September 2016 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., Sep­tem­ber 28, 2016 by Chair­man Mathis.

The Invo­ca­tion was giv­en by Ms. Pat­ty Mitchell.

The Pledge of Alle­giance was led by Chair­man Mathis.

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

Recog­ni­tion:

Chair­man Math­is rec­og­nized Mr. Tom­my Barfield, FDOT Dis­trict 3 Sec­re­tary, who is retir­ing the end of this year. The Board adopt­ed a Res­o­lu­tion acknowl­edg­ing Mr. Barfield for his efforts and con­tin­ued part­ner­ship between the North­west Flori­da Beach­es Inter­na­tion­al Air­port and the Flori­da Depart­ment of Transportation.

Chair­man Math­is rec­og­nized Ms. Cindy Mead­ows for her ser­vice to the Board. Ms. Mead­ows resigned her posi­tion effec­tive the end of Sep­tem­ber 2016.

Approval of Minutes:

The August 24, 2016 Board Meet­ing Min­utes were approved as distributed.

Reports:

Mr. McClel­lan pre­sent­ed and reviewed both the Activ­i­ty Report and the Finan­cial Report.

Con­sent Agenda:

a. Approve Air­craft Ser­vice Inter­na­tion­al Group (ASIG) FY 2017 Budget

This item pro­vides for Board approval of the FY 2017 Oper­at­ing and Main­te­nance Bud­get for ASIG.

Mr. Lee made a motion to approve the ASIG 2017 Oper­at­ing and Main­te­nance Bud­get. Mr. Nel­son sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

b. Audit Engage­ment – Tip­ton, Mar­ler, Gar­ner & Chastain

This item pro­vides for Board approval of the Audit Engage­ment Let­ter with Tip­ton, Mar­ler, Gar­ner & Chas­tain to per­form the FY 2016 finan­cial audit.

Mr. Lee made a motion to approve the Audit Engage­ment Let­ter with Tip­ton, Mar­ler, Gar­ner & Chas­tain, and autho­riza­tion for the Board Chair­man of his designee to exe­cute the let­ter. Ms. Mead­ows sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

c. FY 2016 Bud­get Transfers

This item pro­vides for Board approval for trans­fers with­in the FY 2016 Oper­at­ing and Cap­i­tal Bud­get and writ­ing off of bad debt.

Ms. Sims made a motion to approve the request­ed trans­fers with­in the FY 2016 Oper­at­ing and Cap­i­tal Bud­get and writ­ing off of bad debt. Mr. McDon­ald sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Busi­ness Items:

a. FY 2017 Oper­at­ing and Cap­i­tal Improve­ment Budget

This item pro­vides for Board approval of the Fis­cal Year 2017 Air­port Oper­at­ing and Cap­i­tal Improve­ment Budget.

A draft of the FY 2017 bud­get was pro­vid­ed to the Board and dis­cussed in detail at the Sep­tem­ber 14, 2016 Board Workshop.

The FY 2017 Oper­at­ing and Cap­i­tal Improve­ment Bud­get includes oper­at­ing rev­enues of $13,369,954 with oper­at­ing expens­es of $8,170,518. The bud­get incor­po­rates the debt ser­vice require­ments for prin­ci­pal and inter­est pay­ments of $3,089,574 for the two SIB loans, along with pas­sen­ger facil­i­ty charges of $1,606,578 leav­ing a net require­ment from air­port rev­enues of $1,482,996.

The remain­ing net rev­enues avail­able for the cap­i­tal pro­gram and reserve accounts are $1,563,432. The bud­get con­tains a .4% decrease in oper­at­ing expens­es over the esti­mat­ed FY 2016 expense bud­get, and an 1% increase in oper­at­ing rev­enues for the same period.

Fol­low­ing Board dis­cus­sion, Mr. Nel­son made a motion to approve the FY 2017 Air­port Oper­at­ing and Cap­i­tal Improve­ment Bud­get. Ms. Mead­ows sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

b. Flight Infor­ma­tion Dis­play Sys­tem (FIDS) Main­te­nance Agreement

This item pro­vides for Board approval of the sole source pro­cure­ment of a Main­te­nance Agree­ment for mul­ti­ple infor­ma­tion sys­tems with Altel Sys­tems Group, Inc.

