August 2020 Meeting Minutes

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MEET­ING MINUTES

PANA­MA CITY – BAY COUN­TY AIR­PORT AND INDUS­TRI­AL DISTRICT

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Open­ing:

The Semi-Vir­tu­al Board Meet­ing of the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict was called to order at 9:00 a.m., August 26, 2020 by Chair­man Glen McDon­ald. Board mem­bers were offered the option of call­ing in via Zoom, or attend­ing the meet­ing in per­son observ­ing the CDC’s rec­om­men­da­tions and Gov­er­nor DeSan­tis’ Exec­u­tive Order. 

The Invo­ca­tion was giv­en by May­or Mark Sheldon.

The Pledge of Alle­giance was led by Mr. Will Cramer.

The Exec­u­tive Sec­re­tary called the roll and indi­cat­ed all the Board mem­bers were present except Vice Chair­man Hol­ly Melz­er, and Mr. Jay Tusa. Those present in per­son were Chair­man McDon­ald, Mr. Del Lee, May­or Shel­don, and Mr. Cramer. Mr. James John­son was present vir­tu­al­ly. Mr. Jay Tusa joined the meet­ing vir­tu­al­ly at 9:18 a.m.

The Agen­da was pre­sent­ed to the Board. Mr. Lee made a motion to accept the Agen­da. Mr. Cramer sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Pre­sen­ta­tion:

Board Chair­man McDon­ald announced a pre­sen­ta­tion to rec­og­nize Cap­tain Ali C. Frohlich, Delta Air Lines. Cap­tain Frohlich received a plaque rec­og­niz­ing his ser­vice as the Air Line Pilots Asso­ci­a­tion (ALPA), Inter­na­tion­al Liai­son to the Air­port Author­i­ty since Decem­ber 2000, and would be retir­ing from Delta Air Lines Sep­tem­ber 1, 2020.

Mr. Park­er McClel­lan read a Res­o­lu­tion rec­og­niz­ing Cap­tain Frohlich, May­or Shel­don made a motion to adopt the Res­o­lu­tion, and Mr. Lee sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Pre­sen­ta­tion:

Mr. Paul Puck­li of CHA report­ed vir­tu­al­ly on the Mas­ter Plan Update (MPU). Mr. Puckli’s pre­sen­ta­tion was Board Brief­ing #6 and includ­ed the progress to date, the sum­ma­ry of facil­i­ty needs, alter­na­tives eval­u­a­tion update, and the next activities. 

Mr. Puck­li report­ed we are at the end of the Devel­op­ment Con­cepts and Envi­ron­men­tal Overview; that this pre­sen­ta­tion has already been shared with the Plan­ning Advi­so­ry Com­mit­tee (PAC); the Pre­ferred Devel­op­ment Strat­e­gy will be pre­pared next; and the Imple­men­ta­tion Plan, Finan­cial Plan and Air­port Lay­out Plan (ALP) will be devel­oped as part of that – all final doc­u­ments to be adopt­ed by the Board, FAA and FDOT. Mr. Puck­li esti­mat­ed that we should be wrap­ping up the MPU in October.

Mr. Puck­li explained that the method of plan­ning using Plan­ning Activ­i­ty Lev­els (PALs) is more impor­tant than ​“plan­ning by year,” and is evi­dent as we saw activ­i­ty lev­el changes since the pan­dem­ic began in March.

Mr. Puck­li report­ed that the total facil­i­ty needs through PAL 4 (the great­est activ­i­ty lev­el planned for the future in the MPU) include 12 Gates, and 292,000 sq. ft., essen­tial­ly dou­bling the foot­print of what we have now. He report­ed we have 7 Gates and 141,000 sq. ft. with the new Ter­mi­nal Expan­sion. The 

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facil­i­ty needs would also include on-going Apron and Hangar Expan­sion con­struc­tion of 180,000 sq. ft., and Land­side Expan­sion (addi­tion­al park­ing for all types of users, and access road­way cir­cu­la­tion improvements).

Mr. Puck­li reit­er­at­ed the Cross­wind Run­way Analy­sis using weath­er data and wind data from ECP, and how it jus­ti­fies the need for fed­er­al fund­ing assis­tance from the FAA and FDOT. He showed what the lay­out would look like for both a 3,600’ (AIP-Eli­gi­ble) and a 7,500’ (Full Length) run­way, and also the taxi­way alternatives. 

Gen­er­al Avi­a­tion showed the exist­ing con­struc­tion of the Larg­er Air­craft Tran­sient Apron; and the pro­posed addi­tion­al box hangars near Sheltair, addi­tion­al pro­posed T‑Hangars, and pro­posed loca­tions for apron pave­ments that would all be need­ed in PAL 4.

