cur­rent pay struc­ture. It was deter­mined the addi­tion of a com­par­i­son of our ben­e­fits pack­age would be of val­ue and would pro­vide a total view of our com­pen­sa­tion pack­age (salary and ben­e­fits). This addi­tion­al com­par­i­son will include insurance(s), retire­ment plan(s), bonus plan(s), auto allowance and oth­er pro­grams offered by oth­er airports.

d. Rat­i­fi­ca­tion of Amend­ment One of the Pro­fes­sion­al Mas­ter Plan­ning Ser­vices Agree­ment with CHA Con­sult­ing, Inc.

This item pro­vides for the Board’s rat­i­fi­ca­tion of Amend­ment One of the Pro­fes­sion­al Mas­ter Plan­ning Ser­vices Agree­ment with CHA Con­sult­ing, Inc. The cur­rent Agree­ment pro­vid­ed for reim­bursable expens­es which includes trav­el, lodg­ing, meals and oth­er inci­den­tal expens­es, but the lan­guage con­flicts with the Exhib­it B, by not allow­ing for reim­burse­ment of meals. This Amend­ment will cor­rect the con­flict­ing lan­guage to allow for meals to be an approved reim­bursable trav­el expense.

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

Busi­ness Items:

a. Accept Bid for Fuel Man­age­ment Sys­tem Replacement/​Upgrade – A. Phelps Petro­le­um of NW FL, Inc.

This item pro­vides for Board approval for a project to replace the Airport’s cur­rent com­put­er­ized fuel man­age­ment sys­tem. Fuel stor­age and dis­pens­ing com­po­nents are locat­ed at the Airport’s main­te­nance facil­i­ty, avi­a­tion fuel farm, and rental car ser­vice facil­i­ty. A com­put­er­ized sys­tem is cur­rent­ly in place to mon­i­tor, man­age, and pro­vide inven­to­ry con­trol of the fuel dis­pens­ing oper­a­tion. That sys­tem is beyond use­ful life and is longer sup­port­ed by the sys­tem provider. This acqui­si­tion will sig­nif­i­cant­ly update and replace the cur­rent, obso­lete system.

The Air­port post­ed an Invi­ta­tion to Bid for ​“Fuel Man­age­ment Sys­tem Replacement/​Upgrade.” On the bid open­ing date of May 14, 2019 one sealed, respon­sive bid was received for the project.

The bid received was from A. Phelps Petro­le­um of NW FL in the amount of $121,043, which is $7,043 above the bud­get esti­mate. Based on sav­ing from oth­er pur­chas­es though out the fis­cal year, there is suf­fi­cient fund­ing in the FY19 Bud­get. The pur­chase is part of an exist­ing State of Flori­da Joint Par­tic­i­pa­tion agree­ment in which fifty (50) per­cent of the bud­get esti­ma­tion, as a result the reim­burse­ment from FDOT will be $57,000 and the Air­port por­tion will be $64,043.

A dis­cus­sion ensued with regards to why we have had lim­it­ed respons­es to our pro­pos­als, and it was deter­mined that Staff and our Con­sul­tant would review and devel­op a plan to increase respons­es to solicitations.

Mr. Tusa made a motion to accept the Bid for A. Phelps Petro­le­um of NW FL, Inc., and Mr. Math­is sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

b. Accep­tance of Sun­Trust Auto­mat­ed Teller Machine (ATM) Con­ces­sions Agreement

This item pro­vides for Board approval to con­tract with Sun­Trust Bank to pro­vide ATM ser­vices in the Air­port Terminal.

Bids were due to the Dis­trict on April 10, 2019. No bids were received.

Staff sub­se­quent­ly nego­ti­at­ed with Sun­Trust to keep its cur­rent two ATMs in the Ter­mi­nal at a reduced rental fee. The cur­rent rental pay­ment is $5,400 per year and the new­ly nego­ti­at­ed rent will be $4,400 per year. There will be a reduc­tion in income of approx­i­mate­ly $335 in FY19. Sub­se­quent bud­get years will reflect the rates then in effect.

