March 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., March 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 except Mr. Ken Nelson.

Reports:

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

Mil­i­tary Wel­come Cen­ter Presentation:

Mr. Steve Geczy, from the Mil­i­tary Wel­come Cen­ter (MWC) at ECP, gave a pre­sen­ta­tion to the Board regard­ing what the MWC does at the Air­port. He spoke about things such as how many vol­un­teers and vis­i­tors there are annu­al­ly, how the pub­lic can help, as well as the wel­come that the MWC and War­rior Watch Rid­ers offer to greet troops. Ms. Car­ol Roberts, of Bay Coun­ty Cham­ber of Com­merce, and Mr. Dar­rell Hertz briefly spoke about the growth and pos­i­tive changes that the MWC has under­gone since it began at ECP. Mr. A.J. Bacon, Sr., Bay Coun­ty Vet­er­ans Coun­cil Pres­i­dent, pre­sent­ed Mr. Park­er McClel­lan with a chal­lenge coin to thank him and the Air­port for all efforts in help­ing the MWC suc­ceed and sup­port­ing all vet­er­ans and troops.

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

Con­sent Agenda:

a. Board Meet­ing Min­utes – Feb­ru­ary 28, 2018

This item pro­vides for Board approval of the Feb­ru­ary 28, 2018 Board Meet­ing Minutes.

b. Accept Bid for Waste Removal Services

This item was moved to the Busi­ness Agenda.

c. Accept Bid for Back­flow Preventers

This item pro­vides for the accep­tance of a bid from Sea­go Fire Pro­tec­tion for replace­ment of four (4) 10-inch back­flow pre­ven­ter valves, test­ing, and certification.

d. Approve Dis­pos­al of Sur­plus Property

This item pro­vides for the Board’s autho­riza­tion for the sale and/​or dis­pos­al of sur­plus inven­to­ry items.

e. Approve Equip­ment Pur­chase – Batwing Mower

This item pro­vides for Board approval for the pur­chase of a 15 foot — batwing, PTO rotary mow­er to be used in sup­port of the Airport’s grounds main­te­nance program.

f. Approve Equip­ment Pur­chase – Zero-turn Mower

This item pro­vides for Board approval for the pur­chase of a 72-inch, zero turn, rotary mow­er to be used in sup­port of the Airport’s grounds main­te­nance program.

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. Release of Restric­tion on Marine Trans­porta­tion Ser­vices, Inc. Property

Marine Trans­porta­tion acquired prop­er­ty through sev­er­al trans­ac­tions from the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict (the ​“Dis­trict”). The prop­er­ty was sub­ject to an option in favor of the Dis­trict and restric­tions aimed at ensur­ing that the prop­er­ty be used for com­mer­cial pur­pos­es. The option aris­es if com­mer­cial activ­i­ty on the prop­er­ty ceas­es and pro­vides for the Dis­trict to repur­chase the prop­er­ty for the orig­i­nal pur­chase price plus the fair mar­ket val­ue of the improve­ments which have been con­struct­ed on the property.

The prop­er­ty is locat­ed in a por­tion of Pana­ma City that is tran­si­tion­ing from indus­tri­al to res­i­den­tial. It appears that the Dis­trict already released the restric­tion from a por­tion of the prop­er­ty pre­vi­ous­ly. The Dis­trict does not have an oppor­tu­ni­ty to exer­cise the option now, because the use of the prop­er­ty still com­plies with the restric­tion. How­ev­er, the own­er would like to explore oth­er oppor­tu­ni­ties for the prop­er­ty with­out it being encum­bered by the restric­tion. Air­port legal coun­sel has reviewed the restric­tion and option close­ly. If an oppor­tu­ni­ty arose in the future for the Dis­trict to exer­cise the option, the valid­i­ty of the option rights would be uncer­tain and would become even less cer­tain at end of a forty-year peri­od that will expire in May 2020. The Dis­trict should antic­i­pate lit­i­ga­tion if the Dis­trict attempts to exer­cise this option and the prop­er­ty own­er would have cred­i­ble argu­ments against the option’s valid­i­ty. Fur­ther­more, the con­di­tion and val­ue of the prop­er­ty has not been stud­ied, although fre­quent­ly decades of indus­tri­al use makes prop­er­ty more com­pli­cat­ed and cost­ly to acquire. More com­plete doc­u­men­ta­tion regard­ing the request and the prop­er­ty records that estab­lished the restric­tion and option is attached. Air­port legal coun­sel would not object to grant­i­ng Marine Transportation’s request.

Air­port legal counsel’s opin­ion is that the Board has author­i­ty to release the restric­tions on the Prop­er­ty, but the deci­sion is a busi­ness mat­ter for the Board’s determination.

Mr. McDon­ald made a motion to approve the request and autho­rize the Board Chair­man or his designee to exe­cute the Ter­mi­na­tion of Pur­chase Options and Restric­tions any oth­er required doc­u­ments, fol­low­ing sat­is­fac­to­ry legal review. Vice Chair­man Lee sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

b. Autho­riza­tion to Exe­cute Airport/​Airline Use Agree­ment (Sig­na­to­ry) with Unit­ed Air­lines, Inc.

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, Unit­ed 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 Unit­ed and is expect­ed to be exe­cut­ed in the next 45 days.