Mr. Puck­li showed six dif­fer­ent alter­na­tives for Ter­mi­nal devel­op­ment tak­ing into con­sid­er­a­tion walk­ing dis­tances, non-aero­nau­ti­cal rev­enue, envi­ron­men­tal con­cerns, RON park­ing, cost, oper­a­tional effi­cien­cy, flex­i­bil­i­ty for air­craft park­ing, taxi­way access, ECP vision com­pat­i­bil­i­ty and pas­sen­ger expe­ri­ence, and constructability/​implementation com­plex­i­ty. He explained that Con­cept Alter­na­tive No. 4 had the best score when com­pared with the oth­er alter­na­tives. Alter­na­tive No. 4 expands the Ter­mi­nal Cen­tral Core fur­ther north, with addi­tion­al clear­ance from the Exist­ing Con­course for ADG Group III Air­craft Park­ing, dual Tax­i­lanes, and oppor­tu­ni­ties for Con­ces­sions along the Concourse.

Mr. Puck­li report­ed on the Land­side Alter­na­tives which include Ground Access and Park­ing, inform­ing the Board that we cur­rent­ly have 1,800 sur­face park­ing spaces for short-term, long-term, employ­ee, and rental car ready/​return park­ing, with an addi­tion­al 300 spaces for over­flow park­ing and 885 spaces for rental car QTA (Quick Turn­around). Mr. Puck­li report­ed that the cur­rent park­ing demand will be exceed­ed by PAL 1, and pre­sent­ed a three-phase approach to take us through PAL 4 activity.

Mr. Puck­li report­ed draft of Work­ing Paper #4 will be sent to Staff to review in the next two weeks and then post­ed on the ECP web­site pre­sent­ing these Alter­na­tives. He said that a Pub­lic Meet­ing will be held vir­tu­al­ly in Sep­tem­ber with adver­tis­ing, Staff, and The Moore Agency get­ting the word out, and we would be able to wrap up the Mas­ter Plan with­in the next cou­ple of months, with the possibility/​probability of the FAA and FDOT tak­ing longer than two months to respond and approve. 

Chair­man McDon­ald expressed con­cern that the new Ter­mi­nal Expan­sion was not includ­ed in the Mas­ter Plan, and Mr. Puck­li explained that we will get good use of the Ter­mi­nal Expan­sion, that there is flex­i­bil­i­ty in that area regard­ing air­craft park­ing and pas­sen­ger cir­cu­la­tion, and it will still be in use for a long time to come as it has a 25-year lifes­pan, through at least PAL 2. Chair­man McDon­ald asked for the Ter­mi­nal Expan­sion to be added to the Mas­ter Plan, and Mr. Puck­li and Mr. McClel­lan respond­ed that a tran­si­tion can be includ­ed in the Plan should we reach an activ­i­ty lev­el soon­er than planned. 

Chair­man McDon­ald inquired about the stand­off area from park­ing to the Ter­mi­nal, and Mr. Puck­li respond­ed that the 300-ft. require­ment has not been an issue since 9 – 11, but even dur­ing high alert peri­ods, there are ways to eval­u­ate risk to accom­mo­date secu­ri­ty levels.

May­or Shel­don asked about the Cross­wind Run­way and a cost esti­mate for the two lengths, and Mr. Puck­li stat­ed that the Finan­cial Plan will include them. May­or Shel­don also asked what the time­line might be to reach Ter­mi­nal Expan­sion # 4, and Mr. Puck­li respond­ed that had we not had the COVID-19 pan­dem­ic, we would have like­ly reached PAL 4 in a 20- to 25-year milestone. 

This pre­sen­ta­tion was for infor­ma­tion­al pur­pos­es only and required no for­mal Board action. 

Reports:

Mr. Park­er McClel­lan pre­sent­ed and reviewed the Activ­i­ty Reports.

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Ms. Dar­lene Nel­son pre­sent­ed and reviewed the Finan­cial Reports.

Con­sent Agenda:

1. Board Meet­ing Min­utes – July 29, 2020

This item pro­vid­ed for Board approval of the July 29, 2020 Board Meet­ing Minutes. 

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

This item request­ed approval by the Board for the accep­tance of a Let­ter of Engage­ment with Tip­ton, Mar­ler, Gar­ner & Chas­tain (TMGC) to per­form the FY20 finan­cial audit. 

TMGC has sub­mit­ted an Engage­ment Let­ter which details their audit pro­ce­dures and a pro­pos­al of their fees. The audit will meet or exceed the require­ments spec­i­fied by Flori­da Statute for Spe­cial Districts.

