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MEMORANDUM

VIEWS: 18 PAGES: 21

  • pg 1
									                   MINUTES OF THE REGULAR MEETING OF THE
                        SANFORD AIRPORT AUTHORITY
                         TUESDAY, DECEMBER 7, 2004



PRESENT:                   William R. Miller, Chairman
                           G. Geoffrey Longstaff, Secretary/Treasurer
                           Colonel Charles H. Gibson
                           Whitey Eckstein
                           Lon K. Howell
                           John Williams
                           Stephen H. Coover, Counsel

ABSENT:                    Clyde H. Robertson, Jr., Vice Chairman
                           Sandra S. Glenn
                           Brindley B. Pieters

STAFF PRESENT:             Larry A. Dale, President & CEO
                           Victor D. White, Executive Vice President
                           Bryant W. Garrett, Vice President of Finance
                           Jack Dow, Vice President of Operations & Maintenance
                           Ray Wise, Vice President of Aviation Marketing
                           Diane Crews, Vice President of Administration
                           Jackie Cockerham, Executive Secretary
                           Ann Gifford, Executive Secretary

OTHERS PRESENT:            Kevin Spolski
                           Doug Coughlan, Enterprise Rent A Car
                           James Tucdt, Enterprise Rent A Car
                           Bill McGrew, PBS&J
                           Craig Sucich, PBS&J
                           Jim Kriss, AVCON
                           Al Grieshaber, Jr., City of Sanford
                           Jack Reynolds, JRA, Inc.
                           Doug Norman, HTA
                           Douglas DiCarlo, HTA
                           Krysty Kress, SE Ramp
                           Genean McKinnon, Alamo/National

1. INTRODUCTION OF GUESTS AND CALL TO ORDER

Chairman Miller introduced and welcomed Mayor Lessard and City Manager Al
Grieshaber.

President Dale assembled airport employees and wished everyone a Merry Christmas.

Chairman Miller thanked employees for the efforts put forth this year, and on behalf of
the Board wished them a safe and happy holiday.

                                           -1-
President Dale presented garment bags with the airport logo, which the Airport uses as
promotional material, to Board Members, Mayor Lessard, and City Manager
Grieshaber, and wished them all a Merry Christmas.

Chairman Miller and President Dale presented a framed resolution of appreciation and
gift certificate for Home Depot to Ray Wise, Vice President of Aviation Marketing, upon
his retirement on January 1, 2005.

Chairman Miller commended Ray for his accomplishments in eight years of
employment at the Airport and read the resolution of appreciation into the minutes as
follows:

BE IT RESOLVED, by the Sanford Airport Authority that upon motion duly made, seconded and approved
at its regularly scheduled board meeting on December 7, 2004, the Authority recognizes RAYMOND J.
WISE for his years of service to the Orlando Sanford International Airport upon the occasion of his
retirement.

WHEREAS, RAYMOND J. WISE has diligently served the Sanford Airport Authority from February 1997 to
December 2004, initially as Director of Marketing and Development, and in his current role as Vice-
President of Aviation Marketing; and

WHEREAS, RAYMOND J. WISE has been a vital part of the Airport’s vision for continued growth and
expansion, consistently exhibiting an exemplary level of professionalism, dedication and personal integrity
during his tenure with the Sanford Airport Authority; and

WHEREAS, the Board of Directors of the Sanford Airport Authority wishes to commend and publicly
acknowledge RAYMOND J. WISE for his contribution to the benefit of the Sanford Airport Authority, the
City of Sanford, and for all who use the Orlando Sanford International Airport.

NOW, THEREFORE, upon motion duly made, seconded, and unanimously approved, the Authority
publicly recognizes and extols the efforts of RAYMOND J. WISE, and does hereby accept with regret his
decision to retire from the employment of the Sanford Airport Authority on January 1, 2005;

BE IT FURTHER RESOLVED that this Resolution shall be spread upon the minutes of the Authority for all
to see, so say we all, this December 7, 2004.

Motion by Board Member Williams, seconded by Board Member Howell, to pass a
resolution of appreciation for Ray Wise upon his retirement January 1, 2005.
Motion passed.

2. APPROVAL OF MINUTES OF THE REGULAR MEETING HELD ON TUESDAY,
   NOVEMBER 2, 2004

Motion by Board Member Williams, seconded by Board Member Howell, to approve the
Minutes of the regular meeting held on Tuesday, November 2, 2004.
Motion passed.

3. PRESIDENT’S REPORT

    President Dale reported on the following:

        1) Southeast Airlines


                                                    -2-
Discussion ensued.

Discussion by Board Member Howell regarding performance bonds, security deposits
and/or escrow accounts being required for airlines when they begin service.

President Dale advised we could probably do that but it would be detrimental to getting
airline service if we required performance bonds. However, he would do the research
and do whatever the Board directed him to do.

Discussion by Board Member Eckstein advising he felt very bad about the demise of
Southeast, the affect it had on our customers and the perception of our customers
about the City of Sanford and our Airport. He suggested the Board set up a program
that would provide assistance to stranded passengers. He did not like to think that the
City of Sanford would be perceived as a bad place and that Sanford let these people
down. He advised it seemed that we did not do everything we could to assist these
customers, and we should have done more.

Discussion ensued.

Chairman Miller requested President Dale and President Gouldthorpe get together and
discuss what could be done to offer more assistance to our customers in situations of
this kind and report back to the Board.

President Dale advised there were no employees here at the Airport at midnight. He
had not been made aware of anyone who had been stranded in this instance. SAA
Staff, OSD Staff and Christine with Southeast had stepped up to the plate and provided
as much information and assistance to passengers as possible. He had asked the
press to assist in getting the word out. People were hurt and disappointed and some
were disgusted, but we had no customers who caused a scene. Most people had
transportation and we were not aware of anyone who was dropped off and stranded.
We made sure that everyone had a ride if it was needed. However, he would meet
with Larry Gouldthorpe, OSD, and see what more could be done to accommodate the
needs of our customers.

