September 2017 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 27, 2017 by Chair­man Mathis. 

The Invo­ca­tion was giv­en by Mr. Carey Scott. 

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. Ken Nelson. 

Reports:

Mr. Park­er McClel­lan pre­sent­ed and reviewed the Activ­i­ty Report. 

Ms. Dar­lene Nel­son pre­sent­ed and reviewed the Finan­cial Report. 

Con­sent Agen­da:

Pri­or to vot­ing on the Con­sent Agen­da, Mr. McDon­ald asked that items 3(b), Ground Lease – Cor­po­rate Hangar for B. Strother, and 3(e), Approve Changes to Wage and Salary Pol­i­cy, be moved to Busi­ness Items for fur­ther dis­cus­sion.

1. Board Meet­ing Min­utes – August 23, 2017
   1. This item pro­vides for Board approval of the August 23, 2017 Board Meet­ing Minutes. 
2. Audit Engage­ment – Tip­ton, Mar­ler, Gar­ner & Chas­tain
   1. This item requests approval by the Board for the accep­tance of the Let­ter of Engage­ment with Tip­ton, Mar­ler, Gar­ner & Chas­tain (TMGC) to per­form the FY2017 Finan­cial Audit.
3. Cor­rec­tive Quit Claim Deed for the City of Lynn Haven
   1. This item pro­vides for Board approval of the Cor­rec­tive Quit Claim Deed for the trans­fer of air­port prop­er­ty adja­cent to the for­mer­ly Dis­trict owned Hugh Nel­son Indus­tri­al Park.
4. Accep­tance of Bid for Ter­mi­nal Roof Clean­ing
   1. This item pro­vides for the accep­tance of a bid from Clas­sic Touch Pres­sure Wash­ing for clean­ing of the Ter­mi­nal Build­ing met­al roof and skylights.
5. Approve Changes to Ben­e­fit Eli­gi­bil­i­ty Pol­i­cy

This item pro­vides for Board approval of a pol­i­cy change regard­ing the eli­gi­bil­i­ty of benefits. 

Mr. Scott made a motion to approve the Con­sent Agen­da as amend­ed. Mr. McDon­ald sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously. 

Busi­ness Items:

1. Ground Lease – Cor­po­rate Hangar for B. Strother

This item pro­vides for Board approval of a Land Lease between the Dis­trict and James ​“Bar­ron” Strother. 

Mr. McConnell explained that there are approx­i­mate­ly eight to ten cor­po­rate hangars and the cor­po­rate facil­i­ties are approach­ing their max­i­mum capac­i­ty. Mr. Strother recent­ly con­tact­ed Staff and request­ed to place a 100 foot by 100 foot hangar at ECP. The loca­tion of the new hangar will be on lot ten. 

The terms of the lease are stan­dard, as follows: 

• No rent will be col­lect­ed until the Cer­tifi­cate of Occu­pan­cy is received 
• Lease term is 30 years 
• Rents will be cal­cu­lat­ed at the rate of $.33 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 24,310 square feet, to be con­firmed by survey 

The FY-2018 Air­port Oper­at­ing and Cap­i­tal Improve­ment Bud­get would be pos­i­tive­ly impact­ed with a gen­er­at­ed month­ly rev­enue of approx­i­mate­ly $669 ($8,023.00 annually). 

Mr. McDon­ald made a motion to approve the Land Lease, con­tin­gent upon FAA approval and on Mr. Strother obtain­ing any required per­mits, and for the Board Chair­man or his designee to exe­cute the nec­es­sary doc­u­ments. Mr. Scott sec­ond­ed the motion. The vote was tak­en and the motion passed unan­i­mous­ly.

2. Approve Changes to Wage and Salary Pol­i­cy

This item pro­vides for Board approval of a pol­i­cy change regard­ing the wages and salaries. 

Mr. Park­er McClel­lan began the dis­cus­sion by say­ing the Wage and Salary Pol­i­cy had not been mod­i­fied in five to six years. Pre­vi­ous­ly, it only allowed for a mer­it raise. Staff thor­ough­ly reviewed the pol­i­cy and rec­om­mend a change to allow wage and salary adjust­ments annu­al­ly. In FY 2018, Staff will make an adjust­ment of 2% to the employee’s base salary, effec­tive Octo­ber 1, and on April 1, employ­ees will be eli­gi­ble to receive a mer­it raise. 