Staff believes it to be in the best inter­est of the Dis­trict to con­tin­ue its work­ing rela­tion­ship with TMGC and is sat­is­fied with the audit ser­vices pro­vid­ed. A not-to-exceed bud­get of $24,310 is pro­posed for this work effort. Fund­ing will be pro­vid­ed in the Air­port FY21 Oper­at­ing and Main­te­nance Budget.

1. Approve Con­tract Exten­sion – ERMC IV, L.L.C

This item pro­vid­ed for Board approval to extend the con­tract and exer­cise the final one-year option for the Air­port Gate Ser­vices and Con­vey­or Sys­tem Oper­a­tion and Main­te­nance Pro­gram Agree­ment at the North­west Flori­da Beach­es Inter­na­tion­al Airport.

At the Novem­ber 16, 2016 Meet­ing, the Board select­ed and entered into a con­tract with ERMC IV, L.L.C. for the oper­a­tion and main­te­nance of the Airport’s pas­sen­ger board­ing bridges and bag­gage con­veyance sys­tem at the Air­port. The ini­tial con­tract was for a three-year peri­od and was set to expire in Novem­ber 2019. The ini­tial agree­ment pro­vid­ed for an addi­tion­al two (2) one-year renew­al options at the same con­di­tions as the ini­tial agree­ment. The Board exer­cised the first one-year option peri­od at the Sep­tem­ber 25, 2019 meeting. 

The Con­tract and Renew­al Option will be mod­i­fied to include the addi­tion of the new load­ing bridges as part of the Ter­mi­nal Expan­sion Project. Gate 6 is a relo­cat­ed pas­sen­ger load­ing bridge, which is owned by the Air­port and Gate 7 is new pas­sen­ger load­ing bridge pro­cured as part of the project with a 12-month warranty. 

The gate ser­vices and con­vey­or oper­a­tion and main­te­nance provider is respon­si­ble for the oper­a­tion and main­te­nance of the pas­sen­ger board­ing bridges, on all sev­en (7) of the Airport’s Ter­mi­nal Gates, and the Bag­gage Con­veyance Sys­tem, con­sist­ing of con­veyance belts, a bag make­up carousel, and three (3) bag­gage claim carousels.

ERMC has per­formed well over the pre­vi­ous terms of the Agree­ment and is respon­sive to the needs and require­ments of the Air­port and the Air­lines. The reli­a­bil­i­ty of the sys­tems main­tained by ERMC is a key and essen­tial part of the oper­a­tion of the Airport.

This renew­al will be the sec­ond of the two (2) one-year exten­sions to extend the agree­ment and to add the pas­sen­ger board­ing bridges for Gates 6 and 7. The Exten­sion will expire on Novem­ber 30, 2021. 

Staff rec­om­mend­ed approval to extend the con­tract with ERMC IV, L.L.C. for con­tin­ued oper­a­tion and main­te­nance ser­vices of the gate ser­vices to include new Gates 6 and 7 and bag­gage con­vey­or sys­tem at the North­west Flori­da Beach­es Inter­na­tion­al Air­port through Novem­ber 30, 2021. The option year two (Decem­ber 1, 2020 – Novem­ber 30, 2021) price for ser­vices will be $316,580.99, and pro­vid­ed for in the 

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Air­port FY2021 Oper­at­ing and Main­te­nance Bud­get. The option year two price of $316,580.99 rep­re­sent­ed an annu­al increase over cur­rent price of $8,363.04 or 2.71%.

1. Approve ZHA Task Order 19‑K – Qual­i­fied Mit­i­ga­tion Super­vi­sion (QMS) and Mit­i­ga­tion Monitoring 

This item pro­vid­ed for the Board’s approval of a Task Order to ZHA as the Airport’s con­tin­u­ing engi­neer­ing con­sul­tant to per­form the required qual­i­fied mit­i­ga­tion super­vi­sion (QMS) and mit­i­ga­tion mon­i­tor­ing at 19 sites as required under our envi­ron­men­tal per­mits, for Sep­tem­ber 2020 through August 2021. 

The Air­port is required to pro­vide QMS to over­see all aspects of mit­i­ga­tion site imple­men­ta­tion, man­age­ment, and cor­rec­tive actions and mit­i­ga­tion mon­i­tor­ing in accor­dance with the FDEP WRP Per­mit #03 – 0212186-004-DF. These ser­vices were pro­vid­ed by the ZHA and their sub-con­sul­tant ERC over the past eight years (Sep­tem­ber 2012 thru August 2020). The Per­mit requires con­tin­u­ous inspec­tion pres­ence on-site to mon­i­tor mit­i­ga­tion activities.

