Charlotte County Airport Authority AGENDA September 20, :00 A.M. Punta Gorda Airport

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1 Authority Commissioners James Herston, Chair Robert D. Hancik, A.A.E., Vice-Chair Kathleen Coppola, Secretary/Treasurer Paul Andrews, Asst. Secretary/Treasurer Pam Seay, Commissioner C CEO James W. Parish, P.E. Airport Authority Attorney Darol Carr Charlotte County Airport Authority AGENDA September 20, :00 A.M. Punta Gorda Airport 1. Call to Order - Reminder to Turn Off Your Cell Phones 2. Invocation - For those who wish to join, please rise for the invocation. 3. Pledge of Allegiance 4. Roll Call 5. Citizen s Input: Anyone wishing to address the Board during this portion should state their name for the record. Each citizen is allowed up to two minutes to express their opinion. 6. Additions and/or Deletions to the Agenda 7. Consent Agenda: All matters listed under this item are considered routine and action will be accomplished by one motion without separate discussion of each item. If discussion is desired by a Commissioner, item(s) will be removed from the Consent Agenda and considered separately. Secretary/Treasurer Minutes Regular Meeting August 16, 2018 CEO Revised Investment Policy Staff has revised the 1998 Investment Policy. The main changes are: The Florida Statutes were added to each topic and Executive Director was changed to Chief Executive Officer (CEO). The rest were minor grammar changes. Staff Recommended Action: Board approve the August 2018 Revised Investment Policy. 8. Adopt Budget Resolution Mr. Parish 9. Adopt FY Final Budget Mr. Parish

2 10. Secretary/Treasurer s Report Mrs. Coppola a) Accounts Receivables Mr. Parish b) Income Statement Mr. Parish c) Balance Sheet Mr. Parish 11. Committee Reports a) Land Use Mr. Herston b) Metropolitan Planning Organization Mr. Herston c) Personnel Mrs. Coppola d) Public Relations/Special Events Mrs. Coppola e) Governmental Liaison Ms. Seay f) Economic Development Mr. Andrews g) Aviation Activities Report Mr. Hancik 12. Attorney s Report Attorney Carr 13. CEO s Report Mr. Parish a) Development Update b) Update on 2018 Florida International Air Show c) Update from Economic Development Department d) Marketing Update 14. Old Business 15. New Business a) CEO s Annual Evaluation Mr. Parish b) Resolution for Continuation of a Passenger Facility Mr. Parish Charge (PFC) c) Proposed 2019 Meeting Schedule Mr. Parish 16. Citizen s Input: Anyone wishing to address the Board during this portion should state their name for the record. Each citizen is allowed up to two minutes to express their opinion. 17. Commissioner s Comments 18. Adjournment Agenda items for September 20, 2018 Meeting

3 A copy of all the attachments are at New Business a) CEO s Annual Evaluation In accordance with Mr. Parish s contract, the Board is to complete his evaluation form each year. b) Resolution for Continuation of a Passenger Facility Charge (PFC) This is a Resolution authorizing the Chairman to file an application with the Federal Aviation Administration, seeking authorization to continue the Passenger Facility Charge (PFC), and the expenditures of revenues from the PFC, in accordance with the Airport s Capital Improvement Program, and the assurances and understanding contained in the application. Staff Recommended Action Board adopt Resolution c) Proposed 2019 Meeting Schedule To help the Board and staff with planning for the upcoming year, staff is suggesting that some of the dates for the Regular Monthly Meeting be adjusted, canceled, or set as workshops. This will not mean that the calendar cannot be adjusted as needed throughout the year. Copy of calendar attached. Staff Recommended Action: Board discretion.

4 CHARLOTTE COUNTY AIRPORT AUTHORITY MINUTES OF REGULAR MEETING AUGUST 16, :00 A.M Call to Order 2. Invocation 10 Chair Herston gave the invocation. 3. Pledge of Allegiance Roll Call Present: Chair Herston; Commissioners Andrews, Seay, Hancik, Coppola; CEO Parish; Attorney Carr; Ms. Hendren; Ms. Desguin; Mr. Hafenbreidel; Mrs. Cauley; Mr. Laroche; Mr. Mallard; Mr. Ridenour; Mrs. Straw; Mrs. Miller. Others present: Jim Kaletta; Commissioner Deutsch; Gary Bayne; Steven Henriquez; Stan Smith; Richard Pitz; Gary Harrell; Scott Brady; Mark Kistler; Larry McClure; Alan Boynton; Mark Futch, and others from the private sector. 5. Citizen s Input Richard Pitz Commented that he received a political mailer that attacks the character of a sitting Authority member. He requested that the Board disavow all statements made on the political smear. Mark Futch Commented that he also received the political mailer and questioned the sense of decency of whoever published it. Chair Herston reminded the audience that he does appreciate the comments, however, the meeting is a business meeting, not a political meeting Additions and/or Deletions to the Agenda 7. Consent Agenda 40 Commissioner Seay motioned to approve the Consent Agenda with the amendments. Commissioner Andrews seconded. Motion passed unanimously. 8. Public Hearing for FY Budget a) Citizen s Input on Budget b) Presentation on Budget - Mr. Parish explained that there were a few minor changes to the budget since the Budget Workshop. He commented that the line of credit was dropped, there was in insurance increase, a slight increase in property, and some small salary adjustments for personnel being promoted.

5 CCAA Minutes of Regular Meeting 2 August 16, 2018 c) Citizen s Input 9. Adopt Tentative FY Budget Commissioner Seay motioned to adopt the tentative budget as presented with the changes provided by Mr. Parish. Commissioner Coppola seconded. Motion passed unanimously. 10. Secretary/Treasurer s Report Mr. Parish reported that the financial report is from May and June as there was not a July meeting. He commented that the accounts receivables, 91 Days and Over balance is at $0 and that the one customer in Days is paid in full. Regarding the income statements, he reported that the Airport beat the budget estimates for revenues. He commented that May was ended with $9.7 million in cash and June was $10.3 million. He commented that the current goal is around $13-$15 million in cash. He reported that a grant was closed with the FAA and PFC s are reimbursing the Airport for previous money spent. Commissioner Coppola inquired as to whether the airplane fuel has rose and if it ll affect private pilots. Mr. Parish commented that is has rose, but not significantly. He also commented that a significant discount is passed to the Airport s base pilots through self-serve and top off Tuesdays. Commissioner Hancik asked what the Airport s outstanding debt is. Mr. Parish answered $3.4 million. Chair Herston asked Mrs. Cauley about the interest rate on the loan. Mrs. Cauley commented that it s 2.7 percent. 11. Committee Reports a) Land Use Chair Herston commented that at the September meeting, he will bring a list of all projects that came into the County for site plan approval and regulations regarding land development that have been changed. b) Metropolitan Planning Organization Chair Herston reported that Bob Logan was presented the Peggy Walters Citizen Mobility Award. He commented that the MPO is looking at a possible new interchange on I-75, the northbound lane at Murdock Circle has been completed, there s an intersection problem at US 17 and Nesbit Street, Purple Heart Signage and US 41/Carmalita Street. He commented that he attended the MPOAC meeting and reported on the Future Mobility Research Synthesis that was completed by RSG. Commissioner Coppola inquired if the Airport has considered offsite parking like Fort Myers Airport. Mr. Parish commented that the offsite parking is privately owned. Mr. Parish commented that he met with the statewide coordinators and MPO Chief regarding the Jones Loop and Piper Road corridor. He commented that they are trying to make that corridor part of the National Highway System to open the Airport up for additional priority funding in the future. c) Personnel Commissioner Coppola reported that a special parking space was made for Mr. Sisk, who works on Airport property. d) Public Relations/Special Events Commissioner Coppola reported that Mrs. Miller and Audrey from Lamar held a nice reception for advertisers.

