The Board Meeting of the Panama City-Bay County Airport and Industrial District was called to order at 9:00 a.m., September 27, 2017 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 Mr. Ken Nelson.
Mr. Parker McClellan presented and reviewed the Activity Report.
Ms. Darlene Nelson presented and reviewed the Financial Report.
Prior to voting on the Consent Agenda, Mr. McDonald asked that items 3(b), Ground Lease – Corporate Hangar for B. Strother, and 3(e), Approve Changes to Wage and Salary Policy, be moved to Business Items for further discussion.
- Board Meeting Minutes – August 23, 2017
- This item provides for Board approval of the August 23, 2017 Board Meeting Minutes.
- Audit Engagement – Tipton, Marler, Garner & Chastain
- This item requests approval by the Board for the acceptance of the Letter of Engagement with Tipton, Marler, Garner & Chastain (TMGC) to perform the FY2017 Financial Audit.
- Corrective Quit Claim Deed for the City of Lynn Haven
- This item provides for Board approval of the Corrective Quit Claim Deed for the transfer of airport property adjacent to the formerly District owned Hugh Nelson Industrial Park.
- Acceptance of Bid for Terminal Roof Cleaning
- This item provides for the acceptance of a bid from Classic Touch Pressure Washing for cleaning of the Terminal Building metal roof and skylights.
- Approve Changes to Benefit Eligibility Policy
This item provides for Board approval of a policy change regarding the eligibility of benefits.
Mr. Scott made a motion to approve the Consent Agenda as amended. Mr. McDonald seconded the motion. The vote was taken and the motion passed unanimously.
- Ground Lease – Corporate Hangar for B. Strother
This item provides for Board approval of a Land Lease between the District and James “Barron” Strother.
Mr. McConnell explained that there are approximately eight to ten corporate hangars and the corporate facilities are approaching their maximum capacity. Mr. Strother recently contacted Staff and requested to place a 100 foot by 100 foot hangar at ECP. The location of the new hangar will be on lot ten.
The terms of the lease are standard, as follows:
- No rent will be collected until the Certificate of Occupancy is received
- Lease term is 30 years
- Rents will be calculated at the rate of $.33 per square foot per year, with an annual adjustment based on the CPI
- Proof of general liability, casualty and automobile insurance is required, with District named as an additional insured
- Area leased will be approximately 24,310 square feet, to be confirmed by survey
The FY-2018 Airport Operating and Capital Improvement Budget would be positively impacted with a generated monthly revenue of approximately $669 ($8,023.00 annually).
Mr. McDonald made a motion to approve the Land Lease, contingent upon FAA approval and on Mr. Strother obtaining any required permits, and for the Board Chairman or his designee to execute the necessary documents. Mr. Scott seconded the motion. The vote was taken and the motion passed unanimously.
- Approve Changes to Wage and Salary Policy
This item provides for Board approval of a policy change regarding the wages and salaries.
Mr. Parker McClellan began the discussion by saying the Wage and Salary Policy had not been modified in five to six years. Previously, it only allowed for a merit raise. Staff thoroughly reviewed the policy and recommend a change to allow wage and salary adjustments annually. In FY 2018, Staff will make an adjustment of 2% to the employee’s base salary, effective October 1, and on April 1, employees will be eligible to receive a merit raise.
This Policy change will allow the District to compensate our employees fairly as well as incent excellent performance.
The Board will approve the total percent of increase of overall personnel expense each budget year; FY 2018 is 3%. A wage adjustment is included in the FY 2018 Budget. There is no additional impact to the Airport’s Operating and Capital Budget.
Following Board discussion, Mr. Scott made a motion to approve the update to Policy 7.1 Wage and Salary. Mr. McDonald seconded the motion. The vote was taken and the motion passed unanimously.
Approve FY2018 Operating and Capital Improvement Budget
This item presents the Fiscal Year 2018 Operating and Capital Budget to the Board for adoption.
A draft of the FY2018 budget was provided to the Board and discussed in detail at the September 14, 2016 Board Workshop.
