April 2013 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., April 24, 2013 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.

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

Acknowl­edge­ment of Staff: Mr. McClel­lan rec­og­nized Air­port dis­patch­ers in hon­or of Nation­al Telecommunicator’s Week and the admin­is­tra­tive staff in hon­or of Admin­is­tra­tive Professional’s Day.

Approval of Minutes:

The March 13, 2013 Emer­gency Board Meet­ing Min­utes and the March 27, 2013 Board Meet­ing Min­utes were approved as distributed.

Reports:

Mr. McClel­lan pre­sent­ed and reviewed the activ­i­ty report. Ms. Hen­der­son pre­sent­ed and reviewed the finan­cial report. Con­sent Agenda:

a. Award Bid for ATM

This item pro­vides for Board selec­tion of a finan­cial insti­tu­tion to place an Auto­mat­ic Teller Machine in the Air­port terminal.

Fol­low­ing Board dis­cus­sion, Mr. Scott made a motion to accept the bid from Big Apple ATM​.com, and autho­riza­tion for Staff to enter into a con­tract with them to install two ATMs in the ter­mi­nal build­ing. Mr. Fore­hand sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

b. Accept JPA – Con­struct Air­port Improvements

This item pro­vides for Board accep­tance of an FDOT Joint Par­tic­i­pa­tion Agree­ment that will pro­vide fund­ing for var­i­ous Air­port improvements.

Fol­low­ing Board dis­cus­sion, Ms. Moliter­no made a motion to accept the FDOT Joint Par­tic­i­pa­tion Agree­ment and autho­riza­tion for the Board Chair­man or his designee to exe­cute any required doc­u­ments. Mr. Bruett sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Busi­ness Items:

a. BP Oil Claim Settlement

This item pro­vides for Board con­sid­er­a­tion of a set­tle­ment offer of the Pana­ma City – Bay Coun­ty Air­port and Indus­tri­al District’s claim for eco­nom­ic loss­es due to the April 2010 Deep­wa­ter Hori­zon oil spill.

In Jan­u­ary 2013 the Air­port sub­mit­ted a final pre­sent­ment to BP Explo­ration & Pro­duc­tion, Inc. and its affil­i­ates for cur­rent and future dam­ages incurred by the Air­port as a result of the Deep­wa­ter Hori­zon oil spill. The amount of that pre­sent­ment was $11,098,486.00.

On April 18, 2013, BP offered the Dis­trict $5,980,000.00 as a final set­tle­ment to resolve the claim. On April 19, 2013, BP agreed to toll any applic­a­ble statute of lim­i­ta­tions until April 30, 2013 in order to allow the Air­port ade­quate time to con­sid­er the Set­tle­ment Offer and fol­low nor­mal approval procedures.

Fol­low­ing Board dis­cus­sion, Ms. Moliter­no made a motion to accept the set­tle­ment offer from BP by Res­o­lu­tion; Board release of claim against BP and its affil­i­ates, includ­ing exe­cu­tion of a full and final gen­er­al release by the Chair­man, or his designee, and approval of the dis­tri­b­u­tion of pro­ceeds of the final set­tle­ment of claim. Mr. Scott sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

b. For­eign Trade Zone – Res­o­lu­tion of Support

This item pro­vides for Board approval of a Res­o­lu­tion of sup­port for the inclu­sion of cer­tain Air­port sites being sub­mit­ted to be includ­ed in Port Pana­ma City’s gen­er­al pur­pose zone as part of their effort to reor­ga­nize For­eign Trade Zone 65.

Dur­ing the con­struc­tion of the new Air­port, Staff began the process of estab­lish­ing a For­eign Trade Zone (FTZ) at the new Air­port site. Estab­lish­ment of a FTZ would allow for sav­ings to busi­ness­es at the Air­port by defer­ring duty on mer­chan­dise until it enters the domes­tic mar­ket place, and fur­ther, in the event the mer­chan­dise is uti­lized as part of a prod­uct that is export­ed no duty will be charged. Through this process, it was deter­mined that work­ing with the St. Joe Com­pa­ny on this effort would ben­e­fit both par­ties, as the Air­port and St. Joe have prop­er­ty adja­cent to each other.

The Pana­ma City Port Author­i­ty has asked the Air­port to sub­mit areas to be con­sid­ered as part of the FTZ. Spe­cif­ic sites have been iden­ti­fied at both the Air­port and in Ven­ture Cross­ing and have been sub­mit­ted to the Pana­ma City Port Author­i­ty for inclusion.

