May 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., May 29, 2024 by Chair Hol­ly Melzer.

The Invo­ca­tion was giv­en by Mr. Les McFatter.

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

Roll was called. In atten­dance were: Ms. Vic­to­ria Williams, Mr. Les McFat­ter, Mr. Will Cramer, and Chair Hol­ly Melzer.

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

Chair Melz­er 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. Park­er McClel­lan request­ed to add to the agen­da a spe­cial recog­ni­tion of retire­ment. Chair Melz­er approved the pre­sen­ta­tion to be added to the agen­da in front of the reports.

The Board and Mr. McClel­lan rec­og­nized Ms. Denise Beach by award­ing her a plaque hon­or of her years of ser­vice at the airport.

Chair Meltzer moved the meet­ing direct­ly into the Activ­i­ty Report with­out a roll call vote.

Reports:

Mr. McClel­lan report­ed the Activ­i­ty Report is up 15% total pas­sen­gers with a 7.5% month over month increase. Load fac­tors are antic­i­pat­ed to change due to the change of air­plane sizes. Addi­tion­al­ly, May mar­ket shares were met at 22%; Mr. McClel­lan antic­i­pates the mar­ket shares will fluc­tu­ate because that is when Alle­giant will begin oper­a­tion in Des­tin-Ft. Wal­ton. Mr. McClel­lan also men­tioned that growth has been sim­i­lar through­out all Pan­han­dle airports.

Ms. Dar­lene Gor­don pre­sent­ed the Finan­cial Reports for sev­en months end­ing April 30^th. At the end of April, the total cash reflects $1.5 mil­lion; com­pared to this time 2023, cash has increased $4.8 mil­lion with a total bal­ance of $45 mil­lion. Ms. Gor­don also report­ed that unre­strict­ed cash is $30 mil­lion and restrict­ed cash is $15 mil­lion. In April 2024 total lia­bil­i­ties increased $2.7 mil­lion from March due to con­struc­tion costs. There was an increase of invoic­es near the end of the month includ­ing $1.6 mil­lion pay­ment for the bridges, as well as $1.1 mil­lion in invoic­es for the bag­gage make­up project. Ms. Gor­don moved on to excess rev­enues over expens­es year to date total $14.9, which is an increase of $5 mil­lion dol­lars in the month of April; oper­at­ing rev­enue make up $5 mil­lion, while the non-oper­at­ing rev­enues make up $9.9 mil­lion. The income state­ment reflect­ed a year to date (YTD) oper­at­ing bud­get of $11.8 mil­lion dol­lar at the end of April, which exceeds bud­get by $777,000 and equates to 107% of bud­get. Air­line land­ing fees are 113% of bud­get, and air­line ter­mi­nal com­plex rev­enues are at 116%. Addi­tion­al­ly, air­line ter­mi­nal rents are under bud­get this month, which was bud­get­ed for due the bag­gage make­up project to be com­plet­ed at the end of March. Ms. Gor­don explained that due to unfore­seen cir­cum­stances, the project com­ple­tion date was pushed out, and each month the project is not com­plet­ed, there will be a deficit in air­line rental fees. How­ev­er, when the facil­i­ty opens, there will be $50,000 of esti­mat­ed increased rev­enue per month in com­mon use fees. Per­son­al expens­es are 89% of bud­get YTD, gen­er­al oper­at­ing expense are 90% of bud­get YTD. Park­ing rev­enue YTD is $403,000 over bud­get. Non-oper­at­ing rev­enues have been using the FAA grant funds, which rec­og­nized an addi­tion­al $3.2 mil­lion rev­enues in April.

Mr. Cramer asked about employ­ee vacan­cies, to which Ms. Gor­don informed the board that she will include those num­bers in her reports from now on, but there have been sev­er­al recent hires.

Chair Melz­er 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. Approve Pol­i­cy Change for Pur­chas­ing Policy

This item pro­vides for the Board approval of a change regard­ing the Air­port Pur­chas­ing Pol­i­cy #3.8.

c. Approval of Pur­chase of Motor­ized Pas­sen­ger Stair­way from Aero Spe­cial­ties Ground Sup­port Equipment

This item pro­vides for Board approval for the pur­chase of Mobile Pas­sen­ger Stairs to be used in sup­port of the Airport’s ground sup­port operations.

d. Approval of Pur­chase of Fuel Dis­penser Units from A. Phelps Petroleum

This item pro­vides for the accep­tance of a bid for the pur­chase and instal­la­tion of nine (9) replace­ment fuel dis­pens­ing units locat­ed at the Airport.

e. Approval of Mod­i­fied Board Meet­ing Schedule

This item pro­vides for Board approval to mod­i­fy the 2024 Board Schedule.

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

Busi­ness Items:

a. Approval of Park­ing Man­age­ment Contract

Mr. McClel­lan request­ed the Board to approve the Park­ing Man­age­ment Con­tract rank­ing, which was pro­posed by the Eval­u­a­tion Com­mit­tee, as well as autho­rize the Chair of the Eval­u­a­tion Com­mit­tee to exe­cute a con­tract to LAZ Park­ing, LLC. with the intend­ed start date of Sep­tem­ber 2024.

