MEET­ING MIN­UTES

PANA­MA CITY - BAY COUN­TY AIR­PORT AND INDUS­TRI­AL DISTRICT

Open­ing:

The Board Meet­ing of the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict was called to order at 9:00 a.m., Decem­ber 17, 2021 by Chair Glen McDonald.

The Invo­ca­tion was giv­en by Vice Chair Hol­ly Melz­er. The Pledge of Alle­giance was led by Mr. Jason Cutshaw.

The Exec­u­tive Sec­re­tary called the roll and indi­cat­ed all the Board mem­bers were present except Mr. James Johnson .

Chair McDon­ald asked if there were any Pub­lic Com­ments. There were no Pub­lic Comments.

An Amend­ed Agen­da was pre­sent­ed to the Board. Chair McDon­ald asked if there were any Items on the Amend­ed Agen­da, includ­ing the Con­sent Agen­da, that any Board mem­ber would like to move, and if not, to make a motion to accept the Amend­ed Agenda.

Mr. James John­son joined the meet­ing at 9:02 a.m., after the roll was called, and after the vote to accept the Amend­ed Agenda.

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

Pre­sen­ta­tion: S.R. 388/​Airport Entrance Round­about Detour Update

Met­ric Engi­neer­ing Senior Project Engi­neer and Con­tract Man­ag­er for the State Road 388 Project Mr. Dar­rel Bur­nett pre­sent­ed an update to the Board on the Project. Also attend­ing the meet­ing were Carpe Diem Com­mu­ni­ty Solu­tions State Road 388 Pub­lic Infor­ma­tion Man­ag­er Kathy Har­ris, and Flori­da Depart­ment of Trans­porta­tion Pub­lic Infor­ma­tion Spe­cial­ist Kohen Johns Brannon.

Mr. Bur­nett pre­sent­ed slides show­ing what the over­all map will look like dur­ing the Round­about con­struc­tion that will begin in March 2022. The slides includ­ed ani­ma­tion of the exist­ing 388, the new 388 under con­struc­tion, the new traf­fic pat­tern while the Round­about is under con­struc­tion, and the final Round­about configuration.

While under con­struc­tion, con­nec­tor road Tim­ber Road to the west of the Round­about will be uti­lized as an entrance and exit for vehi­cles trav­el­ling east from S.R. 79 to the Air­port, and for all vehi­cles exit­ing the Air­port. Traf­fic enter­ing the Air­port from S.R. 77 will have a road divert­ing and merg­ing to the right lane on the Park­way (traf­fic from S.R. 79 will be merg­ing on to the left lane on the Park­way) . Non­ Air­port traf­fic will con­tin­ue on the cur­rent S.R. 388 south of the Round­about con­struc­tion area.

Once the Project is com­plet­ed, the cur­rent S.R. 388 will be called C.R. 388. The esti­mat­ed time­line for com­ple­tion of the Round­about is in 2024.

Reports:

Mr. Park­er McClel­lan pre­sent­ed the Activ­i­ty Reports. Mr. McClel­lan report­ed the pas­sen­ger count for Novem­ber 202 I exceed­ed all oth­er pre­vi­ous years for Novem­ber as did the year-to-date pas­sen­ger count which broke the 1.5 mil­lion mark.

Con­sent Agenda:

Board Meeting Min­utes ‑Novem­ber 17, 2021

This Item pro­vid­ed for Board approval of the Novem­ber 17, 2021 Board Meet­ing Minutes.

Approve Men­zies 2022 Budget

This Item pro­vid­ed for Board approval of the 2022 O&M Bud­get for Men­zies Aviation.

The avi­a­tion fuel farm con­sists of four 50,000-gallon Jet‑A tanks, four 15,000 avgas tanks, one 1,000- gal­lon diesel tank and one 1,000-gallon unlead­ed tank. The rental car facil­i­ty con­sists of one 15,000- gal­lon tank and one 5,000-gallon tank for unlead­ed gas.

The con­tract for man­age­ment, main­te­nance and oper­a­tion of the fuel farm facil­i­ties was award­ed to Men­zies Avi­a­tion in 2019. The ini­tial con­tract term is for five years. There is a sep­a­rate agree­ment between the air­lines and Men­zies for ​“into plane” fueling.

The con­sol­i­dat­ed fuel farm pro­vides the Dis­trict with full con­trol over the tanks and lim­its envi­ron­men­tal impacts by hav­ing the fuel tanks in one loca­tion. Rev­enue paid to the Dis­trict by the oper­a­tors of the fuel farm includes debt ser­vice for the cost of the fuel facil­i­ty and O&M costs for oper­a­tion of the fuel farm. Cur­rent­ly, the five com­pa­nies that use the fuel farm are Amer­i­can Air­lines, Delta Air­lines, South­west Air­lines , Unit­ed Air­lines and Sheltair Avi­a­tion, the fixed base oper­a­tor on the Airport.