The Con­tract will be a non-exclu­sive agree­ment with an ini­tial one-year term with two one-year options. Air­port legal coun­sel has reviewed and updat­ed the Agreement.

Ms. Sims made a motion to approve the Sun­Trust Auto­mat­ed Teller Machine (ATM) Con­ces­sions Agree­ment, and Mr. Tusa sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

c. Approval of Rental Car Con­ces­sion Agreement

This item pro­vides for Board’s approval of rental car con­ces­sion agree­ments that have been nego­ti­at­ed with the rental car com­pa­nies for the North­west Flori­da Beach­es Inter­na­tion­al Airport.

In Octo­ber 2014, the Dis­trict entered into rental car con­ces­sion agree­ments with Avis/​Budget, Enter­prise, Hertz, Alamo/​National and Dollar/​Thrifty to oper­ate at the Air­port. Those agree­ments require each con­ces­sion­aire pay a month­ly con­ces­sion fee of 10% of gross receipts and a $4.50 per vehi­cle per rental day Cus­tomer Facil­i­ty Charge (CFC). The CFC fees col­lect­ed are used in part to fund the debt ser­vice for the con­struc­tion of the rental car facil­i­ties and to pay the rental fees of the Ser­vice Facil­i­ty, Ready Return Spaces and Ter­mi­nal Counter Facil­i­ties. If, at the end of the fis­cal year, CFC col­lec­tions are insuf­fi­cient to pay the cost of that year’s rents and debt ser­vice, then the rental car com­pa­nies are assessed an addi­tion­al amount to cov­er the short­fall. Any sur­plus is held for future reha­bil­i­ta­tion and expan­sion of the rental car facilities.

The con­tract term request­ed is for a three-year peri­od begin­ning Octo­ber 1, 2018 and expir­ing on Sep­tem­ber 30, 2021. There are also two one-year options which may be exer­cised at the dis­cre­tion of the Dis­trict. This Agree­ment includes the con­tents of the two Amend­ments to the 2014 Agree­ment, mod­i­fied Ready Return Space Allo­ca­tion lan­guage based on the past 12 month mar­ket share, as well as the abil­i­ty to add an Air­port Con­ces­sion Dis­ad­van­tage Busi­ness Enter­prise (ACDBE) Rental Car Operator.

There will be no adverse impact on the bud­get or future budgets. 

Mr. John­son made a motion to approve the Rental Car Con­ces­sions Agree­ment, and Ms. Sims sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

State Road 388 Con­struc­tion Update:

Mr. McClel­lan addressed the Board inform­ing them that there have been numer­ous dump trucks and a back­hoe at the sand pile, and the dead­line for com­plete removal is the end of June.

The Bay EDA Update:

Ms. Bec­ca Hardin, Pres­i­dent of Bay EDA, informed the Board that there has been quite a bit of avi­a­tion indus­try activ­i­ty since the last update.

Three projects: 1) prospect vis­its with Project Tur­bo (inter­est­ed in the infield – where the cur­rent sand pile is), 200 jobs pos­si­ble, $25M cap­i­tal invest­ment, Air­port and EDA work­ing on pro­pos­als and will meet with them again at the Paris Air­show; 2) Project Gator (needs run­way access, look­ing for a wide-body hangar for MRO-type oper­a­tions, Air­port and EDA work­ing on a pro­pos­al with our part­ners with the State (it would be a Space Flori­da project); 3) Project Mas­ter­mind – 4 MRO projects and 1 R&D piece – Flori­da State Uni­ver­si­ty has been heav­i­ly involved in the R&D piece and we’ve been suc­cess­ful in get­ting their inter­est in the Flori­da State Engi­neer­ing pro­grams and com­pa­ny rep­re­sen­ta­tives will be going to Tal­la­has­see to see those pro­grams, and we hope to bring the pro­grams to FSU Pana­ma City.

Mr. McClel­lan added that we’re also work­ing on Project Good­wrench, a part­ner­ship with some of the local edu­ca­tion­al institutions.