The required ser­vices include qual­i­fied mit­i­ga­tion super­vi­sion of all aspects of mit­i­ga­tion con­struc­tion activ­i­ties on the Airport’s mit­i­ga­tion site locat­ed south of SR 388 and the Air­port. Up to 170 days of on-site coor­di­na­tion and inspec­tion of mit­i­ga­tion con­struc­tion activ­i­ties will be pro­vid­ed each year. ZHA shall also pro­vide annu­al mit­i­ga­tion mon­i­tor­ing in accor­dance with the Air­port Relo­ca­tion Mit­i­ga­tion Plan dat­ed Octo­ber 2006 and mon­i­tor the sta­tions and meth­ods estab­lished dur­ing the ini­tial base­line quan­ti­ta­tive mon­i­tor­ing con­duct­ed in the of Fall 2006.

This includes quan­ti­ta­tive mon­i­tor­ing for eco­log­i­cal com­mu­ni­ty clas­si­fi­ca­tion, descrip­tion, and map­ping. Estab­lished per­ma­nent pho­to-point sta­tions will also be uti­lized for each quan­ti­ta­tive field plot for pho­tographs record­ing each mon­i­tor­ing event. Qual­i­ta­tive recon­nais­sance and inspec­tion of larg­er mit­i­ga­tion areas, char­ac­ter­i­za­tion, ground-truth sta­tions, and spe­cif­ic work plan areas (hydro­log­ic restora­tion sites, road removal areas, thin­ning units, burn units, etc.) will be con­duct­ed in asso­ci­a­tion with the quan­ti­ta­tive mon­i­tor­ing, based on set trav­el routes that are repeat­ed over time.

Sta­tis­ti­cal analy­sis of the quan­ti­ta­tive mon­i­tor­ing data will be eval­u­at­ed based on before and after com­par­i­son of over­all com­mu­ni­ty clas­si­fi­ca­tion. Indi­vid­ual veg­e­ta­tion lay­er com­po­nents from the quan­ti­ta­tive data will also be eval­u­at­ed. Com­par­isons with sim­i­lar nat­ur­al com­mu­ni­ties will be used as sup­port­ing documentation.

The con­sul­tant shall meet reg­u­lar­ly with the Con­trac­tor to review work plans, sched­ule of work activ­i­ties, in-field progress, qual­i­ty of the work inspec­tions, and oth­er relat­ed con­struc­tion issues. The con­sul­tant will review the month­ly pay­ment requests of the con­trac­tor, deter­mine their appro­pri­ate­ness for pay­ment, revise as nec­es­sary, approve the revised pay­ment appli­ca­tion and process them for pay­ment. The con­sul­tant will pro­vide in-field inspec­tion of the Contractor’s activ­i­ties, mon­i­tor­ing progress, qual­i­ty of work, com­pli­ance with con­tract require­ments, Per­mit, approved work plans and record and log find­ings and observations. 

Addi­tion­al­ly, the con­sul­tant will pro­vide aer­i­al pho­tog­ra­phy and pho­to inter­pre­ta­tion as required to assist in the mit­i­ga­tion efforts required by the FDEP Per­mit as well as by the Airport.

The con­sul­tant shall pre­pare two reports per annu­al peri­od: an annu­al report for each peri­od, Sept. to August; and a mit­i­ga­tion mon­i­tor­ing report for each peri­od, Sep­tem­ber to August. The annu­al report shall be pre­pared with­in nine­ty (90) days after the end of the data col­lec­tion and sub­mit it to the Air­port for review and approval to send to the agencies. 

The total Task Order 19‑K, includ­ing fees and expens­es will be $205,100 and is con­tained in the FY21 Oper­at­ing Budget. 

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1. Accept Staff Rec­om­men­da­tion on Repub­lic Park­ing Annu­al Bonus 

This item pro­vid­ed for Board approval of an incen­tive bonus for Repub­lic Park­ing for the peri­od from June 2019 through May 2020.

The Repub­lic Park­ing Man­age­ment Con­tract pro­vides for a bonus of up to 100% of the annu­al man­age­ment fee for oper­a­tion and man­age­ment of the park­ing oper­a­tion based on an eval­u­a­tion of per­for­mance com­plet­ed by Air­port Staff. The rat­ing based on this eval­u­a­tion is 94.5%. When this rat­ing is applied to the annu­al man­age­ment fee of $31,212.00, a bonus of $29,495.34 is calculated. 

Repub­lic Park­ing con­tin­ues to pro­vide excel­lent ser­vice to our Air­port and focus­es on cus­tomer ser­vice, and the bonus amount is with­in the cur­rent approved budget.

1. Adopt Admin­is­tra­tion Pol­i­cy – Fam­i­ly and Med­ical Leave Act Pol­i­cy (FMLA)

This item pro­vid­ed for Board approval of a pro­posed new admin­is­tra­tive pol­i­cy regard­ing Fam­i­ly and Med­ical Leave Act (FMLA).

