February 2018 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 28, 2018 by Chair­man Mathis.

The Invo­ca­tion was giv­en by Mrs. Rhon­da Marchman.

The Pledge of Alle­giance was led by Vice Chair­man Del Lee.

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

Chair­man Math­is intro­duced the newest Board Mem­ber, James John­son, appoint­ed by the City of Pana­ma City.

Reports:

Mr. Park­er McClel­lan pre­sent­ed and reviewed the Activ­i­ty Report. Ms. Dar­lene Nel­son pre­sent­ed and reviewed the Finan­cial Report.

An Amend­ed Agen­da was pre­sent­ed to the Board. Mr. Nel­son made a motion to accept the Amend­ed Agen­da. Ms. Sims sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Con­sent Agenda:

a. Board Meet­ing Min­utes – Jan­u­ary 24, 2018

This item pro­vides for Board approval of the Jan­u­ary 24, 2018 Board Meet­ing Minutes.

b. Rat­i­fy Ban­ner Tow Agree­ment – Aer­i­al Mes­sages of Day­tona Inc.

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

c. Approve Lease Agree­ment – Bur­ton Beitz to Dun­nair LLC

This item pro­vides for Board approval of the assign­ment of the Lease Agree­ment between Bur­ton E. Beitz and the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict to Daniel K. Dunn.

d. Autho­riza­tion to Join the State of Flori­da 457 Retire­ment Program

This item was moved to the Busi­ness Agenda.

e. Accept Bid for Spring Fertilizer

This item pro­vides for Board approval for the pur­chase and appli­ca­tion of fer­til­iz­er and lime for approx­i­mate­ly 500 acres of Air­port property.

f. Accept Bid for Rental Car Vehi­cle Lifts

This item pro­vides for the accep­tance of a bid from Reli­able Equip­ment and Lift, Inc. of Lynn Haven, Flori­da to pro­vide and install five (5), two-post, vehi­cle lifts, at the Airport’s Rental Car Ser­vice Facility.

g. Approve FDOT Main­te­nance Agree­ment for the Round­about at the Air­port Entrance

This item pro­vides for the Board’s approval to exe­cute a Land­scape Main­te­nance Agree­ment with the Flori­da Depart­ment of Transportation.

Ms. Sims made a motion to approve the Con­sent Agen­da. Mr. McDon­ald sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Busi­ness Items:

a. Build Out Air­line Tick­et Office Space

The space allo­cat­ed for the Amer­i­can Air­lines Tick­et Office is locat­ed behind the unused tick­et coun­ters and is shell space, mean­ing it only has exte­ri­or walls.

Staff asked ZHA to pre­pare a Task Order for the design, bid/​award and con­struc­tion admin­is­tra­tion. ZHA has sub­mit­ted a Task Order for this effort in a not to exceed amount of $26,000.

The esti­mate pre­pared by ZHA for the build­out is approx­i­mate­ly $135,000 with a design and con­struc­tion sched­ule of 6 to 8 weeks. Antic­i­pat­ed accep­tance date is 4 May 2018.

ZHA will pre­pare the design and prepa­ra­tion of the con­struc­tion doc­u­ments and con­struc­tion will be com­plet­ed by the suc­cess­ful bid of one of our pre­vi­ous­ly approved ver­ti­cal con­trac­tors. Based on this sched­ule Staff and ZHA rec­om­mend the Chair­man autho­rize the con­struc­tion con­tract and the Board rat­i­fy the Chairman’s action.

There may be a need to pur­chase addi­tion­al equip­ment for the gate area, load­ing bridges, tick­et coun­ters, curb sig­nage, and infrastructure/​technology sup­plies at an esti­mat­ed cost of $15,000, with a contingency.

Mr. Nel­son sug­gest­ed that a meet­ing to approve the con­tract was war­rant­ed, with con­cern being the Chair­man tak­ing on the respon­si­bil­i­ty of select­ing the contractor.

