Hillsborough County Aviation Authority Regular Board Meeting & Board of Adjustment Hearing

Transcription

1 Hillsborough County Aviation Authority Regular Board Meeting & Board of Adjustment Hearing Monday, 9:02 a.m. May 2, 2016 A regular meeting of the Hillsborough County Aviation Authority and a Board of Adjustment Hearing was convened in the Boardroom, Main Terminal Building, Level 3 at Tampa International Airport, Tampa, Florida, on Monday, May 2, Members present were: Robert I. Watkins, Mayor Bob Buckhorn, General Diehl and Gary Harrod (arrived at 9:17 a.m.). Aviation Authority staff members present were Chief Executive Officer Joseph W. Lopano, General Counsel Michael Stephens, Al Illustrato, John Tiliacos, Damian Brooke, Chris Minner, Scott Knight, Michael Kamprath, Jeff Siddle, Ed Haines, Elita McMillon, Ann Davis, Dominic Macrone, Beth Zurenko, Aileen Rodriguez, Gina Evans, Brenda Geoghagan, Violet Cummins, Laurie Noyes, Danny Olegario, Teresa Howell, Randy Forister, Kari Goetz, Tony Mantegna, Christine Osborn, Rob Porter, Chief Paul Sireci, Airport Police Officer Garcon, Thomas Johnson, Ali Gimenez, Danny Cooper, Lt. Brian Smithey, Danny Valentine, Doug Wycoff, James Tarro and Laura Tatem. Chairman Watkins welcomed everyone to the Regular Board Meeting of May 2, 2016 and Board of Adjustment Hearing and advised the audience that Commissioner Victor Crist would not be in attendance as he was out of town attending a funeral. Chairman Watkins then advised the audience that anyone wishing to comment on propositions brought before the Board should see Violet Cummins, Board Services Administrator, for a form. He then asked that everyone stand for the Pledge of Allegiance. Chairman Watkins called the Board of Adjustment Hearing to order and called upon Michael Kamprath, Assistant General Counsel, to open the Hearing and give introductory remarks. Mr. Kamprath opened the Hearing, provided a few brief remarks regarding the background of the Hearing, and then proceeded to ask Mr. Tony Mantegna, the Authority s Height Zoning and Land Use Manager, and the Petitioners, if present, to step forward and be sworn in by Chairman Watkins. Chairman Watkins administered the oath to Tony Mantegna. Mr. Mantegna proceeded to present the first petition for variance, Airport Study No , Request for Variance, Goliath General Contractors d/b/a Goliath Builders, LLC, requesting a variance 2016/51

2 to construct a two story single family residence, with a maximum height of 40 AMSL at a site located at 838 S. Davis Boulevard, Tampa, FL, Resolution No Goliath General Contractors d/b/a Goliath Builders, LLC (Petitioner) was requesting a variance to construct a two story single family residence, with a maximum height of 40 AMSL at a site located at 838 S. Davis Boulevard, Tampa, FL. The nearest airport is Peter O. Knight. Notice of this hearing before the Board of Adjustment was provided on April 8, Petitioner was requesting a variance to construct a two story single family residence. The Petition was presented to the Airport Hearing Officer on March 10, 2016 and, based on testimony and evidence presented, the Hearing Officer found that approval of the variance, with required conditions, would have no effect on existing FAA restrictions, would not cause additional impacts or loss of utility to Peter O. Knight, would not be contrary to the public interest, will do substantial justice, and is in accordance with the spirit of the Airport Zoning Regulations and Chapter 333, Florida Statutes. The FAA s aeronautical study found that Petitioner s request would not be a hazard to air navigation provided certain conditions are met. Additionally, the FDOT did not identify any concern with the request. The Airport Hearing Officer recommended that the Board of Adjustment approve the variance to Airport Zoning Regulations requested by Petitioner with the following conditions: (1) the structure must be marked/lighted in accordance with FAA Advisory Circular 70/ K Change 2, Obstruction Marking and Lighting, flags/red lights Chapters 4, 5 (Red), & 12; (2) Petitioner must notify the Airport at least five days after construction reaches its greatest height; and (3) temporary construction equipment higher than 40 AMSL will require a new FAA determination and a separate permit from the Authority. The variance will be valid until the FAA Determination of No Hazard to Air Navigation expires on July 19, 2017, but if the FAA Determination of No Hazard is extended by the FAA for no more than 18 months, the variance will also be extended one time, without further action of the Board of Adjustment, provided that no changes in the proposed building have occurred. The Board of Adjustment may render its decision based on the findings and recommendations of the Hearing Officer. However, the Board of Adjustment may, but is not required to, review the record of the Hearing Officer s public hearing. Upon motion of Mayor Buckhorn, seconded by General Diehl, a variance for Airport Study No , Goliath General Contractors d/b/a Goliath Builders, LLC, to construct a two story single family residence, with a maximum height of 40 AMSL at a site located at 838 S. Davis Boulevard, Tampa, FL 2016/52