Fol­low­ing Board dis­cus­sion, Mr. Math­is made a motion to adopt the Res­o­lu­tion of sup­port to the Pana­ma City Port Author­i­ty for the inclu­sion of Air­port sites in the FTZ Pro­gram. Ms. Moliter­no sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

c. Ground Trans­porta­tion Ter­mi­nal Con­ces­sion Agreement

This item pro­vides for Board approval of the Ter­mi­nal Con­ces­sion Agree­ment between the Pana­ma City – Bay Coun­ty Air­port and Indus­tri­al Dis­trict and Finch Trans­porta­tion, LLC, a/​k/​a Sun­shine Shut­tle and Limousine.

In March 2013, the Board direct­ed Staff to devel­op a lease and oper­at­ing agree­ment with Sun­shine Shut­tle and bring it back to the Board for approval. Staff has final­ized the terms asso­ci­at­ed with the agree­ment, and the fol­low­ing is a list of the main points:

• Ini­tial term of three years, with two annu­al renewals.
• $1,000 per month paid to the Dis­trict for the ini­tial year, with an annu­al review of both finan­cial and oper­at­ing data.
• The Dis­trict will pro­vide a kiosk locat­ed in the ter­mi­nal build­ing adja­cent to the bag­gage claim area.
• Pre­mi­um stag­ing areas will be locat­ed at the north end of the ter­mi­nal building.
• Addi­tion­al stag­ing area for up to three vehi­cles near the car­go building.
• Fares will be clear­ly and promi­nent­ly dis­played to the passengers.

Approval of this agree­ment would have a pos­i­tive impact to the budget.

Fol­low­ing Board dis­cus­sion, Mr. Scott made a motion to approve the Ter­mi­nal Con­ces­sion Agree­ment with Finch Trans­porta­tion, LLC, pend­ing review by legal coun­sel, and autho­riza­tion for the Board Chair­man or his designee to exe­cute any required doc­u­ments. Mr. Koehne­mann sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

d. Cov­ered Park­ing Project – Change Order

This item pro­vides for Board approval of a Change Order to the con­tract with USA Shade & Fab­ric Struc­tures, Inc. regard­ing the cov­ered park­ing project.

In Feb­ru­ary 2013, the Author­i­ty award­ed the cov­ered park­ing project to USA Shade & Fab­ric Struc­tures, Inc. and asked Staff and ZHA to explore chang­ing the walk­way cov­er to the ter­mi­nal build­ing from a shade fab­ric to a water­proof fabric.

Staff and ZHA worked with USA Shade & Fab­ric Struc­tures, Inc. to devel­op a revised project scope and have received price pro­pos­als for the changes request­ed by adding sec­tions of cov­ered walk­ways and the change to water­proof cov­er­ing over the walk­ways. The fol­low­ing is a list of the five options avail­able for Board con­sid­er­a­tion, and the costs asso­ci­at­ed with each option:

• Option 1: Include all items and revise bud­get to $830,000.
• Option 2: Include all items except road­way walk­way cov­er for a revised bud­get of $781,800.
• Option 3: Include all new items except walk­way cov­er between park­ing cov­er and ter­mi­nal walk­way for a revised bud­get of $803,700.
• Option 4: Include only the change of water­proof fab­ric on the ter­mi­nal walk­way for a revised bud­get of $755,500.
• Option 5: No changes added and main­tain the cur­rent bud­get of $655,500.

After review and con­sid­er­a­tion of the var­i­ous options, Staff rec­om­mend­ed revis­ing the project scope and issu­ing a Change Order to reflect the addi­tion of all the revised items as not­ed in Option 1 and increas­ing the project cost to $830,000.

This revi­sion will require a change in the scope of the project and will require an increase in the project bud­get of $174,500 there­by mak­ing the new project bud­get $1,776,500. The Air­port Author­i­ty will fund these changes.