The bud­get pro­posed for 2022 is $828,292. The 2022 Bud­get includes $139,714 paid to the Dis­trict for debt ser­vice for con­struc­tion of the fuel farm used by Menz ie s. O&M expens­es are paid by the users of the fuel farm with the Air­port Dis­trict receiv­ing debt ser­vice pay­ments in the amount of $139,714 annu­al­ly, and Staff rec­om­mend­ed approval of the Men­zies Avi­a­tion 2022 O&M Bud­get as presented.

Pur­chase of two (2) SCOTT Self-Con­tained Breath­ing Appa­ra­tus (S CBA) and four (4) 4500 psi / 45-minute SCBA Bottles

This request is part of a rota­tion­al pur­chas­ing plan to replace the Self- Con­tained Breath­ing Appa­ra­tus Units (SCBA) and SCBA Bot­tles used by the Air­port Fire Depart­ment (ARFF) per­son­nel in haz­ardous atmospheres.

The ARFF cur­rent­ly uti­lizes eleven (11) SCBA Units with five (5) of these units in excess often (10) years old and out of war­ran­ty. The old­er units do not meet cur­rent Nation­al Fire Pro­tec­tion Asso­ci­a­tion stan­dards for Fire­fight­er Safety.

The SCBA bot­tles have a ser­vice life of 15 years before they must be dis­card­ed in accor­dance with Nation­al Fire Pro­tec­tion Asso­ci­a­tion stan­dards. This pur­chase will replace the four (4) SCBA Bot­tles that timed out in 2021 .

The fund­ing for this item is approved in the FY 2022 Bud­get and Staff rec­om­mend­ed approval to pur­chase two SCBA units and four SCBA bot­tles from Fish­er Safe­ty at a total cost of $16,452.

Approve Clear Chan­nel Adver­tisin g Con­ces­sion Agree­ment- Month-to-Month

This Item pro­vid­ed infor­ma­tion to the Board for con­tin­u­ance of the Air­port Adver­tis­ing Con­ces­sion Agree­ment with Clear Chan­nel Air­ports (Clear Chan­nel) on a month-to-month basis.

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In August 2021, the Board extend­ed the Adver­tis­ing Con­ces­sion to Clear Chan­nel Air­ports for 90 days. The con­tract will be put out for bid to obtain the best prod­uct and most finan­cial­ly favor­able to the Airport.

In devel­op­ing the Request for Pro­pos­al, Staff took a dif­fer­ent direc­tion to put togeth­er a much more detailed RFP to ensure the Air­port was receiv­ing the best pos­si­ble prod­uct. This process has tak­en longer than expected.

As Staff reviewed the cal­en­dar asso­ci­at­ed with the RFP, there were sched­ul­ing con­flicts to include the Novem­ber and Decem­ber hol­i­days. It is the intent of Staff to release the RFP after the first of the year in order to allow prospec­tive respon­dents ade­quate time to pre­pare their submissions.

Clear Chan­nel Air­ports was con­tact­ed to see if month-to-month was a viable option and Clear Chan­nel advised that it would be accept­able. Staff rec­om­mend­ed that the Board autho­rize the adver­tis­ing con­ces­sion with Clear Chan­nel Air­ports to con­tin­ue on a month-to-month basis.

Amend Exec­u­tive Direc­tor’s Enrollment Con­tract

This Item pro­vid­ed infor­ma­tion to the Board to resolve a con­flict between IRS Code Sec­tion I 05(h) as it relates to the Exec­u­tive Director/​CEO’s Employ­ment Contract.

In April 2013, the Air­port entered into an Employ­ment Con­tract with Park­er W. McClel­lan, Jr. to serve as the Exec­u­tive Director/​CEO. The Con­tract pro­vid­ed details of the employ­ment agree­ment, includ­ing the fund­ing of 100% of the cost for health and den­tal insur­ance for Mr. McClel­lan and his depen­dents. This had been a prac­tice of the Air­port for many years and at least 2 predecessors.

Dur­ing the annu­al review for insur­ance with Staff and PRM, our Insur­ance Con­sul­tants of the Employ­er Spon­sored Health Care Plan, there was a ques­tion with regard to the abil­i­ty for the Air­port to fund 100% of Mr. McClel­lan’s insur­ance costs. As a result of inter­nal test­ing with regard to IRS Code Sec­tion 125 and IRS Code Sec­tion 105(h); IRS Code Sec­tion 125 sup­ports the prac­tice of the Air­port, how­ev­er there is a con­flict with IRS Code Sec­tion 105(h).