3 was unanimously approved by all members present; and authorized the Airport Zoning Director or his designee to execute all other ancillary documents by adoption of Resolution No The second and final petition for variance presented by Tony Mantegna was Airport Study No , Request for Variance, Tampa Bay One Investors, requesting a variance to construct four towers with mixed use of commercial and residential space, with a maximum height of 260 AMSL at a site located near the corner of N. Dale Mabry Highway and W. Cypress Street, Tampa, FL, Resolution No Tampa Bay One Investors (Petitioner) requested a variance to construct four towers with mixed use of commercial and residential space, with a maximum height of 260 AMSL at a site located near the corner of N. Dale Mabry Highway and W. Cypress Street, Tampa, FL. The nearest airport is Tampa International Airport. Notice of this hearing before the Board of Adjustment was provided on April 8, Petitioner was requesting a variance to construct four towers with mixed use of commercial and residential space. The Petition was presented to the Airport Hearing Officer on March 10, 2016 and, based on testimony and evidence presented, the Hearing Officer found that approval of the variance, with required conditions, would have no effect on existing FAA restrictions, would not cause additional impacts or loss of utility to Tampa International Airport, would not be contrary to the public interest, will do substantial justice, and is in accordance with the spirit of the Airport Zoning Regulations and Chapter 333, Florida Statutes. The FAA s aeronautical study found that Petitioner s request would not be a hazard to air navigation provided certain conditions are met. Additionally, the FDOT did not identify any concern with the request. The Airport Hearing Officer recommended that the Board of Adjustment approve the variance to Airport Zoning Regulations requested by Petitioner with the following conditions: (1) the structure must be marked/lighted in accordance with FAA Advisory Circular 70/ K Change 2, Obstruction Marking and Lighting, flags/red lights Chapters 4, 5 (Red), & 12; (2) Petitioner must notify the Airport at least five days after construction reaches its greatest height; (3) temporary construction equipment higher than 260 AMSL will require a new FAA determination and a separate permit from the Authority; and (4) any glint/glare issues identified by the Authority prior to or during construction associated with the new structure must be addressed and mitigated by the Petitioner to the satisfaction of the Authority so as to avoid adverse impacts to aviation. The variance will be valid until the FAA Determination of No Hazard to Air Navigation expires on May 23, 2017, but if the FAA Determination of No Hazard is extended by the FAA for no more than 2016/53

4 18 months, the variance will also be extended one time, without further action of the Board of Adjustment, provided that no changes in the proposed building have occurred. The Board of Adjustment may render its decision based on the findings and recommendations of the Hearing Officer. However, the Board of Adjustment may, but is not required to, review the record of the Hearing Officer s public hearing. Upon motion of Mayor Buckhorn, seconded by General Diehl, a variance for Airport Study No , Tampa Bay One Investors, to construct four towers with mixed use commercial and residential space, with a maximum height of 260 AMSL at a site located near the corner of N. Dale Mabry Highway and W. Cypress Street, Tampa, FL was unanimously approved by all members present; and authorized the Airport Zoning Director or his designee to execute all other ancillary documents by adoption of Resolution No With no other petitions for variance to be presented, Mr. Kamprath closed the public hearing of the Board of Adjustment. The hearing adjourned at 9:09 a.m. Chairman Watkins proceeded to call the Regular Board meeting of May 2, 2016 to order and advised the audience that all members had received a copy of the Agenda prior to the meeting and had a chance to review it in advance. Before proceeding he informed the audience that Mr. Lopano had something to share with the Board. Mr. Lopano reminded the Board that at the April Board Meeting General Counsel Stephens had advised of the possibility of holding an Attorney Client Session at the May meeting. Mr. Lopano informed the Board that there would be no need to hold that Closed Session. He also advised the Board that as part of his Management Report there would be an update on the status of the IT review and assessment. Chairman Watkins then called for a motion to approve the Agenda for the Meeting. Upon motion by Mayor Buckhorn, seconded by General Diehl, the Agenda was unanimously approved by all members present. Chairman Watkins then moved on to Public Comments and called on Tom Couture. Tom Couture, long time resident of Tampa who lives south of the noise sensitive runway, discussed the noise issues associated with the new construction and what he felt had been security breaches in the Authority s IT department. Mr. Couture reported that the Airport s current system to report noise complaints is antiquated and exposed residents security breaches. He also commented on the Authority practice of hiring what he called friendly consultants. Chairman Watkins next called on Neil Cosentino. 2016/54

