The Board Meeting of the Panama City-Bay County Airport and Industrial District was called to order at 9:00 a.m., March 24, 2021 by Chair Glen McDonald.
The Invocation was given by Vice Chair Holly Melzer.
The Pledge of Allegiance was led by Chair McDonald.
The Executive Secretary called the roll and indicated all the Board members were present.
Chair McDonald asked if there were any Items on the Agenda, including the Consent Agenda, that any Board member would like to move, and if not, to make a motion to accept the Agenda.
Vice Chair Melzer made a motion to accept the agenda, and Mr. James Johnson seconded the motion. The vote was taken and the motion passed unanimously.
Mr. Parker McClellan presented the Activity Reports.
Mrs. Darlene Gordon presented the Financial Reports.
- Board Meeting Minutes – February 24, 2021
- This Item provided for Board approval of the February 24, 2021 Board Meeting Minutes.
- Approve The St. Joe Company Sublease with Pegasus Aircraft Management LLC d/b/a PAM JETS
This item provided for Board approval of a One-year Sublease of a portion of Hangar 8 between The St. Joe Company and Pegasus Aircraft Management LLC d/b/a PAM JETS, with potential for annual renewals.
In July 2019, The St. Joe Company executed a Land Lease Agreement with the District to construct a hangar. The St. Joe Company is requesting Board approval to sublease a portion of Hangar 8 premises between The St. Joe Company and Pegasus Aircraft Management LLC d/b/a PAM JETS, for one year, with potential for annual renewals, for two aircraft consisting of a Diamond DA-62 and Piper Meridian or other similar-sized aircraft.
Both the St. Joe Company and Pegasus Aircraft Management LLC d/b/a PAM JETS are aware of the location in our corporate hangar area and the expectations of “quiet enjoyment” as defined in the lease.
The approval of this Sublease will have no impact on the FY21 Airport Operating and Capital Budget, and Staff recommended the Board approve the Sublease of Hangar 8 to Pegasus Aircraft Management LLC d/b/a PAM JETS.
- Accept Bid for Bi-Part Sliding Automatic Doors Replacement – Dormakaba USA, Inc.
This item provided for Board approval of the removal of eight (8) doors and the furnishing and installation of eight (8) new, bi-part sliding automatic doors.
This project involves the turnkey acquisition and installation of eight (8) bi-part sliding automatic doors (two doors are considered a set to include an outer, hurricane-rated, door and inner, non-hurricane-rated, door) at each Terminal Building entrance location at the Northwest Florida Beaches International Airport.
An “Invitation to Bid” for “Bi-Part Sliding Automatic Doors” was publicly advertised with a Bid opening on March 16, 2021. Three responsive Bids were received at the Bid opening time of 2:00 p.m. as follows:
Gulf States Door – $164,000.00
C. Lawrence Construction Co. – $88,750.00
Dormakaba USA, Inc. – $68,821.91
This purchase is provided for in the Airport’s FY21 Airport Operating and Capital Budget. The purchase is part of a State of Florida Joint Participation Agreement in which fifty (50) percent of the purchase amount will be reimbursed to the Airport.
Staff recommended Board acceptance of this Bid from Dormakaba USA, Inc. for the acquisition and installation of eight (8) bi-part sliding automatic doors per specification, in amount of $68,821.91.
- Exercise Option One to Extend Nates Sanitation Services, Inc. Waste Removal Services Agreement
This item provided for Board approval to extend the Agreement with Nates Sanitation Services, Inc. Waste Removal Services Agreement for an additional one (1) year term.
Effective June 1, 2018, the Airport entered into a non-exclusive agreement with Nates Sanitation Services, Inc. for waste removal services at the Northwest Florida Beaches International Airport. The contract was for an initial three-year term with two additional one (1) year options.
The monthly service payment is included in the FY21 Operating and Capital Budget, and will also be included in the upcoming FY22 Operating and Capital Budget. Per the Service Agreement the monthly service payment will increase from $1,902.94 permonth to $1,960.03 per month.
Staff recommended Board approval of the Nates Sanitation Services, Inc. Waste Removal Services Agreement first one (1) year renewal option.
- Exercise the Option to Extend SunTrust Bank Automated Teller Machine (ATM) Services Agreement
This item provided for Board approval to extend the Agreement with SunTrust Bank for ATM Services for an additional one (1) year term.
Effective June 21, 2019, the Airport entered into a non-exclusive agreement with SunTrust Bank for two ATMs in the Northwest Florida Beaches International Airport Terminal Building, one (1) in the pre-security area and one (1) in the post-security area. The contract was for a one-year term with two additional one (1) year options and the rental payment is $4,400 per year.
The contract will automatically renew unless either party provides sixty (60) days written notice prior to the renewal date. The rental payment is included in the FY21 Operating and Capital Budget, and will also be included in the upcoming FY22 Budget.
Staff recommended Board approval of the SunTrust Bank ATM Services’ second one (1) year contract renewal option.