Fol­low­ing Board dis­cus­sion, Ms. Moliter­no made a motion to approve Staff’s rec­om­men­da­tion and selec­tion of Option 1 and issuance of a Change Order to USA Shade & Fab­ric Struc­tures, Inc in the amount of $174,500, and autho­riza­tion for the Board Chair­man or his designee to exe­cute any required doc­u­ments. Mr. Koehne­mann sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Fol­low­ing addi­tion­al Board dis­cus­sion, Ms. Moliter­no made a motion to approve Staff’s rec­om­men­da­tion regard­ing the selec­tion of beige as the col­or for the water­proof fab­ric cov­er­ing. Mr. Koehne­mann sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

e. Com­mit­tee Rec­om­men­da­tion – Exec­u­tive Recruit­ment Search

This item pro­vides for Board selec­tion of an exec­u­tive search firm to assist with the recruit­ment of a Deputy Exec­u­tive Director.

With the recent vacan­cy in the Deputy Exec­u­tive Direc­tor posi­tion, the Board direct­ed Staff to dis­trib­ute a Request for Pro­pos­als to find an exec­u­tive search firm to assist with the search to fill this posi­tion. The Air­port dis­trib­uted a Request for Pro­pos­als for a Deputy Exec­u­tive Direc­tor Search, and received respons­es from three search firms. The fol­low­ing is a list of the three firms, and the costs pro­posed for per­form­ing the exec­u­tive search:

• ADK Exec­u­tive Search $42,000 (includ­ing expenses)
• Avi­a­tion Career Ser­vices $20,000 (includ­ing expenses)
• JCS Recruit­ment $45,000 (includ­ing expenses)

A selec­tion com­mit­tee con­sist­ing of Mr. Till Bruett, Mr. Park­er McClel­lan and Ms. Pamn Hen­der­son met to dis­cuss and review the three pro­pos­als in order to pro­vide a rec­om­men­da­tion to the Board for selection.

After review and dis­cus­sion, the com­mit­tee rec­om­mend­ed selec­tion of Avi­a­tion Career Ser­vices (ACS) to per­form the Deputy Exec­u­tive Direc­tor search. As part of the recruit­ment process, ACS will devel­op a full-col­or recruit­ment brochure, launch an adver­tis­ing cam­paign and uti­lize their data­base of over 4,000 air­port and avi­a­tion pro­fes­sion­als to aid in the search.

In addi­tion, ACS will receive and screen appli­ca­tion mate­ri­als, review the appli­ca­tions to find the most qual­i­fied indi­vid­u­als for the posi­tion, and per­form addi­tion­al screen­ing in order to pro­vide the Air­port with a com­pre­hen­sive can­di­date report to pro­ceed to the inter­view phase. ACS will assist with the inter­views and the nego­ti­a­tion process once a can­di­date is selected.

ACS has pro­posed a fixed fee of $13,000 for their ser­vices, with an addi­tion­al fee for reim­bursable expens­es not to exceed $7,000. The pro­pos­al does include a guar­an­tee that if the final can­di­date leaves or is ter­mi­nat­ed for cause with­in the first year of the com­ple­tion of the search (exclud­ing health relat­ed issues) ACS will con­duct anoth­er search to replace the indi­vid­ual at no addi­tion­al cost, oth­er than the reim­bursable expens­es asso­ci­at­ed with the addi­tion­al search.

Mr. Carey Scott vol­un­teered to rep­re­sent the Board and assist Staff and ACS dur­ing the search for the posi­tion of Deputy Exec­u­tive Director.

There are suf­fi­cient funds with­in the FY-13 Air­port Oper­at­ing and Cap­i­tal Improve­ment Bud­get to cov­er this expense.

Fol­low­ing Board dis­cus­sion, Mr. Scott made a motion to accept the pro­pos­al from Avi­a­tion Career Ser­vices and autho­riza­tion to enter into an agree­ment with ACS to pro­vide exec­u­tive recruit­ment search ser­vices, and autho­riza­tion for the Board Chair­man to exe­cute any nec­es­sary doc­u­ments. Mr. Fore­hand sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Oth­er Business:

Stormwa­ter Man­age­ment Sys­tem Aug­men­ta­tion Project Update: Mr. McClel­lan updat­ed the Board regard­ing the sta­tus of this project.

Bay Air­craft Own­ers Hangar Door Update: Mr. McClel­lan updat­ed the Board regard­ing the sta­tus of repair to the hangar door.

Pub­lic Comments:

There were no pub­lic comments.

Adjourn­ment:

The meet­ing was adjourned at approx­i­mate­ly 10:15 a.m.

Pat­ty Strick, Exec­u­tive Sec­re­tary John Pilch­er, Chairman