[0:03] Make sure you're in January. I think
[0:04] we're good.
[0:08] » Good morning all.
[0:09] >> Good morning.
[0:11] » Good morning.
[0:11] >> Board of Port Commissioners meeting will
[0:13] » Board of Port Commissioners meeting will
[0:13] convene. Um we can start with the
[0:16] invocation. We do have a pinch hitter.
[0:18] Brian, I understand you're pinch hitting
[0:20] for us. The rabbi was unable to come
[0:22] here. If we could all stand for that and
[0:23] then the pledge, please.
[0:27] » Good morning everybody. Nice to see you.
[0:31] Quick prayer here. Uh, heavenly father,
[0:34] as we gather for this meeting, give us
[0:36] the use of your gift of peace and
[0:38] understanding that we may approach the
[0:41] matters we must govern today with
[0:43] sincere and just hearts. We ask for your
[0:47] guidance in our decision-m and thank you
[0:49] for the leadership bestowed upon us.
[0:52] Thank you, Lord, for the servicemen and
[0:54] women defending and protecting our
[0:56] freedoms. Please be with them and keep
[0:58] them safe in your loving hands so that
[1:01] they may soon return home to their
[1:04] families. We ask this in your name.
[1:06] Amen.
[1:07] >> Amen.
[1:08] » Amen.
[1:08] >> Please turn to the flag.
[1:10] » Please turn to the flag.
[1:10] >> I pledge allegiance to the flag of the
[1:12] » I pledge allegiance to the flag of the
[1:12] United States of America and to the
[1:14] republic for which it stands, one nation
[1:17] under God, indivisible, with liberty and
[1:20] justice for all.
[1:23] [clears throat]
[1:28] Thanks, Brian. [snorts]
[1:30] >> Uh, next item on the agenda is our
[1:32] » Uh, next item on the agenda is our
[1:32] annual reorganization
[1:35] board of port commissioners. Um,
[1:41] » good morning, commissioners and special
[1:44] management committee. For the record, I
[1:45] am Claudia Curtain and I am the county
[1:48] record services manager and it's my
[1:50] privilege to represent the clerk's
[1:51] office to conduct the annual
[1:53] reorganization of the board of
[1:55] commissioners. As a reminder, any
[1:58] commissioner may nominate another
[2:00] commissioner or themselves to serve as
[2:02] chair. Nominations [clears throat]
[2:04] do not require second, but a vote is
[2:06] required to close nominations and a roll
[2:09] call vote is required for each
[2:11] nomination.
[2:12] The floor is now open for a nomination
[2:15] for chair.
[2:16] >> I nominate S Pentagross. Mr. Chairman,
[2:19] » I nominate S Pentagross. Mr. Chairman,
[2:19] >> I'll second that.
[2:20] » I'll second that.
[2:20] >> I move we close nominations.
[2:22] » I move we close nominations.
[2:22] [clears throat]
[2:23] >> Thank you. Nominations are closed.
[2:27] » Thank you. Nominations are closed.
[2:27] >> I will now call for a vote for the
[2:29] » I will now call for a vote for the
[2:29] election of chair for C uh Commissioner
[2:33] Pendergrass by district. Commissioner
[2:35] Wayne.
[2:37] >> Commissioner Pendergrass. Oh,
[2:38] » Commissioner Pendergrass. Oh,
[2:38] >> yes.
[2:39] » yes.
[2:39] >> I thought Commissioner Ma. Yes,
[2:43] » I thought Commissioner Ma. Yes,
[2:43] >> Commissioner Hammond.
[2:43] » Commissioner Hammond.
[2:44] >> Yes,
[2:45] » Yes,
[2:45] >> Fisherki.
[2:46] » Fisherki.
[2:46] >> Yes.
[2:47] » Yes.
[2:47] >> Congratulations.
[2:49] » Congratulations.
[2:49] >> Thank you.
[2:51] » Thank you.
[2:51] >> Thank you. [applause]
[2:56] » Yours to take over for vice chair.
[2:58] >> Thank you. Thank you to my board for the
[2:59] » Thank you. Thank you to my board for the
[2:59] vote of confidence. Look forward to a
[3:01] great year of RSW and our special
[3:02] management team. Ray, you had a chance.
[3:04] You could have volunteered, you know,
[3:05] but you know, [laughter]
[3:08] >> still nice to see you on that side of
[3:09] » still nice to see you on that side of
[3:09] the table. So,
[3:11] >> pleasure to be here. Again, thank you.
[3:12] » pleasure to be here. Again, thank you.
[3:12] At this time, we take nominations for
[3:14] vice chair by nominate Commissioner
[3:15] Malika.
[3:16] >> I'll second that.
[3:17] » I'll second that.
[3:17] >> I move we close nominations.
[3:20] » I move we close nominations.
[3:20] >> Any public comment on that? Any
[3:21] » Any public comment on that? Any
[3:21] objections? No objections. Resolution.
[3:23] David Malika.
[3:24] >> Thank you. [applause]
[3:29] » Thank you all for the vote of confidence
[3:30] and I look forward to serving in that
[3:31] capacity.
[3:32] >> Thank you. And I'd like to introduce our
[3:33] » Thank you. And I'd like to introduce our
[3:33] newest commissioner, Trish Petroski.
[3:35] This is her first meeting with us today.
[3:37] We She's been working with us for last
[3:39] month. So, THANK YOU. WELCOME.
[3:42] SHE'S BEEN UM GETTING her feet wet every
[3:45] day working and being out in the
[3:46] community and being at the office every
[3:47] day. So, this is our actual first
[3:49] meeting and then next week on the 20th
[3:51] we have a board meeting. So, be your
[3:52] first people. So, congratulations. I
[3:54] hope you're having a good time and thank
[3:56] you for your efforts and volunteering
[3:58] for this job.
[3:58] >> Thank you. Happy to be aboard.
[4:00] » Thank you. Happy to be aboard.
[4:00] >> Great. Thank you. [snorts]
[4:03] » Great. Thank you. [snorts]
[4:03] >> Okay, we'll move on to the recap. Um we
[4:06] » Okay, we'll move on to the recap. Um we
[4:06] have
[4:08] um we only have one item be pulled by
[4:09] Commissioner Luka. Item C. We're going
[4:11] to the consent agenda. Any items be
[4:12] pulled by discussion of board other than
[4:14] number 11. Commissioner Hammond.
[4:16] >> I have none. Mr. Chairman,
[4:17] » I have none. Mr. Chairman,
[4:17] >> I have none.
[4:18] » I have none.
[4:18] >> I have none. Mroski.
[4:21] » I have none. Mroski.
[4:21] >> Any
[4:21] » Any
[4:21] >> I have none.
[4:22] » I have none.
[4:22] >> Okay. I'm going to take that motion to
[4:24] » Okay. I'm going to take that motion to
[4:24] approve the balance of the items.
[4:26] >> So move.
[4:26] » So move.
[4:26] >> Second.
[4:27] » Second.
[4:27] >> Any public comment on the balance items?
[4:29] » Any public comment on the balance items?
[4:29] We have one public comment card in
[4:31] regards to it. Is that
[4:33] >> No, that's not.
[4:34] » No, that's not.
[4:34] >> You're right. Sorry. Okay. And any
[4:36] » You're right. Sorry. Okay. And any
[4:36] public comment on the consent?
[4:39] Any objection? Objection. Motion
[4:40] carries. Commissioner Booka number 11,
[4:43] please.