Fol­low­ing Board dis­cus­sion, Ms. Sims made a motion to approve a Task Order with ZHA for design, bid/​award, and con­struc­tion man­age­ment ser­vices in an amount not to exceed $26,000; a Bud­get Amend­ment in an amount not to exceed $150,000; and autho­riza­tion for the Board Chair­man or his designee to exe­cute the appro­pri­ate doc­u­men­ta­tion fol­low­ing sat­is­fac­to­ry legal review. Mr. Tusa sec­ond­ed the motion. The vote was tak­en and the motion passed six to one, with Mr. Nel­son vot­ing against it.

b. Bag­gage Make-up Improvements

The Bag­gage Make-Up Area is the areas where checked bags are removed from the con­vey­or sys­tem and sort­ed on carts and tak­en to the air­craft for depart­ing pas­sen­gers. The design of the present bag­gage make up area allows for easy access to three (3) of the four (4) sides of the sys­tem through roll down doors. Access to the fourth side is lim­it­ed due to space constraints.

After dis­cus­sions with air­line staff, it was deter­mined, that in order to make bag­gage han­dling more effi­cient, access to the fourth side of the sys­tem needs to be improved. This can be accom­plished by installing anoth­er roll down door on the fourth side and con­struct­ing a con­crete cart way along the south side of the build­ing con­nect­ing to the ramp.

Staff request­ed that ZHA pre­pare a task order for the design, bid/​award and con­struc­tion man­age­ment of this project. The Task Order has been pre­pared in a val­ue not to exceed $25,300.

Based on the pre­lim­i­nary review of the project, the con­struc­tion cost is esti­mat­ed to be $135,000, which includes con­struc­tion and contingency.

The design and prepa­ra­tion of the con­struc­tion doc­u­ments will be pre­pared by ZHA with the con­struc­tion por­tion being com­plet­ed, via com­pet­i­tive bid, by one of the Airport’s pre­vi­ous­ly approved ver­ti­cal con­trac­tors. Based on the tight com­ple­tion sched­ule, Staff and ZHA rec­om­mend the Chair­man autho­rize the con­struc­tion con­tract and the Board would rat­i­fy the Chairman’s action.

Mr. McDon­ald made a motion to approve a Task Order with ZHA for design, bid/​award, and con­struc­tion man­age­ment ser­vices in an amount not to exceed $25,300; a Bud­get Amend­ment in an amount not to exceed $135,000; and autho­riza­tion for the Board Chair­man or his designee to exe­cute the appro­pri­ate doc­u­men­ta­tion fol­low­ing sat­is­fac­to­ry legal review. Mr. John­son sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

c. Autho­riza­tion to Pro­ceed with Tri­umph Gulf Coast Applications

The Tri­umph Com­mit­tee was estab­lished by the leg­is­la­ture to over­see the expen­di­ture of funds recov­ered by the Flori­da attor­ney gen­er­al for eco­nom­ic dam­ages caused by the BP Deep­wa­ter Hori­zon oil spill.

The Tri­umph Com­mit­tee solicit­ed pre – appli­ca­tion for poten­tial projects which were for­ward­ed through the Bay Coun­ty Com­mis­sion for consideration.

The Air­port sub­mit­ted three (3) projects:

• Project SoHo, an esti­mat­ed 100,000 sf man­u­fac­tur­ing facil­i­ty with an esti­mat­ed cost of $8,500,000
• Project Blue Star, a main­te­nance repair and over­haul facil­i­ty with an esti­mat­ed cost of $10,600,000
• Cross­wind Run­way, a 7,500 foot run­way at ECP would allow addi­tion­al access in dif­fer­ing weath­er con­di­tions at an esti­mat­ed cost of $41,000,000

Fund­ing part­ners for all three projects include the Air­port, FDOT and Tri­umph Gulf Coast, Inc. Space Flori­da would be a fund­ing part­ner for Projects SoHo and Blue Star, who pro­vide pre­ferred fund­ing mech­a­nisms and sig­nif­i­cant tax sav­ings. The FAA would also be includ­ed as a fund­ing part­ner for the Cross­wind Runway.