The admin­is­tra­tive Pol­i­cy 9.3 will be in the Leave sec­tion of the Employ­ee Man­u­al. This Pol­i­cy adheres to the Fed­er­al Fam­i­ly and Med­ical Leave Act imposed by The Unit­ed States Depart­ment of Labor Wage and Hour Divi­sion, Title 29 CFR Part 825. The new Pol­i­cy address­es the employee’s eli­gi­bil­i­ty, type of leave cov­ered, amount of leave, sta­tus and ben­e­fits dur­ing and after leave, use of paid and unpaid leave, inter­mit­tent leave or reduced work sched­ule, cer­ti­fi­ca­tions required, and pro­ce­dures for request­ing FMLA leave. 

Staff has draft­ed the pro­posed admin­is­tra­tive Pol­i­cy 9.3 to include the nec­es­sary lan­guage for com­pli­ance with the Fam­i­ly and Med­ical Leave Act as well as to pro­vide guid­ance to the Authority’s employ­ees, and it has been reviewed by legal counsel.

There is no impact to the Airport’s Oper­at­ing and Cap­i­tal Budget.

1. Approve Admin­is­tra­tive Pol­i­cy Change – Drug-Free Workplace

Staff rec­om­mend­ed Board approval of a pol­i­cy change regard­ing the Drug-Free Workplace. 

The cur­rent Pol­i­cy 3.3 – Drug-Free Work­place was last updat­ed and approved by the Board effec­tive March 1, 2015. The cur­rent Pol­i­cy is updat­ed to com­ply with Flori­da State Statute Sec­tion 440.101 and 440.102. The changes made in the ​“Pro­posed Pol­i­cy” are quite exten­sive and more clear­ly define The Authority’s posi­tion on manda­to­ry test­ing, test­ing results, con­se­quences of pos­i­tive test­ing, and Employ­ee Assis­tance Pro­grams. The pro­posed pol­i­cy also address­es the report­ing of alleged crimes includ­ing drugs or alcohol. 

Staff has updat­ed Pol­i­cy 3.3 to include the nec­es­sary lan­guage for com­pli­ance with State Statute as well as to pro­vide guid­ance to the Authority’s employ­ees, and it has been reviewed and approved by legal counsel.

There is no impact to the Airport’s Oper­at­ing and Cap­i­tal Budget.

Mr. Lee made a motion to accept the Con­sent Agen­da, and May­or Shel­don sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

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Busi­ness Items:

• COVID-19 Update

• COVID-19 Finan­cial Update 

Mr. McClel­lan addressed the Board and illus­trat­ed with a bar graph the pas­sen­ger counts of last year vs. this year. Mr. McClel­lan invit­ed Ms. Dar­lene Nel­son to assist him in pre­sent­ing to the Board a financial 

fore­cast update show­ing graph­ic illus­tra­tions com­par­ing the Approved FY20 Bud­get, pro­ject­ed growth rate, cur­rent pro­jec­tions, and actu­al rev­enues and expenses. 

Ms. Nel­son report­ed the July actu­al rev­enues were $300,000 high­er than in June and con­tin­ue to trend upward, and we are clos­ing the gap between the actu­al rev­enues, the approved bud­get rev­enues, and the rev­enues pro­ject­ed with growth rate. 

Ms. Nel­son report­ed that we con­tin­ue to hold our expens­es down and under what we orig­i­nal­ly projected. 

Ms. Nel­son report­ed that July rev­enues exceed­ed expens­es by $845,000.

This Item was for infor­ma­tion­al pur­pos­es only and required no for­mal action by the Board.

• Tri­umph Appli­ca­tion – Project Gator (infor­ma­tion only)

Mr. McClel­lan report­ed that the Air­port went to the Tri­umph Board last week and got the approval to devel­op a term sheet for Project Gator, the air­craft refur­bish­ing com­pa­ny, and it has been sent out to Space Flori­da part­ners, as well as local finan­cial insti­tu­tions, to find out who would be inter­est­ed in financ­ing the Project, and the FDOT has also been approached for some participation. 

This Item was for infor­ma­tion­al pur­pos­es only and required no for­mal action by the Board.

• Exer­cise Option to Extend Food and Bev­er­age Con­ces­sions Agree­ment – First Class Concessions 

This item pro­vid­ed for Board approval to extend the con­tract for the Food and Bev­er­age Con­ces­sions Agree­ment with First Class Con­ces­sions at the North­west Flori­da Beach­es Inter­na­tion­al Air­port for an addi­tion­al five-year term.

In Novem­ber 2005, a Request for Pro­pos­als for the devel­op­ment and oper­a­tion of a Food and Bev­er­age Con­ces­sion in the Pana­ma City-Bay Coun­ty Inter­na­tion­al Air­port was adver­tised and dis­trib­uted. The Dis­trict received two pro­pos­al pack­ages, one of which was defi­cient in many areas, and the sec­ond being sub­mit­ted by First Class. The First Class pro­pos­al met the intent and the require­ments of the RFP, includ­ing their con­cep­tu­al plans for the restau­rant and lounge.