Discussion continued.

      2) Donation of vacation time for sick leave to Jennifer Taylor

President Dale requested an exception to the Personnel Policy to allow voluntary
donation of unlimited vacation time by him and any other employee who wishes to
donate time to Jennifer Taylor. Jennifer Taylor will be going through chemotherapy
sessions with her son for the next eighteen months. The policy, as it currently stands,
allows a maximum donation of 16 hours annually. The exception should be with no set
number of prior absences required for eligibility.

Discussion ensued with regard to making revisions to the Personnel Policy.




                                           -3-
Motion by Board Member Howell, seconded by Board Member Longstaff, to approve
President Dale’s request for an exception to the Personnel Policy to allow President
Dale and any other employee who wishes to donate vacation time to Jennifer Taylor for
use during the illness of her son. No set number of prior absences would be required
for eligibility, and there would be no cap on the amount of time that could be donated.

Discussion continued.

Counsel advised the current policy allows for voluntary donation employee to employee
at a maximum of sixteen hours per year. There would need to be an exception to
change the donation from “employee” to “employees’ immediate family”; there would be
no cap on the number of hours donated; and there would be no set number of prior
absences required for eligibility.

Discussion by Board Member Eckstein regarding setting up an employee sick bank.

Motion restated: Motion to approve President’s request for exception to Personnel
Policy for voluntary donation of vacation leave from one employee to another employee
for an extended illness of the employee, or an extended illness of a member of the
employee’s immediate family. The employee would be required to use all sick and
vacation leave they may have accrued prior to donation. The maximum amount of
donation per employee would not be capped, and there would be no set number of prior
absences required for eligibility. Staff is asked to prepare a revision to the Personnel
Rules and Regulations for adoption at the January 2005 Board Meeting that will reflect
these changes, including a definition of “immediate family member” as spouse, son or
daughter, father or mother, for whom the employee is the primary care-giver and who is
dependent on the employee.

Language of the restated motion accepted as to first and second.

Motion passed.

President Dale advised upon recommendation of Board Member Eckstein he would
look into setting up a personnel sick bank and bring it back to the Board. He further
advised that he would follow through with revisions to the personnel policy.

       3) Rental car concessions update

President Dale advised two rental car companies, Thrifty and Enterprise, had
expressed interest in the Authority’s request for proposals by attending the recent pre-
bid conference.

President Dale advised there is a culmination of effort in getting all the other rental car
company agreements in order and they are on today’s agenda for approval.

Discussion ensued.




                                             -4-
      4) Building 9 Sheriff’s sale-auction of English Pine Cottages assets

Discussion ensued regarding the sale of English Pine Cottage assets at a Sheriff’s
Sale.

Discussion by Counsel.
Counsel advised the motion should recommend that we allow the sale of English Pine
Cottages assets at $42,649.16, which is the amount liened and owed to the Authority
plus sales tax, and approval for sale of English Pine Cottages assets purchased by the
Authority to Yuri’s Antique Pine at $45,258.11 total, including taxes.

Motion by Board Member Longstaff, seconded by Board Member Howell,
recommending the sale of English Pine Cottages assets to the Authority at $42,649.16
the amount that is owed to the Airport, and approval for sale of English Pine Cottages
assets purchased by the Authority at Sheriff’s Sale to Yuri’s Antique Pine at $45,258.11
total including taxes.
Motion passed

      5) Strategic Intermodal System/FDOT Work Program

President Dale advised the Authority had received an additional $3,000,000 in SIS
funding to be available in year 2009/2010 for the modification and extension of Red
Cleveland Boulevard.

Discussion regarding the FDOT Five Year Program, which had been amended as
promised to include the design phase of State Road 46 in 2006/2007.

Discussion regarding State Road 46.

      6) Insurance damage reimbursement

President Dale advised the Authority had received $685,000 from its insurer for
hurricane damages.

      7) Grants

President Dale advised the Authority received an additional $2,000,000 through the
efforts of Congressman Mica. We have received a total of $6,600,000 in FAA grants
and we are going to be made whole with regard to hurricane damage. We have had no
assistance from FEMA as of yet.

      8) Change Order for Juvenile Assessment Center

President Dale recommended approval of a change order to install curbing at the
Juvenile Assessment Center at a cost of $3,218.00. This change order was brought
about by a slope in the parking lot, which will require curbing.




                                           -5-
Motion by Board Member Longstaff, seconded by Board Member Gibson, to approve
the change order to install curbing at the Juvenile Assessment Center at a cost of
$3,218.00 as recommended.
Motion passed.

      9) Purchase of TBI by Abertis Infraestructuras SA
      10) Remote General Aviation Customs facility at no cost to Customs

President Dale advised we are working towards providing space in the Cargo Centre to
accommodate U.S. Customs with space to facilitate the Airport’s general aviation
operation. AMG (one of our tenants) leases an office adjoining the U. S. Customs
office in the Cargo Centre. We have asked AMG to move to a new location in order to
accommodate U.S. Customs.

Motion by Board Member Williams, seconded by Board Member Howell, to provide a
remote general aviation facility for US Customs at no cost to Customs.
Motion passed.

      11) TAF Forecast

President Dale briefed the Board on the FAA’s updated Terminal Area Forecast.

      12) Approval of Lease Number 2004-33 to The Toro Company for Building 9

President Dale requested approval of Lease Number 2004-33 to The Toro Company
d/b/a TORO AG for Building Number 9, located at 2955 Mellonville Avenue, contingent
upon final negotiation of lease language and signature. The lease term is for one (1)
year, effective January 1, 2005, with three (3) one-year options. The lease consists of
15,389 square feet at $5.00 per square foot. The annual rental rate is $76,945.00; the
monthly rate is $6,860.93, including taxes.