6 CCAA Minutes of Regular Meeting 3 August 16, e) Governmental Liaison Commissioner Seay thanked Commissioner Deutsch and Nancy Prafke for their support of the Airport. She commented that legislators are working on red tide and green algae, but the pressure must be kept on them to do what needs to be done. Commissioner Deutsch commented that he met with the state director of Fish and Wildlife and has been in communication with members of MOTE. He commented that red tide is a natural event and has been documented as far back as the 1700 s. He commented that the biggest thing that can be done is keeping Englewood Beach clean and that the winds do play a significant part of red tide. He reported that red time is salinity based and the blue-green algae is not. He commented that there is nothing harmful or life threatening to humans about red tide, although the biggest health concern is the odor that comes from it does effect asthma. He reported that red tide is a natural occurrence and that the county is doing all that they can to reduce it, although it is affected by the winds. f) Economic Development Commissioner Andrews reported on property sales and inventory, building permits, possible zoning changes, tourist tax revenues, and work force from The Florida Association of Realtors and Florida Gulf Coast University Lutgert College of Business. g) Aviation Activities Report Commissioner Hancik reported on passenger counts, fuel sales and gallons pumped, aircraft operations and hangar vacancies Attorney s Report Attorney Carr reported that there is no pending litigation against the Airport. He commented that he brought two leases into compliance relative to a large receivable balance and a few non-compliance relative to door changes. He reported that one lease negotiation is ongoing and the ARFF agreement has been fully executed by the County Commission. 13. CEO s Report a) Development Update Mr. Parish reported that runway property acquisition will be part of the current contract with Kimley-Horn, the Wetland Mitigation project is on hold for the environmental assessment (EA), and that he has a meeting next week with the owner of the property that is to be acquired for runway He commented that the FAA has preliminarily approved the property acquisition for runway 4-22 as a PFC project and that it is in the Airport s current application. He commented that the new general aviation terminal is on the agenda for today and that the FDOT has changed the Joint Participation Agreement form as they ve changed their grant requirements. Regarding runway 15-33, he did have his first scoping meeting and that he would like to meet with the FAA on some phasing and roadway realignment requirements that he feels is excessive. Regarding the EA, he commented that the bat study was completed and that there are bats within the area of the Airport, although they don t live on the property. He reported that he is waiting on US Fish and Wildlife to decide on requirements before having the EA public hearing and that it may be completed as early as November and as late as January. He commented that there was

7 CCAA Minutes of Regular Meeting 4 August 16, an airline consultation meeting for the PFC Application Number Two, T-hangar door replacements are roughly a quarter of the way completed, the Air Carrier Ramp Expansion was completed under budget and that the new Sweeper Vehicle is being constructed and is scheduled to be completed October 12 th, to close the grant out. Chair Herston thanked Mr. Parish and Mr. Ridenour for the detailed project report. b) Marketing Update Mr. Parish reported that the Board has the Marketing Report and that Mrs. Miller is working diligently to put together media that can be used for both airside and landside of the Airport. He commented that more aerial photography will be completed in the next week or two, as well as brochures. Chair Herston, Commissioner Coppola and Commissioner Andrews commented on the excellent job Mrs. Miller is doing. c) CEO s Annual Evaluation Form Mr. Parish reported that the Authority does not have a meeting in October which means that his annual evaluation will be on the September agenda. He commented that there is a new evaluation form based on last years comments of the form and that any comment for changes should be directed to Ms. Desguin. Chair Herston inquired as to if it was required to meet with Mr. Parish prior to turning in the evaluation. Mr. Parish commented that it is not a requirement, but he would be more than willing to meet if requested. 14. Old Business New Business a) Consultant Selection for the New General Aviation Terminal Facility Mr. Parish reported that there has been a tie of consultant scores and that the options are to have the top three consultants perform presentations, award the contract to any single consultant, or award the contract between two consultants to split the airside and landside portions. He opined that the easiest option would be to pick one consultant. Commissioner Seay inquired as to if there would be an impact on the time frame if the project was split between two consultants. Mr. Parish opined that he doesn t feel it would as the landside and airside portions are two separate projects. He commented that the coordination between the contractors is why he would like to use a single surveyor or geo-tech. Commissioner Seay inquired as to if that would result in cost savings, to which Mr. Parish replied that he doesn t think so. Mr. Parish commented that Mr. Ridenour would be busier if two consultants were selected. Chair Herston commented that he would like to award the contact to a single consultant. Commissioner Hancik commented that he read the top three submitted packages and that although they were close, he enjoyed Michael Baker s more in terms of architecture and that he also feels one consultant should be selected. Chair Herston agreed with Commissioner Hancik that Michael Baker had a stronger architectural capability. Commissioner Andrews commented that he does see the benefit of splitting the project, as well as awarding a single consultant. Mr. Parish commented that he would really prefer to work with one consultant. He added that he has never worked with Michael Baker, that he has previously worked with AECOM, that AECOM was second on the runway and 4-22 project, and that Michael Baker did not submit for that project. He opined that he would rather have a functioning building than one that makes an architectural statement, although he does not have an issue working with

