The Board Meet­ing of the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict was called to order at 9:01 a.m., July 24, 2019 by Chair­man Lee.

The Invo­ca­tion was giv­en by Mr. Russ Mathis.

The Pledge of Alle­giance was led by Chair­man Lee.

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

Mr. Math­is made a motion to accept the Agen­da. Vice Chair­man McDon­ald sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Elec­tion of Officers:

Ms. Sims made a motion to retain Mr. Del Lee as Chair­man and Mr. Glen McDon­ald as Vice Chair­man of the Board. Mr. Tusa sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously. 


Mr. Park­er McClel­lan pre­sent­ed and reviewed the Activ­i­ty Reports.

Ms. Dar­lene Nel­son pre­sent­ed and reviewed the Finan­cial Reports.

Con­sent Agenda:

a. Board Meet­ing Min­utes – June 262019

This item pro­vid­ed for Board approval of the June 26, 2019 Board Meet­ing Minutes.

b. Exer­cise Option to Extend The Moore Agency Agreement

This item requests approval by the Board to extend the Agree­ment with The Moore Agency for an addi­tion­al two (2) year term. Effec­tive Octo­ber 1, 2016 the Air­port entered into an Agree­ment with Moore Com­mu­ni­ca­tions Group (“Moore”) for adver­tis­ing, mar­ket­ing and pub­lic rela­tions ser­vices. The Agree­ment pro­vid­ed for a three (3) year term with an addi­tion­al two (2) year term renew­al option.

Moore pro­vides inte­grat­ed com­mu­ni­ca­tions ser­vices for ECP includ­ing the fol­low­ing: Pub­lic Rela­tions Coun­sel, Pub­lic Rela­tions, Adver­tis­ing, Brand­ing, Com­mu­ni­ty Rela­tions, Coop­er­a­tive Pro­grams, Cri­sis Com­mu­ni­ca­tion, Direct Mail, Mar­ket­ing, Pub­lic Affairs, Mar­ket Research, Media Rela­tions and Track­ing, Pro­mo­tion­al Mate­ri­als, Spe­cial Events, Social Media, Graph­ic Design, Web­site Main­te­nance, Brochure Design, and Emer­gency Man­age­ment Com­mu­ni­ca­tion Plan­ning. The Agree­ment is can­cellable by either par­ty with 30 days writ­ten notice.

Staff is hap­py with the work­ing rela­tion­ship and the ser­vices pro­vid­ed by Moore and rec­om­mend exer­cis­ing the two (2) year renew­al option at the same terms and con­di­tions as the orig­i­nal Agree­ment with no rate increase.

c. Approve Land Lease Name Change – N850J, LLC to St. Joe Com­pa­ny, Inc.

This item pro­vides for Board approval of a ten­ant name change for a Land Lease between the Dis­trict and N850J, LLC.

Dur­ing the May, 2019 Air­port Board meet­ing, a hangar land lease was approved for N850J, LLC. Upon review of the lease by N850J, LLC, it was deter­mined the lease would be bet­ter posi­tioned if it were held by the St. Joe Com­pa­ny, the par­ent com­pa­ny of N850J, LLC. As the lease has not yet been exe­cut­ed by the Dis­trict, Staff is request­ing a sim­ple name change on the lease from N850J, LLC to St. Joe Com­pa­ny. All oth­er pro­vi­sion of the lease remain unchanged.

The FY20 Air­port Oper­at­ing and Cap­i­tal Improve­ment Bud­get would be pos­i­tive­ly impact­ed by the amount of rev­enue from this lease. Month­ly rev­enue gen­er­at­ed would be approx­i­mate­ly $1,057.00 ($12,684.00 annually).

d. Approve Lease Assign­ment – Daniel Dunn to Steve Locklear

This item pro­vides for Board approval of the assign­ment of the Thir­ty (30) Year Land Lease Agree­ment (Octo­ber 10, 2011) between Daniel Dunn and the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict (Dis­trict) to Steve Locklear.