This Pol­i­cy change will allow the Dis­trict to com­pen­sate our employ­ees fair­ly as well as incent excel­lent performance. 

The Board will approve the total per­cent of increase of over­all per­son­nel expense each bud­get year; FY 2018 is 3%. A wage adjust­ment is includ­ed in the FY 2018 Bud­get. There is no addi­tion­al impact to the Airport’s Oper­at­ing and Cap­i­tal Budget. 

Fol­low­ing Board dis­cus­sion, Mr. Scott made a motion to approve the update to Pol­i­cy 7.1 Wage and Salary. Mr. McDon­ald sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously. 

3. 3.

This item presents the Fis­cal Year 2018 Oper­at­ing and Cap­i­tal Bud­get to the Board for adoption. 

A draft of the FY2018 bud­get was pro­vid­ed to the Board and dis­cussed in detail at the Sep­tem­ber 14, 2016 Board Workshop. 

The FY 2018 Oper­at­ing and Cap­i­tal Bud­get includes oper­at­ing rev­enues of $12,989,362 and oper­at­ing expens­es of $7,916,815. 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, result­ing in a net require­ment from air­port rev­enues of $1,482,996.

The remain­ing net rev­enues for the cap­i­tal pro­gram and reserve accounts are esti­mat­ed to be 

$1,436,054. The FY 2018 Oper­at­ing and Cap­i­tal Bud­get con­tains a 3.11% decrease in oper­at­ing expens­es over the FY 2017 Bud­get and a 3.57% decrease in oper­at­ing rev­enues for the same period. 

Fol­low­ing Board dis­cus­sion, Mr. Scott made a motion to approve and adopt the FY2018 Oper­at­ing and Cap­i­tal Bud­get. Mr. McDon­ald sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously. 

4. 4.

This item pro­vides for Board approval of an Amend­ment to the cur­rent Rental Car Con­ces­sion Agree­ment (“Agree­ment”) and to approve the exer­cis­ing of the first of two (2) – one (1) year renew­al option of Agreement. 

The cur­rent Rental Car Con­ces­sion Agree­ment has a term begin­ning Octo­ber 1, 2014 and a ter­mi­na­tion date of Sep­tem­ber 30, 2017. The Agree­ment pro­vides for two (2) addi­tion­al one (1) year options at the dis­cre­tion of the District. 

The Sec­ond Amend­ment to the Rental Car Con­ces­sion and License Agree­ment will clear­ly iden­ti­fy items sub­ject to sales tax, allow use of CFC funds to pay the sales tax­es, and clar­i­fies cer­tain lan­guage con­tained in the Agreement. 

The rental car rev­enues have been account­ed for in the FY 2018 Bud­get. There is no addi­tion­al impact to Airport’s Rev­enue Budget. 

Mr. Scott made a motion to approve the rec­om­men­da­tion to approve the Sec­ond Amend­ment, exer­cis­ing the first one year option of the Rental Car Con­ces­sion Agree­ment. Mr. Lee sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously. 

5. Accept Air­port Prop­er­ty Insur­ance Pro­gram

This item pro­vides for Board accep­tance of insur­ance cov­er­age for the Airport’s lia­bil­i­ty, worker’s com­pen­sa­tion, com­mer­cial prop­er­ty, vehi­cle, pub­lic offi­cials and employ­ment prac­tices lia­bil­i­ty and law enforce­ment liability. 

The var­i­ous insur­ance cov­er­ages asso­ci­at­ed with the Airport’s Insur­ance Pro­gram will expire on 10/01/17. The Air­port cur­rent­ly has its prop­er­ty and casu­al­ty insur­ance cov­er­ages through Pub­lic Risk Man­age­ment (PRM). Results from the solic­i­ta­tions for insur­ance effec­tive for the FY 2017 Bud­get reflect­ed PRM as the low bid­der by a mar­gin of $112,219. This year’s Bud­get includes an increase of 5.4% for Airport’s Insur­ance Pro­gram with PRM, which equals $11,440.