5 Mr. Cosentino was representing Global Mobility Consortium. He suggested that the Authority change the name of Tampa International Airport to Tampa Bay International Airport. Mr. Cosentino advised he will be returning to the Board with some recommendations on how safety can be improved at the smaller airports such as Peter O. Knight. He also suggested the Authority begin a global inflight film festival. (Mr. Harrod arrived at 9:17 a.m.) Chairman Watkins then called for a motion to approve the Minutes of the Regular Authority Board Meeting of April 7, Upon motion of Mayor Buckhorn, seconded by Mr. Harrod, the Minutes of the Regular Authority Board Meeting of April 7, 2016 were unanimously approved by all members present. Chairman Watkins then called upon Mr. Lopano to present his Management Report. Mr. Lopano started the Management Report with a brief recap of the IT security issue. The Authority investigated allegations expressed in an anonymous by current and former employees in the Authority s IT Department last year. As a result, the Executive Team implemented several corrective actions and are reviewing the Authority s IT security and organizational structure. Each Board Member received an initial briefing on January 15 th. The investigation was carried out by the Authority s Director of Internal Audit, Laura Tatem, and Director of Ethics, Diversity and Administration, Elita McMillon. In addition to internal staff, the Authority engaged Bayside Solutions, an outside IT Security Firm. The assessment performed by Bayside did not provide any evidence of a data breach. It did identify clear violations of some of the Authority s IT procedures and protocols. This finding was very concerning and prompted immediate tightening of the security environment and the resignation of various individuals. Mr. Lopano reported that a number of important improvements to the IT security environment have already been made. The Authority has hired additional IT security staff. Mr. Lopano has dedicated even more resources to accelerate a comprehensive IT review. He has also directed the Authority s General Counsel, Michael Stephens, to lead a special project to identify opportunities for improvement within IT. First, Mr. Stephens will perform a comprehensive assessment of the Authority s IT security function with outside industry experts from Vacco Risk Solutions. Mr. Stephens will then conduct an overall examination of the Authority s IT organization with a nationally recognized business consulting firm, Plante Moran. Damian Brooke will continue leading the day to day IT operation. Mr. Lopano has responded to several media requests and has been contacted by the Florida Attorney General s office and the Transportation Security Administration (TSA). The TSA does share sensitive security information with the Authority. That information is kept in a secure part of the Authority s system. According to the results of our investigations to date, at no time did any unauthorized people have access to that information. Already the Authority has met with and provided documents to the TSA to demonstrate there was no opportunity for unauthorized access 2016/55

6 to sensitive security information. Mr. Lopano stated that Mr. Stephens will also meet with the office of the Attorney General to review this matter. Chairman Watkins asked if the audits mentioned were a part of the review that the Board commissioned and approved back in December or January. Mr. Lopano stated there are actually two different studies that would be conducted. The study Chairman Watkins referred to, the Vacco Study, was approved by the Board in December. That study was to take place in the summer of 2016, but after the findings of the report it was moved up and is currently taking place. The second study is an organizational study where the consultant will take a look at the Authority s IT organization as it currently stands. Both of these studies would be managed by Michael Stephens. Mr. Lopano asked Mr. Stephens to talk about how the Attorney General became involved. Mr. Stephens pointed out that the Attorney General s office reached out to him to discuss some of the reports that had been in the media with respect to the allegations of data breach. He shared with the Board that the statute that governs a data breach in Florida law is very specific. Upon Mr. Stephens review and assessment of all of the information, including the Bayside Report, there is not any indication of a violation of the statute at this time. Mr. Lopano then moved on to the second item in the Management Report and called John Tiliacos, Vice President of Operations and Customer Service, to the podium. Mr. Tiliacos updated the Board on the safe and smooth Airport operations during the five weeks of Spring Break. The Airport handled more than 2.4 million passengers during this period which was up about 1% year over year. Southwest Airlines, the Authority s largest airline, increased their flight schedule by approximately 20 daily flights during the week and 36 flights on Saturdays. The Authority processed more than 800,000 checked bags. Overall concessions gross receipts were up over 12% year over year. Food and beverage sales were up 13%, retail was up nearly 12% and dutyfree was up more than 5%. Saturday, April 2 was a record day for food and beverage and retail. Mr. Tiliacos then discussed the Bike Medic Program. The Authority purchased six specialty bikes that are used by the Authority s Aircraft Rescue and Firefighting (ARFF) Team. Lieutenant Brian Smithey was in attendance with one of the bikes. The plan is to deploy members of the ARFF Team on the bikes in terminal areas, especially during peak travel, allowing much faster response time to medical calls. The medical equipment will be on the bikes. Mr. Tiliacos then introduced Ali Gimenez, Guest Service Representative. Mrs. Gimenez was selected a winner of the Bern Laxer Award of Excellence for 2016 and would be recognized at the National Tourism Luncheon. Mrs. Gimenez has been with the Authority for 33 years. The award Mrs. Gimenez will receive is given to front line employees in the hospitality industry who possess a positive attitude, are attentive and courteous toward visitors, professional and reliable, maintain a good 2016/56