In con­junc­tion with the con­struc­tion of the Ter­mi­nal Build­ing, the Air­port installed numer­ous infor­ma­tion sys­tems includ­ing Flight Infor­ma­tion Dis­plays (FIDS), Gate Infor­ma­tion Dis­plays (GIDS), audio pag­ing, and ter­mi­nal infor­ma­tion pag­ing. The sys­tems and equip­ment were pro­vid­ed by Inno­v­a­tive Elec­tron­ic Design (IED). Tech­ni­cal sup­port for this equip­ment is pro­vid­ed by Altel Sys­tems Group, Inc. (Altel).

The Airport’s pur­chas­ing process allows for the sole source pro­cure­ment of goods and ser­vices based on unique or spe­cial­ized char­ac­ter­is­tics. In this case, Altel is the only autho­rized ser­vice provider of IED’s pro­pri­etary equip­ment in this Region.

The term of the agree­ment is five (5) years, which pro­vides for all upgrades and updates to exist­ing equip­ment, replace­ment of all non-sup­port­ed equip­ment, soft­ware, soft­ware patch­es and oth­er sys­tem issues. Costs of the five year agree­ment are as follows:

• Year one $52,345
• Year two $39,615
• Year three $39,615
• Year four $44,648
• Year five $45,685

Funds for the first year of the agree­ment are avail­able in the FY17 bud­get with the remain­ing four years being pro­grammed in future budgets.

Fol­low­ing Board dis­cus­sion, Mr. McDon­ald made a motion to approve the sole source pro­cure­ment of the five year Main­te­nance Agree­ment with Altel Sys­tems Group, Inc., and autho­riza­tion for the Board Chair­man or his designee to exe­cute any required doc­u­ments, pend­ing review by legal coun­sel. Mr. Lee sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

c. Mit­i­ga­tion Imple­men­ta­tion Project

This item pro­vides for Board approval and award of a con­tract for off-site mit­i­ga­tion to Wild­lands Fire Ser­vices, Inc.

As part of the West Bay Sec­tor Plan, the Air­port com­mit­ted to long term mit­i­ga­tion con­sist­ing of the restora­tion of approx­i­mate­ly 9,600 acres of prop­er­ty in close prox­im­i­ty to the Airport.

In 2016, Staff and ZHA reviewed the effec­tive­ness and cost of the mit­i­ga­tion con­tract and scope of work over the long term with the goal of expe­dit­ing progress, cap­tur­ing main­te­nance areas, reduc­ing insur­ance, and max­i­miz­ing grant monies. The Air­port issued an Invi­ta­tion to Bid in August 2016. The invi­ta­tion solicit­ed indi­vid­ual Base Bids for a three (3) year term to include pre­scribed burn­ing, long leaf pine plant­i­ng and hydro­log­i­cal restoration.

The Base Bids scope of work was estab­lished to meet the min­i­mum scope of work to main­tain com­pli­ance with the require­ments of the Mit­i­ga­tion Plan and Per­mit. The Add Alter­nates were iden­ti­fied and includ­ed, as need­ed, to con­tin­ue to accel­er­ate mit­i­ga­tion activ­i­ties based on avail­able funding.

In response to the Invi­ta­tion to Bid, the Air­port received one bid from Wild­lands Fire Ser­vices, Inc. The bid was com­plete and respon­sive and the con­trac­tor is qual­i­fied. The Base Bids for each cat­e­go­ry are as follows:

• Pre­scribed Burn­ing $576,600
• Lon­gleaf Pine Plant­i­ng $ 41,477
• Hydro­log­i­cal Restora­tion $165,186

TOTAL $783,263 ($261,088 per year)

This mit­i­ga­tion work will be 90% fund­ed by an FAA grant and 10% Dis­trict fund­ing in the FY2017 Air­port Oper­a­tions and Main­te­nance Budget.

Fol­low­ing Board dis­cus­sion, Mr. Lee made a motion to award the Mit­i­ga­tion Imple­men­ta­tion Con­tract and alter­nates to Wild­lands Fire Ser­vices, Inc., and autho­riza­tion for the Board Chair­man or his designee to exe­cute any nec­es­sary doc­u­ments pend­ing review by legal coun­sel. Ms. Sims sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

d. ZHA Task Order – Air­port Secu­ri­ty Sys­tem Improvements

This item pro­vides for Board approval of a Task Order to ZHA as the Airport’s con­tin­u­ing engi­neer­ing con­sul­tant to per­form the required design, bid and award for the upgrades and improve­ments to the Air­port secu­ri­ty system.