Motion by Board Member Williams, seconded by Board Member Howell, to approve
Lease Number 2004-33 as requested.
Motion passed.

      13) Consider approval of termination of current Lease Number 2003-16 with AMG
          USA, INC., for Building Number 502-7 in the Cargo Centre, effective
          December 31, 2004

President Dale advised AMG had agreed to relocate to another office space in the
Cargo Centre to accommodate our request for additional office space for U. S.
Customs. AMG’s current office adjoins the U. S. Customs office in the Cargo Centre.
Additional space is needed by Customs to facilitate the Airport’s general aviation
operation.

Motion by Board Member Howell, seconded by Board Member Williams, to approve
termination of Lease Number 2003-16 with AMG USA, INC.
Motion passed.


                                          -6-
      14) Approval of Lease Number 2004-35 to AMG USA, INC.

President Dale requested approval of Lease Number 2004-35 for Building 502-6 in the
Cargo Centre for office space, contingent upon receipt of signed lease. The lease term
is for one (1) year, effective January 1, 2005. The lease consists of 280 square feet at
$15.00 per square foot, which includes utilities and common area maintenance. The
annual rental rate is $4,200.00; the monthly payment is $374.50, including tax.

Motion by Board Member Williams, seconded by Board Member Gibson, to approve
Lease Number 2004-35 as requested.
Motion passed.

      15) Avion Due Diligence completed

President Dale advised Staff and Counsel had completed due diligence for the sale of
Avion. The company purchasing Avion is very strong.

4. EXECUTIVE VICE PRESIDENT’S REPORT

Nothing to report.

5. COUNSEL’S REPORT

Counsel reported on the following:

   a) Damage to Building 437

      Counsel advised there is a $52,000 emergency repair bill from Mark
      Construction for damage to Building 437, which was repaired on an emergency
      basis. He had conducted discussions with attorneys for Conklin Metal Industries
      and they are willing to pay that emergency repair bill and negotiate with Empire
      Windows, their sub-tenant, for a settlement.

   b) Counsel advised under Florida Law the Board has the right to go into special
      session to discuss pending litigation.

      1) Potential for a future lawsuit by Southeast Airlines regarding liened aircraft
      2) Disclosure that Counsel had met and would be meeting with OSD regarding
         monies owed to OSD, OSI, and SAA to assist them in organizing what they
         are going to do with three (3) aircraft liened by the Authority. We filed those
         liens to try and capture all of the fees owed to SAA, OSI, and OSD. The
         owners of these aircraft want them back because they don’t make any money
         for the owners sitting on the ground, however, the liens do subject us to a
         lawsuit.
      3) Craggs Lawsuit
      4) JettAire Lawsuit

   c) Counsel requested the Board ratify his action in hiring Bill Sherry as an aviation
       expert witness at a negotiated rate of $125.00 per hour.

                                           -7-
Discussion ensued.

Motion by Board Member Howell, seconded by Board Member Gibson, to ratify
Counsel’s action in hiring Bill Sherry as an aviation expert witness at a negotiated rate
of $125.00 per hour.
Motion passed.

6. TBI REPORT

Larry Gouldthorpe, President, TBI, reported on the following:

   a) Statistics for November
   b) Southeast shut-down and impact to domestic service, and the financial impact to
      OSD, parking, and concessionaires

Mr. Gouldthorpe advised in answer to Board Member Howell’s comments about
security deposits, TBI does try to collect a security deposit from start-up airlines,
however, it can be a barrier to entry into a market by an airline. TBI usually tries to
collect thirty to forty-five days’ worth of fees in advance and TBI did have a small
deposit from Southeast. He further advised with regard to Board Member Eckstein’s
comments about stranded passengers, between TBI and SAA, staff did everything
possible to assist our customers when Southeast shut down. Through our marketing
department we were able to get AirTran to offer a $50 fare out of OIA as a backup.

   c) Boston & Maine
   d) UK Slots Conference in Boston
   e) Agreement reached on terms for the potential acquisition of TBI by Abertis
      Infraestructuras SA, a $12 billion dollar company.

7. LIAISON REPORTS

Mayor Lessard advised he was glad to be able to attend the meeting, thanked the
Board for having him, and wished everyone a Merry Christmas.

8. CHAIRMAN’S REPORT

Chairman Miller advised last night on the news he had seen an interview in which Diane
Crews represented us. He advised it was very well done.

9. CONSENT AGENDA

   A. Consider approval of updated Standard Airport Use Agreement (SAUA) for
      airline service

   The Airport Authority, OSD, and OSI utilize a Standard Airport Use Agreement
   (SAUA) for airline users of the Airport. The SAUA is a "tri-party" document, which all
   three entities execute with each air carrier, and the document is virtually the same
   for every carrier. We typically update the agreement every year to account for
   changes in rates, fees, and charges to the carriers. We are making no changes to
                                            -8-
   the actual base agreement at this time. Therefore, the only changes are to the
   "Attachment 1 - Schedule of Charges for Use of the Airport."

   Following is a summary of the items modified:

   1) The Landing Fee has been raised from $0.85 cents per thousand pounds of
      maximum certificated gross landing weight to $0.97, effective October 1, 2004.
   2) Terminal Use Fees have been adjusted for each class of aircraft size as shown
      below:

      CLASS         SEATING CONFIGURATION             FEE PER TURNAROUND
                                                      (New Rate) (Previous Rate)

      1             50 seats of less                  $80.00        $75.00
      2             51 to 110 seats                   $160.00       $150.00
      3             111 to 150 seats                  $220.00       $200.00
      4             151 to 200 seats                  $300.00       $270.00
      5             201 to 250 seats                  $350.00       $325.00
      6             251 to 350 seats                  $460.00       $425.00
      7             351 or more seats                 $590.00       $550.00

   Jetway Use Fees have been changed to $55.00 per turnaround from $50.00.