Staff was recent­ly con­tact­ed by Daniel Dunn, and informed he had sold his hangar, locat­ed at 5231 John­ny Reaver Road #5, to Steve Lock­lear, and request­ed con­sent and approval from the Dis­trict to assign the lease to Steve Locklear.

Under the cur­rent Lease Agree­ment between Daniel Dunn and the Dis­trict, Mr. Dunn can­not assign or oth­er­wise trans­fer rights and oblig­a­tions under the lease with­out the pri­or writ­ten con­sent from the District.

e. Approve Pur­chase of Bag­gage Carousel Replace­ment Pal­let Blades – ERMC Avi­a­tion Services

This item pro­vides for Board approval for the pur­chase and instal­la­tion of replace­ment pal­let blades for the out­go­ing bag­gage carousel.

The Air­port owns, oper­ates, and main­tains (through a con­tract­ed ser­vice provider), a bag­gage con­veyance sys­tem to facil­i­tate the move­ment of inbound and out­bound bag­gage through the Air­port Ter­mi­nal Facil­i­ty. One of the bag­gage sys­tem com­po­nents, the out­bound bag­gage carousel locat­ed in the bag make-up area of the Ter­mi­nal, is made up of 130 pal­let-type blades that, over the course of near­ly 10 years of con­tin­u­ous use, have dete­ri­o­rat­ed and worn to the point of requir­ing replace­ment. The blades have, in some cas­es, worn to the point of hav­ing knife-like sharp edges.

Since the bag­gage carousel is con­sid­ered oper­a­tional crit­i­cal equip­ment, it is rec­om­mend­ed the pal­let blades be replaced. The life of these com­po­nents is based on usage rather than time and our increased usage over the last sev­er­al years neces­si­tates the replace­ment. The fail­ure of this sys­tem would have a sig­nif­i­cant adverse impact on the oper­a­tion of the Airport.

Staff rec­om­mends Board approval of the pur­chase and instal­la­tion of replace­ment bag­gage carousel pal­let blades from our sys­tem main­te­nance con­trac­tor ERMC Avi­a­tion Ser­vices (blades to be Own­er Direct­ed Pur­chase with instal­la­tion by ERMC Avi­a­tion Ser­vices) for a total amount not to exceed $55,000 and the real­lo­ca­tion of funds to cov­er the expen­di­ture. This expen­di­ture is unbud­get­ed and fund­ing is avail­able in the cur­rent budget.

f. Approve Secu­ri­ty Sys­tem Soft­ware Ser­vice Agree­ment – All­com Glob­al Ser­vices, Inc.

This item pro­vides for Board approval of a soft­ware main­te­nance agree­ment in sup­port of the Airport’s com­put­er­ized secu­ri­ty sys­tem. The Air­port owns and oper­ates a com­plex, com­put­er­ized secu­ri­ty sys­tem that includes access con­trol, CCTV, and badg­ing com­po­nents. The inte­grat­ed soft­ware (AMAG) asso­ci­at­ed with this sys­tem requires ongo­ing ser­vice and soft­ware updat­ing that can only be per­formed by autho­rized soft­ware inte­gra­tors. All­com is an autho­rized soft­ware ser­vice provider for the Airport’s Secu­ri­ty Sys­tem soft­ware (AMAG). Staff rec­om­mends Board approval of the AMAG soft­ware ser­vice agree­ment from All­com Glob­al Ser­vices, Inc. of Lake St. Louis, Mis­souri in an amount not to exceed $23,046.25.