8 CCAA Minutes of Regular Meeting 5 August 16, Michael Baker. Commissioner Coppola inquired as to who the original builder of the terminal was. Mr. Parish commented that the first terminal was with Schenkel Shultz and Half Acre Construction and that AECOM finished the last two thirds of the second terminal as the original contracted company was bought out and the engineer disappeared. Commissioner Seay commented that she s leaning towards a split decision. Commissioner Hancik commented that a split decision would add to the workload of the staff. Commissioner Hancik commented that there will be a lot of work on Airport property in the future and that he feels the project should be awarded to a single consultant. Commissioner Andrews, Seay, Hancik, Coppola and Chair Herston agreed to award the project to a single consultant. Commissioner Hancik motioned to select Michael Baker for the New General Aviation Terminal Facility. Commissioner Andrews seconded. Motion passed unanimously. b) Ground Transportation Fee Mr. Parish reported that the Airport currently has contracts with Uber, Lyft, and the taxi companies that operate on the property. He commented that Uber and the taxi s pay a flat fee and that Lyft pays a flat fee plus a per ride fee. He recommended that the Airport enter new contract negotiations with all the ground transportation companies and have a set per trip fee. He commented that there would be modifications to the taxi lane that would charge an entry fee through an automated debit system and Uber and Lyft would be bound by their geofence when they go to the front of the terminal. Commissioner Coppola inquired as to if there was any conversation with any of the groups on the matter. Mr. Parish commented that Uber and Lyft know that it s coming and that the taxi companies were notified that this year is the last year of a fixed price. Chair Herston inquired as to how the system in front of the terminal would be implemented. Mr. Parish commented that the taxi s currently line up in front of the rental car area and that an arm will be put in place to have the taxi s slide an ID card for entry. Commissioner Coppola inquired as to if that flat fee would raise the price of the Uber ride. Mr. Parish commented that it will and that it s built in to the trip. Chair Herston inquired as to if the fees are paid monthly. Mr. Parish reported that they are. Commissioner Andrews motioned to approve the flat fee per ride for both taxi s and TNC s. Commissioner Seay seconded. Motion passed unanimously. 16. Citizen s Input Larry McClure Commented that if the Board doesn t publicly condemn the political mailer within its residence that they are complicit in what s going on as it s unethical and it should be stopped. Jim Kaletta Commented that the political mailer is dirty politics and that he believes the Board has a motion that should be taken to make it clear that they don t go along with those types of things. 17. Commissioner s Comments Commissioner Andrews Commented that he s heard all the input and would like to comment that he does not condone the political mailer. He thanked everyone for coming and for sharing their comments.

9 CCAA Minutes of Regular Meeting 6 August 16, Commissioner Seay Commented that she thinks the political mailer is wrong and it s disingenuous of the individuals commenting that one shouldn t be saying those types of things as some were part of it themselves in previous elections. She commented that it was a very good meeting, that the budget is going along quite well, that staff is doing a tremendous job, congratulated Michael Baker, and acknowledged that she knows AECOM will be back to do more projects for the Airport. Commissioner Coppola Commented that she s also involved in the election and that things have also been said against her. She noted that there hasn t been anyone coming forward to defend her and that on any stage, it s not a nice thing to do to anyone. She thanked Commissioner Deutsch for the red tide and blue-green algae update and inquired as to if he knew what happened in Lake Erie with their thick green algae. Commissioner Deutsch commented that Lake Erie s green algae does look like what Charlotte County currently has. Commissioner Coppola congratulated Michael Baker. Chair Herston Thanked staff for their work, Attorney Carr for his work, Commissioner Deutsch for his red tide and green-algae knowledge, congratulated Michael Baker, and thanked those for their comments. He commented that the entire political process is full of negative advertising that he does personally condemn. 18. Adjournment Meeting adjourned at 10:25 a.m James Herston, Chair Kathleen Coppola, Secretary/Treasurer

10 CHARLOTTE COUNTY AIRPORT AUTHORITY INVESTMENT POLICY SCOPE: FS (1) Investment policy applies to all financial assets under the direct control of the Board of Airport Authority Commissioners. INVESTMENT OBJECTIVES: FS (2) Primary Objectives: 1. Preservation of capital and protection of investment principal, 2. Maintain sufficient liquidity to meet reasonably anticipated operating and capital requirements. 3. Match assets to liabilities, to the extent possible. Secondary Objectives: 1. Control risks and diversify investments through appropriate oversight and regular reporting. 2. Maximize return and preserve purchasing power as measured by a noted market index such as the Consumer Price Index. PERFORMANCE MEASURES: FS (3) The Airport Authority seeks to optimize return on investments within the constraints of safety and liquidity. The investment portfolio shall be designed with the annual objective exceeding the weighted average return earned on investments held by theby the Florida Local Government Surplus Trust Fund (SBA). PRUDENCE AND ETHICAL STANDARDS: FS (4) Investments shall be made with judgement and care (under circumstances then prevailing) which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the prudent person standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security s credit risk or market price changes, provided deviations from expectations are reported 5/28/98August Rrevised

11 in a timely fashion and appropriate action is taken to control adverse developments. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the Executive DirectorChief Executive Officer (CEO) any material financial interests in financial institutions that conduct business within this jurisdiction and they shall further disclose any material personal financial/investment positions that could be related to the performance of the portfolio. Employees and officers shall subordinate their personal investment transactions to those transactions made in the portfolio, particularly with regard to the time of purchase and sales. Employees shall also disclose any gifts or entertainment received as a result of their employment in regard to the investments of Charlotte County Airport Authority. Bond swaps are appropriate when undertaken in conformity with the prudent person test and overall portfolio objectives in order to (a) increase yield to maturity without affecting the asset liability match; (b) reduce maturity while maintaining or increasing the yield to maturity or (c) increase portfolio quality without affecting the asset liability match while maintaining or increasing the yield to maturity. The Airport Authority should not, however, have a policy against selling securities at a loss if undertaken in connection with prudent portfolio management. AUTHORIZED INVESTMENTS: FS (5) 1. Florida Local Government Surplus Trust Fund (SBA) 2. US Government Securities - Direct Obligations 3. US Federal Agencies - Backed by Full Faith and Credit of US Government 4. US Federal Instrumentalities - US Federal Agency Securities Not Backed by Full Faith and Credit of US Government, except for Student Loan Marketing Association 5. Certificates of Deposit - Collateralized with US Government Securities or Federal Agencies 6. Repurchase Agreements (As defined herein) 7. Fixed Income Mutual Funds - Collateralized with US Government Securities or Federal Agencies 8. Domestic Bankers Acceptances - Rated AA or higher, and inventory based 9. Prime Commercial Paper - Rated A-1" and P-1", and backed by a LOC rated AA or higher 10. Now Account - Fully collateralized in accordance with Chapter 280 Florida Statutes, limited to Depository Bank/Concentration Bank 11. Florida Municipal Investment Trust (FMIT) 5/28/98August Rrevised