   1) Electrical power connection fees for aircraft have been changed to $40.00 per
      hour or part thereof from $35.00 for Class 1 to 3 aircraft, and to $90.00 per hour
      or part thereof from $80.00 for Class 4 to 7 aircraft.

   2) Ticket Counter use fees have been added to be $40.00 per hour or a portion
      thereof for each 2 positions that are not under a separate lease agreement. In
      the past, there have been no carriers using common ticket counter spaces
      because all have been provided under separate exclusive leases (e.g., Pan Am),
      or through the ground handling company (e.g., TMA and Southeast).

   3) In conjunction with the above item, we have added a provision that permits
      airlines which reach a specified minimum number of departures per year the
      option of utilizing the common use ticket counter positions on an hourly basis
      and lease other facilities directly.

   4) We have added a provision that precludes an airline from engaging any activities
      within the Terminals that might conflict with concessionaire activity, such as
      selling any products or services, without the approval of OSD.

Staff recommended approval of the Standard Airport Use Agreement and the
associated Schedule of Charges.

   B. Consider approval of Amended and Restated Concession Agreement with Alpha
      Airport Services Florida, Inc.



                                           -9-
Alpha Airport Services Florida, Inc. operates the retail, news, bookstore, and gift
shop concession in both terminals. We have been working with them to add a new
retail outlet in the ticket lobby of the Domestic Terminal, and to expand its World
News shop between Gates 6 and 7 of the upper concourse. They have now
completed design work for both expansions, and are ready to begin construction
shortly. Their investment in these two facilities is anticipated to exceed $250,000.

Therefore, we are proposing an amendment to the current agreement with Alpha
that extends the term of their concession agreement for an additional five (5) years
beyond the original dates. The current contract period is from February 19, 2001
through February 18, 2006. Thus, the new period would extend until February 17,
2011.

Staff recommended that the Board approve the Amended and Restated Concession
Agreement with Alpha Airport Services Florida, Inc., subject to the preparation of
final documents that are acceptable to the Authority's General Counsel and all
parties, and authorize execution.

C. Consider approval of Addendum to the Concession Agreement with Creative
   Host Services, Inc.

We have been working with Creative Host, which operates the food and beverage
concession in the terminals, to do a remodel of the Jetway Cafe location in the
Domestic Baggage Claim. They have recently completed design efforts and are
about ready to begin construction of a major facelift of the facility. The remodel will
provide a significantly different look to the cafe, as well as provide more space for
customer seating, and a more efficient kitchen layout. They estimate that the
construction and equipment costs will exceed $500,000.

In consideration of this major investment by them, we are proposing an increase in
their agreement term of an additional five (5) years. Their current agreement runs
from February 19, 2001 through February 18, 2006. The new term will be from
February 19, 2006 through February 17, 2011.

We recommend that the Board approve this addendum to the concession
agreement with Creative Host Services, Inc., subject to completion of final
documents that are acceptable to the Authority's General Counsel and all parties,
and authorize its execution.

D. Consider approval of payment to Seal-It, Inc. for consulting fees related to
   design of TSA environmental enclosure project

Seal-It, Inc. from Orlando provided some design services earlier this year in
preparation for the installation of a climate-controlled wall enclosure for the TSA's
baggage screening areas at both terminals. At the time, the design philosophy was
geared towards the use of freezer curtain materials for these areas. Seal-It prepared
product specifications and some drawings to be used when the project was bid-out
with freezer curtains as the primary material.




                                         10
                                         - -
Subsequently, the TSA changed its preference from the freezer curtain material to a
rigid foam plastic-encased panel design. Thus, the specifications and design criteria
that were prepared by Seal-It were not used for the project. Nevertheless, Seal-It
has invoiced the Authority for its design fee of $3500.00 for the work that they did.

We recommend that the Board authorize payment to Seal-It as invoiced.

E. Consider approval of Supplemental Agreement Number 1 to FDOT Joint
   Participation Agreement Number 40519119401 for Parking Garage Project

The Florida Department of Transportation (FDOT) has previously issued us a multi-
year grant for the new parking garage. The existing grant provides $2,350,000 of
FDOT funds to match our local share of the same amount so as to produce a total
of $4,700,000 in the first grant. FDOT has agreed to increase this grant by an
additional $200,000 of FDOT funds for the current fiscal year. Thus, with our
matching $200,000 increase, the new total of this grant will be $5,100,000.

You will recall that FDOT District 5 Secretary Gilhooley previously agreed to provide
us with additional state funds beyond this first grant in the amount of $2,450,000 in
fiscal years 06 and 07. Thus, with all anticipated grants added together, the state
portion will be $5 million. This will produce a total project funding mechanism of $10
million once the local matching share source is finalized.

We recommend that the Board accept this supplemental grant offer, and authorize
its execution.

F. Consider approval of Domestic Terminal Lease Number 2004 - 125 with the
   General Services Administration for space for the TSA

This lease is with the U.S. General Services Administration, acting on behalf of the
Transportation Security Administration (TSA). New space to house the TSA is being
constructed in Terminal B on the lower west side on the ramp level near the Airport
Operations Control Center. This space will replace the areas currently being
occupied by the TSA behind the ticket counters, and free that space up for airline-
related uses. The new space is being constructed by TBI at its expense.

The new space is anticipated to be finished around the first of April 2005, and it will
contain 1,780 square feet. The lease rate is $44.60 per square foot per year, or
$79,388 annually, plus sales tax. The lease term is for five (5) years, with the first
three (3) years firm (i.e., non-cancelable by TSA). After the first three years, TSA
can give 90 days notice to cancel the lease. The lease period will begin upon
completion of the facilities in April.

