February 2014 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., Feb­ru­ary 26, 2014 in the Air­port Board Room by Chair­man Pilcher.

The Invo­ca­tion was giv­en by Ms. Pat­ty Mitchell.

The Pledge of Alle­giance was led by Chair­man Pilcher.

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

Approval of Minutes:

The Jan­u­ary 22, 2014 Board Meet­ing Min­utes were approved as distributed.

Reports:

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

Pre­sen­ta­tion:

Mr. Paul Puck­li with CHA Con­sult­ing, Inc., pro­vid­ed a pre­sen­ta­tion to the Board review­ing the devel­op­ment con­cepts and fur­ther rec­om­men­da­tions that result­ed from the Work­shop held this past Decem­ber. Mr. Puck­li sum­ma­rized the progress of the mas­ter plan process and dis­cussed the pro­jec­tions for the air­field and land use areas, the tran­sient apron area, the secu­ri­ty screen­ing check­point expan­sion, the out­bound bag­gage han­dling sys­tem expan­sion and the poten­tial ter­mi­nal expan­sion options.

Mr. Puck­li stat­ed that with the Board’s con­cur­rence regard­ing the mas­ter plan progress, the next phase would include refine­ment of the cost esti­mates by phase, prepar­ing a 10 year finan­cial plan, draft­ing the mas­ter plan report and air­port lay­out plan draw­ings and sched­ul­ing a third and final pub­lic work­shop. After FAA con­cur­rence, the final doc­u­ment would be pre­pared and pre­sent­ed to the Board for adoption.

Fol­low­ing Board dis­cus­sion, Mr. Scott made a motion to rec­og­nize the Board’s con­sen­sus with the mas­ter plan sta­tus and approval for CHA to move for­ward with the mas­ter plan process and pre­pare the next phase of draft doc­u­ments. Ms. Moliter­no sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Con­sent Agenda:

a. Ban­ner Tow Agree­ment – Aer­i­al Ban­ners, Inc.

This item pro­vides for Board approval of a Ban­ner Tow Agree­ment between the Pana­ma City – Bay Coun­ty Air­port and Indus­tri­al Dis­trict and Aer­i­al Ban­ners, Inc., for the oper­a­tion of air­craft ban­ner tow activ­i­ties at the North­west Flori­da Beach­es Inter­na­tion­al Airport.

b. Ban­ner Tow Agree­ment – Aer­i­al Mes­sages of Day­tona and Sales, Inc.

This item pro­vides for Board approval of a Ban­ner Tow Agree­ment between the Pana­ma City – Bay Coun­ty Air­port and Indus­tri­al Dis­trict and Aer­i­al Mes­sages of Day­tona and Sales, Inc., for the oper­a­tion of air­craft ban­ner tow activ­i­ties at the North­west Flori­da Beach­es Inter­na­tion­al Airport.

Fol­low­ing Board dis­cus­sion, Mr. Bruett made a motion to approve both Ban­ner Tow Agree­ments and autho­riza­tion for the Board Chair­man or his designee to exe­cute any nec­es­sary doc­u­ments. Mr. Fore­hand sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Busi­ness Items:

a. FY-13 Finan­cial Audit Report

This item pro­vides for Board approval and adop­tion of the audit report for the fis­cal year end­ing Sep­tem­ber 30, 2013.

Tip­ton, Mar­ler, Gar­ner & Chas­tain have recent­ly com­plet­ed the airport’s annu­al finan­cial audit. Mr. David Tip­ton addressed the Board regard­ing the audit report and stat­ed there were no find­ings regard­ing vio­la­tions of pro­vi­sions of con­tracts or grant agree­ments, fraud, ille­gal acts or abuse regard­ing the airport’s account­ing practices.

The audit report indi­cat­ed that the gen­er­al-pur­pose finan­cial state­ments rep­re­sent­ed the true finan­cial posi­tion of the Dis­trict and that oper­a­tions and cash flows were in accor­dance with gen­er­al­ly accept­ed account­ing prin­ci­ples and that no reportable con­di­tions were dis­closed dur­ing the audit.

Fol­low­ing Board dis­cus­sion, Ms. Moliter­no made a motion to adopt the audit report as pre­pared by Tip­ton, Mar­ler, Gar­ner & Chas­tain for the fis­cal year end­ing Sep­tem­ber 30, 2013. Mr. Scott sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

b. FY 2013 Rates and Charges for the Sig­na­to­ry Air Carriers

This item pro­vides infor­ma­tion to the Board con­cern­ing sig­na­to­ry air­line rates and charges for Fis­cal Year 2013 in accor­dance with the air­line use and lease agree­ments that went into effect Octo­ber 1, 2011.

The frame­work of the agree­ment charges one rate for land­ing fees and one rate for ter­mi­nal rental. The land­ing fee rate rep­re­sents the total costs asso­ci­at­ed with oper­at­ing the air­field cost cen­ter and includes all oper­at­ing and main­te­nance costs along with debt ser­vice costs for con­struct­ing the air­field. The ter­mi­nal rental includes both the debt ser­vice and O&M costs in the ter­mi­nal com­plex cost cen­ter and is charged on a rentable square foot calculation.