[4:44] >> Thank you all. Um I um
[4:48] » Thank you all. Um I um
[4:48] appreciate the opportunity to discuss
[4:49] this matter. I um these union
[4:51] negotiations are these are complex labor
[4:55] agreements. I mean this uh this one pay
[4:57] plan is 77 pages long, right? So there's
[5:00] a lot a lot of things in this uh these
[5:02] negotiations and I appreciate staff and
[5:05] all of our all of our firefighters for
[5:07] doing their great work every day. But
[5:08] there was a couple things when we when
[5:10] we had convened as a board in the shade
[5:13] session to uh discuss the pay plans. We
[5:17] [snorts] left there the f first time we
[5:19] had a an impass and came back to us
[5:22] because we said we want to be
[5:24] competitive with the market. We want to
[5:26] be fair to our employees. We want to
[5:28] make sure that we're competitive in the
[5:29] market for other agencies. And we we
[5:32] made a special effort to raise the
[5:34] floor, right? Because our starting
[5:36] people were were below where we wanted
[5:38] them to be. And then we made a also made
[5:42] a deliberate effort that we didn't want
[5:44] to raise the ceiling on the highest paid
[5:46] people was part of our discussion in
[5:49] that meeting because they were already
[5:51] at 116% of market in that particular
[5:55] silo. So I mentioned this u for that and
[5:59] then there's so there's the pay plan
[6:01] concern on the on the upper end for that
[6:02] one particular tier of the max of the
[6:05] highest paid people that I wanted to
[6:06] talk about and then there was another
[6:08] item that caught my attention that I
[6:10] wanted to ask uh Steve to explain to us
[6:15] a bit um on 39.07 07.
[6:19] It says, "Time worked during emergencies
[6:22] and unforeseen airport events. When the
[6:25] executive director designate designates
[6:28] at an event and as an emergency,
[6:31] bargaining unit personnel who work
[6:33] during the emergency shall receive
[6:35] emergency pay calculated at double time
[6:39] and 1/2 [snorts]
[6:41] for all hours worked. The reopening of
[6:44] the airport signals the emergency is
[6:46] over and they'll be paid as usual. So,
[6:50] can you discuss what emergency pay is
[6:52] [clears throat] and how that multiplier
[6:54] with work?
[6:54] >> Yes, definitely. So, the county has um a
[6:59] » Yes, definitely. So, the county has um a
[6:59] document. It's policy number 504. It's
[7:02] titled pay for work during emergencies
[7:04] or disasters. The port authority has a
[7:06] similar policy. And with that policy,
[7:09] basically an emergency for the airport
[7:12] um is not you're you're calling out the
[7:14] police department or the fire
[7:15] department. An emergency is a hurricane.
[7:17] There is a catastrophic event. There is
[7:20] uh you know the the unlikely instance of
[7:22] an aircraft crash or if there's an
[7:24] active shooter, something that requires
[7:26] the closure of the airport, a portion of
[7:28] the airport, and it could be either
[7:30] airport. In that instance, we have
[7:33] through our policies the ability to call
[7:35] people in. We have broken down our staff
[7:36] by tiers. Tiers 1, two, and three. Tier
[7:38] one are the people, you know, like
[7:40] myself and some of the people in the
[7:42] room, uh, that are always on call. Uh,
[7:45] some of them are salaried, some of them
[7:46] are hourly. So, using the call it the
[7:49] easy one, if there is a hurricane, um,
[7:51] the airport may be closing a little bit
[7:54] off from the county, that is up to the
[7:57] airport as critical infrastructure to
[7:58] decide when that is. um because we have
[8:02] a different role uh with getting people
[8:04] in to help with evacuation, search and
[8:07] rescue, things of that nature. So, what
[8:08] this does is it gives us a means in line
[8:11] with the county to pay the staff that
[8:14] are brought in specifically to work um
[8:17] for whatever instance that is. The item
[8:20] to note is, you know, if somebody is
[8:22] called in, they might not be doing their
[8:24] normal job. So if somebody is in
[8:26] accounting, they might be brought in as
[8:28] part of a team to help clean up the
[8:30] roadways to get something open or they,
[8:32] you know, on, you know, opening day,
[8:34] they might be wearing a red vest helping
[8:36] people. So the roles are not a uh a one
[8:39] for one. Uh we do have an extensive, you
[8:42] know, hurricane plan in that regard
[8:44] where people are assigned locations. Um
[8:47] so this gives us that means and methods
[8:49] in line with the county to pay our
[8:51] people. [snorts] In reference to this,
[8:53] the previous contract did not include
[8:55] the language. So, we included the
[8:57] language here to provide that
[8:58] consistency with what the rest of the
[9:01] airport and the county is doing.
[9:04] >> Okay. Well, respectfully, I I mean, I
[9:06] » Okay. Well, respectfully, I I mean, I
[9:06] think every time we call for help for a
[9:08] first responder that there must be an
[9:10] emergency, [snorts]
[9:10] right? [laughter] I mean, the life
[9:12] saving someone's life in a car wreck,
[9:14] you know, it doesn't have to be uh I
[9:16] want to make sure that they couldn't
[9:18] call in a bonus every time they put the
[9:20] sirens on.
[9:20] >> No, sir. Because we the job of a
[9:23] » No, sir. Because we the job of a
[9:23] firefighter is to help someone in need
[9:25] and then
[9:25] >> the only reason they
[9:27] » the only reason they
[9:27] >> need a first responders is because we
[9:28] » need a first responders is because we
[9:28] have an emergency. Right. So if we just
[9:30] say the word emergency that didn't
[9:32] wasn't defined as airport closure in
[9:34] this document.
[9:35] >> How would I know that? Right. That was
[9:39] » How would I know that? Right. That was
[9:39] my my point of that question.
[9:41] >> If I could is see is this also like part
[9:43] » If I could is see is this also like part
[9:43] of the state of emergency and I think
[9:44] every city every county municipality
[9:46] uses FEMA funding for reimbursement.
[9:48] you're doing a hurricane for example
[9:50] once you declare a state of emergency
[9:51] for like the city for mar city coral lee
[9:54] county the port authority once they
[9:55] declare that then those employees are
[9:57] required to be at work 24/7 12 our
[9:59] shifts for example they're compensated
[10:01] that pay rate of double time and a half
[10:03] >> that that is correct and and that's what
[10:05] » that that is correct and and that's what
[10:05] you know when I stated that our time
[10:06] frame might not necessarily match up to
[10:08] the counties um but nonetheless our
[10:11] employees are also being tracked through
[10:13] our finance department you know we're
[10:15] keeping the the same list that the
[10:16] county would be be keeping for
[10:18] reimbursement if it was in the case of a
[10:20] natural disaster. Um, so those are all
[10:23] all par for the course and typically how
[10:25] that goes is if I am calling something
[10:28] you know that we are projecting, hey,
[10:29] we're going to have a a hurricane notice
[10:31] is getting sent to the board and I'm
[10:33] reaching out to the board. If something
[10:35] were to happen right now and staff
[10:38] that's out on the airfield needs to
[10:40] declare emergency, the airport's shut
[10:41] down, that doesn't mean that emergency
[10:43] pay is automatically getting kicked in.
[10:45] It it's predicated on situation. So what
[10:48] a couple years ago we had the United
[10:50] plane that blew a tire. You know it tail
[10:52] was blocking the runway. We did not
[10:54] declare an emergency because it was
[10:55] handled during normal business hours.
[10:57] You know you didn't call people in. It
[10:59] was a huge impact to the airport. But
[11:01] that didn't fall to this criteria. This
[11:03] is of very large magnitude. You know
[11:06] it's not the same as you know you know
[11:09] the the common you know thought of
[11:11] what's an emergency. So
[11:13] >> okay I know the word emergency the word
[11:14] » okay I know the word emergency the word
[11:14] safety. These can be broad brush terms
[11:16] right. I just wanted to make sure every
[11:18] time they responded to anything that
[11:20] might be saving someone's life, which I
[11:22] think they would consider an emergency,
[11:24] right? That they didn't get a bonus, you
[11:26] know, every time the bell went off at
[11:28] the fire station. So, um, so we can rely
[11:31] on you for your discretion to if the
[11:34] airport is shut down or there's a state
[11:35] of local emergency that that's the bar
[11:37] threshold that we can rely on your
[11:39] kicking this in. We'd be notified of
[11:41] that.
[11:41] >> Right. Yeah. So, so to staff to board I
[11:44] » Right. Yeah. So, so to staff to board I
[11:44] declare an emergency in writing as well.
[11:46] >> Okay.
[11:47] » Okay.