Staff has had dis­cus­sions with var­i­ous enti­ties to assist in the devel­op­ment of the for­mal appli­ca­tion includ­ing the Uni­ver­si­ty of West Flori­da – Haas Cen­ter. Fol­low­ing a meet­ing with the Haas Cen­ter, they pro­vid­ed Staff with a let­ter out­lin­ing the ser­vices as well as a cost esti­mate to devel­op the for­mal appli­ca­tion. Staff has reviewed the let­ter and ser­vices and rec­om­mends the Hass Cen­ter be uti­lized to assist in the devel­op­ment of the for­mal application.

Fol­low­ing dis­cus­sion, Vice Chair­man Lee made a motion to autho­rize Staff to pro­ceed with the devel­op­ment and sub­mis­sion of for­mal appli­ca­tion for the three projects iden­ti­fied as Project SoHo, Project Blue Star and the Cross­wind Run­way and autho­riza­tion for the Exec­u­tive Direc­tor to engage the Uni­ver­si­ty of West Flori­da – Haas Cen­ter to assist in the devel­op­ment of the appli­ca­tion in an amount not to exceed $25,000. Mr. McDon­ald sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

d. Autho­riza­tion to Exe­cute Airport/​Airline Use Agree­ment – Amend­ment – with South­west Airlines

On May 17, 2010, the Air­port entered into an agree­ment with the pas­sen­ger air car­ri­ers estab­lish­ing an inter­im sig­na­to­ry agree­ment to oper­ate at the new air­port and estab­lish rates and charges the air car­ri­ers would pay. These charges were based on the old rates paid at the old air­port. At the Sep­tem­ber 28, 2011 meet­ing the Board approved adjust­ed rates and charges based on the busi­ness mod­el being nego­ti­at­ed with the air car­ri­ers and on March 28, 2012 approved an Air­line- Air­port Use and Lease Agree­ment effec­tive from Octo­ber 1, 2011 through Sep­tem­ber 30, 2015. In Sep­tem­ber 2015, the Board approved a five (5) year Air­line-Air­port Use and Lease Agree­ment effec­tive from Octo­ber 1, 2015 through Sep­tem­ber 30, 2020.

On Feb­ru­ary 23, 2018, South­west Air­lines sent a let­ter advis­ing their intent to Lease an addi­tion­al gate and asso­ci­at­ed hold room at ECP. This Amend­ment would take effect upon exe­cu­tion of the Amend­ment and con­tin­ue through the term of the Agree­ment, Sep­tem­ber 30, 2020.

Ms. Sims made a motion to approve the Amend­ment to the Air­line-Air­port Use and Lease Agree­ment with South­west Air­lines, Inc. and autho­rize the Board Chair­man to exe­cute all asso­ci­at­ed doc­u­ments upon sat­is­fac­to­ry legal review. Mr. Tusa sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

e. Autho­riza­tion to Exe­cute Airport/​Airline Use Agree­ment (Sig­na­to­ry Agree­ment) with Amer­i­can Airlines

On May 17, 2010, the Air­port entered into an agree­ment with the pas­sen­ger air car­ri­ers estab­lish­ing an inter­im sig­na­to­ry agree­ment to oper­ate at the new air­port and estab­lish rates and charges the air car­ri­ers would pay. These charges were based on the old rates paid at the old air­port. At the Sep­tem­ber 28, 2011 meet­ing the Board approved adjust­ed rates and charges based on the busi­ness mod­el being nego­ti­at­ed with the air car­ri­ers and on March 28, 2012 approved an Air­line- Air­port Use and Lease Agree­ment effec­tive from Octo­ber 1, 2011 through Sep­tem­ber 30, 2015. In Sep­tem­ber 2015, the Board approved a five (5) year Air­line-Air­port Use and Lease Agree­ment effec­tive from Octo­ber 1, 2015 through Sep­tem­ber 30, 2020.

The frame­work of the busi­ness deal is to charge two basic rates, one for land­ing fees and one for ter­mi­nal rental. This busi­ness frame­work also calls for a rev­enue shar­ing pro­gram with the air­lines after all oper­at­ing expens­es, cap­i­tal equip­ment, cap­i­tal reserve and annu­al debt ser­vice have been paid. The agree­ment also builds cap­i­tal reserves and sets aside up to $2,800,000 over the term of the Agree­ment pri­or to any rev­enue shar­ing calculation.