PRM’s cov­er­age pro­vides for low­er deductibles and replace­ment cost ver­sus the one respon­sive car­ri­er quote received for FY 2017, which only pro­vid­ed for actu­al cash val­ue. The ser­vice pro­vid­ed by PRM and Fish­er Brown has been excel­lent with a focus on cus­tomer service. 

Based on the quote received from our Fish­er Brown and PRF, staff is rec­om­mend­ing that the Air­port remain with the cur­rent car­ri­er for an addi­tion­al 12 months, 

Staff has had dis­cus­sion with the local agents with regard to insur­ance pro­cure­ment, insur­ance require­ments and oth­er facets of the insur­ance indus­try and over the next sev­er­al months will per­form a thor­ough review of how the Air­port man­ages its risk program. 

The pro­posed FY 2018 Air­port Oper­at­ing and Cap­i­tal Bud­get includes $222,862 for the Airport’s Insur­ance Program. 

Mr. McDon­ald made a motion to accept the quote from Fish­er Brown and Pub­lic Risk Man­age­ment for an addi­tion­al 12 month term. Ms. Sims sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously. 

6. Approve of FDOT Add Alter­nates

This item pro­vides for Board approval of five (5) add alter­nates received for the Secu­ri­ty Sys­tem Upgrade Project at the Airport. 

As part of the Airport’s FAA Air­port Improve­ment Pro­gram project for FY18, a project was includ­ed to upgrade the air­port secu­ri­ty sys­tem to include the access con­trol, CCTV, and badg­ing oper­a­tions. At the July 19, 2017 Meet­ing, the Board approved the base bid from GAC for the Secu­ri­ty Sys­tem Upgrade Project. The base bid includ­ed only those items eli­gi­ble for Fed­er­al Avi­a­tion Admin­is­tra­tion grant funding. 

Also includ­ed in the orig­i­nal bid were five (5) add alter­nates for items inte­gral to the airport’s over­all secu­ri­ty sys­tem but inel­i­gi­ble for Fed­er­al fund­ing. Those items are: 

1. Pro­vide New CCTV cam­eras and infra­struc­ture not includ­ed in the project base bid and inel­i­gi­ble for Fed­er­al Fund­ing. ($96,007)
2. Com­mer­cial Lane Access Con­trols not includ­ed in the project base bid and inel­i­gi­ble for Fed­er­al Fund­ing. ($56,905)
3. Failover Video Record­ing not includ­ed in the project base bid and inel­i­gi­ble for Fed­er­al Fund­ing. ($59,754)
4. Secu­ri­ty CCTV for RTR Site ($8,413)
5. North Ter­mi­nal Park­ing Lot Access Con­trols not includ­ed in the project base bid and inel­i­gi­ble for Fed­er­al Fund­ing. ($142,601)

The add-alter­nate costs of the project are reim­bursable under the Flori­da DOT infra­struc­ture devel­op­ment grant at a 50/50 ratio with the 

Airport’s por­tion of this project, esti­mat­ed to be approx­i­mate­ly $181,840, includ­ed in the FY18 Budget. 

Ms. Sims made a motion to accept the five (5) bid alter­nates received from GAC Con­trac­tors, Inc. in an amount of $363,680. Mr. Scott sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously. 

Bay EDA:

Ms. Bec­ca Hardin began her update by intro­duc­ing Mr. Gar­ret Wright as Bay EDA’s new Vice President. 

There are six prospec­tive com­pa­nies who have come to vis­it the area in Sep­tem­ber; five of those vis­its were avi­a­tion relat­ed. Mar­ket­ing efforts are rais­ing aware­ness and inter­est in the Bay Coun­ty area. 

Ms. Hardin and Mr. McClel­lan are work­ing on final pro­pos­als for two poten­tial projects look­ing at sites at ECP. 

Ms. Hardin will be attend­ing the Main­te­nance Repair and Over­haul (MRO) Show, in Lon­don, where she will meet with ten com­pa­nies at the Show. She will also be meet­ing one-on-one with com­pa­nies head­quar­tered in the Unit­ed King­dom who have come to Bay Coun­ty to visit. 