[11:47] >> Because that's part of our our
[11:48] » Because that's part of our our
[11:48] documentation as the commissioner noted
[11:50] for like FEMA as an example. When did
[11:53] you call it? When did it end? Give me
[11:55] everything in between. So it's very
[11:58] delineated in that regard. Um the other
[12:00] item to note is you know again is it is
[12:02] airportwide for those employees. So it's
[12:04] not just subject to ARF, you know,
[12:06] [snorts] for this question. It could be
[12:08] anybody. So, as we tie out this cleanup
[12:11] language to match county languages,
[12:14] there may be some other administrative
[12:16] updates to the code or other things that
[12:18] we can do to clean that up definitions
[12:20] of that for emergency purposes.
[12:22] >> Yes, yeah, we can definitely look at
[12:23] » Yes, yeah, we can definitely look at
[12:23] that.
[12:24] >> Okay, thank you for that.
[12:27] » Okay, thank you for that.
[12:27] So, can we talk about for a moment?
[12:31] Does anybody else have any questions on
[12:32] that portion? But thank you. Um so
[12:36] regarding the the the pay benefits uh we
[12:40] we left our meeting uh with Anna's
[12:42] approval at the 109 number I believe and
[12:45] then it came can you talk to us about
[12:47] how it came back before us today what
[12:49] what changed
[12:51] >> between just so the difference between
[12:53] » between just so the difference between
[12:53] the 109 and the number here for the the
[12:55] >> we left our shade session saying for
[12:57] » we left our shade session saying for
[12:57] unanimous approval at this
[13:00] >> yeah so that so the with
[13:02] » yeah so that so the with
[13:02] >> that changed after that fact
[13:03] » that changed after that fact
[13:03] >> yeah so the the number that is before
[13:05] » yeah so the the number that is before
[13:05] the board today for the ARF tech. Um,
[13:08] but I guess actually all of them is well
[13:12] I'll back up just specific to the ARF
[13:14] tech that 109 did not include the uh pay
[13:18] range adjustment that we provided all
[13:20] employees at the airport. So that pay
[13:22] range that I believe it was 3%
[13:24] adjustment brought it from 109 to 113 in
[13:27] line with the rest of the staff or LCPA
[13:30] for for the pay ranges. So you have the
[13:32] minimum pay range and the maximum. We
[13:34] adjusted those this year. So that 3% was
[13:37] the difference between 109 and 113.
[13:42] » Mr. Chairman, if I could also uh by way
[13:45] of explanation, when we went back to the
[13:47] union representatives, part of their
[13:49] voiced concern was the implication of
[13:52] the thenexisting maximum pay caps
[13:54] because that affected, I believe, four
[13:56] employees. So we had further
[13:58] negotiations with the union and we came
[14:01] to a a tenative agreement that's why the
[14:04] contract is before you today whereby
[14:07] those maximum caps would be increased by
[14:10] 2% in the second and third year of the
[14:12] contract. In return for that concession
[14:15] uh the union has agreed to eliminate the
[14:18] wage reopener provisions that were in
[14:20] the previous contract. So they are
[14:23] foregoing the opportunity to revisit
[14:25] wages on an annual basis which they had
[14:28] in the existing contract. So if this
[14:30] contract goes forward uh with all due
[14:32] respect to our firefighter friends, you
[14:34] don't have to deal with union
[14:36] negotiations with them for a three-year
[14:38] period. [clears throat]
[14:41] So this basically staggers three-year
[14:44] pre-aggreement that's fixed rather than
[14:47] I wasn't here for the last three years
[14:48] [cough and clears throat] old ones on an
[14:49] annual basis.
[14:51] get the hang of this when you say it's
[14:52] the first time I ever heard this before.
[14:53] You know, I can still say that on a
[14:56] couple things, you know, but but
[14:58] respectfully, so we we take a little bit
[15:00] of a bite now today and then it
[15:03] staggers. It breaks it up over the
[15:04] three-year period [snorts] in a
[15:05] predictable manner rather than being so
[15:07] if we said hold tight at the 109, then
[15:10] we get to a haggle two more times.
[15:13] >> Correct.
[15:13] » Correct.
[15:13] >> And it could end up costing more or
[15:15] » And it could end up costing more or
[15:15] less. And again, please keep in mind the
[15:17] distinction between a pay increase and
[15:20] increasing the pay ranges. What we're
[15:23] talking about in this contract with the
[15:24] 2% per year that I discussed was
[15:28] increasing the maximum pay range. It's
[15:30] not a guaranteed 2% pay raise. Uh the
[15:34] firefighters under the contract would
[15:36] get the same pay increase that the board
[15:38] would approve for all employees. This
[15:41] merely increases the pay, the maximum
[15:44] pay cap so that they're not maxed out in
[15:48] terms of pay.
[15:50] >> And I think one thing I learned from you
[15:51] » And I think one thing I learned from you
[15:51] in our review of this yesterday, if we
[15:53] had a 5% raise and we didn't raise the
[15:55] max, and I didn't I didn't know all
[15:56] this. I don't have a union shop with my
[15:58] company, right? So, um, if the 5% money,
[16:02] they would still get the money that they
[16:04] would get in a raise. They would just
[16:06] get in a lump sum payment, right? So
[16:08] they they wouldn't I I thought the first
[16:10] time I read this that if they got a 5%
[16:12] pay raise and they were at the max that
[16:14] they wouldn't be entitled to the race,
[16:16] right? Again, as a as a new
[16:18] commissioner, you I would have I thought
[16:20] that was their cap, [clears throat] but
[16:23] they would still get the five grand or
[16:25] whatever the money would be. They would
[16:26] just get a lump sum payment, but that
[16:28] legacy cost of going on for the rest of
[16:30] their lives at their pension, that's the
[16:32] escalation that they want to protect. Is
[16:34] that correct,
[16:35] >> Mr. Germany?
[16:36] » Mr. Germany?
[16:36] >> Yes. Under the the state retirement
[16:39] » Yes. Under the the state retirement
[16:39] system, your state retirement is based
[16:40] on your high the average of your high-
[16:43] five wage earning years multiplied by
[16:46] years of service multiplied by a service
[16:48] classification factor. So it in the
[16:51] employees best interest to have that
[16:54] high five as high as possible. the
[16:56] difficulty comes in and we all recognize
[16:58] this. When you reach the maximum cap,
[17:01] you get that pay in a lump sum, but it
[17:04] doesn't go toward increasing your high
[17:06] five for retirement purposes. So over
[17:08] the course of your career, you're
[17:10] actually suffering a harm that will be
[17:13] in perpetuity for the rest of your life
[17:16] as you retire and receive those
[17:18] retirement benefits through the state
[17:20] system. And I would point out that that
[17:22] is the state retirement system that you
[17:25] are obligated to participate in and
[17:28] statutoily cannot opt out of.
[17:32] >> On from that, I'd like to say that I
[17:34] » On from that, I'd like to say that I
[17:34] think I think that our purpose here, our
[17:36] goal at the time though doing this
[17:37] negotiation was trying to uh adjust the
[17:40] pay based upon the market. That's why we
[17:42] asked the staff to do a market analysis.
[17:43] I would suggest in the future we do this
[17:45] three years from now is maybe do a
[17:46] market analysis of international airport
[17:48] staff not just [snorts] local fire
[17:50] departments because we use LII acres you
[17:52] know San Carlos Bonita to look at pay
[17:55] adjustments for for example like this
[17:57] pay right here we're the 109 this four
[18:00] employees there four employees that live
[18:02] in our community they're taxpayers their
[18:03] kids go to school there they're
[18:04] consumers that are being funded not by
[18:07] taxpayers by everybody that flies this
[18:08] airport from the UK Australia and
[18:11] everywhere else in the country in the
[18:12] world that comes here those four
[18:13] employees are getting funded for that. I
[18:15] think we have to make sure we're not
[18:17] trying to obviously uh it was mentioned
[18:19] about FRS. I don't think FRS is the
[18:20] issue. I think that the employees are
[18:22] making sure they're being paid that's
[18:24] fair and adjusted based upon the market.
