March 2012 Meeting Minutes

Open­ing:

The Board Meet­ing of the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict was called to order at 10:00 a.m., March 28, 2012 in the Air­port Board Room by Chair­man McKenzie.

The Invo­ca­tion was giv­en by Ms. Pat­ty Strick.

The Pledge of Alle­giance was led by Chair­man McKenzie.

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

Approval of Minutes:

The Feb­ru­ary 3, 2012 Spe­cial Board Meet­ing Min­utes, and the Feb­ru­ary 22, 2012 Board Meet­ing Min­utes were approved as distributed.

Reports:

Mr. Wheat pre­sent­ed and reviewed both the activ­i­ty report and the finan­cial report to the Board.

Con­sent Agenda:

There were no items list­ed on the Con­sent Agenda.

Busi­ness Items:

a. New Air­line-Air­port Use and Lease Agreement

This item pro­vides for Board approval of the new Air­line-Air­port Use and Lease Agree­ment for the sig­na­to­ry air car­ri­ers serv­ing the air­port effec­tive Octo­ber 1, 2011.

In May 2010 the air­port entered into an agree­ment with the pas­sen­ger air car­ri­ers estab­lish­ing an inter­im sig­na­to­ry agree­ment to oper­ate at the new air­port and estab­lished rates and charges the air car­ri­ers would pay.

Staff has final­ized nego­ti­a­tions with the pas­sen­ger air car­ri­ers and devel­oped a basic plan that allows for a charge of two basic rates, one for land­ing fees and one 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 rate includes both the debt ser­vice and O&M costs in the ter­mi­nal com­plex cost cen­ter and is charged on a rentable square foot calculation.

In addi­tion, this new agree­ment also pro­vides for a rev­enue shar­ing pro­gram with the air­lines. The rev­enue shar­ing com­po­nent is deter­mined by tak­ing all oper­at­ing rev­enues less oper­at­ing expens­es, cap­i­tal equip­ment, annu­al debt ser­vice and cap­i­tal reserve. The net remain­ing rev­enues are then dis­trib­uted 60% to the air car­ri­ers in FY 2012 and 50% in FY 2013, 2014 and 2015.

The term of the new agree­ment is for four years, begin­ning Octo­ber 1, 2011 and end­ing Sep­tem­ber 30, 2015. Pro­vi­sions in the agree­ment allow the air­port to build cap­i­tal reserves and sets aside $250,000 in FY2013, $500,000 in both FY 2014 and 2015, pri­or to any rev­enue shar­ing cal­cu­la­tion. In addi­tion, the new agree­ment ensures pos­i­tive cash flow for the air­port by allow­ing pay­ment of the remain­ing incen­tive amount to South­west Air­lines over a three year peri­od start­ing in FY 2013. South­west Air­lines will pay full rents and land­ing fees for FY 2012.

Approval of this agree­ment will pro­vide the basis in deter­min­ing air­line rates and charges on an annu­al basis for use in cal­cu­lat­ing the budget.

Fol­low­ing Board dis­cus­sion, Ms. Moliter­no made a motion to approve the new Air­line- Air­port Use and Lease Agree­ment and autho­riza­tion for the Board Chair­man to exe­cute any nec­es­sary doc­u­ments upon review and approval by air­port legal coun­sel. Mr. Bruett sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

b. Envi­ron­men­tal Issues Asso­ci­at­ed with FDEP Con­sent Order #3

This item pro­vides for Board approval of two task orders to ZHA to per­form work asso­ci­at­ed with envi­ron­men­tal issues to be includ­ed in the new Con­sent Order #3.

The air­port received notice of vio­la­tions from the State of Flori­da Depart­ment of Envi­ron­men­tal Pro­tec­tion and notice that a new Con­sent Order #3 would be devel­oped that replaced the pre­vi­ous con­sent orders and addressed all remain­ing envi­ron­men­tal issues.