12 Limitations on Variable Rate Securities - Acceptable only if the rate is a straight floating rate that is set in a direct, as opposed in inverse, relationship to a single index. MATURITY AND LIQUIDITY REQUIREMENTS: FS (6) The objective will be to match investment cash flow and maturity with known cash needs and anticipated cash flow requirements (i.e., match assets to liabilities) to the extent possible. Investment of funds shall have final maturities of not more than five (5) years, except for: 1. SBA - No stated final maturity, 2. Certificates of Deposit - 1 Year 3. Repurchase Agreements - No stated final maturity 4. Bankers Acceptances days 5. Prime Commercial Paper Days 6. Fixed Income Mutual Funds - No stated final maturity. However, underlying US Government Securities and Federal Agencies have average maturity of one year. Exception for Refunding Bond Escrows - US Government Securities and Federal Agencies deposited into an escrow account in connection with the refunding of a County bond issue can have a final maturity of more than five years. PORTFOLIO COMPOSITION: FS (7) Maximum Investment Type % of Portfolio 1. Florida Local Government Surplus Trust Fund (SBA)* 100% 2. US Government Securities 100% 3. US Federal Agencies** 100% 4. Repurchase Agreements 100% 5. US Federal Instrumentalities** 50% 6. Certificates of Deposit 30% 7. Fixed Income Mutual Funds 10% Formatted: Indent: Hanging: 0.5" 5/28/98August 2018 Rrevised 3

13 8. Domestic Bankers Acceptances 10% 9. Prime Commercial Paper 10% 10. Tax-exempt Obligations 10% * Does not include bond proceeds invested in construction funds established under a bond resolution. ** Limitations on Mortgage Securities - Limited to 25% of the total portfolio. Funds in a Now Account will not be considered a part of the portfolio for purposes of this section. RISK AND DIVERSIFICATION: FS (8) Charlotte County Airport Authority will diversify its investments by security type, specific maturity, dealer or bank through which financial instruments are bought or sold. Subject to the limitations under Portfolio Composition, the following are the limits on individual issuers or dealer or bank; - No limitations on SBA, Now Account, US Government Securities, US Federal Agencies or US Federal Instrumentalities. - Limitations on other investments are 10% of total-portfolio AUTHORIZED INVESTMENT INSTITUTIONS AND DEALERS: FS (9) The Executive DirectorChief Executive Officer (CEO) will maintain a list of the financial institutions authorized to provide investment services. These shall include primary dealers and regional dealers that (1) qualify under Securities & Exchange Commission Rule 15C3 (Uniform No Capital Rule), (2) have capital of at least $50,000,000 and (3) have an institutional sales office and an institutional sales professional domiciled in Florida. No public deposit shall be made except in a qualified public depository as established by the Treasury of the State of Florida. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the Executive DirectorChief Executive Officer (CEO) with the following: 1. aaudited financial statements, 5/28/98August 2018 Rrevised 4

14 2. Ccertification that no material adverse events have occurred since the issue of their most recent financial statements, 3. Pproof of National Association of Securities Dealers, the registration (where applicable) or otheranother securities registration, 4. Pproof of state registration, when required, 5. Ccertification of having read and agreeing to abide by the Investment Policy and depository contracts in place at Charlotte County Airport Authority, and 6. Aa copy of the firm s established internal oversight and review guidelines controlling business with governmental entities. Each financial institution and broker/dealer must also agree to notify the Executive DirectorChief Executive Officer (CEO) in the event of material adverse events affecting their capital adequacy. Each institution and broker/dealer shall provide their written mark up a schedule and guidelines to the Executive DirectorChief Executive Officer (CEO). Each institution and broker/dealer shall disclose to the Executive DirectorChief Executive Officer (CEO) any proposed trade that would exceed the guidelines prior to executing the trade. The Executive DirectorChief Executive Officer (CEO) shall do a background check on each broker with whom the Airport Authority does business which shall, at a minimum, consist of contacting the State of NASD for regulatory and disciplinary dates which are maintained on brokers. An annual review of the financial condition and registration of qualified bidders will be conducted by the Executive DirectorChief Executive Officer (CEO). A current audited financial statement is required to be on file for each financial institution and broker/dealer authorized to provide investment services. Criteria for addition to or deletion from the lists will be the following: (1) state law, Charlotte County Airport Authority Enabling Legislation, or Investment Policy requirements where applicable, (2) perceived financial difficulties, (3) consistent lack of competitiveness, (4) lack of experience or familiarity of the account representative in providing service to large institutional accounts, (5) request of the institution or broker/dealer, and (6) when deemed in the best interest of the Charlotte County Airport Authority Commissioners. If there are at least 10 trades executed in a single year through other than a competitive bid process, no more than 30% of the total dollar amount of sales and trades executed through other than a competitive bid process can be conducted with a single dealer. Before engaging in investment transactions, the Airport Authority will have received from the corresponding firm a signed Certification Form attesting that the individuals responsible for the Airport Authority s account have reviewed the Airport Authority s Investment Policy and that they agree to undertake reasonable efforts to preclude imprudent transactions involving the 5/28/98August 2018 Rrevised 5

15 Airport Authority s funds. THIRD-PARTY CUSTODIAL AGREEMENTS: FS (10) All security transactions, including collateral for repurchase agreements, entered into by Charlotte County Airport Authority shall be conducted on a delivery-versus-payment (DVP) basis. All securities shall be properly designated as an asset of the Charlotte County Airport Authority. Securities will be held by a third party custodian authorized by the Executive DirectorChief Executive Officer (CEO) and evidenced by safekeeping receipts or advice of the transaction. The third partythird-party custodian shall be a third party custodian bank or other third party custodial institution with certified fiduciary powers, chartered by the United States Government or the State of Florida and have combined capital and surplus of at least $100,000,000. The Executive DirectorChief Executive Officer (CEO) will execute third party custodial agreements approved by the Charlotte County Airport Authority Commissioners with the banks and depository institutions. Such agreement will include letters of authority from the Executive DirectorChief Executive Officer (CEO) with details as to responsibilities of each party, notification of security purchases, sales, delivery, repurchase agreements and wire transfers, safekeeping and transaction costs, procedures in case of wire failure or other unforseenunforeseen mishaps including liability of each party. MASTER REPURCHASE AGREEMENTS: FS (11) 1. Each firm involved in a repurchase agreement must execute the Airport Authority s Master Repurchase Agreement which will be based on the Public Securities Association (PSA) Master Repurchase Agreement. 2. A third partythird-party custodian shall hold collateral for all repurchase agreements with a term of more than one business day. 3. Collateral requirements will be based on economic and financial conditions existing at the time of execution, as well as the credit risk of the institution which enters into the repurchase agreement with the Airport Authority. The market value of the collateral shall not be less than the following: Maturity of US Government US Federal Agencies Mortgage Backed Securities Securities and Instrumentalities* Securities Less than 1 Year 101% 102% 103% 5/28/98August 2018 Rrevised 6