[18:26] There's no reason they should have to go
[18:28] across the street, work somewhere else
[18:29] and make more money and be here at the
[18:30] airport. We are the best airport in the
[18:32] country. We want to, you know, provide
[18:33] that. We also want to make sure you
[18:35] coming in at 150 m per hour with no
[18:37] landing gear just to make qualified
[18:39] waiting for you in the runway with some
[18:40] foam. Okay. So then my or my goal was to
[18:43] make sure we provided a good environment
[18:46] for these four employees and make sure
[18:48] their pay is based upon what's in the
[18:50] market. If you see they can go somewhere
[18:51] else and stay benefic
[18:57] contributions based upon making sure we
[18:59] have a fair market here for the
[19:01] employees we have working your service
[19:02] in the airport. And I can echo the
[19:04] fairness. You know, we all want to be
[19:06] fair, right? And we we spent a lot of
[19:08] time in our conversations just for the
[19:10] public's knowledge to make sure we
[19:11] raised the floor and everybody everybody
[19:13] else but the max on the sixth tier was
[19:17] shrewed up to be close to 100% which
[19:19] they were shy of that before. We were
[19:22] trying to be very competitive to make
[19:24] sure that we got everybody around 100%.
[19:26] But when the 116% group wanted to be
[19:28] 119% it just sort of caught me a little
[19:31] bit flatfooted on that.
[19:33] I thought they already had a scale on
[19:34] the on had a pace on that and the fact
[19:36] that we have so many people in that pay
[19:38] grade. I thought I I I thought I read on
[19:40] your report yesterday that there were 10
[19:41] people at the $ 109,000
[19:44] pay range currently. I don't know where
[19:45] the four
[19:46] >> I I don't have that. I'm sorry. I don't
[19:47] » I I don't have that. I'm sorry. I don't
[19:47] have that. I can get that.
[19:49] >> Anyway, irregardless. Thank you for
[19:51] » Anyway, irregardless. Thank you for
[19:51] showing me the the staggered approach
[19:53] for the three years. Basically
[19:54] pre-approving the incremental so it's
[19:56] not like we're not agreeing to this and
[19:58] then having to agree to agree two more
[20:00] times. That's helping clarify that. I do
[20:02] I do appreciate that. Just these shade
[20:04] sessions. We have those and we don't
[20:06] talk again until we get on camera again.
[20:07] So, thank you for indulging me with
[20:09] those explanations. So,
[20:11] >> I'll make a motion.
[20:12] » I'll make a motion.
[20:12] >> Sure. Go ahead.
[20:13] » Sure. Go ahead.
[20:13] >> I'll make a motion to approve. Still
[20:15] » I'll make a motion to approve. Still
[20:15] have discussion.
[20:16] >> Okay. I motion second.
[20:17] » Okay. I motion second.
[20:18] >> Mr. Chairman, if I may. Yeah. No, I I
[20:19] » Mr. Chairman, if I may. Yeah. No, I I
[20:20] was glad to hear you make a motion. I
[20:21] was I was uh about to do that as well,
[20:23] but uh I just wanted to share some
[20:25] thoughts, too. This was a long process
[20:26] to get here to this point to get this
[20:28] contract negotiated. And I I did want to
[20:30] share my thanks with the folks from the
[20:32] union. Uh and I do want to thank all of
[20:34] our firefighters who are out there every
[20:36] day doing their job regardless of what
[20:38] the negotiations are doing behind the
[20:39] scenes. So, thank you very much to the
[20:41] folks who are out there on the front
[20:42] lines, too. But I also wanted to thank
[20:44] our our team here. Thank you guys for
[20:46] working through this and uh and the hard
[20:48] work that you did to get it to this
[20:49] point. There was many, many, many
[20:51] meetings to get here. Um, the one thing
[20:53] that I I do appreciate that we've kind
[20:55] of talked about already though that's in
[20:56] this contract is the ability that for
[20:59] the next few years uh this bargaining
[21:01] group will get the same as what the
[21:03] airport employees get. It'll we're
[21:04] calling it kind of like a meto clause.
[21:06] So if we give a raise to the airport
[21:08] employees, they're going to get a very
[21:09] similar increase. Then um I like that
[21:12] because personally I really feel very
[21:14] strongly about treating each group the
[21:15] same. Uh I don't like it when we treat
[21:17] one group differently than another
[21:19] group. And so to me, this contract
[21:21] really does get um to that point. It
[21:24] satisfies my desire to get everybody
[21:26] kind of on an equal level of increases
[21:28] where nobody feels like they're being
[21:29] treated differently. So, thank you, Mr.
[21:31] Chairman. Happy to support the motion.
[21:33] >> Thank you, Commissioner W.
[21:34] » Thank you, Commissioner W.
[21:34] >> Sure. Appreciate it. Um certainly I echo
[21:37] » Sure. Appreciate it. Um certainly I echo
[21:37] many of the comments that here. I just
[21:39] think that, you know, for the record,
[21:40] for clarity, you know, this was a
[21:42] paycale adjustment. Um we pride
[21:45] ourselves to have consistency throughout
[21:46] the organization. We pride ourselves for
[21:49] first uh right of refusal and certainly
[21:51] uh acknowledging the employees that we
[21:53] have and that's really important. You
[21:55] know, someone that has certainly a lot
[21:57] of people on a payroll in a given period
[21:59] of time, I understand how important it
[22:01] is to keep continuity. Many people don't
[22:04] realize just how difficult it is to
[22:07] replace people, the learning curve you
[22:09] have to go through, the institutional
[22:10] knowledge you lose. It's so important to
[22:12] make sure we do this and honestly being
[22:14] fair to the whole process. And this
[22:16] collective bargaining is always an
[22:18] interesting process. I certainly
[22:21] experienced that in Sandville. There's
[22:22] two unions there. So when I got in
[22:24] office in '07, it was the recessionary
[22:26] times and went through this every year.
[22:28] But I think, you know, it also gives
[22:29] kudos to not only staff and to our our
[22:32] employees recognizing that we did an
[22:35] adjustment to salary and there go there
[22:37] wasn't a necessary adjustment to do
[22:39] something in the future for a couple
[22:41] years. So obviously it's just
[22:42] recognition what we did. Can't thank
[22:44] staff enough. Can't thank your team,
[22:46] Henry, and everybody that they did. It
[22:48] comes out with a nice outcome and
[22:50] certainly appreciate the fact that we've
[22:51] approved this and it's a second. I think
[22:53] it's a good thing for everyone. And I
[22:55] think Commissioner Pentag is this isn't
[22:58] a taxpayer dollars and I think that
[22:59] sometimes gets lost in this whole
[23:01] process.
[23:03] >> We have one public comment card if
[23:04] » We have one public comment card if
[23:04] there's no comments from the commission.
[23:07] Um Henry Garcia
[23:11] » [snorts]
[23:16] » Morning everyone. H Garcia, president of
[23:18] local 1826. I am firefighter here. I
[23:21] just want to take an opportunity to
[23:22] thank everyone at the board for their
[23:23] foresight to approve this contract. Uh
[23:25] you guys took a huge step forward in the
[23:27] recruitment and retention of
[23:28] firefighters, paying them a good wage,
[23:30] and they're very happy with their
[23:32] contract. We had a unanimous vote of the
[23:34] collective bargaining agreement. So they
[23:35] are very thankful for the foresight that
[23:37] you guys showed in giving them those
[23:39] wage increases. Also like to thank the
[23:41] county attorney's office
[23:43] for all their hard work. We really
[23:45] appreciate the partnership.
[23:46] >> Thank you.
[23:47] » Thank you.
[23:47] >> Thank you.
[23:48] » Thank you.
[23:48] >> Any other public comments?
[23:50] » Any other public comments?
[23:50] >> Thank you.
[23:51] » Thank you.
[23:51] >> Let's come back. We'll close public
[23:52] » Let's come back. We'll close public
[23:52] comment. Come back to board. We have a
[23:53] motion with a second. Any other
[23:54] discussion? Any objection? No objection.
[23:57] Motion carries. Thank you.
[23:58] >> Thank you. [clears throat]
[24:01] » Thank you. [clears throat]
[24:01] >> Number 12,
[24:07] Richard. Is this one to rec?
[24:09] >> Sir, Mr. Chairman, if you would please
[24:11] » Sir, Mr. Chairman, if you would please
[24:11] convene as the board of
[24:14] the board of county commissioners.