Mr. Will Cramer made a motion to approve the Consent Agenda, and Mr. Jay Tusa seconded the motion. The vote was taken and the motion passed unanimously.
- Authorization to Execute Airline-Airport Use and Lease Agreement Amendment 2 with United Airlines, Inc.
This item provided for the Board’s approval to execute an Amendment to the Airline-Airport Use and Lease Agreement with United Airlines for the addition of two (2) ticket counter positions and a Baggage Service Office (BSO).
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.
In the Spring 2018, United Airlines committed to the serve ECP and changed their airlines status from Non-Signatory to becoming the third Signatory Airline.
During the summer of 2020, Amendment 1 to their Agreement was executed, it was the extension to the existing Agreements due to the impacts of COVID-19.
In February, United Airlines met with Staff and requested to amend their lease to include two (2) additional ticket counters located adjacent to their existing counters and to lease the Baggage Service Office (BSO) located in the Baggage Claim Area.
Approval of Amendment 2 will have a positive impact on our FY21 Budget.
Staff recommended that the Board approve the Amendment to the Airline-Airport Use and Lease Agreement with United Airlines, Inc. and authorize the Board Chair to execute all associated documents.
Mr. Johnson made a motion to authorize the execution of the Airline-Airport Use and Lease Agreement Amendment 2 with United Airlines, Inc., and Vice Chair Melzer seconded the motion. The vote was taken and the motion passed unanimously.
- Approve ZHA Task Order #49‑B – Baggage Make-Up Facility Expansion — Preliminary Design and Planning Services
This item provided for the Board’s approval of Task Order #49‑B to ZHA as the Airport’s continuing
engineering consultant to perform Baggage Make-Up Facility Expansion — Preliminary Design and Planning Services.
The Airport opened for commercial air service in May 2010. Double-digit growth rates over the last several years have pushed enplaned passenger levels in excess of 625,000 annually. During peak times throughout the year the Outbound Baggage System and Baggage Make-up Area are at or above capacity.
As part of the Master Plan, an expanded Outbound Baggage System and Baggage Make-up Area will be required to meet the forecasted demand. The first steps of the planning/design effort will be to define the system requirements and evaluate existing and future needs as well as the facility requirements.
The Task Order includes: a detailed scan/survey of the existing Baggage Make-Up Areas and its systems, evaluation of needs based on airport and airline input, and preliminary design and cost estimates.
The successive steps will include a detailed design based on the finding of this preliminary design and planning effort and future construction.
The project includes the design of the Outbound Baggage System and Baggage Make-up Area; construction will be separately funded.
The funding for this effort is included in the FY21 Budget and is partially funded through the Florida Department of Transportation — PTGA 423599 – 3.
Staff recommended the Board approve Task Order #49‑B with ZHA for the Baggage Make-Up Facility Expansion — Preliminary Design and Planning Services.
Mr. McClellan asked ZHA’s Rick Mellin to comment, and Mr. Mellin explained the first part of the Task Order will be a scan that will be a very accurate assessment of what is currently there in terms of equipment and utilities; and the second part will be programming the numbers and anticipated bags for each of the airlines and forwarding that information to the designers.
Mr. Del Lee made a motion to approve Task Order #49‑B to ZHA as the Airport’s continuing engineering consultant to perform Baggage Make-Up Facility Expansion — Preliminary Design and Planning Services, and Mr. Cramer seconded the motion. The vote was taken and the motion passed unanimously.
- COVID-19 Update
- Mr. McClellan addressed the Board and illustrated with a bar graph the passenger counts of last year vs. this year, and reported that due to the ongoing pandemic, a $115 credit will be extended to the Taxi Queues Contracts through the end of the fiscal year, which equates to $20 a month, and stressed the importance of having cabs available for our passengers. Mr. McClellan reported seeing an increase in parking activity.
- Mr. McClellan presented to the Board a spending plan for the CARES 1 Act funding; for the CARES 2 Act – Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA); and potentially CARES 3 Act – American Rescue Plan (ARP) Grants. He informed the Board that the CARES 1 Grant
- for $6,327,925 has been accepted by us; we have applied for the CARES 2 Grant for $3,748,929; and we are anticipating CARES 3 to be approximately $7,100,000.
- Mr. McClellan explained that CARES 1 is the least restrictive of how we spend the money, and Staff recommended using it as follows:
- 2021 — $800,000 (AC Ramp)
- 2021 — $100,000 (HVAC COVID Upgrade)
- 2022 — $300,000 (one additional escalator to the Gate 6 – 7 Terminal Expansion area)
- 2022 — $1,000,000 (Bag Makeup Area)
- $750,000 (any expense for which airport revenues may be lawfully used)
- $2,000,000 (Economic Development)
- $1,350,000 (other and Economic Development)
- Mr. McClellan explained that CARES 2 focuses on debt service payments (drawn as we spend it, reduces Airport expenses, and helps reduce rates to airlines, but is not a proportional increase in revenue), and Staff recommended using it as follows:
- 2021 — $1,500,000
- 2022 — $1,500,000
2022 — $750,000 (Chiller install)
Mr. McClellan explained that CARES 3 focuses on operational expenses and debt service payments, and Staff recommended using it as follows:
- Operational Expenses
- 2023 — $750,000
- 2024 — $750,000
- 2025 — $750,000
- Debt Service Payments
- 2023 — $1,500,000
- 2024 — $1,500,000
- 2025 — $1,500,000
- Concession Relief
- 2022 — $280,000
- Discussion ensued with regard to how the recommendations were developed and how we could maximize the opportunities for the Airport and the airlines.