In an effort to begin work­ing towards com­pli­ance regard­ing the envi­ron­men­tal con­cerns, two task orders have been devel­oped. List­ed below is the work scope and asso­ci­at­ed dol­lar amounts for both task orders:

Stormwa­ter Man­age­ment Sys­tem Analy­sis and Con­cep­tu­al Design Improvements:

This task will pro­vide for the analy­sis of the stormwa­ter man­age­ment sys­tem with focus on the Mor­rell Branch and Kel­ly Branch impacts, as well as with Pond C. Addi­tion­al­ly, this task order will devel­op con­cep­tu­al alter­na­tives that address oper­a­tional defi­cien­cies. The con­cep­tu­al alter­na­tives will include design requirements/​criteria, order-of-mag­ni­tude cost and a poten­tial sched­ule. The total cost of work asso­ci­at­ed with this task order is $113,695.

North Area – West John­ny Reaver Road Assessment:

This task will eval­u­ate the effects of the impacts on the ecosys­tem, as well as oth­er impacts that include, but are not lim­it­ed to, veg­e­ta­tion analy­sis, sed­i­ment eval­u­a­tion, hydrol­o­gy assess­ment and soils assess­ment. Addi­tion­al­ly, this task pro­vides for the devel­op­ment of a com­pre­hen­sive Restora­tion Plan which will include eval­u­a­tion of assess­ment data. The total cost of work asso­ci­at­ed with this task order is $31,037.

Approval of both task orders would impact the bud­get by $144,732. This work was not includ­ed in the FY2012 bud­get; how­ev­er, funds are avail­able to cov­er the expenses.

Fol­low­ing Board dis­cus­sion, Mr. Bruett made a motion to approve the work scopes and task order amounts, and autho­riza­tion for ZHA to per­form the work asso­ci­at­ed with both task orders, with 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.

c. Moore Con­sult­ing Group – Annu­al Review

This item pro­vides for Board review of the work per­formed by Moore Con­sult­ing Group and renew­al of the Mar­ket­ing and Com­mu­ni­ca­tions Con­sul­tant Agreement.

In March 2011, the air­port entered into an agree­ment with Moore Con­sult­ing Group (MCG) for mar­ket­ing and com­mu­ni­ca­tions con­sult­ing ser­vices. The agree­ment pro­vid­ed for a three year term with reviews of their per­for­mance on an annu­al basis.

MCG has per­formed numer­ous tasks over the ini­tial term of their agree­ment rang­ing from the devel­op­ment of an annu­al com­mu­ni­ca­tions plan, web site rede­vel­op­ment, plan­ning the ini­tial anniver­sary cel­e­bra­tion of the airport’s open­ing, and many oth­er tasks work­ing in part­ner­ship with the staff. Staff feels that MCG has per­formed in an excel­lent man­ner and has con­tin­ued to per­form work in the best inter­est of the airport.

Based on their per­for­mance, Staff rec­om­mends approval of the annu­al renew­al with MCG for con­tin­u­a­tion of their agree­ment to pro­vid­ed mar­ket­ing and com­mu­ni­ca­tion ser­vices to the air­port. Fund­ing is avail­able in the FY12 bud­get and will be pro­grammed in the FY13 bud­get for sup­port of this agreement.

Fol­low­ing Board dis­cus­sion, Mr. Scott made a motion to approve the annu­al renew­al of the Pro­fes­sion­al Ser­vices Agree­ment for Mar­ket­ing and Com­mu­ni­ca­tions Ser­vices with Moore Con­sult­ing Group, Inc. for year two of their Agree­ment. Ms. Moliter­no sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Pub­lic Comments:

There were no pub­lic comments.

Adjourn­ment:

The meet­ing was adjourned at approx­i­mate­ly 11:00 a.m. (CST).

Pat­ty Strick, Exec­u­tive Sec­re­tary Andy McKen­zie, Chairman