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

c. Ground Trans­porta­tion Concession

Mr. McClel­lan advised the Board that the Oper­at­ing Agree­ment between ECP and Sun­shine Shut­tle will be expir­ing in May and options need to be weighed for Ground Trans­porta­tion at ECP. There were two respon­dents to the Ground Con­ces­sion bid request in 2013 and with Trans­porta­tion Net­works Com­pa­nies now pro­vid­ing ser­vice, it will be even more chal­leng­ing to get respon­sive bids. Dis­cus­sion was held regard­ing things to con­sid­er like cov­er­age for pas­sen­gers arriv­ing on the last flight of the evening, pos­si­bly ter­mi­nat­ing the indoor kiosk, and hav­ing all com­pa­nies take turns in the queue. Ideas need to be con­sid­ered for emer­gency trans­porta­tion in the instance there are no cabs on the curb and no one avail­able from the kiosk. Cur­rent­ly, the Air­port does have a list to uti­lize in this sit­u­a­tion. Staff will present a rec­om­men­da­tion to the Board for mov­ing for­ward at the April Board Meeting.

This item did not require action by the Board.

d. Accept Bid for Waste Removal Services

Mr. McClel­lan dis­cussed the recent­ly dis­trib­uted Invi­ta­tion to Bid for Waste Removal Ser­vices for the North­west Flori­da Beach­es Inter­na­tion­al Air­port. Pric­ing was request­ed for three bid options, as follows:

Bid Option 1 — Dumpsters

Bid Option 2 – Solar Com­pactor at Terminal

Bid Option 3 – Elec­tric Com­pactor at Terminal

• Ter­mi­nal Build­ing Com­pactor As needed
• Rental Car Ser­vice Facil­i­ty 2 6‑yard con­tain­ers with cast­ers 1x per week service
• Main­te­nance Build­ing 1 6‑yard con­tain­er 1x per week service
• Price for unsched­uled pickup

On March 20, 2018 at 2:00 pm, six bids pack­ages were received in accor­dance with the Invi­ta­tion for Bid:

• BCC Waste Solutions
• Coqui Dis­pos­al Services
• Mr. Trash
• Nate’s San­i­ta­tion Ser­vice, Inc.
• Waste Man­age­ment
• Waste Pro

The Air­port is cur­rent­ly under con­tract with Waste Man­age­ment for waste removal uti­liz­ing dump­sters, which is sim­i­lar to Bid Option 1. With the increase in activ­i­ty and amount of waste gen­er­at­ed by air­port oper­a­tions, staff rec­om­mends mov­ing to the use of a com­pactor, which is Bid Option 3. The com­pactor will increase the capac­i­ty as well as improve the esthet­ics at the north end of the Ter­mi­nal. The com­pactor will accom­mo­date both cur­rent and antic­i­pat­ed growth. Only three of the six bid­ders sub­mit­ted bids for com­pactor operations.

Staff rec­om­mends award­ing the con­tract for Bid Option 3 to Nate’s San­i­ta­tion Ser­vice, Inc. at an annu­al cost for the first year of $21,524.52 ($1,793.71 per month). The term of the con­tract will be for three years with the pos­si­bil­i­ty of two addi­tion­al one year options, at the dis­cre­tion of the Air­port to begin on June 1, 2018.

Mr. John­son made a motion to award the bid and to Nate’s San­i­ta­tion Ser­vice, Inc. and autho­rize the Board Chair­man to exe­cute any nec­es­sary doc­u­ments fol­low­ing sat­is­fac­to­ry legal review. Mr. Tusa sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Bay EDA Update:

Ms. Bec­ca Hardin thanked Vice Chair­man Lee and Mr. McClel­lan for the update on ECP that was giv­en at the Bay EDA Investor’s Meet­ing. Ms. Hardin said there is a lot of activ­i­ty going on right now to include: a recent vis­it from the pres­i­dent of the com­pa­ny for Project SoHo, she and Mr. McClel­lan will be attend­ing the MRO show and con­duct­ing twelve meet­ings with com­pa­nies like GKN and the Project Blue Star rep­re­sen­ta­tives, and Mr. Gar­ret Wright will be attend­ing an avi­a­tion inte­ri­or show in Germany.

The Moore Agency Update:

Ms. Jor­dan Jacobs explained changes to the Com­mu­ni­ca­tions Report that make it eas­i­er and faster to get infor­ma­tion about how the mar­ket­ing plan is work­ing for ECP. She dis­cussed what was hap­pen­ing dur­ing Phase 1 of the mar­ket­ing strat­e­gy, like spadeas on the Pana­ma City News Her­ald. Web­site traf­fic is up and the newslet­ters and email blasts for fare sales are doing very well. The num­ber of Insta­gram fol­low­ers exceed­ed the goal for Feb­ru­ary. ECP Perks are still a hit with pas­sen­gers. She also announced that Moore Com­mu­ni­ca­tion Group recent­ly had their 25^th anniver­sary and have under­gone a name change to Moore.

Exec­u­tive Direc­tor Report:

Mr. McClel­lan informed the Board that land at the Air­port is at a pre­mi­um and in order to uti­lize areas out­side Phase 1 there is a require­ment for an EA to be con­duct­ed and a per­mit mod­i­fi­ca­tion be made to the USACE 404 per­mit. This process requires a prospec­tive ten­ant to send a valid let­ter of inter­est. Mr. McClel­lan will have fur­ther dis­cus­sions with Gulf Pow­er about the site cer­ti­fi­ca­tion and if there will be addi­tion­al oppor­tu­ni­ties. In the mean­time, options are being researched as to the per­mit­ting phase for new or prospec­tive tenants.

Ms. Sims would like to fur­ther explore ideas on how to get a bet­ter grip of the advan­tage ECP has for devel­op­ment in Bay County.

Oth­er Business:

Pub­lic Comments:

There were no pub­lic comments.

Adjourn­ment:

The meet­ing was adjourned at approx­i­mate­ly 10:20 a.m.

Tal­isa Price, Exec­u­tive Sec­re­tary Russ Math­is, Chairman