7 working relationship with others and consistently go the extra mile by demonstrating a commitment to excellence in customer service. Mr. Lopano then asked Damian Brooke, Vice President of Finance and IT, to come to the podium. Mr. Brooke presented the passenger traffic and financial performance for the first half of the FY16 fiscal year. For the October through March period, the Authority handled just under 9.8 million passengers. That is an increase of about 5.7% over the same period last year. March 2016 was the busiest month ever in the 41 year history of the Authority. Through the six month period, Tampa International Airport saw significant growth across both the domestic and the international markets. The Authority had more than 450,000 additional domestic passengers during this period. That is an increase of about 5.1% versus last year. Internationally, the Authority continues to grow quickly. Traffic was up more than 20% versus the same six month period last year. Lufthansa, the Authority s newest airline, had a very successful first six months providing more than 64,000 passengers through the Airport. Air Canada started introducing wide body 767 operations into the Toronto in November of Mr. Brooke next reviewed the financials. The operating revenues totaled $106.7 million which exceeded budget by about $630,000 or 0.6%. Revenues for the first six months were up about 4% year over year. Expenses for the six month period totaled about $56 million which is $1.1 million or 1.9% better than budget. Debt service for the period was about $248,000 better than budget due to lower than expected interest rates when refunding the 2005 bonds in November. The combination of the revenue, expense and debt service performance resulted in projected revenue sharing for the period of about $4.9 million. All of the combined performance metrics resulted in a cost per employment for airlines of $4.83 for the October through March period. That was 9% lower than the same period last year and about 3.4% better than budget for the period. This concluded Mr. Lopano s Management Report. The Chairman then asked if anyone had any items they would like set aside for further consideration on the Consent Agenda. Hearing none, Chairman Watkins then called for a motion to approve the items in the Consent Agenda. Upon motion of Mayor Buckhorn, seconded by Gary Harrod, the Consent Agenda was unanimously approved by all members present. The following items were contained in the Consent Agenda. CONSENT ITEM I1 Amendment No. 2 to Space Rental Agreement, Triangle Services of Florida, Inc., Tampa International Airport, Resolution No /57

8 Triangle Services of Florida, Inc. (Triangle) began providing ground handling services at Tampa International Airport on November 7, 2013 under an Operating Agreement for Ground Handlers (Limited Service). Triangle leases 500 square feet of ramp operations office space on Airside A in support of those operations under a Space Rental Agreement (Agreement) with the Authority. The Agreement terminates concurrently with all other space rental agreements on September 30, The Agreement may be terminated, without cause, by either party upon 30 days written notice and is contingent upon Triangle maintaining its Operating Agreement. This Amendment No. 2 revises the Agreement to add 110 square feet of ticketing level office space at the FY rates indicated below and updates insurance provisions and administrative provisions to comply with revised federal regulations. Description Sq. Ft. FY15 16 Rate Annual Monthly Current Airside A Ramp Operations Office Space 500 $84.49 $42, $3, Proposed Ticketing Level Office Space 110 $ $22, $1, Total 610 $64, $5, Management recommended adoption of Resolution No Resolution No approved and authorized the execution of Amendment No. 2 to Space Rental Agreement at Tampa International Airport with Triangle Services of Florida, Inc.; and authorized the Chief Executive Officer or his designee to execute all other ancillary documents. CONSENT ITEM I2 Authorization for Expenditure of Federal Forfeiture Funds, Tampa International Airport. Under provisions of the U.S. Department of Treasury Guide to Equitable Sharing for Foreign Countries and Federal, State and Local Law Enforcement Agencies (Guide), Federal forfeited funds shared with local law enforcement agencies must be expended for law enforcement purposes. Authority Standard Procedure S requires expenditures from Federal forfeited funds to be made only after approval from Legal Affairs and the Authority Board. Legal Affairs has reviewed this request and agrees with the expenditures. Authorize the expenditure of Federal forfeiture funds to be used by the Tampa International Airport Police Department in an amount not to exceed $12,210 for the purchase of ballistic vests. This item is included in the Federal Forfeiture Funds Budget. 2016/58