The air­lines that present­ly are Sig­na­to­ry to this Agree­ment are Delta and South­west. Recent­ly, Amer­i­can Air­lines, Inc. advised us they intend to exe­cute the Air­line-Air­port Use and Lease Agree­ment and become a sig­na­to­ry air car­ri­er. The Agree­ment has been pro­vid­ed to Amer­i­can and is expect­ed to be exe­cut­ed in the next 45 days.

Mr. McClel­lan said that it is expect­ed that Amer­i­can Air­lines will bring in new pas­sen­gers as well as attract pas­sen­gers from oth­er air­ports. This is due in part to offer­ing Char­lotte as a non­stop des­ti­na­tion and com­pe­ti­tion to Dallas/​Fort Worth. Com­pet­i­tive fares may also be a factor.

Mr. John­son made a motion to approve exe­cu­tion of the Air­line-Air­port Use and Lease Agree­ment with Amer­i­can Air­lines, Inc. and autho­rize the Chair­man to exe­cute all nec­es­sary doc­u­ments upon sat­is­fac­to­ry legal review. Mr. McDon­ald sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

f. Autho­riza­tion to Join the State of Flori­da 457(b) Deferred Com­pen­sa­tion Program

The Dis­trict cur­rent­ly has a 457 Group Deferred Annu­ity Pol­i­cy with Relias­tar Life Insur­ance Com­pa­ny that was adopt­ed in 1999. This plan involves using an insur­ance agent for any par­tic­i­pant activ­i­ty and lacks invest­ment options. The plan cur­rent­ly has four employ­ees par­tic­i­pat­ing and it is not accept­ing new enrollees.

The State of Flori­da Divi­sion of Trea­sury offers Spe­cial Dis­tricts the abil­i­ty to par­tic­i­pate in its IRC 457(b) Deferred Com­pen­sa­tion Pro­gram by. This Pro­gram allows employ­ees to con­tribute to the plan on a pre-tax basis with self-direct­ed invest­ment. It boasts in excess of $4 bil­lion in plan assets and offers six invest­ment com­pa­nies includ­ing Nation­wide, Empow­er, VAL­IC, T. Rowe Price, Charles Schwab, and VOYA.

Par­tic­i­pants are able to rollover funds from oth­er Pre-Tax Sav­ings Plans, enroll at any time with access to par­tic­i­pants’ accounts via a ded­i­cat­ed web­site, and no admin­is­tra­tive or main­te­nance fees or com­mis­sions are charged.

The State of Flori­da han­dles all report­ing require­ments, pro­vides Dis­trict employ­ees infor­ma­tion on the plan and invest­ment options, and han­dles the rollover process for those wish­ing to move funds from oth­er plans. Addi­tion­al­ly, ongo­ing train­ing oppor­tu­ni­ties for Dis­trict Employ­ees is offered with regard to the ben­e­fits of par­tic­i­pa­tion in the Plan.

Ms. Sims made a motion to autho­rize the Exec­u­tive Direc­tor or his designee to exe­cute the nec­es­sary doc­u­ments to become a mem­ber of the State of Flori­da IRC 457(b) Deferred Com­pen­sa­tion Plan and for the ter­mi­na­tion of the 457 Group Deferred Annu­ity Pol­i­cy with Relias­tar Life Insur­ance Com­pa­ny when cur­rent par­tic­i­pants are no longer con­tribut­ing. Vice Chair­man Lee sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Bay EDA Update:

Ms. Bec­ca Hardin updat­ed the Board on the sta­tus of EDA projects and activ­i­ty. Over the last month there have been three prospect vis­its, 23 active projects and five hot prospects. Ms. Hardin and Mr. McClel­lan with attend the MRO Amer­i­c­as Show in April and will meet with rep­re­sen­ta­tives for Project Blue Star. Rep­re­sen­ta­tives for Project SoHo will be vis­it­ing Bay Coun­ty and the Air­port in March. They will dis­cuss their time­line and the desire to accel­er­ate it. In April, Gar­ret Wright will attend the Air­craft Inte­ri­ors Expo in Ger­many with Enter­prise Amer­i­ca. Ms. Hardin also announced that GKN had intro­duced their Gen­er­al Man­ag­er, Pre­ston Math­is, and wel­comed their first wave of employ­ees. Bay EDA is con­sis­tent­ly try­ing to recruit new com­pa­nies to the area and is work­ing with the Bay Coun­ty Cham­ber of Com­merce to high­light what there is to offer. Dis­cus­sion took place that there is a need to acquire and approve addi­tion­al sites at the Air­port. Ms. Hardin also informed the Board that Vice Chair­man Lee will be the guest speak­er at the next Bay EDA Investor meeting.