In Jan­u­ary 2006, the Board award­ed the Food and Bev­er­age Con­ces­sion to First Class, and an agree­ment between the Dis­trict and First Class was entered into in Feb­ru­ary 2006.

When the con­tract was award­ed to First Class, it was with the inten­tion that they would move to the new air­port. Busi­ness in the final years at PFN was slow, which had a def­i­nite impact on the prof­its rec­og­nized by First Class. How­ev­er, the com­pa­ny stayed with the Air­port through the years of dimin­ished prof­its and looked for­ward to the move to ECP, which occurred in May 2010.

As part of the relo­ca­tion process, a new agree­ment was draft­ed to address cir­cum­stances at the new air­port. The agree­ment had a ter­mi­na­tion date of May 2015, with the oppor­tu­ni­ty for the con­ces­sion­aire to be con­sid­ered for addi­tion­al five-year option peri­ods. The agree­ment was sub­se­quent­ly extend­ed through 

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Sep­tem­ber 2015, at which time a five-year exten­sion was grant­ed with an expi­ra­tion date of Sep­tem­ber 30, 

2020. The exten­sion agree­ment con­tained lan­guage as follows:

• Requir­ing First Class to make pro­posed upgrades to its facil­i­ties expe­di­tious­ly, after obtain­ing final approval from the Dis­trict and work­ing with the Dis­trict to sched­ule con­struc­tion at time that would be least dis­rup­tive to Air­port passengers.
• Increas­ing the lev­el of enplane­ments from 500,000 to 600,000 for First Class to retain the exclu­sive food and bev­er­age rights.
• Upon reach­ing the 600,000 enplane­ment lev­el, First Class will be offered the oppor­tu­ni­ty to expand food and bev­er­age ser­vices, at the dis­cre­tion of the District.

Fol­low­ing the exe­cu­tion of the exten­sion in 2015, First Class Con­ces­sions made a sig­nif­i­cant invest­ment in ECP. By envi­sion­ing and devel­op­ing a new con­cept, First Class gave the food and bev­er­age loca­tions a fresh, new look that was appre­ci­at­ed and enjoyed by both pas­sen­gers and air­port employ­ees. The new con­cept has been very suc­cess­ful with the addi­tion of a cof­fee kiosk, updat­ing of the restau­rants and bars, with increased sales and a vari­ety of options. 

As the Ter­mi­nal Expan­sion became real­i­ty, Staff approached First Class about con­ces­sion options in the Expan­sion and what type of ser­vice it might pro­vide, if space were to be avail­able. First Class devel­oped sev­er­al alter­na­tives for discussion. 

In March 2020, the COVID-19 Pan­dem­ic impact­ed the avi­a­tion indus­try in an unprece­dent­ed man­ner with pas­sen­ger traf­fic drop­ping by 95% in April and future pas­sen­ger lev­els uncer­tain. With the uncer­tain­ty of the pas­sen­ger traf­fic and after a review of activ­i­ties through­out the indus­try, it was deter­mined that devel­op­ing a new food and bev­er­age con­ces­sion pro­gram would poten­tial­ly be detri­men­tal to the Airport’s finan­cial posi­tion. Because con­ces­sion­aires base their pro­pos­als and respons­es on the num­ber of enplane­ments and pas­sen­ger activ­i­ty, Staff believed it in the best inter­est of the Air­port to forego a for­mal pro­pos­al process due to the many unknowns at this time.

Based on this assump­tion, Staff approached First Class about invest­ing in the Ter­mi­nal Expan­sion as well as refresh­ing the con­ces­sions to ensure a clean and fresh look. First Class has agreed to invest in the devel­op­ment of the con­ces­sion area in the Expan­sion and refresh the kitchen area of the upstairs restau­rant, which is approx­i­mate­ly 75 – 80% of the busi­ness. It is esti­mat­ed these improve­ments would be approx­i­mate­ly $125,000.

The plan includes being ful­ly oper­a­tional in the Expan­sion and in the updates to the upstairs kitchen pri­or to Spring Break 2021. This time allows for design, per­mit­ting and con­struc­tion dur­ing his­tor­i­cal­ly low­er pas­sen­ger activ­i­ty levels.

Addi­tion­al­ly, Staff reached out the FAA DBE Office to ensure com­pli­ance with the DBE Pro­gram (First Class Con­ces­sions is a Woman-Owned Busi­ness) and received approval for a lease exten­sion. First Class Con­ces­sions has been an excel­lent part­ner at the Air­port day-to-day, dur­ing Hur­ri­cane Michael, and dur­ing the COVID – 19 Pandemic.