When ques­tioned about hous­ing, Ms. Hardin respond­ed that all the projects the EDA is work­ing on are build-tosuit and will take at least a year to 18 months to build a facil­i­ty. She said they see we are build­ing ​“big­ger, bet­ter, stronger” – and that Bay EDA is busier than ever.

The Moore Agency Update:

Ms. Katie Spill­man of The Moore Agency report­ed that dur­ing the month of April, the Agency launched ECP’s 2^nd cam­paign burst which ran for three weeks on Face­book, Google and in The News Her­ald. She said it actu­al­ly out­per­formed our Feb­ru­ary Super Bowl bursts. Ms. Spill­man report­ed the online cam­paign ran for one week, the print adver­tise­ment ran the sec­ond week, and we launched the dig­i­tal again on the third week, which allowed us to bet­ter iden­ti­fy the effec­tive­ness and mon­i­tor any spikes that would come from tra­di­tion­al media. She said that dig­i­tal def­i­nite­ly out­per­formed any of those organ­ic spikes that we could’ve seen.

Ms. Spill­man report­ed that there were 633 air­line web­site con­ver­sions as a direct result of our cam­paign, and there were 272 assist­ed con­ver­sions from the cam­paign (they clicked on dig­i­tal ad, go to land­ing page, click out, but come back and con­vert). Ms. Spill­man informed the Board that the Dash­board illus­trates how we’re pac­ing real­ly well against our fis­cal year goals for mea­sur­ing all our key per­for­mance indi­ca­tors. Some have already out­per­formed and some are pac­ing right at halfway to our goals.

She con­tin­ued that we did a mix of paid social and dis­play ads and saw bet­ter results than just run­ning our Face­book cam­paign as we did dur­ing the Super Bowl time. Costs were much low­er on dig­i­tal adver­tis­ing with a low­er cost per con­ver­sion. We saw bet­ter results on our Face­book adver­tis­ing (like­ly because of our abil­i­ty to opti­mize a new cam­paign with fresh cre­ative, i.e. our more engag­ing ani­mat­ed GIFs), and our newslet­ter con­tin­ues to exceed indus­try aver­age open rates (28% com­pared with 17%).

On deck for The Moore Agency is to pro­mote the enhanced sum­mer flight sched­ule with earned media and fresh cre­ative pushed out on all of our chan­nels, and by giv­ing out the new­ly brand­ed ECP lug­gage tags.

Exec­u­tive Direc­tor Report:

Mr. McClel­lan informed the Board that the FAA sup­ple­men­tal fund­ing list came out last week and we were not on that list, so we have tak­en the approach of chang­ing our fund­ing mech­a­nism so we can use our enti­tle­ments to begin the Ter­mi­nal Expan­sion in the fall. 

He added that the ramp repair project is mov­ing for­ward and C.W. Roberts has made it into a two-phase project to start June 3. The air­lines will shuf­fle gates and every­one under­stands that for two weeks this will be hap­pen­ing. The ramp expan­sion project will be after that.

The TSA said we are cleared to have three lines, but there is no equip­ment for those lines at the check­point, and they are hav­ing staffing chal­lenges. To pre­vent the lines being so long, we have ordered stan­chions to accom­mo­date the traffic.

Mr. McClel­lan announced that today was the 9^th anniver­sary of the first land­ing at the Air­port with an F22 and a 737 land­ing. Super Sum­mer Week­ends soft open­ing on June 8 and offi­cial open­ing on June 15 with AA, UA and SW adding flights and Delta adding flights in late June.

He con­tin­ued that the fam­i­ly restroom floor on the 1^st floor is com­plete and the oth­ers are almost done and he encour­aged all to check them out. And, he announced that today was Tal­isa Price’s last Board meet­ing, and thanked her hus­band for his ser­vice to our coun­try, and her ser­vice to our Air­port. He said they will be mov­ing to San Anto­nio and that she has been a very valu­able part of our team, as every­one applaud­ed her.

Pub­lic Comments:

There were no pub­lic comments.

Adjourn­ment:

The meet­ing was adjourned at approx­i­mate­ly 9:55 a.m.

___________________________ ___________________________

Kathy Gilmore, Exec­u­tive Sec­re­tary Del Lee, Chairman