- This item was for informational purposes only, and required no formal action by the Board.
- Approve Respect of Florida Supplementary Budget Increase Request for Upcoming Seasonal Passenger Increase
This item presented for Board approval an increase to Respect of Florida’s approved budget for janitorial services for FY21.
In the FY21 budget process, Respect of Florida was granted an annual increase based on actual costs incurred over FY20 as a result of constantly changing passenger traffic and an increase in sanitization
efforts as a result of COVID-19. Recently, the Airport requested an increase in the seasonal staffing to
accommodate the additional passenger traffic and sanitization efforts expected on recently released airline schedules. Respect has submitted a request for a supplementary budget increase due to this additional staffing.
These costs will be invoiced to the Airport for the actual expenditures accumulated at the end of the fiscal
year. The estimated increased labor costs equate to 120 hours per week with a focus on weekends and high travel days. The total request for the additional labor cost is not to exceed $46,517. Staff will work
with Respect and Goodwill to minimize the impacts of this effort and control the expenditures.
The funding for these services will be funded through CARES Funding.
Staff recommended the Board approve the supplement budget request from Respect of Florida in the amount of $46,517 to provide janitorial services for the additional passenger traffic and increased sanitation as a result of COVID-19 for the upcoming seasonal peak.
Mr. Cramer made a motion to approve an increase to Respect of Florida’s approved budget for janitorial services for FY21, and Mayor Sheldon seconded the motion. The vote was taken and the motion passed unanimously.
Other Business Item:
- Approve Change of Board Meeting Date from June 23 to June 30
Chair McDonald explained that as more people are vaccinated and COVID cases come down, more conferences are coming back to normal. Chair McDonald asked Mr. McClellan to attend the Routes American Convention in Orlando June 22 – 25, necessitating the need to move the previously schedule June 23 Board Meeting to the following week.
Mr. Johnson made a motion to approve changing the June 23 Board Meeting Date to June 30, and Mr. Tusa seconded the motion. The vote was taken and the motion passed unanimously.
Construction Update (information only):
- Aircraft Parking Apron Expansion
Mr. Richard McConnell reported the site preparation of the Aircraft Parking Apron Expansion Project Phase 1 (the addition to the existing Transient Apron project that was recently completed) is continuing on schedule and expected to be completed early summer.
- Airport Entrance Roundabout and State Road (SR) 388 Realignment
Mr. McConnell reported the Airport Entrance Roundabout portion of the SR 388 Project is on schedule, but there are permitting issues from the Coast Guard for the bridge going over the creeks – related to the pilings and soil – further down the project, unrelated to the Airport portion. Mr. McConnell reported they are continuing with the detour portion that will go around the Roundabout worksite, and when that is complete, they will begin work on the Roundabout. He said they are 48% of the time complete, and 54% of the funds complete for the project.
Bay EDA Update:
Bay EDA President Ms. Becca Hardin was unable to attend the Board Meeting due to another Bay EDA commitment, but Mr. McClellan reported on her behalf regarding Project Gator. Mr. McClellan reported the company hired a consultant to review their Hangar plan – which is done – and where there can be cost savings. He said it is still moving forward, and we will be going back to the Triumph Board in June/July.
The Moore Agency Update:
Katie Spillman of The Moore Agency reported they were challenged by Chair McDonald and Mr. McClellan to come up with creative recommendations to utilize some of the CARES Act funds over and beyond what we have in our fiscal year plan to raise the profile of ECP and increase brand awareness to not only locals, but to tourists and feeder cities.
After Board discussion, five concepts were selected to explore further.
Executive Director Report:
Mr. McClellan addressed the Board and reported space is available to be used in the Gates 6 – 7 area for a Mother’s Room; the Florida Army National Guard has requested an alternate site; and the Airline Lease Agreement negotiations are moving forward to come back to the Board for review and approval in the July timeframe. Mr. McClellan answered Vice Chair Melzer’s inquiry regarding the short 1 hour and 15- minute lead time airline ticket counters open prior to departures (even though passengers are told to arrive 2 hours prior to departure), and Mr. McClellan said he could include a request in the airline negotiations that they look at their staffing and let them know that is a concern of ours.
There were no Public Comments.
The meeting was adjourned at approximately 10:05 a.m.
Kathy Gilmore, Executive Assistant Glen McDonald, Chair