9 The Chief Executive Officer recommended the Board authorize the expenditure of Federal forfeiture funds and authorize the Chief Executive Officer or his designee to execute all other ancillary documents. The Board acted on this by motion; no resolution was required. CONSENT ITEM I3 Authorization to Dispose of Surplus Property, Tampa International Airport. The following property has been determined to be surplus and obsolete and serves no useful function or the continued use is uneconomical or inefficient. Description Qty Asset Number Year Procured ICP DX Package Unit Model AC Unit RAH036LOBAOADAA 2011 Ameritech Pressure Washer Ameritech Pressure Washer Yamaha Club Cart Dodge Pickup Chevrolet Tahoe Chevrolet Tahoe K 9 Unit / Lesco, 300 Gal. Spray Rig Lesco, 200 Gal. Spray Rig Honda Push Mowers " Toro Mower " Toro Mower " Toro Mower R.P.S. Tomcat Magnum Floor Scrubbers Windsor Micro Scrubbers Ford Crown Victoria Ford Crown Victoria John Deere 6400 Tractor John Deere Gator 6 X Bush Hog 6 Mowing Deck /59

10 Staff asked the Board to designate the above property as surplus and authorize disposal in accordance with Chapter 274, Florida Statutes. The surplus property will be publicly advertised and auctioned at Tampa Machinery or on GovDeals.com, an internet based auction system. The Chief Executive Officer recommended the Board designate the above property as surplus and authorize disposal in accordance with Chapter 274, Florida Statutes. The Board acted on this by motion; no resolution was required. CONSENT ITEM I4 Modification to Other Transaction Agreement, Checked Baggage System Upgrades and Optimization Construction, HCAA Project No , Transportation Security Administration, Tampa International Airport, Resolution No On September 5, 2013, the Board authorized the Chief Executive Officer to execute an Other Transaction Agreement (OTA) with the Transportation Security Administration (TSA) for funding for upgrades and optimization of the Checked Baggage System. The Agreement was executed on September 24, A modification to the OTA is required due to a change in design concept and construction delivery approach. Due to significant increases in the estimated cost of the project, alternative conceptual designs were evaluated to reduce the project cost. A concept based on relocating the checked baggage screening system from the Main Terminal to each airside was determined to be the most economical approach to the project. Due to limitations in available TSA funding, the project has been separated into two phases with the first phase to construct baggage screening facilities at Airside A Sortation and Airside C. This OTA modification changes the scope and schedule based on this approach. The second phase of the project will be accomplished separately under a future OTA to construct baggage screening facilities at Airsides E and F. The modification will extend the term of the OTA from September 1, 2017 to October 15, 2018 and address certain terms and funding reimbursement amounts. This item was included in the Capital Budget. Management recommended adoption of Resolution No Resolution No approved and authorized execution of a Modification to Other Transaction Agreement at Tampa International Airport with the Transportation Security 2016/60

11 Administration to receive funds for the Checked Baggage System Upgrades and Optimization Construction project; and authorized the Chief Executive Officer or his designee to execute all other ancillary documents. CONSENT ITEM I5 Consent to Assignment and Assumption Agreement, Tampa International Jet Center, LLC and SheltAir Aviation Tampa, LLC, Tampa International Airport, Resolution No Amendment and Restatement of Lease and License Agreement for Commercial Fixed Base Operation, SheltAir Aviation Tampa, LLC, Tampa International Airport, Resolution No On December 9, 2002, following a competitive solicitation process, the Authority entered into a Lease and License Agreement for Commercial Fixed Base Operation (FBO) at Tampa International Airport with Tampa International Jet Center, LLC (TIJC) for the construction and operation of a fixed based operation (FBO) facility (TIJC Agreement). TIJC has notified the Authority of its desire to assign all of its right, title, interest and obligations under the TIJC Agreement to Sheltair Aviation Tampa, LLC (Sheltair), effective May 2, Authority staff has performed due diligence in examining Sheltair s financial capacity and experience performing FBO functions. Staff has determined that Sheltair meets the requirements of Authority s Minimum Standards for Commercial Fixed Base Operators at Tampa International Airport. This Amendment and Restatement of Lease and License Agreement for Commercial Fixed Base Operation incorporates the TIJC Agreement and existing eight amendments (Restated Agreement), updates standard administrative provisions, and includes language permitting Sheltair s lender the right to cure any default by Sheltair. The Restated Agreement keeps the term at 25 years, having commenced on September 30, Conditioned upon the completion of additional improvements, the term of the Restated Agreement will be extended by five years to September 29, 2034, with two additional five year term renewal options upon approval of the Authority s Chief Executive Officer. Sheltair will pay rent based on the fair market value of similarly used aeronautical property at Tampa International Airport, adjusted every five years. Rent is as follows: Description Sq. Ft. Annual Rent Monthly Rent Total Ground 706,470 $487, $40, Total Apron 30,500 $25, $2, Total Leased Premises 736,970 $513, $42, /61