Staff rec­om­mend­ed approval to extend the con­tract with First Class Con­ces­sions for con­tin­ued Food and Bev­er­age Con­ces­sions at the North­west Flori­da Beach­es Inter­na­tion­al Air­port for an addi­tion­al five years based on his­tor­i­cal per­for­mance and the pro­posed invest­ment in its facil­i­ties, but added the impor­tance of going out on the street for Bids when this exten­sion runs out in five years. The bud­getary impacts will be min­i­mal. Addi­tion­al­ly, the updat­ed con­cept will attract addi­tion­al pas­sen­ger activ­i­ty, thus increas­ing revenues. 

Mr. John­son made a motion to approve the exten­sion of the con­tract with First Class Con­ces­sions for con­tin­ued Food and Bev­er­age Con­ces­sions at the North­west Flori­da Beach­es International 

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Air­port for an addi­tion­al five years, and May­or Shel­don sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously. 

• Exten­sion of Adver­tis­ing Con­ces­sion Agree­ment – Clear Chan­nel Inter­space Air­ports

This item pro­vid­ed infor­ma­tion to the Board for extend­ing the Air­port Adver­tis­ing Con­ces­sion Agree­ment with Clear Chan­nel Inter­space Air­ports (Clear Channel).

In June 2005, the Board award­ed the Adver­tis­ing Con­ces­sion to Inter­space Air­port Adver­tis­ing, now Clear Chan­nel, and an agree­ment between the Dis­trict and Clear Chan­nel was exe­cut­ed. The orig­i­nal Agree­ment also allows for one or more addi­tion­al five-year exten­sions with the mutu­al agree­ment of the parties.

In June 2009, before the relo­ca­tion of the Air­port, the Board agreed that Clear Chan­nel had met or exceed­ed all of the stan­dards, and an exten­sion of the term was grant­ed through Sep­tem­ber 2015.

In Sep­tem­ber 2015, and addi­tion­al 5‑year exten­sion was grant­ed based on the sev­er­al improve­ments and addi­tions to the con­tract and adver­tis­ing pro­gram. These improve­ments and con­tract mod­i­fi­ca­tions have proven to be suc­cess­ful and improved our abil­i­ty to deliv­er mes­sag­ing as you leave the main doors in the Terminal.

Clear Chan­nel has con­tact­ed Staff about exer­cis­ing an exten­sion option, and was prepar­ing to sub­mit a pro­pos­al for future activ­i­ties at ECP. The recent COVID-19 Pan­dem­ic has had a sig­nif­i­cant impact on the adver­tis­ing busi­ness and our industry. 

The Ter­mi­nal Air­port Adver­tis­ing Pro­gram is based on impres­sions and the num­ber of times an adver­tise­ment has the oppor­tu­ni­ty to be seen at the Air­port. With the reduc­tion in pas­sen­gers and the unknown future demand, it was mutu­al­ly deter­mined that a one-year exten­sion under the same terms and con­di­tions would be the best approach to ensure the con­tin­ued suc­cess of our Ter­mi­nal Air­port Adver­tis­ing Program.

Through­out the term of the exist­ing agree­ment, Clear Chan­nel has been a great busi­ness part­ner and ten­ant and has always been respon­sive to requests.

The rev­enues will be con­sis­tent with the exist­ing agree­ment and includ­ed in the FY 2021 Bud­get, and staff rec­om­mend­ed that the Board extend the adver­tis­ing con­ces­sion with Clear Chan­nel for a one-year period. 

Mr. Lee made a motion to approve the exten­sion of the adver­tis­ing con­ces­sion with Clear Chan­nel for a one-year peri­od, and Mr. Cramer sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously. 

Con­struc­tion Update (infor­ma­tion only):

Mr. McClel­lan addressed the Board begin­ning with an update on the Ter­mi­nal Expan­sion Project. He informed the Board that today Amer­i­can Air­lines will be mov­ing from old Gate 6 to new Gate 6 and begin oper­at­ing in the new space tomor­row; Gate 7 is esti­mat­ed to be oper­a­tional in mid-Octo­ber due to COVID-19.

Mr. McClel­lan addressed the Board with an update on the Tran­sient Apron and Taxi­way E1 Project. He report­ed that we are wait­ing for sig­nage and strip­ing to be done; the con­crete mix with a cer­tain type of sand is get­ting straight­ened out with­out delay, and that was con­firmed by Mr. Lee Lewis of AVCON who was present in the meeting.

Mr. McClel­lan addressed the Board on the new S.R. 388 and report­ed the sur­charge at the Air­port Entrance 

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has tak­en effect and the com­pres­sion need­ed has been met, so the height lev­els of those mounds are being brought down to an ele­vat­ed inter­sec­tion – the same lev­el of the high­est part of the road we have today. 