[24:16] >> We are now board of county commissioners
[24:18] » We are now board of county commissioners
[24:18] number 12.
[24:19] >> Thank you, Mr. Chairman. Sitting as the
[24:21] » Thank you, Mr. Chairman. Sitting as the
[24:21] board of county commissioners, the
[24:23] purpose of agenda item 12 is to conduct
[24:25] a keer hearing with regard to the
[24:27] potential issuance of uh revenue series
[24:31] bonds. Mr. Andor is here for the staff
[24:33] presentation following the closure of
[24:36] the public hearing. Uh item 13 would be
[24:39] to approve the resolution approving the
[24:41] issuance. That can only take place after
[24:43] the public hearing.
[24:44] >> Okay.
[24:45] » Okay.
[24:45] >> Thank you.
[24:46] » Thank you.
[24:46] >> Thank you.
[24:48] » Thank you.
[24:48] >> Hi. Good morning. Dave Anderson record.
[24:50] » Hi. Good morning. Dave Anderson record.
[24:50] Uh stated items 123 14 all relate to the
[24:54] bond issuance. Uh we'll have that
[24:56] separate hearing. Item 13 as you said
[24:58] will be approval of the Lee County
[24:59] Airport Revenue Bond Series 2026 in the
[25:02] amount not to exceed $375 million. And
[25:05] then the same item will be introduced by
[25:07] the board of appealers.
[25:14] » So we were last in the bond market in
[25:16] October 2024 to do the first borrowing
[25:18] to fund terminal expansion phase 2
[25:20] concourse E. Now we're coming back to
[25:22] the board for approval to raise the
[25:24] additional funds needed to finish that
[25:25] project off as well as raise additional
[25:27] funds for terminal expansion phase one
[25:30] and to build the new public safety
[25:31] building. As part of this bond deal, we
[25:34] also have the opportunity to refund one
[25:36] of our existing series 2015 bonds that
[25:38] are now callable and can be refinanced
[25:40] in order to reduce our overall debt
[25:42] service costs. So, as the slide
[25:43] [clears throat] states, the bond
[25:44] issuance achieves two strategic
[25:46] objectives. It funds three major capital
[25:48] improvement projects and it refunds an
[25:50] existing bond series to capitalize on
[25:52] nature savings opportunity.
[25:57] This this slide provides an overview of
[25:59] the series [clears throat] 2026 bonds,
[26:00] their uses, amount, tax structure, and
[26:03] other features. I'll quickly touch on
[26:04] the bond issuance, our plans, and then
[26:06] I'll hand it over to our m municipal
[26:07] adviser, Bill Case from PFN. They'll go
[26:10] over some of the specifics, talk about
[26:11] market conditions, affordability, and
[26:13] impact of the bond issuance to our debt
[26:15] profile. So, it's important to note that
[26:17] our that the not to exceed amount of
[26:19] $875 million that was shown on the last
[26:21] slide. It factors in all the uses of the
[26:24] funds associated with the issuance. So,
[26:26] that's the deposit to the project fund
[26:28] for construction. It's the deposit to
[26:30] fund our required reserve account, cost
[26:32] to issue the bonds, capitalized
[26:34] interest, and any other ancillary costs.
[26:36] Those estimated amounts are broken out
[26:38] on a later slide that uh Bill Case will
[26:40] walk you through. So before I move off
[26:42] this slide, I just like to make the
[26:43] statement of these bonds. Like
[26:45] everything else at our airports, funded
[26:46] by user fees, no local taxes going
[26:48] towards funding these bonds.
[26:52] So on slide four, we show the funding
[26:53] plan for terminal expansion phase one.
[26:56] In March 2025, the board voted to
[26:58] proceed with the project redesign and to
[27:00] increase the project budget to $678
[27:02] million. We always plan to be in the
[27:04] bond market for terminal expansion phase
[27:06] 2 concourse E around this time. the
[27:08] timing worked out nicely to raise the
[27:10] additional funds needed to complete
[27:11] phase one as well. Uh we're planning on
[27:14] construction proceeds of about 250
[27:16] million out of this bond series to go
[27:17] towards the completion of phase one.
[27:23] On slide five, we show the funding plan
[27:24] for terminal expansion phase 2.
[27:27] As mentioned, the second bond is always
[27:29] planned for this project in order to
[27:30] arrange the funding in line with the
[27:32] overall spending of the project.
[27:35] We were in the bond market last October
[27:37] to raise approximately 500 October 2024
[27:41] to raise approximately $525 million to
[27:43] get the project kicked off. Uh now we
[27:46] plan to be back in the market in
[27:47] February to raise an additional $327
[27:50] million, excuse me, $332 million to
[27:53] finish the project. Uh this will
[27:55] complete the funding needed for the
[27:56] total project budget of just over $1
[27:58] billion.
[28:02] On slide six, we show the funding plan
[28:03] for the new public safety building,
[28:05] which will be the new home for the
[28:06] airport police department. This is a
[28:08] singlestory building that is
[28:09] approximately 21,000 square ft and is
[28:11] located southwest of the terminal
[28:13] building along cargo lane. Construction
[28:15] on the project began earlier this year
[28:17] and is scheduled to finish in the fall
[28:18] of 2026. The project has a total project
[28:21] budget of a little over $18 million with
[28:22] the majority of the funding coming from
[28:24] this bond issuance.
[28:28] As mentioned earlier, we had the
[28:29] opportunity to refund our series 2015
[28:30] bonds, which have now seen principal
[28:32] balance of roughly $33 million. Uh we
[28:35] typically target a minimum of 3% net
[28:37] present value savings and uh based on
[28:39] current market conditions, uh this
[28:41] refunding is estimated to have net
[28:42] present value savings of approximately
[28:43] 15%. So it's a great opportunity for us
[28:46] to take advantage of some interest
[28:47] savings while we're already going to be
[28:48] in the market.
[28:52] On my last slide here, I want to take a
[28:54] moment to point out the excellent team
[28:55] of industryleading adviserss and legal
[28:57] counsel that we had working on this bond
[28:58] issuance. Uh the same team has been in
[29:00] place the last few times we've gone out
[29:02] to markets and we've been very
[29:03] successful at developing affordable
[29:04] long-term financing plans for our
[29:06] airports while structuring our debt to
[29:08] maximize the marketability of our debt
[29:10] to investors. So, hats off to our
[29:11] excellent business partners. And uh with
[29:13] us today, we have Bill Case, our
[29:15] municipal adviser from PFM Financial
[29:17] Policies LLC.
[29:19] uh Bill is located out of the Tampa
[29:20] office and has been working on our
[29:22] account for a number of years and he's
[29:24] going to walk you through our debt
[29:25] portfolio to talk a little bit about the
[29:27] specifics of the bond issuance and also
[29:29] touch on affordability. So also I want
[29:31] to point the audience with us today. We
[29:33] have Doug Draper from BFA securities
[29:37] serving as our lead underwriter on this
[29:38] issuance and we also have Tom Giblin and
[29:40] Bratesh Patel from Neighbors Vickerson
[29:43] who serves as our bond counter.
[29:52] Good morning, commissioners. Bill Casem
[29:54] financial advisors. Uh I'll walk you
[29:57] through a overview of the authority set
[29:59] portfolio as well as the background in
[30:01] the series 2026 bonds.
[30:05] There's currently four series of bonds
[30:06] outstanding approximately 862 million
[30:10] years service is 62 million.
[30:17] This is the estimated sources and uses
[30:20] for the bond issue. Approximately $725
[30:23] million of proceeds that are required to
[30:26] fund $600 million of project fund. The
[30:30] $34 million of the refunding Astro
[30:32] deposit. That's the refunding the series
[30:34] 2015 bonds. There will be capitalized
[30:37] interest of approximately 37 million. a
[30:40] deposit to the debt service reserve fund
[30:42] of 51 million and then various cost of
[30:44] issuance including the underwriting fees
[30:46] of 3.3 million.
[30:49] To the right uh the average life on
[30:51] these this bond issue be approximately
[30:53] 21 years. We are showing an all-in cost
[30:56] of 4.72%.