16 1 to 5 Years 102% 103% 104% Over 5 Years 103% 104% 105% *Excluding mortgage backed securities. 4. Collateral shall be marked to market at least weekly. 5. Substitution of collateral is permitted. BID REQUIREMENT: FS (12) The Executive DirectorChief Executive Officer (CEO) shall utilize the competitive bid process to sell and purchase securities, subject, only to the exceptions noted in the Investment Policy. After the Executive DirectorChief Executive Officer (CEO) has determined the appropriate maturity date based on cash flow needs and market conditions and has analyzed and selected one or more optimal types of investment, a minimum of three (3) banks or dealers must be contacted to ask for offerings of securities that fit the investment criteria. Documentation must be collected to insure thatto ensure that the securities meet Investment Policy guidelines and that price levels executed are consistent with market levels at the time. When selling securities, a minimum of three (3) dealer bids will be sought. Documentation of all transactions must be maintained. Examples of when the competitive bid process can be passed, include: 1. When time constraints due to unusual circumstances preclude the use of the competitive bid process, 2. When no active market exists for the issue being traded due to the age or depth of the issue, (On a work out bases), 3. When a security is unique to a single dealer, for example a private placement, 4. When the transaction involved new issues or issues on the when issued market. If the maturing investment is a certificate of deposit, one of the contacts made shall be the present holder of the funds subject to portfolio diversification requirements in the Investment Policy. Due to the cost of safekeeping, one business day repurchase agreement less than $1,000,000, and the overnight sweep repurchase agreement associated with the Now account will not be bid. INTERNAL CONTROLS: FS (13) 5/28/98August 2018 Rrevised 7

17 The Executive DirectorChief Executive Officer (CEO) shall establish and monitor a set of written internal controls designed to protect the Airport Authority s financial assets and ensure proper accounting and reporting of the transactions. The Executive DirectorChief Executive Officer (CEO) shall establish an annual process of independent review by an external auditor which will serve as an internal control by assuring compliance with policies and procedures. Internal controls will encompass at a minimum the following issues: 1. Ttransfers of all funds (purchases, sales, etc.), 2. separation of functions including transaction authority from accounting and Rrecord-keeping, 3. Ccustodial safekeeping, 4. Aavoidance of delivery of bearer-form or non-wireable securities, 5. Ddelegation of authority to subordinate staff members, 6. Wwritten confirmation of telephone transactions, 7. Ssupervisory control of employee actions, 8. Iidentification and minimization of authorized investment officials, 9. Ddocumentation of decisions and transactions, and 10. Ddocumentation of complete description of mortgage securities purchased and yield tables at purchase date. REPORTING: FS (15) Annual, quarterly and monthly reports of assets will be presented to the Board. The following items will be included in the reports at least annually: OTHER 1. Securities in the portfolio by type, book value, income earned, market value, final maturity and average life, 2. Information on activity in the account, and 3. Performance based on total rate of return which includes earned income as well as realized and unrealized gains and losses. 1. Grandfather existing securities in the portfolio to reduce the possibility of having to sell financial assets before maturity at a loss. 2. Any and all exceptions to the Investment Policy require majority vote of the Charlotte County Airport Authority Commissioners. 5/28/98August 2018 Rrevised 8

18 RESOLUTION # A RESOLUTION OF THE BOARD OF THE CHARLOTTE COUNTY AIRPORT AUTHORITY, CHARLOTTE COUNTY, FLORIDA, ADOPTING THE FINAL BUDGET FOR FISCAL YEAR 2018/2019; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Board of the CHARLOTTE COUNTY AIRPORT AUTHORITY of Charlotte County, Florida, on September 20, 2018, held a public hearing; and WHEREAS, the Board of the CHARLOTTE COUNTY AIRPORT AUTHORITY of Charlotte County, Florida, set forth the appropriations and revenue estimate for the Budget for Fiscal Year 2018/2019 in the amount of $42,519, NOW, THEREFORE, BE IT RESOLVED by the Board of the CHARLOTTE COUNTY AIRPORT AUTHORITY OF CHARLOTTE COUNTY, FLORIDA, that: 1. The Fiscal Year 2018/2019 Final Budget be adopted. 2. This resolution shall take effect immediately upon its adoption. DULY ADOPTED at a public hearing the 20th day of September, 2018 at 9:00 a.m. CHARLOTTE COUNTY AIRPORT AUTHORITY By: James Herston, Chair ATTEST: Kathleen Coppola, Secretary/Treasurer

19 Charlotte County Airport Authority Final Budget Hearing, September 20,2018 FISCAL YEAR 2019 BUDGET- FLIGHTS 5510 Proposed FY18-19 Budget YEAR END FORECAST BUDGET OPERATING REVENUES Fuel and Oil Sales 2,881,230 2,883,489 2,620,540 Industrial and Commercial Park Leases 1,101,120 1,095,531 1,110,192 T Hangar Rentals and Tiedowns 773, , ,275 Concessions, Vending and Fees 17,080 19,392 16,970 Airline Related Revenues Advertising 34,080 31,471 24,996 Auto Parking 3,223,910 2,938,161 2,727,425 Car Rentals & Security Fees 5,748,720 5,272,229 4,794,768 Concessions Food & Beverage 531, , ,999 Ground Handling Fuel 186, , ,490 Ground Transportation 15,830 14,097 11,900 Terminal Use Fees 169, , ,344 LEO Award 61,670 36,855 80,300 TSA Reimbursement 37,680 37,587 37,587 Sida Badging 4,800 3,480 4,800 Total Airline Related Revenues 10,014,410 9,170,144 8,466,860 Other Revenues - 55,174 - TOTAL OPERATING REVENUES 14,787,400 13,995,971 12,990,837 OPERATING EXPENSES Salaries & Wages 3,189,270 3,001,650 3,044,725 Payroll Taxes & Retirement 666, , ,022 Personnel Expenses 828, , ,761 Cost of Fuel & Oil Sales 1,642,790 1,668,512 1,436,392 Advertising 10,800 10,779 6,000 Bank Charges 39,000 48,284 46,831 Dues & Subscriptions 43,080 41,382 39,003 Insurance 330, , ,000 Legal & Professional 291, , ,897 Licenses & Permits 4,950 9,113 5,073 Marketing & Promotional 200, , ,000 Mowing 24,660 18,184 24,000 Postage 6,040 5,980 5,864 Repairs & Maintenance 523, , ,726 Computer Maintenance & Expense 186, , ,981 Supplies 295, , ,639 Communications 39,550 38,810 34,049 Travel & Auto Allowance 70,230 48,069 74,739 Utilities 398, , ,797 Security Expense 65,520 46,131 64,437 Airline Related Expenses 1,963,400 1,900,455 1,711,393 TOTAL OPERATING EXPENSES 10,819,510 10,049,750 9,880,329 OPERATING GAIN (LOSS) 3,967,890 3,946,221 3,110,507