We recommend approval of this lease agreement, and authorization for its
execution.




                                         11
                                         - -
G. Consider approval of Lease No. 2004-30 with GARY BRIAN SCHROEDER, for
   Building 302, located at 2836 Aileron Circle (residence).

Staff recommends approval of Lease No. 2004-30 with GARY BRIAN
SCHROEDER, for Building 302, located at 2836 Aileron Circle (residence). The
lease term is for one (1) year and 18 days, beginning November 13, 2004. The
building consists of 2,200 square feet and the annual rental rate is $9,000.00; the
monthly payment is $750.00.

H. Consider approval of Addendum C to Lease No. 2001-20 with THE HERTZ
   CORPORTATION to relocate the site of the proposed rental car facility from two
   (2) acres of property on Airport Boulevard to six (6) acres of property located on
   Carrier Avenue.

Staff recommends approval of Addendum C to Lease No. 2001-20 with THE HERTZ
CORPORATION to relocate the site of the proposed rental car facility from two (2)
acres of property on Airport Boulevard to six (6) acres of property located on Carrier
Avenue. The amended land rate is 261,360 square feet at $.21 per square foot,
effective November 1, 2004. The annual rental rate is $54,885.60, an increase of
$36,590.40; the monthly payment is $4,893.97.The Lessee has agreed that the
twenty (20) year straight-line amortization schedule shall still begin on the original
Commencement Date of October 1, 2001.

I. Consider approval of Addendum C to Lease No. 2003-35 with TRANSMERIDIAN
   AIRLINES, INC., to add an additional 280 square feet of office space [Building
   502-4], and 3,720 square feet of warehouse space in the Cargo Centre, located
   at 2927 Carrier Avenue.

Staff recommends approval of Addendum C to Lease No. 2003-35 with
TRANSMERIDIAN AIRLINES, INC. to add an additional 280 square feet of office
space (Building 502-4) and 3,720 square feet of warehouse space in the Cargo
Centre, located at 2927 Carrier Avenue. The new annual rental rate is $53,767.50,
effective November 1, 2004, and reflects an increase of $28,087.50 under the same
terms and conditions. The monthly payment is $4,480.63.

J. Consider approval of Addendum C to Lease No. 2001-44 with VERTICAL
   AVIATION TECHNOLOGIES, INC., for Building No. 332, located at 1609 Hangar
   Road (office/warehouse).

Staff recommends approval of Addendum C to Lease No. 2001-44 with VERTICAL
AVIATION TECHNOLOGIES, INC., for Building No. 332, located at 1609 Hangar
Road (office/warehouse). Addendum C extends the lease term for one (1) year,
effective December 1, 2004. The building consists of 8,120 square feet of
office/warehouse space at $3.50 per square foot. The annual rental rate is
$28,420.00, an increase of $2,030.00; the monthly payment is $2,368.33.




                                        12
                                        - -
K. Consider approval of Addendum D to Lease No. 2000-14 with WHISPER JET,
   INC., for Building No. 410, located at 1220 30th Street (office/warehouse).

Staff recommends approval of Addendum D to Lease No. 2000-14 with WHISPER
JET, INC., for Building No. 410, located at 1220 30 th Street (office/warehouse).
Addendum D extends the lease term for one (1) year, effective February 1, 2005,
under the same terms and conditions. The building consists of 9,100 square feet of
office/warehouse space at $4.50 per square foot. The annual rental rate is
$40,950.00; the monthly payment is $3,412.50.

L. Consider approval of Addendum B to Lease No. 2003-07 with WHISPER JET,
   INC., for Building No. 401A, located at 1173 29 th Street (warehouse).

Staff recommends approval of Addendum B to Lease No. 2003-07 with WHISPER
                                                    th
JET, INC., for Building No. 401A, located at 1173 29 Street (warehouse).
Addendum B extends the lease term for one (1) year, effective February 1, 2005,
under the same terms and conditions. The building consists of 6,300 square feet of
warehouse space at $4.50 per square foot. The annual rental rate is $28,350.00;
the monthly payment is $2,362.50.

M. Consider approval of revision of the SAA Employee Handbook/Personnel Rules
   and Regulations, regarding:
    Deletion of language that provides sick/vacation leave to part-time employees

   The Sanford Airport Authority has a longstanding policy that prohibits payment of
   benefits for sick and vacation leave to part-time employees. However, it has been
   brought to our attention that a contradiction of this policy exists in the current SAA
   Employee Handbook/Personnel Rules and Regulations. Sections Section IV.A (1)
   and IV.B specifically provide for such leave on a proportionate basis to those
   employees considered regular full-time. This language was inadvertently included
   in the final draft of the document, and needs to be deleted to ensure concurrence
   between our standard policy and the Employee Handbook.

   To ensure concurrence between our standard policy and the Employee Handbook,
   Staff recommends that the following revisions to the SAA Employee
   Handbook/Personnel Rules and Regulation be approved.

   Deletions are struck out; additions are underlined and bolded.

   SECTION IV: EMPLOYEE BENEFITS

      A.     SICK LEAVE
             (1)               ACCRUALS
                 (a) Regular full-time authorized non-public safety employees
                 earn the equivalent of 1.25 days of sick leave per month at
                 completion of one (1) month continuous service and for each
                 month thereafter. Part-time regular authorized employees earn
                 sick leave on a proportionate basis in relation to that earned
                 full-time authorized regular employees. Employees working a
                 24-hour on/48-hour off schedule earn the percentage of .4673
                 applied to all credited sick leave.

                 (b) Part-time employees, tTemporary employees and contractual
                     employees are not eligible to earn sick leave.
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     B.      VACATION POLICY
             (1) Regular full-time employees of the Sanford Airport Authority
             earn annual vacation leave. Regular part-time employees earn
             such leave on a proportionate basis to those employees
             considered regular full-time. Part time employees, tTemporary
             employees, and contractual employees, and summer recreational
             employees are not eligible to earn vacation leave.