[30:58] This is approximately 50 basis points
[31:00] above market rates. We use that for
[31:03] conserv level of conservative
[31:05] conservatism
[31:06] uh for the financial projections to make
[31:09] sure that uh the the finance programs
[31:11] affordable.
[31:15] [snorts]
[31:16] After the bonds are issued, there will
[31:19] be approximately $1.5 billion of uh
[31:22] bonds outstanding. Uh next year's or
[31:25] fiscal year 2026 debt service would be
[31:27] $80.6 million.
[31:30] [clears throat] Here
[31:32] are some uh two very key financial
[31:34] metrics uh that we monitor to ensure
[31:38] that there's affordability of the
[31:39] program. First is the airline cost per
[31:42] employment over the projection period
[31:44] looking to get to uh $20.34.
[31:48] Uh that is uh in line with other
[31:52] airports with similar passenger levels
[31:54] are undertaking uh large capital
[31:56] programs. So it is uh well within the
[31:59] range of what the radium season and the
[32:01] market would be uh looking at. Um
[32:06] down below is a very key metric for the
[32:08] uh you [snorts] know for the
[32:10] affordability of the project. This is
[32:12] that service coverage the ability for
[32:14] the authority to pay uh their debt. Bond
[32:16] documents have a requirement of 1.25
[32:19] times coverage. Over the projection
[32:21] period we're looking at uh coverage
[32:23] levels uh between 1.45 and 1.47. 47. So
[32:27] there's a healthy uh cushion there to
[32:29] really ensure the affordability.
[32:32] Also the airline agreement does have
[32:34] provisions that ensures that that uh
[32:36] that they will ensure that the coverage
[32:38] maintains above 1.4. So there's always
[32:40] going to be adequate coverage above the
[32:42] legal requirements.
[32:47] This is the financing schedule. We're
[32:49] scheduled to meet with the rating
[32:50] agencies January 28th and 29th that will
[32:52] be coming in for a site site visit and
[32:54] tour expected to get uh ratings the week
[32:58] of February 9th. We will then post POS
[33:01] uh in the same week and then schedule
[33:04] for a bond pricing the week of February
[33:06] 23rd followed by a closing the week of
[33:09] March 9th.
[33:14] So I'll be happy to answer any
[33:16] questions. Any questions this time for
[33:18] staff?
[33:19] >> I have a question. Uh, just to kind of
[33:21] » I have a question. Uh, just to kind of
[33:21] put it in very simple terms, and I I
[33:22] understood it by looking at the debt
[33:24] coverage ratio or number that you put
[33:26] out there, but um, you know, in simple
[33:28] terms, so we're we're we're borrowing
[33:29] money here. You want to know when you go
[33:31] and take out any kind of loan, can you
[33:32] make the payments on that loan? So maybe
[33:34] Dave might be the best person to answer
[33:36] this, but I'm not sure. Can we make the
[33:37] payments on our loan based on our
[33:39] current budgeting and our current
[33:40] financial situation?
[33:44] » Uh, yes. It's important to note that the
[33:46] airline agreement that we have we
[33:49] negotiate over a two-year time period
[33:50] and we are now in the first year of that
[33:52] agreement. It's written in there that
[33:54] they provide a safety net. So when the
[33:56] debt goes up, the rates and charges go
[33:57] up. So we collect that in revenues from
[33:59] the airlines uh so that we will make
[34:01] those coverage budget. So the [snorts]
[34:04] short answer is yes.
[34:05] >> Yes.
[34:05] » Yes.
[34:05] >> Okay. And then I looked at the cost per
[34:07] » Okay. And then I looked at the cost per
[34:07] employment number uh going up to $20.34
[34:10] by the year 2030 it looked like. Um, has
[34:13] that been run by the airlines as well?
[34:15] And they they're on board with it. I'm
[34:18] sure they don't like it, but [laughter]
[34:20] >> short answer is yes. And we meet with
[34:22] » short answer is yes. And we meet with
[34:22] them at least once a year. And when we
[34:25] before we even began these projects, we
[34:28] discuss these projects with them. They
[34:31] want these projects completed. They're
[34:34] really excited to to move in here and we
[34:36] update them on the cost of the project.
[34:38] And so far, these projections are below
[34:40] what we've shown them. Okay. Excellent.
[34:44] >> Thanks, Mr. Wayne.
[34:46] » Thanks, Mr. Wayne.
[34:46] >> Sure. Um, thank you for the
[34:47] » Sure. Um, thank you for the
[34:47] presentation. Appreciate the briefing.
[34:49] You know, a couple things to highlight
[34:50] and I appreciate what Commissioner
[34:51] Hammond just said. You know, this bond
[34:53] accomplishes an awful lot of things. So,
[34:55] it not only um has to save an awful lot
[34:58] of money as a result of paying bonds off
[35:00] that obviously at a higher interest
[35:02] rate. uh we probably time the market as
[35:05] best as we possibly could given the
[35:06] environment the Federal [snorts] Reserve
[35:08] has certainly dropped interest rates and
[35:10] continue to do so. Um your approach is
[35:13] conservative in nature. Um someone has
[35:16] purchased municipal bonds most of his
[35:18] life. Um I appreciate your
[35:19] conservativism but there is heightened
[35:22] demand um as you start to have Dow Jones
[35:24] at historical highs to go to the bond
[35:27] market look for the bond market for
[35:28] securities. So that is accomplished. The
[35:31] other thing that's really noteworthy,
[35:32] um, two things. One, uh, most bonds when
[35:35] they're issued might have 110, maybe
[35:38] 115%
[35:39] coverage. Covenants are very common,
[35:42] certainly in the banking world. I've
[35:43] been dealing with them my entire life.
[35:45] So, I understand that is. So, 125 is is
[35:47] certainly on the higher side. So, that
[35:49] gives everybody a cushion. But on top of
[35:51] that, we're at 146, 147. So, there's
[35:54] ample things. The other thing of
[35:55] noteworthy as we go through this
[35:57] process, the airline has a true up
[35:59] process every year as we go through our
[36:01] budget. So again, we're exceeding our
[36:03] expectations. You coming conservative
[36:06] with interest rate, you see the money
[36:08] coming in the door. There's an
[36:09] opportunity for the airlines not only to
[36:11] appreciate that we're building this,
[36:13] we're allowing them to expand, make more
[36:15] revenues, but if we believe in our plan
[36:17] and the conservative things you have,
[36:19] there's opportunities from the UNCC
[36:21] adjustments to their favor because
[36:23] that's what this has done. So, I think
[36:24] it's accomplished so many things. I just
[36:26] want everyone to understand just the
[36:29] challenges you have in municipal
[36:30] financing, doing what you need to do,
[36:33] the creativity of paying bonds off, the
[36:35] ability to adhere to very very
[36:37] conservative covenants, which is
[36:40] unprecedented in the bond market at 125
[36:43] and still being able to come out at at
[36:44] an interest rate that's going to be very
[36:46] very. So the savings not only in paying
[36:48] the bonds off but the savings in a lower
[36:50] interest rate given a couple years ago
[36:52] are a significant nature and we continue
[36:54] to have the opportunity to even reduce
[36:56] our cost as we continue to meet and or
[36:59] exceed expectations and projections. So
[37:02] thank you so much.
[37:03] >> Any other questions or comments?
[37:05] » Any other questions or comments?
[37:05] >> I just had a question. Um so basically
[37:07] » I just had a question. Um so basically
[37:07] the way you describe this the airline is
[37:09] almost like a guarantor of our success
[37:11] in this bonds because they're covering
[37:13] us if we if something falls short. were
[37:16] there to help support this financially.
[37:19] >> They're a key business partner. Yes. And
[37:21] » They're a key business partner. Yes. And
[37:21] communication with them and trust is
[37:23] very important.
[37:24] >> So they're willing to participate in
[37:25] » So they're willing to participate in
[37:25] backs stop some of these [snorts] things
[37:27] because they get to participate in the
[37:29] new facilities and that enhances their
[37:31] business opportunity. So they're willing
[37:32] to basically support us in that if if
[37:36] something happens. So what what I wasn't
[37:38] here during COVID when there was nobody
[37:40] flying in. How did what happens to an
[37:43] airlines guarantee or participation when
[37:45] if the market or something
[37:48] goes ter goes down? How does how does
[37:50] that work?