The FY 2018 Operating and Capital Budget includes operating revenues of $12,989,362 and operating expenses of $7,916,815. The budget incorporates the debt service requirements for principal and interest payments of $3,089,574 for the two SIB loans along with passenger facility charges of $1,606,578, resulting in a net requirement from airport revenues of $1,482,996.
The remaining net revenues for the capital program and reserve accounts are estimated to be
$1,436,054. The FY 2018 Operating and Capital Budget contains a 3.11% decrease in operating expenses over the FY 2017 Budget and a 3.57% decrease in operating revenues for the same period.
Following Board discussion, Mr. Scott made a motion to approve and adopt the FY2018 Operating and Capital Budget. Mr. McDonald seconded the motion. The vote was taken and the motion passed unanimously.
Approve Rental Car Agreement Amendment
This item provides for Board approval of an Amendment to the current Rental Car Concession Agreement (“Agreement”) and to approve the exercising of the first of two (2) – one (1) year renewal option of Agreement.
The current Rental Car Concession Agreement has a term beginning October 1, 2014 and a termination date of September 30, 2017. The Agreement provides for two (2) additional one (1) year options at the discretion of the District.
The Second Amendment to the Rental Car Concession and License Agreement will clearly identify items subject to sales tax, allow use of CFC funds to pay the sales taxes, and clarifies certain language contained in the Agreement.
The rental car revenues have been accounted for in the FY 2018 Budget. There is no additional impact to Airport’s Revenue Budget.
Mr. Scott made a motion to approve the recommendation to approve the Second Amendment, exercising the first one year option of the Rental Car Concession Agreement. Mr. Lee seconded the motion. The vote was taken and the motion passed unanimously.
5. Accept Airport Property Insurance Program
This item provides for Board acceptance of insurance coverage for the Airport’s liability, worker’s compensation, commercial property, vehicle, public officials and employment practices liability and law enforcement liability.
The various insurance coverages associated with the Airport’s Insurance Program will expire on 10/01/17. The Airport currently has its property and casualty insurance coverages through Public Risk Management (PRM). Results from the solicitations for insurance effective for the FY 2017 Budget reflected PRM as the low bidder by a margin of $112,219. This year’s Budget includes an increase of 5.4% for Airport’s Insurance Program with PRM, which equals $11,440.
PRM’s coverage provides for lower deductibles and replacement cost versus the one responsive carrier quote received for FY 2017, which only provided for actual cash value. The service provided by PRM and Fisher Brown has been excellent with a focus on customer service.
Based on the quote received from our Fisher Brown and PRF, staff is recommending that the Airport remain with the current carrier for an additional 12 months,
Staff has had discussion with the local agents with regard to insurance procurement, insurance requirements and other facets of the insurance industry and over the next several months will perform a thorough review of how the Airport manages its risk program.
The proposed FY 2018 Airport Operating and Capital Budget includes $222,862 for the Airport’s Insurance Program.
Mr. McDonald made a motion to accept the quote from Fisher Brown and Public Risk Management for an additional 12 month term. Ms. Sims seconded the motion. The vote was taken and the motion passed unanimously.
6. Approve of FDOT Add Alternates
This item provides for Board approval of five (5) add alternates received for the Security System Upgrade Project at the Airport.
As part of the Airport’s FAA Airport Improvement Program project for FY18, a project was included to upgrade the airport security system to include the access control, CCTV, and badging operations. At the July 19, 2017 Meeting, the Board approved the base bid from GAC for the Security System Upgrade Project. The base bid included only those items eligible for Federal Aviation Administration grant funding.