12 Title to existing fixed improvements passes to the Authority on September 30, Estimated Rents as of October 1, 2029 are: Description Sq. Ft. Annual Rent Monthly Rent Ground 706,470 $575,176 $47,098 Buildings 138,144 $828,864 $69,072 Apron 400,470 $380,447 $31,703 Total 1,245,084 $1,784,487 $147,873 Title to proposed Hangar No. 5 Improvements, if completed, passes to the Authority on September 30, Additionally, Sheltair has requested the Authority execute a Memorandum of Amendment and Restatement of Lease and License Agreement and an Estoppel Certificate in support of the Assignment and Assumption Agreement between TIJC and Sheltair and the Amendment and Restatement of Lease and License Agreement for Commercial Fixed Base Operation. Management recommended adoption of Resolution No and Resolution No Resolution No approved and authorized execution of the Consent to Assignment and Assumption Agreement at Tampa International Airport between Tampa International Jet Center, LLC and Sheltair Aviation Tampa, LLC; and authorized the Chief Executive Officer or his designee to execute all other ancillary documents. Resolution No approved and authorized execution of the Amendment and Restatement of Lease and License Agreement for Commercial Fixed Base Operation at Tampa International Airport with Sheltair Aviation Tampa, LLC; approved and authorized execution of the Memorandum of Amendment and Restatement of Lease and License Agreement for Commercial Fixed Base Operation; approved and authorized execution of the Estoppel Certificate for the Amendment and Restatement of Lease and License Agreement for Commercial Fixed Based Operation; and authorized the Chief Executive Officer or his designee to execute all other ancillary documents. CONSENT ITEM I6 Consent to Amended and Restated Himes Player Development License Agreement, Tampa Sports Authority, New York Yankees Partnership, and Hillsborough County, Florida, Tampa International Airport, Resolution No In 1996, the Authority acquired from the Tampa Sports Authority (TSA) a 65 acre tract of land located immediately south of Raymond James Stadium as part of the Authority's planned land acquisition activities. 2016/62

13 Concurrently with the land acquisition, the Authority and TSA entered into a Use and Maintenance Agreement that expires December 31, The Use and Maintenance Agreement permits all or any portion of the property to be used by TSA for surface parking, special events, and certain types of advertising. The Use and Maintenance Agreement also recognizes an existing License Agreement between TSA, Hillsborough County, and the New York Yankees Partnership for the Yankees to use the Minor League Complex (also known as the Himes Facility) located on the south end of the Authority s property and the George M. Steinbrenner Stadium (GMS Facility), which is not located on Authority property. The parties to the License Agreement desire to amend and restate the License Agreement to divide the GMS Facility and the Himes Facility into separate License Agreements. The Authority s consent to amend, modify, or change any of the terms of the License Agreement is required and may not be unreasonably withheld pursuant to Section 2.03 of the Use and Maintenance Agreement. There are no changes being made to the Use and Maintenance Agreement This item consents to the Amended and Restated Himes Player Development License Agreement. Management recommended adoption of Resolution No Resolution No consents to the Amended and Restated Himes Player Development License Agreement at Tampa International Airport between Tampa Sports Authority, New York Yankees Partnership, and Hillsborough County, Florida; and authorized the Chief Executive Officer or his designee to execute all other ancillary documents. CONSENT ITEM I7 Maintenance Contract for Baggage Systems Technical Support, Brock Solutions, U.S., Inc., Tampa International Airport, Resolution No The Authority currently uses proprietary Baggage Handling System (BHS) software developed by Brock Solutions, U.S., Inc. for the Main Terminal East Side and Airsides A and C. Proprietary BHS software developed by FKI Logistex, Inc. (now Intelligrated Systems, LLC.) is used for the Main Terminal West Side and Airsides E and F. On June 9, 2011, the Authority entered into a sole source contract with Brock Solutions, U.S., Inc. to provide proprietary technical support for their BHS software at a fixed annual base price of $18,336 for 5 years, plus $138/hour for technical assistance, with a contract term expiring July 5, On July 14, 2011, the Authority entered into a sole source contract with Intelligrated Systems, LLC. to provide proprietary technical support for their BHS software at a fixed annual base price of 2016/63

