September 2013 Special Meeting Minutes

Open­ing:

The Spe­cial Board Meet­ing of the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict was called to order at 9:00 a.m., Sep­tem­ber 11, 2013 in the Air­port Board Room by Chair­man Pilcher.

The Invo­ca­tion was giv­en by Ms. Pat­ty Mitchell.

The Pledge of Alle­giance was led by Chair­man Pilcher.

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

Busi­ness Items:

a. Air­port Gate Ser­vices and Con­vey­or Sys­tem Oper­a­tion and Main­te­nance Program

This item pro­vides for dis­cus­sion regard­ing the con­tract to pro­vide main­te­nance ser­vices for the pas­sen­ger load­ing bridges, pre­con­di­tioned air units, ground pow­er units and the inbound and out­bound bag­gage han­dling systems.

At the August Board Meet­ing, the Board elect­ed to delay award­ing the con­tract for oper­a­tion and over­sight of the con­vey­or sys­tem and main­te­nance pro­gram for the bag­gage han­dling sys­tem and instruct­ed the Exec­u­tive Direc­tor to fur­ther review the bid sub­mit­tals and sub­se­quent infor­ma­tion and pro­vide a new staff rec­om­men­da­tion for Board consideration.

After fur­ther review, staff deter­mined that the flight sched­ule for both air car­ri­ers would vary through­out the year and that the orig­i­nal Request for Pro­pos­als was not clear as to the expec­ta­tion of hours of oper­a­tion. It is the opin­ion of staff that pro­vid­ing clar­i­fi­ca­tion at this point in the RFP process would like­ly result in a poten­tial cost sav­ings to the airport.

Based on this deter­mi­na­tion, staff rec­om­mend­ed that the Board reject all five of the orig­i­nal pro­pos­als sub­mit­ted and direct staff to make the nec­es­sary mod­i­fi­ca­tions to the RFP and re- release it for new submittals.

Fol­low­ing Board dis­cus­sion, Ms. Moliter­no made a motion to accept staff’s rec­om­men­da­tion to reject all five of the orig­i­nal bids and re-release the Request for Pro­pos­als for the Air­port Gate Ser­vices and Con­vey­or Sys­tem Oper­a­tion and Main­te­nance Pro­gram. Mr. Fore­hand sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

The cur­rent con­tract to pro­vide main­te­nance ser­vices for the pas­sen­ger load­ing bridges, pre­con­di­tioned air units, ground pow­er units and the inbound and out­bound bag­gage han­dling sys­tems is with Elite Line Ser­vices and is due to expire on Sep­tem­ber 30, 2013. In an effort to ensure that ser­vice would not be inter­rupt­ed until a new con­tract can be award­ed, staff rec­om­mend­ed the Board extend the con­tract with Elite Line Ser­vices to cov­er the exten­sion of service.

Fol­low­ing Board dis­cus­sion, Mr. Moliter­no made a motion to extend the con­tract with Elite Line Ser­vices for an extend­ed time peri­od not to exceed Jan­u­ary 15, 2014. Mr. Fore­hand sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Oth­er Business:

Chair­man Pilch­er addressed the Board regard­ing an upcom­ing trip to Ger­many with the Bay Eco­nom­ic Devel­op­ment Alliance regard­ing mar­ket­ing this region as a des­ti­na­tion for inter­na­tion­al busi­ness. Mr. Pilch­er asked the Board to think about whether or not to send Mr. McClel­lan with the Bay EDA to Germany.

The reg­u­lar busi­ness meet­ing adjourned at approx­i­mate­ly 9:20 a.m. to begin the Bud­get Work­shop pre­sen­ta­tion regard­ing the FY 2014 Air­port Oper­at­ing and Cap­i­tal Improve­ment Budget.

a. FY 2014 Oper­at­ing and Cap­i­tal Improve­ment Budget

The draft FY2014 Oper­at­ing and Cap­i­tal Improve­ment Bud­get was pre­vi­ous­ly pro­vid­ed to the Board for their review in prepa­ra­tion for this discussion.

Mr. McClel­lan 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%. Over­all, the FY2014 oper­at­ing expense bud­get is 14% more that the FY2013 pro­jec­tions, rep­re­sent­ing an increase of $987,545. The FY2014 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, replace­ment of com­put­er and secu­ri­ty equip­ment, con­tin­ued devel­op­ment of the envi­ron­men­tal mit­i­ga­tion pro­gram, expand­ing capac­i­ty and improv­ing security.

This Board Work­shop pro­vid­ed for a review and dis­cus­sion of the pro­posed FY2014 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 25, 2013 Board Meeting.

Adjourn­ment:

The Board Work­shop was adjourned at approx­i­mate­ly 10:25 a.m. (CST).

Pat­ty Mitchell, Exec­u­tive Sec­re­tary John Pilch­er, Chairman