Also included in the original bid were five (5) add alternates for items integral to the airport’s overall security system but ineligible for Federal funding. Those items are:
- Provide New CCTV cameras and infrastructure not included in the project base bid and ineligible for Federal Funding. ($96,007)
- Commercial Lane Access Controls not included in the project base bid and ineligible for Federal Funding. ($56,905)
- Failover Video Recording not included in the project base bid and ineligible for Federal Funding. ($59,754)
- Security CCTV for RTR Site ($8,413)
- North Terminal Parking Lot Access Controls not included in the project base bid and ineligible for Federal Funding. ($142,601)
The add-alternate costs of the project are reimbursable under the Florida DOT infrastructure development grant at a 50/50 ratio with the
Airport’s portion of this project, estimated to be approximately $181,840, included in the FY18 Budget.
Ms. Sims made a motion to accept the five (5) bid alternates received from GAC Contractors, Inc. in an amount of $363,680. Mr. Scott seconded the motion. The vote was taken and the motion passed unanimously.
Ms. Becca Hardin began her update by introducing Mr. Garret Wright as Bay EDA’s new Vice President.
There are six prospective companies who have come to visit the area in September; five of those visits were aviation related. Marketing efforts are raising awareness and interest in the Bay County area.
Ms. Hardin and Mr. McClellan are working on final proposals for two potential projects looking at sites at ECP.
Ms. Hardin will be attending the Maintenance Repair and Overhaul (MRO) Show, in London, where she will meet with ten companies at the Show. She will also be meeting one-on-one with companies headquartered in the United Kingdom who have come to Bay County to visit.
Project Pompano has slowed down and is being put on hold for now. The company’s cost expectations versus actual costs do not match and they are waiting to invest that capital. The letter of intent expires at the end of the month, but communications will continue.
Ms. Hardin and Mr. McClellan are putting together an incentive package for an MRO company looking to build a hangar at ECP. The other project, Project Soho, is a Connecticut based company that is working with GKN and looking at the Bay County community.
Moore Communications Group:
Ms. Jordan Jones presented the Moore Communications Group Activity Report to the Board.
Super Summer Saturdays and the ESCAPE campaign pain were a big success. As expected, September shows a decline in activity to the website and television and Pandora ads have been tapered down. There was increase of 56% in Google Ad words search traffic over the previous month and email traffic is up 580%. About 26% of emailed newsletters are being opened; industry average is 17.3%. The emails are being forwarded and that is driving subscriptions.
People are also subscribing to the newsletter to enter for giveaways, but they are not unsubscribing once entered. There were 860 entries for the Gulf Coast Jam Giveaway Perk. The ECP Perk for September will be a digital coupon for coffee available to people in the Terminal.
TSA provided a behind the scenes look to local media and that has returned very good feedback for ECP.
Through the website and social media, MCG and ECP were able to keep travelers aware of operation status before and during Hurricane Irma.
Executive Director Report:
Mr. Mike Lerma, of Sheltair, informed the Board of the upcoming Mooney Summit taking place at Sheltair. At its inception, there were approximately 30 Mooney aircraft, three years later that number has grown to almost 85 with around 157 people in attendance. The event will be hosted in the Sheltair hangar with 2 static displays and four aircraft will be flying in formation as a class demonstration.
Mr. McClellan updated the Board on how hurricane preparedness went for Hurricane Irma. Staff met with Airport tenants to keep them informed on what was expected from the storm and plans of how the Airport would handle operations. The Airport remained open throughout the storm.
Mr. McClellan relayed a ‘thank you’ to the Board from the taxi and shuttle drivers for recognizing and making changes in fees to reflect the decrease in business they had experienced.
Mr. McClellan advised that Ms. Sims and Mr. McDonald had been contacted by FDOT with regard to the SR388 right of way. Mr. McDonald and Mr. McClellan will be meeting with FDOT District 3 to discuss the right of way easement.
Mr. McClellan pointed out that there are five new palms trees planted in the traffic island in response to the numerous suggestions that ECP should have palm trees to represent what people expect when they visit Florida.
Chairman Mathis informed the other Board members that, as mentioned in an email sent on his behalf, there would be a follow up By Law Workshop directly following the October 25th Board meeting to discuss final changes to the draft.
There were no public comments.
The meeting was adjourned at approximately 10:05a.m.
Talisa Price, Executive Secretary Russ Mathis, Chairman