Upon fur­ther review by PRM’s legal coun­sel, an opin­ion was ren­dered that the Air­port may not be fol­low­ing Sec­tion I 05(h) and it was rec­om­mend­ed that this be resolved as soon as prac­ti­ca­bly pos­si­ble to ensure it does not impact the eli­gi­bil­i­ty of the Plan.

As a result, it has been deter­mined the best action is to amend the Exec­u­tive Director/​CEO’s con­tract to remove 100% health care fund­ing and to pro­vide an Exec­u­tive Direc­tor Stipend in the amount of $6,000 annu­al­ly with a I 0% annu­al adjust­ment. There will be min­i­mal impact, and Staff rec­om­mend­ed that the Board amend the Exec­u­tive Director/​CEO’s Employ­ment Con­tract as out­lined and autho­rize an Exec­u­tive Direc­tor Stipend of $6,000 adjust­ed annually.

Accept Con­ces­sions Rent Relief Air­port Res­cue Grant Offer, Grant No. 3−12− 0159−024− 2022 at the North­west Flori­da Beach­es Inter­na­tion­al Airport

This Item pro­vid­ed for Board accep­tance of a Con­ces­sions Rent Relief Air­port Res­cue Grant Offer, Grant No. 3−12− 0159−024−2022 at the North­west Flori­da Beach­es Inter­na­tion­al Airport.

On March 11, 2021 Amer­i­can Res­cue Plan Act (“ ARP Act”) was signed into law. The act pro­vid­ed for relief for small and large con­ces­sions. The oblig­a­tions are to pro­vide relief for rent and MAG oblig­a­tions for in air­port ter­mi­nal con­ces­sions. Each eli­gi­ble in-ter­mi­nal con­ces­sion is deter­mined by a for­mu­la with­in the Act. There is no bud­getary impact, and Staff rec­om­mend­ed the accep­tance of FAA CARES Act Grant- 3−12−0159−018−2020 in the amount of $532,356.

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Mr. John­son made a motion to accept the Con­sent Agen­da, and Vice Chair Melz­er sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Busi­ness Items:

1. AtJQrove Assignment of Lease from Gary Wak­stein & Assoc., LLC to Tail­wind Con­ces­sions, LLC

This Item pro­vid­ed for Board approval to assign the Gary Wak­stein & Assoc., LLC Lease to Tail­wind Con­ces­sions, LLC.

Gary Wak­stein and Asso­ciates, LLC has been at ECP since open­ing in 2010. In May 2010, the Dis­trict Amend­ed and Restat­ed the Con­ces­sion Agree­ment for the devel­op­ment and oper­a­tion of a News and Sun­dries (Gift Shop) Con­ces­sion in the North­west Flori­da Beach­es Inter­na­tion­al Airport.

rn Jan­u­ary of 2021, the Board and Gary Wak­stein and Asso­ciates exer­cised the option for an addi­tion­al 5- year term in accor­dance with the Con­ces­sion Agree­ment through Feb­ru­ary of 2026.

Ear­li­er this month, Mr. Wak­stein approached the Staff advis­ing that he had sold the News and Sun­dries store to Tail­wind LLC and has pro­vid­ed a let­ter request­ing the assign­ment of the con­ces­sion agreement.

Tail­wind, LLC, was estab­lished in 2001 in Aspen, CO where they oper­at­ed the Tail­wind Deli. In 2004, Tail­wind Deli and News and Gifts was formed and began oper­at­ing at Wilm­ing­ton Inter­na­tion­al Air­port, Wilm­ing­ton, NC in 2005. Today, Tail­wind Con­ces­sions, LLC oper­ates at 29 air­ports across the nation. Their ​“niche” is region­al air­ports with a focus on mak­ing each site unique to the region.

Mr. Jeff Switzer, CEO of Tail­wind is com­mit­ted to work­ing with the Air­port to ensure the con­tin­ued suc­cess that Wak­stein and Asso­ciates has pro­vid­ed for many years . Mr. Wak­stein and his staff have pro­vid­ed a unique shop­ping expe­ri­ence and exceed­ing their rev­enue esti­mates and ensur­ing the con­tin­ued suc­cess of ECP.

Staff rec­om­mend­ed Board approval of the Assign­ment of Lease from Gary Wak­stein & Asso­ciates, LLC to Tail­wind Con­ces­sions, LLC for oper­a­tion of News and Sun­dries (Gift Shop) Con­ces­sions at the North­west Flori­da Beach­es Inter­na­tion­al Air­port. There is no bud­getary impact.

