September 2012 Special Meeting Minutes

Open­ing:

The Spe­cial Board Meet­ing of the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict was called to order at 10:00 a.m., Sep­tem­ber 12, 2012, in the Air­port Board Room by Chair­man Pilcher.

The Invo­ca­tion was giv­en by Ms. Pat­ty Strick.

The Pledge of Alle­giance was led by Chair­man Pilcher.

All Board Mem­bers were present except Mr. Till Bruett and Mr. Carey Scott.

Busi­ness Items:

a. Con­sid­er­a­tion of Fil­ing an Appeal in the Law­suit Against KBR

This item pro­vides for Board dis­cus­sion and con­sid­er­a­tion regard­ing fil­ing an appeal in the law­suit against KBR.

Mr. Franklin Har­ri­son, the airport’s attor­ney, addressed the Board and dis­cussed the recent rul­ing in the law­suit involv­ing KBR, where­in the judge issued a deci­sion find­ing in favor of KBR and against the Air­port Authority.

Attor­ney Har­ri­son dis­cussed the options avail­able and rec­om­mend­ed the Dis­trict move for­ward with a Notice of Fil­ing an Appeal, with the under­stand­ing that any fees incurred in the appeal process, includ­ing attor­ney fees, would be paid by Phoenix Con­struc­tion Company.

Fol­low­ing Board dis­cus­sion, Mr. Koehne­mann made a motion to instruct the airport’s legal coun­sel to file a Notice to Appeal the adverse rul­ing in the law­suit involv­ing KBR. Mr. Fore­hand sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

b. FY 2013 Oper­at­ing and Cap­i­tal Improve­ment Budget

The draft FY2013 Oper­at­ing and Cap­i­tal Improve­ment Bud­get was pro­vid­ed to the Board at the August 22, 2012 meet­ing for their review in prepa­ra­tion for this discussion.

Staff reviewed the pro­ject­ed oper­at­ing rev­enues and oper­at­ing expens­es for the upcom­ing fis­cal year. The oper­at­ing rev­enues includ­ed funds that will be received from the com­mer­cial air­lines, car rental com­pa­nies, gen­er­al avi­a­tion, and ter­mi­nal ten­ants, to include the park­ing lot facil­i­ty, restau­rant con­ces­sion, retail con­ces­sion and advertising.

The pro­ject­ed oper­at­ing expens­es includ­ed employ­ee salaries and ben­e­fits, sup­plies and mate­ri­als, util­i­ties, insur­ance, and pur­chased ser­vices, to include jan­i­to­r­i­al ser­vices, legal ser­vices, bag­gage han­dling sys­tem and main­te­nance of the load­ing bridges, ground main­te­nance, ele­va­tor and esca­la­tor ser­vices, trash removal, and secu­ri­ty ser­vices and sys­tem maintenance.

Salaries and ben­e­fits rep­re­sent approx­i­mate­ly 40% of the airport’s annu­al oper­at­ing expens­es, and pur­chased ser­vices account for 39%. Staff addressed addi­tion­al costs bud­get­ed that are asso­ci­at­ed with main­tain­ing the airport’s stormwa­ter sys­tems and ensur­ing ground cov­er sta­bi­liza­tion over the entire air­port site.

Over­all, the FY2013 oper­at­ing expense bud­get is 6.5% more that the FY2012 pro­jec­tions, rep­re­sent­ing an increase of $482,300. The FY2013 bud­get reflects an amount which will pro­vide for the effi­cient oper­a­tion of the air­port, while pro­vid­ing the nec­es­sary resources to meet the estab­lished goals for the upcom­ing year.

The main focus of the Cap­i­tal Improve­ment Pro­gram, which is fund­ed through the use of fed­er­al Air­port Improve­ment Pro­gram grants, Flori­da Depart­ment of Trans­porta­tion grants, and avail­able air­port funds, cen­ters around improv­ing the equip­ment nec­es­sary to main­tain air­port facil­i­ties and air­field, con­tin­ued devel­op­ment of the envi­ron­men­tal mit­i­ga­tion pro­gram and addi­tion­al sta­bi­liza­tion efforts, expand­ing capac­i­ty and improv­ing security.

This Spe­cial Meet­ing pro­vid­ed for a review and dis­cus­sion of the pro­posed FY2013 Oper­at­ing and Cap­i­tal Improve­ment Bud­get and required no for­mal action by the Board. For­mal approval of the final bud­get will be con­sid­ered at the Sep­tem­ber 26, 2012 Board Meeting.

Adjourn­ment:

The Spe­cial Meet­ing was adjourned at approx­i­mate­ly 11:10 a.m. (CST).

Pat­ty Strick, Exec­u­tive Sec­re­tary John Pilch­er, Chairman