[37:53] >> So as part of that guarantee they
[37:58] guarantee us to make sure maintain 1.4
[38:01] for coverage ratio and then terms of
[38:04] that the other impact is if things
[38:07] didn't go well the amount of planes
[38:10] coming to the airport uh that would
[38:12] affect their revenue sharing as well
[38:14] ours would go down theirs would go down
[38:15] as well
[38:15] >> so same tide floats all votes basically
[38:19] » so same tide floats all votes basically
[38:19] >> okay I just wanted to make sure it's
[38:20] » okay I just wanted to make sure it's
[38:20] easy to times they're good to spend
[38:23] money but I just wanted to I didn't know
[38:24] what the other side felt like during
[38:26] those times so I love the whole program
[38:28] but I just wanted to make sure I clarify
[38:29] that thank you
[38:31] >> luckily during co a lot of people came
[38:32] » luckily during co a lot of people came
[38:32] here [laughter]
[38:34] >> and they kept coming and they're still
[38:35] » and they kept coming and they're still
[38:35] coming. So yeah, any other questions or
[38:38] anything for a motion?
[38:39] >> Just one last question and then yeah,
[38:40] » Just one last question and then yeah,
[38:40] I'd love to make a motion real quick if
[38:41] you could go back a couple slides. I saw
[38:43] something about a reserve that's also
[38:44] being funded out of the closing there.
[38:48] There you go. Uh
[38:51] debt service reserve fund is that
[38:53] basically uh 50.9 Yeah, debt service
[38:57] reserve fund 50. Is that basically 50.9
[38:59] million bucks to also act as a reserve
[39:02] to help us make those payments if there
[39:03] was a shortfall one year?
[39:05] >> Uh yes. And that that will be a deposit
[39:07] » Uh yes. And that that will be a deposit
[39:07] into u the existing reserve fund which
[39:11] will get it up to about $100 million and
[39:13] it's roughly equal to 1 million or
[39:15] excuse me one year's worth of debt
[39:17] service.
[39:18] >> Okay. So that that's another back stop
[39:20] » Okay. So that that's another back stop
[39:20] stop to mitigate risk in case we do have
[39:22] uh something happening that. So I think
[39:25] that's fantastic. M Mr. Mr. Chairman,
[39:27] I'll go ahead and make a motion for
[39:28] approval.
[39:28] >> Second.
[39:29] » Second.
[39:29] >> Got a motion. Second. Any public comment
[39:30] » Got a motion. Second. Any public comment
[39:30] on number 12?
[39:31] >> Mr. Chairman, actually, I need you to
[39:33] » Mr. Chairman, actually, I need you to
[39:33] open the terra hearing to solicit public
[39:36] comment
[39:37] >> for number 13.
[39:38] » for number 13.
[39:38] >> Uh, we're still on number 12, please.
[39:40] » Uh, we're still on number 12, please.
[39:40] >> So, you would open up the hearing for
[39:44] » So, you would open up the hearing for
[39:44] public comment to solicit input on the
[39:47] adoption of the resolution and issuance
[39:49] of Lee County Airport Revenue Bonds
[39:51] series 2026 A1 and 20 26 A2. Okay. So,
[39:56] we have public hearing now on that
[39:58] hearing.
[39:59] >> Perfect. Thank you.
[39:59] » Perfect. Thank you.
[40:00] >> Any public comment on this hearing?
[40:04] » Any public comment on this hearing?
[40:04] Come back to the board.
[40:06] >> Now, if you would please entertain the
[40:08] » Now, if you would please entertain the
[40:08] motion to adopt the temper resolution
[40:10] and the issuance of the Lee County
[40:12] revenue bonds as indicated in item 12.
[40:15] [snorts]
[40:15] >> And just for clarity, so moved.
[40:16] » And just for clarity, so moved.
[40:16] >> I'll second that. We motion Commissioner
[40:18] » I'll second that. We motion Commissioner
[40:18] Hammond, second by Commissioner Wayne.
[40:21] Any other discussion?
[40:24] Any objection? No objection. Motion
[40:26] carries. Thank you.
[40:30] » State command of the board number 13.
[40:32] >> Need one more, please. Item 13, sitting
[40:34] » Need one more, please. Item 13, sitting
[40:34] as the board of county commissioners, I
[40:37] need you to approve a resolution
[40:38] approving the issuance of county revenue
[40:40] bonds series 2026A1 and 2026 A2.
[40:46] uh authorize the payment of related
[40:49] issuance costs and authorize the chair
[40:51] or designate to execute sale documents
[40:52] and all documents necessary to complete
[40:54] the transaction. So move
[40:56] >> second. We have a motion commissioner
[40:58] » second. We have a motion commissioner
[40:58] Hammond second. Commissioner Maluca
[41:01] any public comment on that number 13.
[41:05] Okay. Come backing objection objection.
[41:07] Motion carries. Thank you. Now we will
[41:09] reconvene at the port authority.
[41:11] >> Yes sir. Thank you.
[41:13] » Yes sir. Thank you.
[41:13] And item 14 is identical to item 13. We
[41:17] just need you to adopt the resolution
[41:20] sitting as the board of court
[41:21] commissioners.
[41:22] >> I'll make that motion.
[41:24] » I'll make that motion.
[41:24] >> Commissioner Wayne makes a motion.
[41:25] » Commissioner Wayne makes a motion.
[41:25] >> I'll second.
[41:28] » I'll second.
[41:28] Any public comment on 14.
[41:32] Any objection? No objection. Motion
[41:34] carries. Thank you.
[41:37] Administrative agenda number 15.
[41:40] >> Thank you, Mr. Sher. Uh number 15 is the
[41:42] » Thank you, Mr. Sher. Uh number 15 is the
[41:42] rate and fee settlement. Dave, if you'd
[41:44] like to introduce that
[41:50] administrative item number 15 is the
[41:52] annual recalculation of airline racing
[41:54] fees that we do every year in accordance
[41:55] with our long-term airline use and lease
[41:57] agreement carriers. I'll just give a
[42:00] quick recap of the year and how the
[42:01] selling ended up. This is the first year
[42:04] of this new 10-year agreement that had a
[42:06] number of changes to how we build the
[42:07] airlines. As a reminder, everything we
[42:09] build the airlines throughout the year
[42:10] is based on estimated budget figures. So
[42:13] at the end of the year, we take all of
[42:14] our actual revenues, expenses, and
[42:16] airline activity and compare them to
[42:18] what we had budgeted. But most years,
[42:20] our expenses come in under budget and
[42:21] airline activity is right at what we
[42:23] project.
[42:25] So we typically refund the signatory
[42:26] carriers overpayment most years. So this
[42:29] year was a little unique due to some of
[42:31] the changes with the new airline
[42:32] agreement. So when everything shook out,
[42:33] sign carriers owe us a little over $1
[42:36] million. And then the other piece of the
[42:38] year end calculation that we do is the
[42:40] revenue sharing of the area's net
[42:42] revenues which we also think of as our
[42:44] profits per year. So under the new
[42:46] agreement the airport keeps 70% of those
[42:47] net revenues and the airlines will
[42:49] receive 30%. The total net revenues
[42:52] worth $30.7 million
[42:56] port retains $21.5 million and the
[42:59] airlines will receive 9.2 million 3%
[43:02] share. So just a reminder as to why we
[43:05] revenue share. It's part of a negotiated
[43:07] business deal. In return, we get a
[43:09] safety net from the airlines
[43:10] guaranteeing that we [snorts] need to
[43:11] help get the coverage level that we need
[43:13] with all the construction going on. And
[43:15] uh so they pay a little more than they
[43:16] normally would help maintain a higher
[43:19] coverage discussed earlier in that
[43:20] presentation.
[43:22] So to wrap up the item, after board
[43:24] approval, we would cut checks to the
[43:25] airlines totaling $ 8.1 million. That
[43:28] factors in the 1 million they owe us
[43:29] from the settlement and the 9 million we
[43:32] owe them from the revenue sharing. So
[43:34] all in all the airlines should be
[43:35] pleased with the year. Our overall cost
[43:37] for employment was below budget and our
[43:39] revenue sharing amount is more than what
[43:40] we [snorts]
[43:42] important to note that our airport
[43:43] consultant recond associates reviewed
[43:45] all of our data advised us on any
[43:47] suggest suggest changes and uh signed
[43:50] off on the final amount. So this whole
[43:51] process goes through a detailed review.