Mr. McClel­lan asked Mr. Wak­stein to say a few words, and the Board thanked Mr. Wak­stein for the great ser­vice all these years.

May­or Shel­don made a motion to approve assign­ing the Gary Wak­stein & Assoc., LLC lease to Tail­wind Con­ces­sions, LLC., and Mr. Les McFat­ter sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

1. Rat­i­fy Emer­gency Repair of Air­port Water Main - Gulf Coast Utilitv Con­trac­tors

This Item pro­vid­ed for Board rat­i­fi­ca­tion of the pur­chase of ser­vices from Gulf Coast Util­i­ty Con­trac­tors for the emer­gency repair of a bro­ken water main.

On Sun­day, Novem­ber 7, an issue was dis­cov­ered with water being unavail­able in the Ter­mi­nal. Upon inves­ti­ga­tion, it was dis­cov­ered that a water main locat­ed on John­ny Reaver Road between the Fuel Farm and the cor­po­rate hangars had failed.

Staff respond­ed and the Main­te­nance Depart­ment worked on resolv­ing the issue, the result was iso­lat­ing the bro­ken water main and con­tact local con­trac­tors to per­form the emer­gency repairs.

Staff con­tact­ed three (3) local con­struc­tion com­pa­nies; GCUC, Phoenix Con­struc­tion and Mar­shall Broth­ers ask­ing for a pro­pos­al to repair the pipe. Due to the amount of work local­ly, two con­trac­tors advised that their work load was such , it would be dif­fi­cult to repair but if we could not find anoth­er com­pa­ny, they would assist. GCUC respond­ed quick­ly and pro­vid­ed a pro­pos­al to per­form the emer­gency repair. The pro­pos­al to fix the repair was $16,780.

The Exec­u­tive Direc­tor exe­cut­ed the approval to make the emer­gency repairs and the repairs were com­plet­ed on Fri­day, Novem­ber 12. The water main repair does not include the repair of some areas of con­crete dam­aged by the water.

The emer­gency repair of the water main cost of $16,780 will be paid with funds avail­able in the FY 22 Oper­at­ing & Cap­i­tal Bud­get. Staff rec­om­mend­ed rat­i­fi­ca­tion of the Exec­u­tive Direc­tor’s autho­riza­tion to Gulf Coast Util­i­ty Con­trac­tors (GCUC) for the repair of a bro­ken water main in the amount of $16,780.

Mr. Cramer made a motion to rat­i­fy Emer­gency Repair of Air­port Water Main - Gulf Coast Util­i­ty Con­trac­tors, and Mr. John­son sec­ond­ed the motion. The vote was tak­en with Vice Chair Melz­er abstain­ing, and the motion passed unanimously.

Bay EDA Update:

Bay EDA Pres­i­dent Ms. Bec­ca Hardin report­ed that they hope to have two large announce­ments after the begin­ning of the new year; one for the for­mer GKN facil­i­ty, and one for the Port. Ms. Hardin report­ed she and Bay EDA Vice Pres­i­dent Ben Moor­man have trav­elled to Europe three times in the last three months with some very impor­tant avi­a­tion-relat­ed air­shows sched­uled for the new year, includ­ing the Sin­ga­pore Show in Feb­ru­ary, MRO Amer­i­c­as in Dal­las in April, they will be uti­liz­ing a new mar­ket for train­ing pilots to oper­ate unmanned vehi­cles in Orlan­do; they will be attend­ing Select USA in Wash­ing­ton D.C. in June; the inter­na­tion­al air­show out­side Lon­don in July; and in Octo­ber the Nation­al Busi­ness Avi­a­tion Asso­ci­a­tion (NBAA) Show as well as the MRO Europe Show in London .

The Moore Agency Update:

Ms. Katie Spill­man of The Moore Agency report­ed on Insta­gram changes; the ​“Tag, You’re It” cam­paign; and the hol­i­day cam­paign. Ms. Spill­man informed the Board that ECP’s lnsta­gram pro­file now has a new launch­pad that allows the brand’ s online con­tent to become more dis­cov­er­able, more effi­cient­ly man­aged, and more like­ly to con­vert. She said there has been a sig­nif­i­cant uptick on our user gen­er­at­ed con­tent with many Pho­to Fri­day High­lights to share as a result.