Moore Com­mu­ni­ca­tion Group Update:

Ms. Katie Spill­man gave a pre­sen­ta­tion to the Board high­light­ing the new way they will be report­ing num­bers and sta­tis­tics regard­ing adver­tis­ing. In the last month, ECP has received great expo­sure and many com­pli­ments from dig­i­tal ads, news­pa­per ads and the Super Bowl commercials.

Exec­u­tive Direc­tor Report:

Mr. McClel­lan intro­duced Ms. Leslie Over­mi­er. Sheltair Man­ag­er, Mike Ler­ma, has been pro­mot­ed to Region­al Vice Pres­i­dent and Ms. Over­mi­er will be the inter­im. Sheltair is cur­rent­ly pro­ject­ing their new hangar to be com­plet­ed in Sep­tem­ber. The hangar space has been account­ed for quick­ly and they may need to con­sid­er build­ing anoth­er hangar. Ms. Over­mi­er also remind­ed the Board that Wings of Free­dom will be tak­ing place for the next few days, show cas­ing vin­tage aircraft.

Mr. McClel­lan informed the Board that the Exit Lane is 98% com­plete. GAC has com­plet­ed the con­struc­tion and Tyco is work­ing to fin­ish the tech­nol­o­gy por­tion. Once every­thing is cer­ti­fied by TSA, it will move for­ward as an auto­mat­ed exit lane.

The FEMA project work for the storm drainage held up well with the recent rain­fall, with only one area of ero­sion that will need fur­ther assessment.

Mr. McClel­lan addressed the Board about the sand pile between West Bay Park­way and John­ny Reaver Road, say­ing that efforts are being made to improve its appear­ance, as well as uti­lize it in upcom­ing projects until it is gone. Sev­er­al of the upcom­ing projects will uti­lize the sand as part of the con­struc­tion process.

Mr. McClel­lan announced that DeTect has asked to con­tin­ue their part­ner­ship with ECP by par­tic­i­pat­ing in the Air­port Coop­er­a­tive Research Pro­gram (ACRP). By work­ing with DeTect in the past, ECP has received very pos­i­tive atten­tion for being the only air­port in the Unit­ed States with drone and bird detec­tion radar.

Mr. McClel­lan advised the Board that the last few weeks have been extreme­ly busy and he would have his per­for­mance eval­u­a­tion to them as soon as possible.

Mr. McClel­lan informed the Board that Staff is cur­rent­ly research­ing ways to expand the Ter­mi­nal for future growth at ECP. The plans that have been approved in this meet­ing are a tem­po­rary fix and the Board will be pre­sent­ed with expan­sion options for dis­cus­sion at an upcom­ing meeting.

Oth­er Business:

Ms. Sandy Sims intro­duced Mr. Verdell Hawkins. Mr. Hawkins is the new Eco­nom­ic Devel­op­ment Man­ag­er for Gulf Pow­er and Ms. Sims invit­ed him to the Board meet­ing to get him acquaint­ed with the cur­rent and future hap­pen­ings of the Airport.

Mr. Jay Tusa announced that the Wal­ton Coun­ty Board of Com­mis­sion­ers approved a real­lo­ca­tion of funds in the amount of $75,000 to be used in mar­ket­ing the arrival of Amer­i­can Air­lines. Those adver­tis­ing efforts will begin rolling out in March.

Pub­lic Comments:

There were no pub­lic comments.

Adjourn­ment:

The meet­ing was adjourned at approx­i­mate­ly 10:00 a.m.

Tal­isa Price, Exec­u­tive Sec­re­tary Russ Math­is, Chairman