Project Pom­pano has slowed down and is being put on hold for now. The company’s cost expec­ta­tions ver­sus actu­al costs do not match and they are wait­ing to invest that cap­i­tal. The let­ter of intent expires at the end of the month, but com­mu­ni­ca­tions will continue. 

Ms. Hardin and Mr. McClel­lan are putting togeth­er an incen­tive pack­age for an MRO com­pa­ny look­ing to build a hangar at ECP. The oth­er project, Project Soho, is a Con­necti­cut based com­pa­ny that is work­ing with GKN and look­ing at the Bay Coun­ty community. 

Moore Com­mu­ni­ca­tions Group:

Ms. Jor­dan Jones pre­sent­ed the Moore Com­mu­ni­ca­tions Group Activ­i­ty Report to the Board. 

Super Sum­mer Sat­ur­days and the ESCAPE cam­paign pain were a big suc­cess. As expect­ed, Sep­tem­ber shows a decline in activ­i­ty to the web­site and tele­vi­sion and Pan­do­ra ads have been tapered down. There was increase of 56% in Google Ad words search traf­fic over the pre­vi­ous month and email traf­fic is up 580%. About 26% of emailed newslet­ters are being opened; indus­try aver­age is 17.3%. The emails are being for­ward­ed and that is dri­ving subscriptions. 

Peo­ple are also sub­scrib­ing to the newslet­ter to enter for give­aways, but they are not unsub­scrib­ing once entered. There were 860 entries for the Gulf Coast Jam Give­away Perk. The ECP Perk for Sep­tem­ber will be a dig­i­tal coupon for cof­fee avail­able to peo­ple in the Terminal. 

TSA pro­vid­ed a behind the scenes look to local media and that has returned very good feed­back for ECP. 

Through the web­site and social media, MCG and ECP were able to keep trav­el­ers aware of oper­a­tion sta­tus before and dur­ing Hur­ri­cane Irma. 

Exec­u­tive Direc­tor Report:

Mr. Mike Ler­ma, of Sheltair, informed the Board of the upcom­ing Mooney Sum­mit tak­ing place at Sheltair. At its incep­tion, there were approx­i­mate­ly 30 Mooney air­craft, three years lat­er that num­ber has grown to almost 85 with around 157 peo­ple in atten­dance. The event will be host­ed in the Sheltair hangar with 2 sta­t­ic dis­plays and four air­craft will be fly­ing in for­ma­tion as a class demonstration. 

Mr. McClel­lan updat­ed the Board on how hur­ri­cane pre­pared­ness went for Hur­ri­cane Irma. Staff met with Air­port ten­ants to keep them informed on what was expect­ed from the storm and plans of how the Air­port would han­dle oper­a­tions. The Air­port remained open through­out the storm. 

Mr. McClel­lan relayed a ​‘thank you’ to the Board from the taxi and shut­tle dri­vers for rec­og­niz­ing and mak­ing changes in fees to reflect the decrease in busi­ness they had experienced. 

Mr. McClel­lan advised that Ms. Sims and Mr. McDon­ald had been con­tact­ed by FDOT with regard to the SR388 right of way. Mr. McDon­ald and Mr. McClel­lan will be meet­ing with FDOT Dis­trict 3 to dis­cuss the right of way easement. 

Mr. McClel­lan point­ed out that there are five new palms trees plant­ed in the traf­fic island in response to the numer­ous sug­ges­tions that ECP should have palm trees to rep­re­sent what peo­ple expect when they vis­it Florida. 

Oth­er Busi­ness:

Chair­man Math­is informed the oth­er Board mem­bers that, as men­tioned in an email sent on his behalf, there would be a fol­low up By Law Work­shop direct­ly fol­low­ing the Octo­ber 25^th Board meet­ing to dis­cuss final changes to the draft. 

Pub­lic Com­ments:

There were no pub­lic comments. 

Adjourn­ment:

The meet­ing was adjourned at approx­i­mate­ly 10:05a.m.

Tal­isa Price, Exec­u­tive Sec­re­tary Russ Math­is, Chairman