The Bay EDA Update:

Bay EDA Pres­i­dent Bec­ca Hardin addressed the Board via phone and report­ed the amount of detail required by the Tri­umph Gulf Coast Board process is always exten­sive, and gave a pub­lic shout out to Park­er, Gar­rett, and Dar­lene for get­ting the appli­ca­tion pre­pared allow­ing us to get to this point with Project Gator; the term-sheet nego­ti­a­tion process will still require some work, but she real­ly feels this will be the first step in form­ing an infra­struc­ture at the Air­port to be uti­lized for years to come. Ms. Hardin report­ed that Space Flori­da was vis­it­ing today, and pro­pos­als from banks will be reviewed to see who we want to work with to finance the project and hope­ful­ly we will be able to announce the name of this com­pa­ny in Sep­tem­ber. Ms. Hardin reit­er­at­ed that Project Gator will be in a posi­tion to pro­vide 96 jobs with a cap­i­tal invest­ment of approx­i­mate­ly $26.5 M and would build a dou­ble-wide, nar­row-body hangar adja­cent to the Run­way, and once again thanked the Board for approv­ing the Project. 

Ms. Hardin report­ed that project inter­est activ­i­ty has final­ly start­ed to pick back up, and an MRO (Main­te­nance, Repair, and Over­haul) com­pa­ny – Project Emer­ald, a lead from Florida’s Great North­west – is vis­it­ing the Air­port today. She report­ed that they do not need access to the Run­way so Bay EDA is show­ing them build-to-suit loca­tions, includ­ing Ven­ture Cross­ings, and it is excit­ing because they would even­tu­al­ly offer 368 jobs, and have a $90 mil­lion cap­i­tal investment.

Ms. Hardin report­ed that Project Venus, the Euro­pean MRO (Main­te­nance, Repair, and Over­haul) com­pa­ny offer­ing 250 jobs, $50 mil­lion cap­i­tal invest­ment, and need­ing access to the Run­way – has been put on hold because of COVID-19 trav­el lim­i­ta­tions, but con­ver­sa­tions with them will start again in September. 

Ms. Hardin report­ed work con­tin­ues with Project Pur­ple who is look­ing at pos­si­bil­i­ties in Ven­ture Cross­ings, would offer 115 jobs and $8 mil­lion cap­i­tal invest­ment; and con­clud­ed by report­ing we found out last night we made the cut with Project Domi­no, anoth­er avi­a­tion-relat­ed MRO com­pa­ny, that would pro­vide 400 jobs with a $100M cap­i­tal invest­ment, who would need access to the Runway. 

Chair­man McDon­ald asked for the Tri­umph Appli­ca­tion amount we request­ed and Ms. Hardin respond­ed $4.8 million.

The Moore Agency Update:

The Moore Agency Senior Vice Pres­i­dent Ms. Jor­dan Jacobs addressed the Board in per­son and report­ed that research shows 50% of Amer­i­can adults who flew at least once a year before the pan­dem­ic cur­rent­ly say they are not com­fort­able fly­ing. She informed the Board that mak­ing them feel safe was the goal which led to the ECP Ready When You Are Cam­paign (increased clean­ing fre­quen­cy, floor decals for social dis­tanc­ing, use of plex­i­glass shields and face masks). She said new sig­nage has been installed through­out the Ter­mi­nal; and the use of a warm, friend­ly face of an air­line atten­dant in ads. 

Ms. Jacobs report­ed that Google Paid Search (if some­one was active­ly search­ing on trav­el) was the only paid chan­nel run­ning since March, but start­ing in Sep­tem­ber, more will be done to get the pub­lic proac­tive­ly think­ing about get­ting on a plane and vis­it­ing. She added that for three weeks in Sep­tem­ber the new ECP TV com­mer­cial is slat­ed for WMBB, WJHG, and our dig­i­tal channels. 

Exec­u­tive Direc­tor Report:

Mr. McClel­lan addressed the Board and report­ed that we were ready for Hur­ri­cane Lau­ra that nev­er affect­ed our area, and are pro­vid­ing a safe refuge for air­craft which had to be tem­porar­i­ly relo­cat­ed due to the storm. Mr. McClel­lan invit­ed the Board to the Sep­tem­ber 2, 2020, 9:00 a.m. Board Bud­get Workshop. 

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Pub­lic Comments:

There were no pub­lic comments.

Adjourn­ment:

The meet­ing was adjourned at approx­i­mate­ly 10:26 a.m.

________________________________ ________________________________

Kathy Gilmore, Exec­u­tive Sec­re­tary Glen McDon­ald, Chairman