Chair Melz­er asked if any­one from LAZ Park­ing was in atten­dance in the meeting.

Mr. McClel­lan intro­duced Don Bar­rett, Vice Pres­i­dent of Air­port Ser­vices from LAZ Park­ing. Mr. Bar­rett gave a brief overview of LAZ Parking.

Mr. Cramer made the motion to approve the Park­ing Man­age­ment Con­tract. Mr. McFat­ter sec­ond­ed the motion. The vote was tak­en and passed unanimously.

b. Approve Sin­gle Source Pro­cure­ment for Entrance Road Sign Repair

Mr. McClel­lan request­ed Board approval to move for­ward with the repair of the sig­nage with­in the round­about at the entrance of the Air­port on State Road 388, which will be per­formed in com­pli­ance with­in the Airport’s approved Pro­cure­ment Pol­i­cy for Sin­gle Source Procurement.

Dis­cus­sion ensued with the con­cern­ing insur­ance deductibles and Flori­da insur­ance laws. The Airport’s deductible and cost for the repair would be $1,000.

Mr. McFat­ter motioned to approve the Sin­gle Source Pro­cure­ment for Entrance Road Sign Repair. Ms. Williams sec­ond­ed the motion. The vote was tak­en and passed unanimously

c. Approve ZHA Task Order #55-A4 Addi­tion­al Ser­vices, unfore­seen under­ground obstruc­tions

Mr. McClel­lan request­ed the Board to approve $7,770.00 for Task Order #55-A4 in addi­tion­al design ser­vices for the North Ter­mi­nal Con­course Buildout.

Ms. Williams motioned to approve the ZHA Task Order #55-A4 Addi­tion­al Ser­vices, unfore­seen under­ground obstruc­tions. Mr. McFat­ter sec­ond­ed the motion. Upon roll call, Chair Melz­er asked if the fee was a lump sum fee and does not exceed. Mr. McClel­lan con­firmed. The vote con­tin­ued and was tak­en and passed unanimously.

d. Approve ZHA Task Order – #55-A5 North Ter­mi­nal Con­course – Extend­ed Con­struc­tion Admin­is­tra­tion Services

Mr. McClel­lan explained the delays for the North Ter­mi­nal Build­out project are a result of Dom­in­quez Design Build’s staffing sup­port. The cost of the task order is $68,204. Chair Melz­er asked for more expla­na­tion on the delays. Mr. McClel­lan, Mr. Cole, and Mr. Jim Tatum, from DAG Archi­tects, clar­i­fied delays, sched­ules, liq­ui­dat­ed dam­ages, and rev­enue expens­es sur­round­ing the North Ter­mi­nal Build­out project.

Mr. Cramer made the motion to approve the ZHA Task Order – #55-A5 North Ter­mi­nal Con­course – Extend­ed Con­struc­tion Admin­is­tra­tion Ser­vices. Mr. McFat­ter sec­ond­ed the motion. The vote was tak­en and passed unanimously.

e. Approve ZHA Task Order – #49‑F Ter­mi­nal Bag Make-Up Expan­sion – Extend­ed Con­struc­tion Admin­is­tra­tion Services

Mr. McClel­lan intro­duced the item by let­ting the Board know that there would be call with White­sell-Green on May 30, 2024 in hopes to accel­er­ate their con­struc­tion sched­ule for the Ter­mi­nal Bag Make-Up Expan­sion project. The cost of the task order mod­i­fi­ca­tion is $26,930.

Dis­cus­sion ensued con­cern­ing the liq­ui­dat­ed dam­ages sur­round­ing Whitesell-Green’s contract.

Ms. Williams motioned to approve ZHA Task Order – #49‑F Ter­mi­nal Bag Make-Up Expan­sion – Extend­ed Con­struc­tion Admin­is­tra­tion Ser­vices. Mr. Cramer sec­ond­ed the motion. The vote was tak­en and passed unanimously.

f. Dis­cus­sion of Park­ing Plan for Peak Travel

Mr. McClel­lan intro­duced the Park­ing Lot Plan for Peak Trav­el and wel­comed Mr. Richard McConnell, who pre­sent­ed the plan in more detail. Over­flow park­ing lot will ini­tial­ly include 300 – 400 spaces, but can hold up to 800 spaces. The plan is to include light­ing cov­er­age, sig­nage, and dri­ving gravel.

Dis­cus­sion fol­lowed con­cern­ing pre­mi­um park­ing options, pas­sen­ger expe­ri­ence, shut­tle dri­ve­times to air­port, cost of paving in lieu of grav­el, and options of placement. 

The busi­ness item was put on hold at the request of the Board until cal­cu­la­tion of 4‑acres of grav­el was prepared.