[43:54] Are there any questions I can answer on
[43:55] this year's settlement process?
[43:58] >> Any questions from the board?
[44:00] » Any questions from the board?
[44:00] >> I'll make a motion to approve. Mr. I
[44:02] » I'll make a motion to approve. Mr. I
[44:02] will gladly second it.
[44:04] >> So any objection? No objection. Motion
[44:07] » So any objection? No objection. Motion
[44:07] carries.
[44:08] >> Public I'm sorry. Public comment on this
[44:11] » Public I'm sorry. Public comment on this
[44:11] item, please. Rookie chair. It's been 10
[44:14] minutes.
[44:17] » Any public comment? Seeing none, bring
[44:19] it back to the board [clears throat] for
[44:20] final approval. So any objection? No
[44:23] objection. Motion carries.
[44:25] >> Great job.
[44:27] » Great job.
[44:27] >> That's one.
[44:29] » That's one.
[44:29] All right. Commissioner items. Any
[44:31] appointments?
[44:33] Anyone?
[44:35] >> Yeah. Now that the chair's gone, let's
[44:36] » Yeah. Now that the chair's gone, let's
[44:36] have some fun.
[44:39] >> Joking. I have no items. Thanks.
[44:41] » Joking. I have no items. Thanks.
[44:41] >> I have no other chair.
[44:42] » I have no other chair.
[44:42] >> I have no items. Okay.
[44:44] » I have no items. Okay.
[44:44] >> All [laughter] right.
[44:46] » All [laughter] right.
[44:46] All right. Comments from the chair of
[44:47] the ASMC. Well, I'd just like to welcome
[44:51] Commissioner Petroski once again. say
[44:53] that the management committee is here to
[44:56] serve you and anything we can do to
[44:58] assist you, uh, just give us a call. I'm
[45:01] saying I'm glad that you're on board.
[45:03] >> Thank you. I appreciate that.
[45:04] » Thank you. I appreciate that.
[45:04] >> Any other comments from the other
[45:06] » Any other comments from the other
[45:06] members?
[45:07] >> I've got one. Okay. Go ahead.
[45:08] » I've got one. Okay. Go ahead.
[45:08] >> I just wanted to thank Commissioner
[45:10] » I just wanted to thank Commissioner
[45:10] Wayne for his service this year under
[45:12] trying circumstances, all the extra
[45:14] efforts he went to to attend our
[45:16] meetings, and uh, we just hope uh, 2026
[45:20] is a much better year for him.
[45:22] >> Amen.
[45:23] » Amen.
[45:23] amendment. All right. [snorts] Anything
[45:26] else? Executive Director Adams.
[45:29] >> Thank you, Mr. Chair. Um, I'd also like
[45:31] » Thank you, Mr. Chair. Um, I'd also like
[45:31] to welcome new commissioner. Welcome to
[45:33] the airport and the uh and we look
[45:36] forward to working with you. Um, I also
[45:38] again want to call out all the work for
[45:41] this bond. It's been a tremendous, you
[45:43] know, Dave and and team and Brian and
[45:45] legal, they underscore the amount of of
[45:47] time that this takes. It has been a
[45:50] large undertaking. So, we appreciate all
[45:53] the support and all the hard work that
[45:55] everybody has put in. Um, and I also
[45:57] want to just kind of note again the
[45:59] budget. Being able to have a revenue
[46:02] share at the end of the year year means
[46:04] that the airport has been good stewards
[46:05] of their funds that we're being fiscally
[46:08] responsible and you know, I think we're
[46:10] in great shape moving forward. Uh, with
[46:12] that being said, we couldn't do all this
[46:14] without our passengers. And the first
[46:17] one to note is we have again during
[46:19] December uh we had 1,12,000
[46:23] passengers come through RSW. Um it is a
[46:26] decrease from last December of about
[46:28] 1.7%
[46:30] but for fiscal year 25 it's great news,
[46:33] record-breaking news. We had 11,154,458
[46:40] thou uh 458 passengers come through.
[46:43] It's about a 1.1%.
[46:45] So, it's pretty neat when 1.1% is about
[46:48] 120,000 passengers. So, we're we're
[46:50] pumping through some people. So, while
[46:52] 1.1% is a small number in magnitude,
[46:56] we're ready for all of this 14 gates in
[46:58] our new uh expansion and the checkpoint
[47:00] to come through. Uh traffic leader this
[47:03] year was Delta, 217,000 passengers,
[47:06] followed by Southwest United, American,
[47:08] and JetBlue. Um and then across town at
[47:11] Page Field, they've also been having
[47:13] great numbers. their uh December was up
[47:16] year-over-year 5%. So the airports are
[47:18] are looking good moving into the new
[47:20] year.
[47:22] >> Terrific. Mr. Chair,
[47:24] » Terrific. Mr. Chair,
[47:24] >> I and uh
[47:25] » I and uh
[47:25] >> yes,
[47:25] » yes,
[47:26] >> just a couple of um echoes, Steve.
[47:28] » just a couple of um echoes, Steve.
[47:28] Listen, I appreciate the report and
[47:30] everything you've done. Your staff has
[47:31] done a tremendous jobs. I mean, it's
[47:34] always hard if you've ever operated a
[47:36] business to be under construction and
[47:37] try to have um the experience. So, you
[47:40] know, given just all the complications,
[47:43] it seems like it's been going seamlessly
[47:45] and appreciate all [clears throat] your
[47:46] hard work in doing so. It was nice to be
[47:48] out the airport when we did. Um, it's
[47:51] amazing how quickly this is going and it
[47:53] is by far the most talked about thing
[47:55] and I'm out the road by so many people
[47:58] within Southwest Florida. So, thank you
[48:00] so much.
[48:00] >> Thank you. [snorts]
[48:01] » Thank you. [snorts]
[48:01] >> I'd like to echo that. um you know,
[48:03] » I'd like to echo that. um you know,
[48:03] being new and just the time that I've
[48:05] had with the briefings with you and your
[48:07] staff, I'm thoroughly impressed with
[48:09] what you're doing um in light of being
[48:11] under construction and the way that the
[48:13] management is being held and the fiscal
[48:15] responsibility that you're taking with
[48:16] the budget and the bonds. So kudos.
[48:19] Thank you.
[48:20] >> And ju just to make a clarification in
[48:22] » And ju just to make a clarification in
[48:22] case I misspoke, those 11 million
[48:24] passengers are calendar year. It's not
[48:26] our fiscal year. So ending up in
[48:28] December.
[48:29] >> Great. Great report. Great, great
[48:32] » Great. Great report. Great, great
[48:32] results. I want to know I flew back in
[48:34] here last night from Tallahassee and I
[48:35] got to see coming through Delta and u
[48:38] all of the passenger experience areas,
[48:40] everything's clean, every all the
[48:41] whiteboard, all the facades are all up
[48:43] there nice, neat and clean and so you
[48:45] wouldn't even know somebody's hammering
[48:47] nails behind the wall. So, you know, as
[48:49] as it was a few months ago. So, the
[48:51] experience is getting better and I'm
[48:52] just I'm excited to see the pro
[48:53] progress. So, kudos to that and thanks
[48:55] for keeping us all safe with the uh FAA
[48:58] approval again for the Sterling results
[49:00] eight years in a So, I wanted to also
[49:02] call you out for that. So, uh, anything
[49:04] else?
[49:05] >> No, sir. Thank you.
[49:06] » No, sir. Thank you.
[49:06] >> Port attorney items.
[49:07] » Port attorney items.
[49:08] >> Nothing further, Mr. Chairman. Thank
[49:09] » Nothing further, Mr. Chairman. Thank
[49:09] you. Do we have any public comment on
[49:12] any other matters?
[49:16] Easy crowd today.
[49:18] Seeing none, I will call this meeting
[49:19] ajourned.