14 $17,100 for 5 years, plus $138/hour for technical assistance, with a contract term expiring July 5, Brock Solutions, U.S., Inc. is assuming technical support responsibilities for Intelligrated Systems, LLC. for the Main Terminal West Side and Airsides E and F as the Intelligrated Systems, LLC. core business development no longer includes baggage system software. Accordingly, Intelligrated Systems, LLC. granted a limited license to the Authority to access and modify their Sort Allocation Computer (SAC) software product source code. On October 14, 2015, a Notice of Intent to Sole Source with Brock Solutions, U.S., Inc. for the purpose of providing continuing technical support for the BHS SAC software was publicly advertised. No responses were received. Authority Policy P410 authorizes sole source purchases when no other authorized vendor can supply the required equipment, materials, supplies or services. Staff asked the Board to authorize execution of the Maintenance Contract for Baggage Systems Technical Support with Brock Solutions, U.S., Inc. for Airsides A, C, E and F. The term of the Contract is July 6, 2016 through July 5, 2021, with an annual base price of $18,400, plus $165/hour for technical assistance. This item also authorizes up to $25,000 of extra work annually. The Authority may cancel the Contract following 30 days written notice to Brock Solutions, U.S., Inc. Total authorization for the five year Contract will be a not to exceed amount of $217,000. W/MBE participation was not prescribed due to the proprietary nature of this Contract. This item is included in the O&M Budget. Management recommended adoption of Resolution No Resolution No approved and authorized the award and execution of the Maintenance Contract for Baggage Systems Technical Support at Tampa International Airport with Brock Solutions, U.S., Inc. in the total not to exceed amount of $217,000; and authorized the Chief Executive Officer or his designee to execute all other ancillary documents. CONSENT ITEM I8 Modification P00004 to Other Transaction Agreement, United States of America, Department of Homeland Security, Transportation Security Administration, Tampa International Airport, Resolution No The Transportation Security Administration (TSA) is required to conduct screening of all passengers, property, and baggage within the Main Terminal building and airside screening locations. 2016/64

15 In order to carry out this statutory mandate, it is necessary for TSA to use certain space and facilities at Tampa International Airport and to utilize Authority provided electrical service. On March 1, 2014, TSA and the Authority entered into an Other Transaction Agreement (OTA) for reimbursement of electrical consumption for the operation of x ray, magnetometers, trace detectors, and explosive detection equipment. The term is for one year or as long as federal law requires TSA to perform screening functions at Tampa International Airport. The OTA is self renewing on each anniversary unless terminated by either party with a 60 day written notice. Modifications/Amendments can occur at any time to reflect changes to the cost of electricity, the number and type of screening equipment, and other agreed upon modifications. Reimbursement is determined by an allocation formula based on the quantity and type of machine, the hours of operation, the electrical consumption of each machine, and the Authority s cost of energy. This Modification P00004 will reimburse the Authority in the amount of $2,873.31/month for 10 months in the total approximate amount of $28, to cover HVAC costs for the baggage area at Tampa International Airport for the period of May 9, 2016 through February 28, The additional costs are for the annual change in electrical rates charged by TECO and/or changes in HVAC consumption. Management recommended adoption of Resolution No Resolution No approved and authorized execution of Modification P00004 to Other Transaction Agreement at Tampa International Airport with the United States of America, Department of Homeland Security, Transportation Security Administration; authorized the Chief Executive Officer to execute future amendments/modifications to the Other Transaction Agreement related to utility cost changes; and authorized the Chief Executive Officer or his designee to execute all other ancillary documents. CONSENT ITEM I9 Supplemental Lease Agreement No. 4, Lease No. DTFA06 02 L (Air Traffic Control Tower), U.S. Department of Transportation, Federal Aviation Administration, Tampa International Airport, Resolution No The U.S. Department of Transportation, Federal Aviation Administration (FAA) has maintained a ground lease with the Authority for the air traffic control tower (ATCT) and use and occupancy of an adjacent parking lot for ATCT employees at Tampa International Airport since On December 12, 2002, the Authority and FAA entered into Lease No. DTFA06 02 L (Lease) for the initial term of January 1, 2002 through September 30, The Lease is currently self renewing annually through September 30, 2016 unless terminated by the FAA with written notice at least 30 days prior to the anniversary date. The Authority is required to provide land to FAA with no revenue derived. 2016/65