Mr. Nel­son made a motion to accept the Con­sent Agen­da, and Mr. Math­is sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Busi­ness Items:

a. Pre­sen­ta­tion of Com­pen­sa­tion Study – Ever­green Solu­tions, LLC

Mr. Brad Brack­ins, senior ana­lyst of Ever­green Solu­tions, LLC, pre­sent­ed to the Board how their ECP Employ­ee Com­pen­sa­tion Study was per­formed, how they came up with their find­ings, how the study was con­duct­ed, where they went to mar­ket to sur­vey employ­ees’ salaries and ben­e­fits, and the rec­om­men­da­tions they cre­at­ed. This item was for infor­ma­tion­al pur­pos­es only and a dis­cus­sion ensued. No for­mal action was required. Staff will make rec­om­men­da­tions to be pre­sent­ed to the Board dur­ing the Sep­tem­ber Bud­get Workshop.

b. Mas­ter Plan Update

Mr. Paul Puck­li, vice pres­i­dent of CHA, pre­sent­ed to the Board an update on the Air­port Mas­ter Plan. He explained the mas­ter plan­ning process and where we are to date, the fore­cast of pas­sen­ger enplane­ments and oper­a­tions in com­par­i­son to the FAA’s Ter­mi­nal Area Fore­cast (TAF), the land use eval­u­a­tion study, and the next activities.

Mr. Puck­li explained that the progress to date includes fin­ish­ing up the fore­cast work­ing paper that pro­vides the fore­cast of avi­a­tion activ­i­ty with rec­om­men­da­tions to be pre­sent­ed to Staff for their review and then post­ed on ECP web­site, and that the land use plan­ning study is in a draft for­mat and a report has been sub­mit­ted to Staff for review.

Mr. Puck­li report­ed that the fore­cast avi­a­tion activ­i­ty is one of two por­tions of the Mas­ter Plan­ning Process that needs to be sub­mit­ted to the FAA and FDOT for approval so that it is in line with state and FAA pro­jec­tions. The fore­cast looks at 5‑, 10‑, and 20- year mile­stones, and the process includes iden­ti­fy­ing the Air­port ser­vice area; estab­lish­ing base­line activ­i­ty data; iden­ti­fy­ing socioe­co­nom­ic fac­tors; devel­op­ing Air­port activ­i­ty assump­tions; gen­er­at­ing a fore­cast sce­nario; and select­ing a pre­ferred fore­cast scenario(s). He added that once the FAA and FDOT approve the fore­cast, we can then move for­ward with the plan­ning process and look­ing at defi­cien­cies at the Air­port and improve­ments that might be needed.

Mr. Puck­li fur­ther explained that the fore­cast method­olo­gies they looked at includ­ed a Mar­ket Share Sce­nario (applies growth rates of nation­al, region­al, and state fore­casts to ECP’s exist­ing and his­tor­i­cal activ­i­ty totals – which was used the last time we did the Mas­ter Plan, but the FDOT had not updat­ed the mar­ket share for air­ports across the state since we did the Mas­ter Plan orig­i­nal­ly, so it did not show all of VPS’ and ECP’s growth since the new Air­port opened); Regres­sion Sce­nario (uses cor­re­la­tions between socioe­co­nom­ic rates such as pop­u­la­tion, gross region­al prod­uct, and tourism vis­its); Trend Sce­nario (uses 3‑, 5‑, and 10-year trends based on his­toric air­port activ­i­ty to project future growth rates); Ter­mi­nal Area Fore­cast Based Growth Sce­nario (uses the growth rate as deter­mined by the FAA’s TAF); and an Air Ser­vice Sce­nario (to include the pos­si­bil­i­ty of the grad­ual addi­tion of ser­vice to a Mid­west hub and a North­east hub with­in the next 5 – 10 years). The Air Ser­vice Sce­nario was used as the pre­ferred fore­cast sce­nario and will be pre­sent­ed to the FAA and FDOT for approval.