Regard­ing the ​“Tag, You ​‘re It” cam­paign, Ms. Spill­man rep01ted 1,795 impres­sions, 702 entries, and valu­able feed­back from over 100 pas­sen­gers who answered about their over­all expe­ri­ence at ECP. She added that prizes will include $200 air­line gift cards, lug­gage, lug­gage tags, and FSU foot­ball tick­ets for the 2022 – 23 season.

Regard­ing the hol­i­day cam­pa ign, Ms. Spill­man report­ed 79,475 impres­sions, 101 clicks, 49,585 com­plet­ed views from the upper fun­nel tagtic with addi­tion­al ele­ments across the brand’s owned media chan­nels includ­ing the ECP web­site home­page, social media cov­er pho­tos, and Escape land­ing page.

Ms. Spill­man report­ed that up next will be the announce­ment of the air­li nes ’ Sum­mer Sched­ules, and the 30A Song­writ­ers Fes­ti­val Sponsorship.

Exec­u­tive Direc­tor Report:

Mr. McClel­lan informed the Board that we will be very close to if not exceed­ing 1.6 mil­lion pas­sen­gers this year. Mr. McClel­lan report­ed we con­tin­ue to work with our gen­er­al con­sul­tant and their sub­con­sul­tants on the design of the Bag Room and Sys­tem Expan­sion, the TSA Check Point Expan­sion, the Ramp Expan­sion, and the Pas­sen­ger Sky Bridge and as we get fur­ther along a Board Work­shop will be sched­uled for Board input.

Mr. McClel­lan invit­ed the Board Mem­bers to the Employ­ee Hol­i­day Lun­cheon on Mon­day, Decem­ber 20.

Mr. McClel­lan announced that it has been very chal­leng­ing to hire First Respon­ders, so we cre­at­ed the first-ever Fire­fight­er Appren­tice Pro­gram to train inter­est­ed inter­nal employ­ees desir­ing to become an ECP Fire­fight­er. Mr. McClel­lan informed the Board that one of our Main­te­nance Staff applied and will be mov­ing to the ECP Fire Depart­ment on Decem­ber 20 to learn about it first hand while attend­ing fire­fight­er school, and in March he will be able to respond as a fire­fight­er able to dri­ve the fire trucks, and in June he will be certified.

Mr. McClel­lan informed the Board that over Thanks­giv­ing, we parked 700 extra cars. Mr. McClel­lan asked Mr. Richard McConnell to inform the Board on ECP over­flow park­ing. Mr. McConnell said we antic­i­pat­ed over­flow park­ing over Thanks­giv­ing, but we did not antic­i­pate 700 extra vehi­cles in our over­flow park­ing. Mr. McConnell report­ed that we now have a more estab­lished plan for the Christ­mas hol­i­day with three lit over­flow park­ing areas, park­ing atten­dants direct­ing vehi­cles, way find­ing, shut­tle stop mark­ings indi­cat­ing areas where the shut­tles will make reg­u­lar stops, bet­ter com­mu­ni­ca­tion, and sig­nage out­side the Ter­mi­nal with a num­ber to call for a pick up to take you to one of the over flow lots. Mr. McConnell said that the first two areas are across from Long-Term Park­ing around the Rental Car Facil­i­ties and a third, new area, at begins at the north end of the cor­po­rate Hangar area in the infield between John­ny Reaver Rd and the Park­way and con­tin­ue in rows south.

Mr. McConnell explained that pas­sen­gers con­tin­ued to enter the Long-Term Park­ing Lot even when the sign said it was full, and were park­ing on side­walks and in the grass next to the trees. He said we have now moved and pro­gramed our park­ing arm gates to allow vehi­cles to exit the park­ing lot, but not get in if it is full until the park­ing atten­dant sees park­ing is avail­able and turns the arm off. Mr. McClel­lan added that pas­sen­gers are giv­en a card with the park­ing lot num­ber on it to pre­vent dri­ving around look­ing for their car, and it also has a phone num­ber to call for a pick up.

May­or Shel­don asked about the long I ines of cars in the Ce]I Phone Lot, or the wait­ing in front of the Ter­mi­nal, and Mr. McConnell explained we do have an on-the-shelf project ready to be bid for the expan­sion of the Cell Phone Lot. He explained we also have the free 20-minute park­ing in the Short and Long-Term Lots. Mr. McClel­lan added that we will do what­ev­er is safest for the pas­sen­gers, uti­liz­ing the Air­port Police Car, and not allow wait­ing along the Ter­mi­nal Curb.

Pub­lic Comments:

There were no Pub­lic Comments.

Adjourn­ment:

The meet­ing was adjourned at approx­i­mate­ly 9:55 a.m.

Kathy Gilmore, Exec­u­tive Assis­tant Glen McDon­ald, Chair