This frame­work also pro­vides for a rev­enue shar­ing pro­gram with the sig­na­to­ry air­lines after the air­port has paid all oper­at­ing expens­es and annu­al debt ser­vice. In con­junc­tion with the FY 2013 finan­cial audit the air­port has final­ized rates and charges for the sig­na­to­ry air car­ri­ers and deter­mined the rev­enue shar­ing amount for FY 2013.

List­ed below are the over­all results for FY 2013 rates and charges:

This item is for infor­ma­tion pur­pos­es only and required no Board action.

c. Amend­ment to Food and Bev­er­age Con­ces­sion Agreement

This item pro­vides for Board approval to amend the Food and Bev­er­age Con­ces­sion Agree­ment to allow for vend­ing machines and an air­side kiosk.

In an effort to increase non­air­line rev­enues, Staff has been work­ing with First Class Con­ces­sions, the food and bev­er­age con­ces­sion­aire, to amend the cur­rent Food and Bev­er­age Con­ces­sion Agree­ment by adding an air­side kiosk and vend­ing machines in the terminal.

The con­course kiosk would be locat­ed upstairs across from the exist­ing restau­rant loca­tion. It would be dec­o­rat­ed to high­light a coastal theme, and would offer grab-n-go snacks and refresh­ments for pas­sen­gers who may not have time to eat at the restau­rant. The kiosk would offer cof­fee, juice, and muffins in the morn­ing, with ready-made sand­wich­es, sal­ads, cook­ies, chips, ice cream and bev­er­ages avail­able in the after­noon and ear­ly evening. Due to the sea­son­al nature of pas­sen­ger traf­fic, the kiosk would oper­ate from March through August. From Sep­tem­ber through Feb­ru­ary, the kiosk will be con­vert­ed to a self-serve snack sta­tion, with gum­ball-style dis­pensers that dis­pense nuts, var­i­ous can­dies and oth­er pop­u­lar snacks.

The vend­ing machines would be locat­ed down­stairs in the bag­gage claim area. The machines would be wrapped in a full col­or vibrant vinyl print dis­play­ing North­west Flori­da beach­es with accom­pa­ny­ing sig­nage to match. One machine would dis­pense cold bev­er­ages and the oth­er would dis­pense a vari­ety of chips, cook­ies, trail mix, can­dy, gum, and pow­er bars.

Dur­ing the sea­son­al oper­a­tional months of March through August, First Class Con­ces­sions has pro­posed a tiered fixed rent for the air­side kiosk as follows:

• Rev­enues greater than $5,000 per month = $500 per month
• Rev­enues between $2,500 and $5,000 per month = $250 per month
• Rev­enues less than $2,500 per month = $100 per month

For Sep­tem­ber through Feb­ru­ary, the Dis­trict would receive 12% of rev­enues gen­er­at­ed from the self-serve sta­tion. The Dis­trict would receive 12% of rev­enues gen­er­at­ed by the vend­ing machines year-round.

Approval of this amend­ment would have a pos­i­tive impact on the bud­get. Over­all, the Dis­trict is pro­ject­ed to receive an addi­tion­al $6,500 in rev­enues over the course of a year.

Fol­low­ing Board dis­cus­sion, Mr. Bruett made a motion to approve the amend­ment to the food and bev­er­age con­ces­sion agree­ment to allow for the air­side kiosk and vend­ing machines, and autho­riza­tion for the Board Chair­man to exe­cute the required doc­u­ments. Ms. Moliter­no sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Ad Val­orem Tax – T‑Hangars

Mr. McClel­lan advised the Board that he and the airport’s legal coun­sel had attend­ed the final hear­ing of the Val­ue Adjust­ment Board regard­ing the ad val­orem tax issue for the t‑hangars. He stat­ed that the judge had ruled that Spe­cial Dis­tricts are not exempt from tax­es and the Air­port Author­i­ty would be assessed the 2013 tax­es and would have to make pay­ment. He fur­ther stat­ed that the tax­es paid on behalf of any t‑hangar lessee would be col­lect­ed back from the lessee.

Exec­u­tive Direc­tor Reports:

Con­sent Order: Mr. McClel­lan advised the Board that all the require­ments under the Con­sent Order had been ful­filled and the air­port had been released from fur­ther obligation.

Divert­ed Inter­na­tion­al Flight: Mr. McClel­lan advised the Board that dur­ing the month of Jan­u­ary there had been an inter­na­tion­al flight divert­ed to ECP due to bad weath­er in Atlanta, and that the Air­port Police Depart­ment and Unit­ed States Cus­toms were both on scene to ensure there were no issues with the flight.

Delta Air­lines Meet­ing: Mr. McClel­lan advised the Board that Delta Air­lines now con­sid­ers ECP a Main­line Sta­tion, which means that due to pas­sen­ger demand, only Delta jets ser­vice this airport.

Ramp Project: Mr. McClel­lan advised the Board that the ramp project had begun and was on sched­ule and mov­ing forward.

Ground Trans­porta­tion Update: Mr. McConnell advised the Board that a meet­ing had been held with own­ers and man­agers from the ground trans­porta­tion com­pa­nies in order to pre­pare for the Spring Break traffic.

Pub­lic Comments:

There were no pub­lic comments.

Adjourn­ment:

The meet­ing was adjourned at approx­i­mate­ly 10:30 a.m.

Pat­ty Mitchell, Exec­u­tive Sec­re­tary John Pilch­er, Chairman