Mr. Puck­li report­ed on the exist­ing Air­port activ­i­ty lev­els for both his­tor­i­cal enplane­ments, and his­tor­i­cal oper­a­tions; the exist­ing air ser­vice (four air­lines, 14 non­stop des­ti­na­tions with AA adding DCA in Jan. 2020; increased from only two air­lines with five des­ti­na­tions in 2010); the Catch­ment Area (the core con­tains 3 coun­ties, the full area con­tains 10 coun­ties in north­west Flori­da and south­east Alaba­ma; VPS, and TLH); the FAATer­mi­nal Area Fore­cast with 2018 as the base­line year (with 504,330 enplane­ments) through the year 2039 with an expect­ed 1,050,950 enplane­ments; the FAA Ter­mi­nal Area Fore­cast (enplane­ments fore­cast vs. TAF, and Oper­a­tions Fore­cast vs. TAF); and the rec­om­mend­ed Fore­cast vs. FAA TAF​.Mr. Puck­li asked Mr. Aaron Kurtz, senior asso­ciate from Jones Lang LaSalle (JLL) who spe­cial­izes in com­mer­cial real estate ser­vices and prop­er­ty invest­ment strate­gies, to present on the land use eval­u­a­tion update.

In con­sul­ta­tion with CHA, JLL was tasked to explore oppor­tu­ni­ties for non-aero­nau­ti­cal com­mer­cial devel­op­ment on lands owned by the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict at ECP. JLL’s approach was to deter­mine the devel­op­ment poten­tial based on exist­ing con­di­tions, assess demo­graph­ic and eco­nom­ic trends, and ana­lyze the mar­ket to under­stand trends for office, indus­tri­al, and hos­pi­tal­i­ty in Bay Coun­ty (includ­ing iden­ti­fy­ing the com­pet­i­tive environment).

Mr. Kurtz iden­ti­fied two poten­tial devel­op­ment sites for com­mer­cial, non-avi­a­tion land uses: Site 1 is 31.5 acres and is locat­ed at the south end of ECP; Site 2 is 124.6 acres and is locat­ed at the north end of ECP. Mr. Kurtz report­ed the eval­u­a­tions of both sites’ devel­op­ment poten­tial (enti­tle­ments and land use, infra­struc­ture, con­fig­u­ra­tion, envi­ron­men­tal, region­al plan­ning, and an over­all evaluation).

Mr. Puck­li con­clud­ed his pre­sen­ta­tion by sum­ma­riz­ing the next activ­i­ties: the fore­cast work­ing paper num­ber one (inven­to­ry) will be re-pre­sent­ed to Staff and post­ed on the web­site, the fore­cast avi­a­tion activ­i­ty work­ing paper num­ber two will be sub­mit­ted to the FAA and FDOT for approval, Demand Capac­i­ty and Facil­i­ty Require­ments Analy­sis will be under­way, and the sec­ond Plan­ning Advi­so­ry Com­mit­tee (PAC) meet­ing will be held in Sep­tem­ber. A dis­cus­sion ensued. This item was for infor­ma­tion­al pur­pos­es only. No for­mal action was required.

c. Review Air­port Board Guidelines

Mr. Nick Ben­i­nate, attor­ney for the Air­port, report­ed to the Board that fol­low­ing new leg­is­la­tion, noth­ing changed that would impact the Board Guide­lines this year. He added that in 2022 the Board will have to file their annu­al finan­cial dis­clo­sures – income and debts – elec­tron­i­cal­ly, and the only noti­fi­ca­tion that it will be due will be an email which they will be respon­si­ble for notic­ing. This item was for infor­ma­tion­al pur­pos­es only. No for­mal action was required.

Pre­sen­ta­tion: State Road 388 Con­struc­tion Update:

Mr. McClel­lan report­ed that fol­low­ing our busy sea­son and the Labor Day week­end in Sep­tem­ber, we will begin to see sig­nif­i­cant activ­i­ty for six to eight months as the con­trac­tor moves to the Air­port Entrance Round­about area to start work­ing with the required sur­charge and Air­port Entrance Sign removal, and at that time we’ll be down to one lane in and one lane out.