Under Fed­er­al Trans­porta­tion Secu­ri­ty Admin­is­tra­tion (TSA) reg­u­la­tions, the Air­port is required to install and main­tain a mul­ti-lay­ered access control/​security sys­tem in sup­port of Air­port oper­a­tions. The orig­i­nal sys­tem was installed as part of the orig­i­nal Air­port con­struc­tion in 2010.

The total cost of this Task Order is $218,800 and is con­tained in the FY 2017 Oper­a­tion and Main­te­nance Bud­get. This work is includ­ed in the Airport’s 2016 Fed­er­al Avi­a­tion Admin­is­tra­tion Air­port Improve­ment Pro­gram grant and is eli­gi­ble for reim­burse­ment at a ⁹⁰⁄₁₀ ratio. Approx­i­mate­ly $196,920 would be reim­bursed to the Airport.

Fol­low­ing Board dis­cus­sion, Ms. Sims made a motion to approve the Task Order with ZHA for engi­neer­ing con­sult­ing ser­vices for the Air­port secu­ri­ty sys­tem improve­ments, and autho­riza­tion for the Board Chair­man or his designee to exe­cute any nec­es­sary doc­u­ments, pend­ing review by legal coun­sel. Ms. Mead­ows sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

e. Approve Invest­ment Policy

This item pro­vides for Board adop­tion of the Retire­ment Invest­ment Pol­i­cy in accor­dance with Flori­da Statute 112.661, which gov­erns invest­ment poli­cies for local retire­ment plans.

The Pana­ma City — Bay Coun­ty Air­port and Indus­tri­al Dis­trict spon­sors the Pana­ma City — Bay Coun­ty Air­port and Indus­tri­al Dis­trict Mon­ey Pur­chase Pen­sion Plan (the Plan) for the ben­e­fit of the Dis­trict employ­ees. The Dis­trict recent­ly con­tract­ed with Regions Bank for plan con­sul­tant and invest­ment fidu­cia­ry services.

The pur­pose of the Invest­ment Pol­i­cy is to estab­lish stan­dards for the Plan’s invest­ment port­fo­lio and man­age­ment of the Plan. The Invest­ment Pol­i­cy also con­firms that var­i­ous par­ties are act­ing as fidu­cia­ries. It incor­po­rates account­abil­i­ty stan­dards that will be used to mon­i­tor the progress of the Portfolio’s invest­ment pro­gram and eval­u­ate the con­tri­bu­tions of the Invest­ment Fidu­cia­ry (Regions) hired by the Board.

Flori­da Statute 112.661 gov­erns invest­ment poli­cies for local retire­ment plans and it was used as a guide for the devel­op­ment of the Pana­ma City — Bay Coun­ty Air­port and Indus­tri­al Dis­trict Mon­ey Pur­chase Pen­sion Plan Invest­ment Pol­i­cy. The par­tic­i­pant direct­ed nature of the District’s Mon­ey Pur­chase Pen­sion Plan and the fact that par­tic­i­pant funds are not pooled means the Invest­ment Pol­i­cy has omit­ted or made inap­plic­a­ble cer­tain aspects of Flori­da Statute 112.661.

There is no finan­cial impact to the Dis­trict in approv­ing the Invest­ment Policy.

Fol­low­ing Board dis­cus­sion, Mr. Lee made a motion to approve the adop­tion of the Invest­ment Pol­i­cy in accor­dance with Flori­da Statutes. Ms. Sims sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Exec­u­tive Direc­tor Report:

Mr. Patrick Sheffield with Moore Com­mu­ni­ca­tions Group pro­vid­ed a progress report regard­ing mar­ket­ing and social media activities.

Mr. McClel­lan advised the Board that a Request for Pro­pos­als for Mar­ket­ing Ser­vices would be released soon.

Ms. Bec­ca Hardin with the Bay Coun­ty EDA updat­ed the Board regard­ing Project Pom­pano, and advised that two addi­tion­al avi­a­tion projects were also mov­ing forward.

Mr. McClel­lan updat­ed the Board regard­ing Edge Aero­dy­namix and advised that Edge has received pre­lim­i­nary approval for their prod­uct to be uti­lized on com­mer­cial aircraft.

Mr. McClel­lan advised the Board that he recent­ly received noti­fi­ca­tion from FEMA regard­ing dis­burse­ment of funds to the Air­port in October.

Pub­lic Comments:

No pub­lic comments.

Adjourn­ment:

The meet­ing was adjourned at approx­i­mate­ly 10:00 a.m.

Pat­ty Mitchell, Exec­u­tive Sec­re­tary Russ Math­is, Chairman