Con­struc­tion Updates (infor­ma­tion only)

a. Ter­mi­nal Buildout

Mr. McClel­lan and Mr. Nick Har­well pre­sent­ed pic­tures to describe the Ter­mi­nal Build­out con­struc­tion updates.

b. Bag Make-Up Expansion

Mr. Har­well pre­sent­ed pic­tures to describe the Bag Make-Up Expan­sion con­struc­tion updates.

c. Admin Lot

Mr. Har­well pre­sent­ed pic­tures to describe the Admin Lot con­struc­tion updates. June 12^th will be the next date the con­struc­tion team will be on site to pour and stripe the park­ing lot. Mr. McConnell rejoined the Board Meet­ing with the cal­cu­la­tions for the Park­ing Lot Plan for Peak Trav­el cost recal­cu­la­tions as request­ed by the Board. The cost for an increase of 230 tons to 700 tons is approx­i­mate­ly $60,000 for grav­el. The orig­i­nal bud­get for this plan was $50,000.

Mr. Cramer made the motion to approve the Park­ing Plan for Peak Trav­el. Mrs. Williams sec­ond­ed the motion. The vote was tak­en and passed unanimously.

Mr. Cramer request­ed a sheet of cur­rent events at the Air­port to be made acces­si­ble at the Board Meetings.

Plan­ning Update (infor­ma­tion only)

a. North Ter­mi­nal Expansion

Mr. McClel­lan intro­duced Lori Barnes, Don­ald Gray, and Eri­ka Hagan with the Fitzger­ald Col­lab­o­ra­tive Group, who pre­sent­ed vir­tu­al plans and show­cased mate­ri­als for the North Ter­mi­nal Expan­sion which includ­ed TSA relo­ca­tion, a ter­mi­nal build­out, new bag­gage claim area, obser­va­tion deck, fam­i­ly room, sen­so­ry room, and a ser­vice ani­mal relief area. 

Dis­cus­sion ensued con­cern­ing use of space, Flori­da build­ing codes, and weath­er sustainability.

b. Project InSPIRE

Mr. McClel­lan recent­ly met with St. Joe to dis­cuss the relo­ca­tion of Project InSpire, which will now go on John­ny Reaver Road and West Bay Park­way. The next steps will be to com­plete envi­ron­men­tal reviews and get the FAA to buy off on the site.

Bay EDA Update (Infor­ma­tion Only):

Ms. Bec­ca Hardin with Bay EDA report­ed five (5) prospects that are look­ing at to work with the Air­port or Ven­ture Cross­ings: Project Goose, Project, Opal, Project Super Bowl, Project Joe, and Project Derby.

Amongst these tar­get­ed prospects are sev­er­al main­te­nance, repair, and over­haul (MRO) com­pa­nies that are look­ing to build hang­ers, pro­vide 100 – 500 jobs, as well as invest $10 – 800 mil­lion in cap­i­tal investments.

The Moore Agency Update (Infor­ma­tion Only):

Mr. McFat­ter excused him­self from the Board Meet­ing leav­ing only three (3) Board mem­bers in attendance.

Ms. Katie Spill­man pre­sent­ed recent events from the 14^th Year Mile­stone activ­i­ty includ­ing: The News Her­ald exclu­sive op-ed piece, ECP social media triv­ia graph­ics, email blast cus­tom graph­ics, and the in-ter­mi­nal pas­sen­ger engage­ment activity.

Ms. Spill­man also pre­sent­ed the ​“Fly­MyAir­port” search-to-book tool, which is now avail­able to book flights, rental cars, and hotels direct­ly on the Airport’s website.

The Moore Agency is look­ing for cre­ative ways to devel­op ways to com­mu­ni­cate the over­flow park­ing lot and will be work­ing with the team to help aid in this area. The inau­gur­al Boston

Arrival/​Departure will be fea­tured on June 8^th. The Moore Agency will also pro­mote music in the ter­mi­nal every Sat­ur­day in July.

Exec­u­tive Direc­tor Report:

Mr. McClel­lan shared that he attend­ed the Jump­Start Con­fer­ence on May 20 – 22, 2024, where he met with air­lines for the future.

Mr. McClel­lan also shared that he met with the Port Author­i­ty Direc­tor, who informed him about the Reim­bursable Ser­vices Pro­gram Agree­ment. This would enable a part­ner­ship between Cus­toms and Bor­der Patrol (CBP) and the Air­port, thus allow­ing CBP to pro­vide addi­tion­al inspec­tion ser­vices upon the request of stakeholders.

Pub­lic Comments:

Mr. McConnell rec­og­nized the main­te­nance depart­ment and their efforts to reduce the bud­get and ener­gy costs by replac­ing all flo­res­cent lights to LED bulbs. 

Chair Melz­er will be absent from the June meeting.

Adjourn­ment:

Next meet­ings sched­uled: June 26, 2024 — Board Meet­ing 9:00 a.m.

The meet­ing was adjourned at approx­i­mate­ly 10:34am.

_________________________________ ________________________________

Park­er W. McClel­lan, Jr., AAE, Exec­u­tive Direc­tor Hol­ly Melz­er, Chair