Richard McConnell added that the most activ­i­ty is hap­pen­ing out in the trees as they clear area for the realign­ment sec­tion. Mr. McConnell report­ed that the con­trac­tor has been on sched­ule, find­ing no issues.

The Bay EDA Update:

Ms. Bec­ca Hardin, Pres­i­dent of Bay EDA had to leave the meet­ing ear­ly, and Mr. McClel­lan report­ed on her behalf that Project Mas­ter­mind is still a very active, high lev­el project and is ongo­ing; and ECP Staff is work­ing with Bay EDA as we do our due dili­gence with Space Flori­da on Project Gator.

The Moore Agency Update:

Ms. Katie Spill­man of The Moore Agency report­ed that Super Sum­mer Week­ends launched in June with enhanced flight sched­ules, new non­stop ser­vice announce­ments (includ­ing between ECP and Chica­go on Unit­ed Air­lines and Amer­i­can Air­lines; and between ECP and Kansas City on South­west Air­lines), inau­gur­al flights, and cel­e­brat­ed with on-site pas­sen­ger and media engage­ment (cook­ies and cus­tom ECP-brand­ed lug­gage tags), two water can­non salutes, and ampli­fied mes­sag­ing on owned media chan­nels (ECP newslet­ter and social media plat­forms). Ms. Spill­man report­ed that Google and Bing dig­i­tal adver­tis­ing ran, and so did a local major dai­ly news­pa­per adver­tise­ment, dur­ing which we saw an 11% increase in traf­fic and a 25% increase in air­line clicks from direct traffic.

Ms. Spill­man added that as a result of the cam­paign we saw 18K impres­sions, 637 air­line web­site click con­ver­sions, 196 assist­ed con­ver­sions, 1,741 Escape page views, over 22K new web­site vis­i­tors, and almost 45K total ses­sions. She said 21% of our sub­scribers opened the newslet­ter (the indus­try aver­age is 17%), and we had 2M earned media impres­sions. She said that we con­tin­ue to pace well against our Dash­board goals and our key per­for­mance indi­ca­tors are on track to meet our goals at the end of our fis­cal year; and that we saw out­stand­ing social media engage­ment across all channels.

Ms. Spill­man report­ed our top per­form­ing organ­ic social media post was an ani­mat­ed ad cre­ative graph­ic show­ing the non­stop and direct des­ti­na­tions by flip­ping through all the air­port codes on lug­gage tags.

Exec­u­tive Direc­tor Report:

Mr. McClel­lan report­ed that we are in the process of putting togeth­er the bud­get, and Hur­ri­cane Michael is pre­sent­ing a chal­lenge (i.e., rental car num­bers were very high, not the norm). Mr. McClel­lan report­ed that the TSA Check­point has been realigned with new queue and equip­ment, bring­ing the wait time down to 14 min­utes at our peak time, pre­vi­ous­ly a 40- to 40 plus-minute wait. He con­tin­ued that in late

Octo­ber we antic­i­pate there will be new tech­nol­o­gy com­ing to the Check­point, which will speed up that process even more.

Mr. McClel­lan showed a pic­ture of the Ramp Expan­sion Project. He said the Ramp Expan­sion Project is nec­es­sary to begin the esti­mat­ed $4.5M Ter­mi­nal Expan­sion Project (dead­line for Bids today) and report­ed that the Ramp Repair Project (need­ed before the Ramp Expan­sion Project) is fin­ished. He con­tin­ued that we also have sub­mit­ted to the FAA a new Taxi­way Project, and a 300600 Tran­sient Apron Park­ing Ramp for large air­craft (work­ing with the EDA), and that sev­er­al of these projects are mul­ti-year projects because we only have $9M in FAA enti­tle­ments, and these are $10M projects.

Pub­lic Comments:

There were no pub­lic comments.


The meet­ing was adjourned at approx­i­mate­ly 10:41 a.m.

___________________________ ___________________________

Kathy Gilmore, Exec­u­tive Sec­re­tary Del Lee, Chairman