20 Charlotte County Airport Authority Final Budget Hearing, September 20,2018 FISCAL YEAR 2019 NON-OPERATING INCOME/EXPENSES PFC'S 3,200,580 1,507,834 1,443,449 Miscellaneous Revenues / (Expenses) - (159,276) - Gain/Loss of Asset Disposal - 28,963 - OPEB Post Retirement Benefit Accrual (5,280) (5,962) (5,261) Insurance Premium Refund - 22,203 - Interest on Investments 3,070 20,494 2,998 Cost to Finance (91,560) (105,565) (107,023) Bad Debts - (1,262) - Bank Fees (2,870) (3,147) (2,830) NET NON-OPERATING INCOME/EXPENSES 3,103,940 1,304,283 1,331,334 GAIN OR (LOSS) BEFORE CAPITAL CONTRIBUTIONS & DEPRECIATION 7,071,830 5,250,504 4,441,841 CAPITAL CONTRIBUTIONS Capital Grants & Contributions 16,611,450 4,088,598 6,630,804 TOTAL CAPITAL CONTRIBUTIONS 16,611,450 4,088,598 6,630,804 INCREASE OR (DECREASE) IN NET POSITION w/contributions 23,683,280 9,339,102 11,072,645 DEPRECIATION Depreciation (3,712,040) (3,675,473) (3,712,000) TOTAL DEPRECIATION (3,712,040) (3,675,473) (3,712,000) INCREASE OR (DECREASE) IN NET POSITION 19,971,240 5,663,629 7,360,645 CAPITAL EXPENDITURES FIXED ASSETS (944,700) (248,334) (474,900) CIPS (25,267,580) (5,130,981) (9,601,070) TOTAL CAPITAL EXPENDITURES (26,212,280) (5,379,314) (10,075,970) Debt Repayment SIB LOAN (578,760) (548,104) (563,177) Debt Repayment (578,760) (548,104) (563,177) NET ASSETS - Beginning of the Year Fund Balance Transfer In 7,916,664 1,333,101 4,284,438 Fund Balance Transfer Out Reserves (1,096,864) (1,069,311) (1,005,936) NET ASSETS - Year to Date - 0 (0) TOTAL REVENUES 42,519,164 20,997,164 25,352,526 TOTAL EXPENDITURES (42,519,164) (20,997,164) (25,352,526) - 0 (0)

21 Accounts Receivable Over 60 Days As of July 31, 2018 Total Balance at 0-30 Days Days Days 91 and Over 7/31/18 Customer Name EXPLANATION as of 9/7/2018 Avis $2, $3, $36.35 $0.00 $6, Paid: $36.35 on 8/10/18 Gulf Contours $4, $0.00 $62.68 $62.68 $4, Paid: $ on 8/8/ SUB-TOTALS $7, $3, $99.03 $62.68 $10, All Other Current Customer Balances $123, $144, $0.00 $0.00 $267, TOTALS $130, $147, $99.03 $62.68 $278, A. Pitter

22 Charlotte County Airport Authority STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN NET POSITION (Income Statement) For the Ten Months Ending Tuesday, July 31, 2018 July Actual Budget Variance YTD Actual Budget Variance OPERATING REVENUES Fuel and Oil Sales $177,158 $164,376 $12,782 $2,614,993 $2,341,349 $273,644 Industrial and Commercial Park Leases 92,110 92, , ,299-14,947 T Hangar Rentals and Tiedowns 64,176 62,392 1, , ,491-2,551 Concessions, Vending and Fees 1,631 1, ,227 14,719 1,508 Airline Related Revenues Advertising 3,158 2,083 1,075 33,208 20,830 12,378 Auto Parking 351, ,654 86,585 2,530,138 2,295, ,902 Car Rentals,Security & Fuel Fees 494, , ,420 4,876,364 4,288, ,944 Concessions Food & Beverage 59,131 39,163 19, , ,288 63,438 Ground Handling Fuel 19,964 13,968 5, , ,100-5,597 Ground Transportation ,028 11,700 4,328 Terminal Use Fees 14,182 13, , ,637 3,151 LEO Award 13,227 10,132 3,095 95,814 97,623-1,809 Sida Badging ,845 4,000-2,155 Total Airline Related Revenues 956, , ,987 8,295,658 7,399, ,612 Other Revenues 2, ,050 57, ,619 TOTAL OPERATING REVENUES $1,293,648 $1,027,875 $265,773 $12,543,789 $11,331,904 $1,211,885 OPERATING EXPENSES Salaries & Wages $209,703 $217,835 -$8,132 $2,262,726 $2,426,375 -$163,649 Payroll Taxes & Retirement 42,313 44,195-1, , ,312-21,109 Personnel Expenses 60,181 60, , ,169-1,728 Cost of Fuel & Oil Sales 69,587 76,416-6,829 1,548,815 1,279, ,861 Advertising 1, ,039 14,354 5,000 9,354 Bank Charges 0 2,436-2,436 38,607 42,182-3,575 Dues & Subscriptions 4,103 3, ,814 32,503 3,311 Insurance 25,304 24, , ,167 9,688 Legal & Professional 8,484 17,500-9, , ,898-20,268 Licenses & Permits 7, ,003 22,124 4,240 17,884 Marketing & Promotional 15,576 16,667-1,091 71, ,667-95,439 Mowing 468 2,000-1,532 9,444 19,348-9,904 Postage 1, ,457 6,593 4,863 1,730 Repairs & Maintenance 44,801 38,288 6, , , Computer Maintenance & Expense 6,955 12,998-6, , ,984-18,251 Supplies 34,088 20,464 13, , ,568-15,868 Communications 4,017 2,837 1,180 36,504 28,373 8,131 Travel & Auto Allowance 7,683 7, ,081 18,178 17,903 Utilities 38,232 32,881 5, , ,176 20,387 Security Expense 4,907 5,958-1,051 27,231 52,519-25,288 Airline Related Expense 168, ,946 23,460 1,661,317 1,421, ,844 TOTAL OPERATING EXPENSES $755,724 $732,627 $23,097 $8,307,285 $8,084,839 $222,446 OPERATING GAIN (LOSS) $537,924 $295,248 $242,676 $4,236,504 $3,247,065 $989,439 NON-OPERATING EXPENSES Miscellaneous Revenues / (Expenses) $115,809 $115,764 $45 $1,651,868 $1,272,543 $379,325 Gain/Loss of Asset Disposal , ,963 OPEB Post Retirement Benefit Accrual ,374-4,373-1,001 Insurance Premium Refund , ,203 Interest on Investments 3, ,172 28,552 2,231 26,321 Cost to Finance -8,710-8, ,102-89,186 2,084 Bank Fees ,711-2, Bad Debts , ,262 NET NON-OPERATING EXPENSES $109,838 $106,541 $3,297 $1,635,137 $1,178,885 $456,252 GAIN OR (LOSS) BEFORE CAPITAL CONTRIBUTIONS & DEPRECIATION $647,762 $401,789 $245,973 $5,871,641 $4,425,950 $1,445,691 CAPITAL CONTRIBUTIONS Capital Grants & Contributions 17, ,395 3,830, ,830,935 TOTAL CAPITAL CONTRIBUTIONS $17,395 $0 $17,395 $3,830,935 $0 $3,830,935 INCREASE OR (DECREASE) IN NET POSITION w/contributions $665,157 $401,789 $263,368 $9,702,576 $4,425,950 $5,276,626 DEPRECIATION Depreciation -258, ,000 66,982-2,829,753-3,062, ,247 9/6/2018 4:30 PM

