The Spe­cial Board Meet­ing of the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict was called to order at 9:00 a.m., Sep­tem­ber 14, 2016 by Chair­man Mathis.

The Invo­ca­tion was giv­en by Mr. Carey Scott.

The Pledge of Alle­giance was led by Chair­man Mathis.

The Exec­u­tive Sec­re­tary called the roll and indi­cat­ed that all Board Mem­bers were present except Ms. Mead­ows and Mr. McDonald.


Mr. McClel­lan advised the Board that Ms. Cindy Mead­ows had announced her res­ig­na­tion from the Board, and her last meet­ing would be the Sep­tem­ber 28, 2016 Board Meeting.

Busi­ness Item:

a. Air­port Insur­ance Program

This item pro­vides for Board selec­tion of a com­pa­ny for insur­ance cov­er­age for the Airport’s lia­bil­i­ty, workman’s com­pen­sa­tion, com­mer­cial fire (build­ings), vehi­cle insur­ance, pub­lic official’s and employ­ment prac­tices lia­bil­i­ty and law enforce­ment liability.

As part of this year’s bud­get­ing process, Staff solicit­ed insur­ance quotes by pro­vid­ing local insur­ance agents with exist­ing cov­er­age lim­its and poli­cies. Three local insur­ance agents respond­ed to the request; how­ev­er, one agent with­drew due to lack of cov­er­age avail­abil­i­ty. The two remain­ing insur­ance agents sub­mit­ted pro­pos­als for cov­er­age from Pre­ferred Gov­ern­men­tal Insur­ance Trust (PGIT) and Pub­lic Risk Man­age­ment (PRM).

After a detailed review, Staff rec­om­mend­ed the Board elect to remain with the cur­rent car­ri­er, Pub­lic Risk Man­age­ment (PRM), through Fish­er Brown Insur­ance due to the following:

  • Deductibles for PRM are low­er than PGIT for all per­ils and named windstorms.
  • PRM pro­vid­ed Replace­ment Cost ver­sus PGIT uti­liz­ing Actu­al Cash Value.
  • Pre­mi­ums for PRM are sig­nif­i­cant­ly less than PGIT.

It should be not­ed that the Pol­lu­tion Pol­i­cy was not includ­ed due to the tim­ing of this renew­al; how­ev­er, the esti­mat­ed renew­al cost of $8,800 will be includ­ed in the FY 17 Budget.

Fol­low­ing Board dis­cus­sion, Mr. Scott made a motion to accept the quote from Fish­er Brown Insur­ance to remain with PRM, and autho­riza­tion for the Exec­u­tive Direc­tor to exe­cute any asso­ci­at­ed doc­u­men­ta­tion fol­low­ing review by legal coun­sel. Mr. Lee sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

The Spe­cial Board Meet­ing end­ed at approx­i­mate­ly 9:20 a.m., and the Board moved into the Bud­get Work­shop at that time.

b. FY 2017 Oper­at­ing and Cap­i­tal Improve­ment Budget

The draft FY2017 Oper­at­ing and Cap­i­tal Improve­ment Bud­get was pre­vi­ous­ly pro­vid­ed to the Board for their review in prepa­ra­tion for this discussion.

Mr. McClel­lan reviewed the pro­ject­ed oper­at­ing rev­enues and oper­at­ing expens­es for the upcom­ing fis­cal year. The oper­at­ing rev­enues includ­ed funds that will be received from the com­mer­cial air­lines, car rental com­pa­nies, gen­er­al avi­a­tion, and ter­mi­nal ten­ants, to include the park­ing lot facil­i­ty, restau­rant con­ces­sion, retail con­ces­sion and advertising.

The pro­ject­ed oper­at­ing expens­es includ­ed employ­ee salaries and ben­e­fits, sup­plies and mate­ri­als, util­i­ties, insur­ance, and pur­chased ser­vices, to include jan­i­to­r­i­al ser­vices, legal ser­vices, bag­gage han­dling sys­tem and main­te­nance of the load­ing bridges, ground main­te­nance, ele­va­tor and esca­la­tor ser­vices, trash removal, and secu­ri­ty ser­vices and sys­tem maintenance.

Salaries and ben­e­fits rep­re­sent approx­i­mate­ly 43% of the airport’s annu­al oper­at­ing expens­es, and pur­chased ser­vices account for 36%. Over­all, the FY2017 oper­at­ing expense bud­get is .4% less than the FY2016 bud­get, rep­re­sent­ing a decrease of $33,382. The pro­posed FY2017 bud­get con­tains a 3% mer­it pool for employ­ee raises.

The FY2017 bud­get reflects an amount which will pro­vide for the effi­cient oper­a­tion of the air­port, while pro­vid­ing the nec­es­sary resources to meet the estab­lished goals for the upcom­ing year.

The main focus of the Cap­i­tal Improve­ment Pro­gram, which is fund­ed through the use of fed­er­al Air­port Improve­ment Pro­gram grants, Flori­da Depart­ment of Trans­porta­tion grants, and avail­able air­port funds, cen­ters on taxi­way and air­craft park­ing ramp improve­ments, con­tin­ued devel­op­ment of the envi­ron­men­tal mit­i­ga­tion pro­gram, replace­ment of pas­sen­ger load­ing bridges, expand­ing capac­i­ty and improv­ing safe­ty and security.

This Bud­get Work­shop pro­vid­ed for a review and dis­cus­sion of the pro­posed FY2017 Oper­at­ing and Cap­i­tal Improve­ment Bud­get and required no for­mal action by the Board. For­mal approval of the final bud­get will be con­sid­ered at the Sep­tem­ber 28, 2016 Board Meeting.


The Bud­get Work­shop was adjourned at approx­i­mate­ly 10:30 a.m. (CST).

Pat­ty Mitchell, Exec­u­tive Sec­re­tary Russ Math­is, Chairman