1. Consider ratification of President's execution of contracts for Emergency Roof
   Repairs

As we reported to the Board via fax memorandum on November 22nd, we have
awarded four (4) contracts to companies to perform emergency repairs to
several roofs that were damaged by the hurricanes. Following are the contracts
that we have executed:

1) Terminal Buildings. We only received 1 bid from Mark Construction
   Company. McKee turned in a “no-bid.” The bid was broken down into four
   base bids, divided by the area of the terminal roof, and there were 3 alternate
   bids (except for Area D). The base bid was for a “roof over” and the alternate
   was for a “replacement” roof of each section. Here is the list of each base bid
   that we are awarding:

          Bid A (Int’l terminal roof-over):        $ 803,456.92
          Bid B (FIS area roof-over):              $ 360,444.63
          Bid C (Domestic term. Roof-over):        $ 725,957.29
          Bid D (Area E):                          $ 55,781.74

          TOTAL AWARD:                             $1,950,640.58

2)        Terminal Building Built-Up Flat Roof:

          The low bid received for the flat roof was from Hodges Brothers, Inc. Their
          bid was for $82,800.00. They can start work quickly.

3)        Delta Connection Academy Administration Building:

          The low bid received for this roof was also from Hodges Brothers, Inc.
          Their bid was for $50,000.00. They can start work quickly.

4) Delta Connection Academy Academics Building:

     The low bid received for this roof was also from Hodges Brothers, Inc. Their
     bid was for $92,000.00. They can start work quickly.

     For the two Delta Connection Academy buildings, they will contribute $50,000
     towards the expense of this work.



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   We have entered into 4 separate contracts for each of these buildings. The grand
   total of all contracts is $2,175,440.58. Funding for this project is from the new FAA
   hurricane relief grants, and the FAA Orlando Airports District Office has been briefed
   on the scope of the work and has authorized the work to be done.

   President Dale executed each of these contracts prior to the Board Meeting with the
   concurrence of the Chairman and General Counsel under the emergency
   declaration authorized by the Board. At this time, we are recommending that the
   Board ratify the actions of the President in executing these contracts.

Motion by Board Member Howell, seconded by Board Member Gibson, to approve the
Consent Agenda Items A through M.
Motion passed.

Additional Consent Agenda Items:

      1. Consider approval of Addendum C to Lease No. 2001-49 with Rodney White
         for Building No. 132, located at 2805 Carrier Avenue (office).

      Staff recommends approval of Addendum C to Lease No. 2001-49 with Rodney
      White for Building No. 132, located at 2805 Mellonville Avenue (office).
      Addendum C extends the lease term for one (1) additional year, under the same
      terms and conditions, effective January 1, 2005. The lease consists of 2,152
      square feet; the annual rental rate is $12,192.00; the monthly payment is
      $1,151.32, including tax. The tenant is a computer consultant.

      2. Consider approval of Addendum C to Lease No. 2001-45 with Richard Earl
         Leatherman for Building No. 138-N, located at 2764 Navigator Avenue
         (warehouse).

      Staff recommended approval of Addendum C to Lease No. 2001-45 with Richard
      Earl Leatherman, for Building No. 138-N, located at 2764 Navigator Avenue
      (warehouse). Addendum C extends the lease term for one (1) additional year,
      effective January 1, 2005. The lease consists of 2,230 square feet at $3.75 per
      square foot. the annual rental rate is $8,362.50, an increase of $557.50; the
      monthly payment is $695.95, including tax. The tenant builds custom wooden
      furniture.

      3. Consider approval of Addendum B to Lease No. 2003-02 with Richard Earl
         Leatherman, for the rental of Building No. 138-S, located at 2754 Navigator
         Avenue (warehouse).

      Staff recommended approval of Addendum B to Lease No. 2003-02 with Richard
      Earl Leatherman, for Building No. 138-S, located at 2754 Navigator Avenue
      (warehouse). Addendum B extends the lease term for one (1) additional year,
      effective January 1, 2005. The lease consists of 2,230 square feet at $3.75 per
      square foot. The annual rental rate is $8,362.50, an increase of $557.50; the
      monthly rental payment is $695.95, including taxes. The tenant builds custom
      wooden furniture.


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       4. Consider approval of Addendum B to Lease No. 2003-01 with Donald and
          Laura Nolette for the rental of Building No. 299, located at 3114 Rudder
          Circle (residence).

       Staff recommends approval of Addendum B to Lease No. 2003-01 with Donald
       and Laura Nolette for the rental of Building No. 299, located at 3114 Rudder
       Circle (residence). The lease term is for one (1) additional year, under the same
       terms and conditions, effective January 1, 2005. The annual rental rate is
       $9,000.00; the monthly rental payment is $750.00.

       5. Consider approval of Lease No. 2004-31 with Jeremy J. Pearson and Jacob
          Luke, for the rental of Building No. 523, located at 3001 Beardall Avenue
          (residence).

       Staff recommends approval of Lease No. 2004-31 with Jeremy J. Pearson and
       Jacob Luke, for the rental of Building No. 523, located at 3001 Beardall Avenue
       (residence). The lease term is month-to-month, effective December 1, 2004.
       The annual rental rate is $6,000.00; the monthly payment is $535.00, including
       taxes.

       6. Consider approval of Lease No. 2004-34 with Anthony and Joseph Miller, for
          the property located at 2621 Greenway (residence).

       Staff recommends approval of Lease No. 2004-34 with Anthony and Joseph
       Miller for the property located at 2621 Greenway (residence). The lease term is
       for ninety (90) days at no charge, effective December 3, 2004, and ending March
       2, 2005. This property was purchased with funding from FAA Grant No. 3-12-
       0069-38, for acquisition of land in noise sensitive areas located within the 65
       DNL.