23 Charlotte County Airport Authority STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN NET POSITION (Income Statement) For the Ten Months Ending Tuesday, July 31, 2018 July YTD Actual Budget Variance Actual Budget Variance TOTAL DEPRECIATION -$258,018 -$325,000 $66,982 -$2,829,753 -$3,062,000 $232,247 INCREASE OR (DECREASE) IN NET POSITION $407,139 $76,789 $330,350 $6,872,823 $1,363,950 $5,508,873 9/6/2018 4:30 PM

24 Charlotte County Airport Authority STATEMENT OF NET POSITION (Balance Sheet) 7/31/2018 ASSETS CURRENT ASSETS Cash and Cash Equivalents $11,481,108 Net Receivables 1,139,480 Inventories 58,633 Prepaid Expenses 107,398 TOTAL CURRENT ASSETS 12,786,619 CAPITAL ASSETS Land 5,533,331 Buildings 46,688,625 CCAA Master Plan 202,141 Capital Improvements 39,016,070 Furniture, Fixtures and Equipment 5,620,696 Donated Surplus 31,300 Less: Accumulated Depreciation (43,550,234) Construction in Progress 6,042,709 TOTAL CAPITAL ASSETS, NET 59,584,637 DEFERRED OUTFLOWS OF RESOURCES- PENSIONS 1,502,446 TOTAL ASSETS $73,873,702 LIABILITIES CURRENT LIABILITES Accounts and Contracts Payable $194,978 Accrued Expenses 606,654 Deferred Revenue 234,602 Client Deposits 181,875 Employee Deferred Compensation Plan 113 TOTAL CURRENT LIABILITIES 1,218,222 LONG-TERM LIABILITIES Estimated Liability for Compensated Absences 64,122 State Infrastructure Bank Loan 3,331,519 Net OPEB Obligation 87,117 Net Pension Liability 2,694,318 TOTAL LONG-TERM LIABILITIES 6,177,077 TOTAL LIABILITIES 7,395,299 DEFERRED INFLOWS OF RESOURCES-PENSIONS 131,574 NET POSITION RESERVES Non Catastrophic Exp Reserve 26,112 Contaminated/Pollutant Reserve 107,500 Insurance Escrow Reserve 221,392 Building Reserve 1,276,483 Parking Lot Reserve 263,568 Air Traffic/Navigation/Safety Reserve 237,864 TOTAL RESERVES $2,132,919 Retained Earnings 57,341,090 NET PROFIT / LOSS 6,872,820 TOTAL NET POSITION 66,346,830 TOTAL LIABILITIES AND NET POSITION $73,873,702 9/6/2018 4:32 PM

25 CHARLOTTE COUNTY AIRPORT AUTHORITY APPROVED FOR USE PFC 8/1/2017 2,475, PFC $2.00/PASSENGER FEE ALLEGIANT'S Received CHECK # DATE AMOUNT PAX Month /2/ , Aug /24/ , Sep /29/ , Oct /19/ , Nov /25/ , Dec-17 2/20/ , Jan /2/ , Feb /30/ , Mar /6/ , Apr /2/ , May /2/ , Jun /5/ , Jul-18 GRANT BALANCE 1,549, TOTAL GRANT 2,475, REMAINING 926, , PAYMENT PFC.xls

26 Charlotte County Airport Authority Total Passengers CY 2012 thru , , , ,000 CY 18 CY 17 CY 16 CY 15 CY 14 CY 13 CY 12 50,000 0 January February March April May June July August September October November December Total Passengers per year CY 07 CY 08 CY 09 CY 10 CY 11 CY 12 CY 13 CY 14 CY 15 CY 16 CY 17 CY 18 January 29,152 9,587 17,283 29,628 33,988 19,225 47,091 58,948 76, , ,901 February 31,788 9,995 21,991 34,072 38,695 20,939 56,001 66,254 91, , ,076 March 40,599 15,013 28,534 44,449 26,630 33,779 76,917 93, , , ,947 April 13,751 19,390 36,394 9,343 28,203 71,894 74,994 98, , ,871 May 7,759 6,629 13,685 7,486 28,479 51,752 65,759 87,352 97, ,050 June 9,521 8,238 14,130 10,382 31,915 52,167 78,276 98, , ,860 July 9,190 10,262 16,292 18,652 32,888 53,826 85, , , ,426 August 7,652 8,326 12,942 14,131 22,377 38,744 60,240 81,800 88, ,335 September 5,547 4,830 9,409 10,871 10,559 26,423 38,693 64,226 51,836 October 8,258 7,606 17,783 11,690 15,433 37,083 62,355 89, ,113 November 1,077 13,411 17,571 27,164 16,720 39,040 53,126 71,025 96, ,097 December 15,180 7,305 19,341 31,763 35,678 20,769 50,774 63,051 81, , ,388 TOTALS , , , , , , , ,472 1,118,303 1,293,337 1,114,466 Overall total: 6,271,796