16 Supplemental Lease Agreement No. 4 amends the Lease, effective October 1, 2016, to state that no renewal of the Lease shall extend beyond September 30, Management recommended adoption of Resolution No Resolution No approved and authorized execution of Supplemental Agreement No. 4 to Lease No. DTFA06 02 L at Tampa International Airport with U.S. Department of Transportation, Federal Aviation Administration; and authorized the Chief Executive Officer or his designee to execute all other ancillary documents. CONSENT ITEM I10 Purchase Order, Information Technology Equipment, Software and Services utilizing GSA Contract No. GS 35F 0426R, Level 3 Telecom Holdings, LLC, Tampa International Airport. The Authority routinely purchases local and long distance services and data services, including Wi Fi, used by Authority staff and airport tenants participating in the Shared Tenant Services program at Tampa International Airport. The Shared Tenant Services program was designed to utilize advanced telecommunications technology enabling the Authority to procure and provide high level voice and data services at a lower cost. Authority Policy P410 authorizes the utilization of federal, state, local or multi state cooperative purchasing contracts to purchase goods and services without obtaining three quotes or advertising. Staff requested the Board authorize the issuance of purchase orders to Level 3 Telecom Holdings, LLC for local and long distance services, shared tenant services, and data services, including Wi Fi, utilizing GSA Contract No. GS 35F 0426R for the term of May 2, 2016 through March 17, 2020 in a total not to exceed amount of $1,300,000. This item was included in the O&M Budget. The Chief Executive Officer recommended the Board authorize the issuance of purchase orders to Level 3 Telecom Holdings, LLC and authorize the Chief Executive Officer or his designee to execute all other ancillary documents. The Board acted on this by motion; no resolution was required. Having no Policies or Rules for Consideration, Committee Reports or Unfinished Business to discuss, Chairman Watkins moved to New Business. 2016/66

17 The first item under New Business was the Purchase Order, Telecommunications Infrastructure Project Services (TIPS) utilizing State of Florida Department of Management Services, State Technology Office Contract No. DMS 12/13 001, Tampa International, Peter O. Knight, Tampa Executive and Plant City Airports, presented by Damian Brooke. On August 1, 2013, the Board authorized the issuance of a purchase order in an amount not to exceed $400,000 to the State of Florida utilizing State of Florida Department of Management Services, State Technology Office Contract No. DMS 12/ for infrastructure cabling and telecommunications needs, such as the upgrade of wireless communication system infrastructure and purchase and installation of copper and fiber cabling for the Shared Tenant Services program, with work being performed by Comco Communications Installation & Services Company, Inc. The term of the purchase order is July 1, 2013 through June 30, On August 7, 2014, the Board authorized an increase of $1,600,000 to the purchase order to cover re routing of Authority fiber optic cabling being affected by construction of the structural foundation systems of Phase 1 Master Plan projects, for a new total not to exceed purchase order amount of $2,000,000. Authority Policy P410 authorized the utilization of federal, state, local or multi state cooperative purchasing contracts to purchase goods and services without obtaining three quotes or advertisement. This item authorized the continued use of State of Florida Department of Management Services, State Technology Office Contract No. DMS 12/ for infrastructure cabling and telecommunications needs at Tampa International, Peter O. Knight, Tampa Executive and Plant City Airports, with work performed by Comco Communications Installation & Services Company, Inc., through June 30, 2019 for a new total not to exceed purchase order amount of $4,000,000. This item was included in the Capital and O&M Budget. The Chief Executive Officer recommended the Board authorize the issuance of purchase order(s) to State of Florida, and authorize the Chief Executive Officer or his designee to execute all other ancillary documents. The Board acted on this by motion; no resolution was required. Upon Motion of Gary Harrod, seconded by Mayor Buckhorn, the Purchase Order, Telecommunications Infrastructure Project Services (TIPS) utilizing State of Florida Department of Management Services, State Technology Office Contract No. DMS 12/13 001, Tampa International, Peter O. Knight, Tampa Executive and Plant City Airports was unanimously approved by all members present. 2016/67

18 This concluded New Business. Mr. Lopano then proceeded with Staff Reports and introduced Al Illustrato to present his monthly update on the Master Plan. Mr. Illustrato began his presentation with various photos on the foundations for the APM and the SkyConnect portions of the Program. The project should complete on time. In the month of May foundations will start, the grey walls and piers for the taxiway and the deck construction will continue on the two spans, and there will be more roadway work in and around the Post Office and the ConRAC. In April the top deck of the Customer Service Building was completed. A lot of work remains on the interior of the Customer Service lobby. Also in April, all the interior finishes on the east side and the Armstrong Escalator core work began in the MTAC. Mr. Illustrato gave a quick report on the Owner s Controlled Insurance Program. Around 400 contractors are enrolled in the Program. The Authority has about 1 million man hours into the Program with about 49 total claims. There is about a $.22 loss cost per man hour which put the Authority in an excellent range. Safety week is coming up in which the Airport will be thanking workers for supporting safety, recognizing efforts, increasing awareness, inspiring everyone to share best practices and celebrating the need to be injury free and incident free. This concluded the Staff Reports section of the Meeting. Before adjourning Mr. Stephens requested an Attorney Client Closed Session be held at the June Board Meeting to discuss pending litigation and to seek the Board s direction in terms of settlement and strategy. With no other business to be brought before the Board, the Regular Board meeting adjourned at 9:46 a.m. Robert I. Watkins, Chairman Mayor Bob Buckhorn Assistant Secretary/Assistant Treasurer 2016/68