Motion by Board Member Howell, seconded by Board Member Williams, to approve the
additional Consent Agenda Items 1 through 6.
Motion passed.

10. DISCUSSION AGENDA

   A. Consider approval of proposal from GrayRobinson, Attorneys at Law, to provide
      employment law counsel

Counsel requested approval of a proposal from GrayRobinson, Attorneys at Law, to
represent the Sanford Airport Authority with regard to employment law matters. For
advice and counsel, GrayRobinson proposes a rate of $175.00 per hour for
partners/$150.00 per hour for associates; for litigation matters, GrayRobinson proposes
an hourly rate of $200.00 for partners/$175.00 for associates. Either party may
terminate the agreement at any time for any reason by written notice.

GrayRobinson is a full-service corporate and general practice law firm with more than
160 attorneys throughout nine offices in Florida. Their Employment and Labor Law
Section represents both public and private employers in all areas of employment and
labor law, including discrimination claims under Title VII and the Florida Civil Rights Act,
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Age Discrimination in Employment Act, the Americans with Disabilities Act, the Family
and Medical Leave Act, ERISA, as well as related state laws and local ordinances.
They also defend clients against charges filed with the Equal Employment Opportunity
Commission and the Florida Commission on Human Relations in the investigation and
litigation stages at the federal, state and local levels. Gray Robinson currently provides
employment law counsel for the following public employers: Orange County,
Hillsborough Transit Authority, Melbourne Airport Authority, City of Groveland and City
of Melbourne.

Counsel introduced John Finnigan from GrayRobinson.

Staff recommended approval of the proposal from GrayRobinson, Attorneys at Law, to
represent the Sanford Airport Authority with regard to employment law matters at the
proposed hourly rates of $150.00/$175.00 for advice and counsel, and
$175.00/$200.00 for litigation matters.

Motion by Board Member Williams, seconded by Board Member Howell, to approve the
proposal from GrayRobinson to represent the Sanford Airport Authority with regard to
employment law matters at a proposed hourly rate of $150.00/$175 for advice and
counsel, and $175.00/$200.00 for litigation matters.
Motion passed.

   B. Consider approval of Professional Service Agreement with Anderson &
      Associates, P.A. for Disadvantaged Business Enterprise (DBE) Program
      Technical Assistance

President Dale advised under U.S. Department of Transportation regulations, the
Airport Authority, as the sponsor of the Airport, is obligated to provide a level playing
field for firms that have been certified as socially and economically disadvantaged and
which provide goods, services, and construction contracting to the Airport whenever
Federal grant funds are utilized. The federal program to implement this is called the
Disadvantaged Business Enterprise (DBE) Program. The Airport maintains such a
program, and the Board adopted the goals for Fiscal Year 2005 at the September
meeting of the Authority. The goals for this year are to expend 16.09% of our FAA
Airport Improvement Program (AIP) funds for engineering, planning, design,
construction and related services with DBE firms. In addition, under our DBE Program,
the Authority must make a good faith effort to increase and maximize the amount of
DBE concessionaires, which sell goods within the Terminals.

Recently the DOT’s Office of Inspector General (OIG) has received allegations of DBE
fraud at some airports around the country, which has resulted in numerous OIG
investigations in nineteen states. There has also been increasing attention on DBE
Program fraud by Congress, federal and state law enforcement authorities, and the
news media. The Secretary of Transportation has made DBE Program fraud one of the
top ten management challenges for the entire DOT. As a result, DOT and FAA are
increasing their oversight of DBE programs in a number of ways, including increased
investigations, compliance reviews, regulatory actions, and technical assistance to



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airport sponsors. However, the ultimate responsibility for compliance with the
regulations rests primarily with airport sponsors as a grant assurance with respect to
receiving AIP funds. Acceptance of a grant agreement constitutes acceptance of all
grant assurances.

Airport sponsors are required to implement appropriate mechanisms to ensure
compliance with the DBE requirements by all program participants. Only firms that fully
meet eligibility standards are permitted to participate as DBEs. The oversight
responsibilities of airport sponsors occur at every stage in the DBE Program. The
annual goal-setting, program administration, and accomplishment reporting
requirements are more than just a paper exercise. All the efforts made to narrowly
tailor the DBEs Program must in fact be carried out, or it threatens the very
constitutional foundations upon which the DBE Program is based. Airport sponsors
have a duty to develop a monitoring mechanism to verify the work committed to DBEs
at contract award is actually performed by the DBEs. Cooperation with the FAA with
regard to annual goal updates, investigations, compliance reviews, and requests for
information, will ensure nondiscrimination in the provision of opportunities for DBEs,
minimize the potential for fraud and abuse, and increase the level of oversight
necessary for a strong, vibrant, and effective program in the airport environment.

At many other airports around the country, they maintain full-time persons on-staff to
monitor the DBE Program. In Sanford, the Authority’s Executive Vice President & Chief
Operating Officer acts as its DBE Liaison Officer and is responsible for monitoring the
Program and preparing all documents and reports to the Department of
Transportation’s Civil Rights Office. Our FAA-approved DBE Program permits the
Airport to accept DBE certifications from other airports and government agencies in lieu
of us performing the required investigations and thus certifying the DBE status of
program participants.

