March 2021 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 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.

Reports:

Mr. Park­er McClel­lan pre­sent­ed the Activ­i­ty Reports.

Mrs. Dar­lene Gor­don pre­sent­ed the Finan­cial Reports.

Con­sent Agenda:

1. Board Meet­ing Min­utes – Feb­ru­ary 24, 2021
3. This Item pro­vid­ed for Board approval of the Feb­ru­ary 24, 2021 Board Meet­ing Minutes.
5. 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.

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1. 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.

1. 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. 

1. 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.

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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.

Busi­ness Items:

1. 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.

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1. 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.

1. COVID-19 Update
3. 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. 
5. 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
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10. 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.
12. Mr. McClel­lan explained that CARES 1 is the least restric­tive of how we spend the mon­ey, and Staff rec­om­mend­ed using it as follows: 
14. 2021 — $800,000 (AC Ramp)
15. 2021 — $100,000 (HVAC COVID Upgrade)
16. 2022 — $300,000 (one addi­tion­al esca­la­tor to the Gate 6 – 7 Ter­mi­nal Expan­sion area)
17. 2022 — $1,000,000 (Bag Make­up Area)
18. $750,000 (any expense for which air­port rev­enues may be law­ful­ly used)
19. $2,000,000 (Eco­nom­ic Development)
20. $1,350,000 (oth­er and Eco­nom­ic Development)
22. 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: 
24. 2021 — $1,500,000
25. 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 

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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:

1. 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):

1. 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. 

1. 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.

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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.

Pub­lic Comments:

There were no Pub­lic Comments.

Adjourn­ment:

The meet­ing was adjourned at approx­i­mate­ly 10:05 a.m.

________________________________ ________________________________

Kathy Gilmore, Exec­u­tive Assis­tant Glen McDon­ald, Chair