In view of the vastly increased amount of DOT and FAA inspections and oversight of
the DBE Program, we are proposing that the Authority enter into a Professional
Services Agreement with a local firm, which has expertise in providing technical
assistance to agencies in DBE matters. We have met with the President & CEO of
Anderson and Associates, P.A., Veronica Anderson, and have discussed potential
areas in which her firm could assist the Authority in assuring that we maintain full
compliance with the DBE regulations. The firm could assist the Authority in assuring
that we maintain full compliance with the DBE regulations. The firm would provide at
least the following services:

   1) Review our current DBE Program and evaluate its compliance. They will also
      review any upcoming contracting opportunities and assist us in determining the
      best approach to obtain DBE participation.
   2) The firm will meet with key staff of the Authority, as well as business owners,
      government officials, and civic leaders in the community to solicit input and to get
      “buy in” for a more vigorous approach to awarding contracts to DBEs. A list of
      DBE certified firms will be created for the Authority after this effort.




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   3) The firm will research the current direction of programs in light of some recent
      court cases. Additionally, they will contact about five transportation entities that
      are successful in awarding legitimate DBE contracts in order to obtain in-depth
      knowledge about the benefits, successes, costs, participation, etc., of these
      efforts. They will then bring the best strategies to the Authority for review, input,
      and adoption.
   4) The firm will assist the Authority by drafting a new program to involve Minority
      and Women Business Enterprises for non-federally funded projects.

The firm proposes a fee of $15,000 to perform these services. Funding for this service
would come from the Authority’s FY 05 operating budget in the Professional Services
Account. Staff recommended approval of hiring this firm, and the development of an
agreement acceptable to the Authority’s General Counsel and all parties, and the
execution of the final documents.

Motion by Board Member Howell, seconded by Board Member Gibson, to approve
Professional Service Agreement with Anderson & Associates, P.A. for Disadvantaged
Business Enterprise (DBE) Program Technical Assistance, as well as development of
an agreement acceptable to the Authority’s General Counsel and all parties, and the
execution of the final documents.

   C. Presentation by Hoyle, Tanner & Associates regarding Parking Garage Project

President Dale advised Doug Norman and Douglas DiCarlo, Hoyle, Tanner &
Associates, would made a presentation to the Board on the proposed Parking Garage.

Douglas DiCarlo made the presentation.

A copy of the preliminary site plan and scenarios is attached to and made a part of
these minutes.

Discussion regarding assumptions made in the study and whether the numbers reflect
the absence of Pan Am and Southeast.

Discussion continued.

Larry Gouldthorpe advised he needed some assistance from HTA to quantify the
impact for TBI with absence of Pan Am and Southeast. TBI would need to know if a $5
million investment would be good business. TBI still has some limitations. He advised
he continued to meet with President Dale to work on the parking garage deal.

President Dale requested consensus of the Board to continue to work with TBI and to
continue with the design phase of the parking structure with Scenario A with TBI
participating with the financing of the project as the first choice and Scenario B if TBI
chooses not to participate with the financing as the second choice.

Consensus granted.



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Discussion regarding pursuit of a carrier to pick up the Allentown and Stuart routes.

11. COMMENTS FROM THE PUBLIC

None.

12. OTHER BUSINESS

President Dale advised the office Christmas party would be held December 14, 2004, at
Gate 6, and he hoped everyone would attend.

President Dale advised there would be a grand opening of the new entrance road on
January 6, 2005, at 10:00 a.m.

President Dale advised the FAC Meeting was coming up in February. He encouraged
everyone to attend the event. He further advised that we will probably fly to
                     th                         th
Tallahassee on the 9 and come back on the 10 . The Authority sponsors a dinner for
                                   th
Legislators on the evening of the 9 immediately following the FAC reception.

13. REMINDER OF NEXT BOARD MEETING JANUARY 4, 2005

14. ADJOURNMENT

There being no further business, the meeting was adjourned at 10:20 a.m.

Respectfully submitted.



Victor D. White, AAAE
Executive Vice President

ag




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BOARD MEETING
   The regular meeting of the Sanford Airport Authority will be held on Tuesday *,
   at 8:30 a.m., at the Sanford Airport Authority Executive Offices Board Room,
   A.K. Shoemaker Domestic Terminal, 1200 Red Cleveland Boulevard, Sanford,
   Florida. Information may be obtained by contacting the executive offices
   during normal business hours at (407) 585.4001.

SANAC
   The Sanford Airport Noise Abatement Committee (SANAC) meeting will be
   held on Tuesday, *, at 9:00 a.m., in the Sanford Airport Authority Executive
   Offices Board Room, A. K. Shoemaker Domestic Terminal, 1200 Red
   Cleveland Boulevard, Sanford, Florida. Scheduling and information is
   available by contacting the Vice President of Operations at 407.585.4006.

USER GROUP
   The Airport User Group meeting will be held on Tuesday, *, at 10:30 a.m., in
   the Sanford Airport Authority Executive Offices Board Room, A. K. Shoemaker
   Domestic Terminal, 1200 Red Cleveland Boulevard, Sanford, Florida.
   Scheduling and information is available by contacting the Vice President of
   Operations at 407.585.4006.

DESIGN REVIEW COMMITTEE (DRC)
   The Sanford Airport Design Review Committee (DRC) meetings are
   conducted on the third Wednesday of each month unless otherwise posted.
   The next meeting will be held on Wednesday, *, at 10:00 a.m., in the
   Authority’s Executive Offices Board Room, A. K. Shoemaker Domestic
   Terminal, 1200 Red Cleveland Boulevard, Sanford, Florida. Information may
   be obtained by calling 407.585.4000.



    Please take notice that if any person decides to appeal any decision made by the Sanford Airport Authority with respect
    to any matter considered at the meeting or hearing scheduled herein, he or she will need a record of the proceedings,
    and that, for such purpose, he or she may need to ensure that a verbatim record of the proceedings is made, which
    record includes the testimony and evidence upon which the appeal is based, per Section 286.0105, Florida Statutes.
    Persons with disabilities needing assistance to participate in any of these proceedings should contact the executive
    offices 48 hours in advance of the meeting at 407.585.4004.

    Victor D. White, A.A.E.
    Executive Vice President and Chief Operating Officer




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