27 18,000 16,688 Charlotte County Airport Authority Avgas Gallons Sold, 2017 VS 2018 FY16/17 FY17/18 June 9,628 16,688 July 9,145 10,542 August 9,855 10,910 16,000 14,000 12,000 10,000 8,000 6,000 4,000 9,628 9,145 10,542 10,910 9,855 FY16/17 FY17/18 FY16/17 FY17/18 June 26,667 26,154 July 25,638 24,624 August 21,191 23,722 2,000 0 June July August 30,000 25,000 26,667 26,154 Charlotte County Airport Authority Jet A Gallons Sold, 2017 VS ,638 24,624 21,191 23,722 FY16/17 FY17/18 June 670, ,559 July 698, ,254 August 568, ,005 20,000 15,000 10,000 FY16/17 FY17/18 5,000 0 June July August 900, , , , ,525 Charlotte County Airport Authority Airline Gallons Pumped, 2017 VS , , , , , , , ,000 FY16/17 FY17/18 200, ,000 0 June July August

28 Operations Reported By Tower June July August Air Carrier AirTaxi Military GA Total Hangars 600 Series Series *Held for T-hangar door replacement Allegiant Cities Served 1 Allentown, PA 20 Louisville, KY 2 Ashville, NC 21 Milwaukee, WI 3 Belleville, IL 22 Moline,IL 4 Cedar Rapids, IA 23 Nashville, TN 5 Cincinnati, OH 24 Niagara Falls, NY 6 Cleveland, OH 25 Peoria, IL 7 Columbus, OH 26 Pittsburg, PA 8 Concord/Charlotte, NC 27 Portsmouth, NH 9 Dayton, OH 28 Providence, RI 10 Des Moines, IA 29 Raleigh/Durham, NC 11 Flint, MI 30 Rochester, NY 12 Ft. Wayne, IN 31 Rockford, IL 13 Grand Rapids, MI 32 Saint Cloud, MN 14 Harrisburg, PA 33 Southbend, IN 15 Huntington, WV 34 Springfield, IL 16 Indianapolis, IN 35 Springfield - Branson, MO 17 Kansas City, MO 36 Stewart Field, NY 18 Knoxville, TN 37 Toledo, OH 19 Lexington, KY

29 CAPITAL IMPROVEMENT PROGRAM REPORT - SEPTEMBER 2018 PROJECT LIST by PHASE Property Acquisition CIP No Project Title 0099 Property Acquisition - RW 22 RPZ 0100 Property Acquisition - RW 33 RPZ Scope of Work Development CIP No Project Title 0079 New General Aviation Terminal Facility 0096 Runway Rehab and Extension 0101 Construct Replacement Hangar for Building 207 Design-Permitting CIP No Project Title 0092 Wetland Mitigation Phase 1 and 2 of Roadway Network Improvements 0098 Terminal Curbside Traffic Improvements Planning CIP No Project Title 0081 Master Plan Update 0093 PFC Application #2 Construction CIP No Project Title 0082 Hangar Door Replacement Closeout CIP No Project Title 0088 Air Carrier Ramp Expansion & Pavement Sweeper

30 CAPITAL IMPROVEMENT PROGRAM REPORT SEPTEMBER 2018 PROJECT REPORT 1 Property Acquisition PROJECT TITLE Property Acquisition - Runway 22 RPZ CIP No PROJECT DESCRIPTION This project consists of acquiring approximately 45 acres of property within the RPZ on the north end of Runway These parcels are not currently within the RPZ but would be encompassed by the RPZ with the proposed 727-foot extension of Runway The FAA s airport design guidelines recommend that airports own the property underneath approach and departure areas to the limits of the RPZ, where practicable. The guidelines further recommend that the RPZ be cleared of all above ground objects where practicable. The purpose of this project is to achieve compliance with FAA guidance for land uses within RPZs. STATUS OF PROJECT An FAA projects coordination meeting occurred on August 27, 2018 at the FAA s Orlando Airport District offices. This Airport s project approach was discussed, and FAA had no objections. Airport staff and the Airport s Attorney will coordinate to begin work on the acquisition process following the schedule below. PROJECT FUNDING Description Estimated Cost FAA FDOT PFC CCAA Acquire Real Property 506, % Total 506,370 PROJECT SCHEDULE Milestone Description Completion Completed Date FAA Coordination Meeting 08/27/18 Airport Attorney Coordination Oct-18 Title Report, Surveys, Appraisal, Oct/Nov-18 Environmental FAA Review Above/Authorize Offer Nov-18 Offer and Negotiation Period Dec-18 CCAA Approve Sales Contract Jan-19 Property Closing Feb-19 PROJECT SKETCH CONTRACTS Firm Name Services Provided TBD Boundary Survey TBD Title Report and Closing TBD Environmental TBD Property Owner Sales Contract Fee

31 CAPITAL IMPROVEMENT PROGRAM REPORT SEPTEMBER 2018 PROJECT REPORT 2 Property Acquisition PROJECT TITLE Property Acquisition - Runway 33 RPZ CIP No PROJECT DESCRIPTION This project consists of acquiring avigation easements for approximately 2.7 acres of property that will be within the Runway Protection Zone (RPZ) on the south end of Runway 33 once it is extended to the south. The FAA s airport design guidelines recommend that airports own the property underneath approach and departure areas to the limits of the RPZ, where practicable. The guidelines further recommend that the RPZ be cleared of all above ground objects where practicable. The purpose of this project is to achieve compliance with FAA guidance for land uses within RPZs. STATUS OF PROJECT An FAA projects coordination meeting occurred on August 27, 2018 at the FAA s Orlando Airport District offices. This Airport s project approach was discussed, and FAA had no objections. Airport staff and the Airport s Attorney will coordinate to begin work on the acquisition process following the schedule below. PROJECT FUNDING Description Estimated Cost FAA FDOT PFC CCAA Acquire Real Property 20K 100% Total 20K PROJECT SCHEDULE Milestone Description Completion Completed Date FAA Coordination Meeting 08/27/18 Airport Attorney Coordination Oct-18 Title Report, Surveys, Appraisal, Oct/Nov-18 Environmental FAA Review Above/Authorize Offer Nov-18 Offer and Negotiation Period Dec-18 CCAA Approve Sales Contract Jan-19 Property Closing Feb-19 PROJECT SKETCH CONTRACTS Firm Name Services Provided TBD Boundary Survey TBD Title Report and Closing TBD Environmental TBD Property Owner Sales Contract Fee

32 CAPITAL IMPROVEMENT PROGRAM REPORT SEPTEMBER 2018 PROJECT REPORT 3 Scope of Work Development PROJECT TITLE New General Aviation Terminal Facility CIP No PROJECT DESCRIPTION This project consists of the design, permitting and construction of a new General Aviation (GA) Terminal Facility on the north side of the Airport, east of the 600 series T-Hangars. The project includes; GA Terminal, Café, Parking, Access Road, Apron, Taxiway and Taxilane improvements. STATUS OF PROJECT Following the August 16, 2018 CCAA consultant selection, Michael Baker International, Inc. is currently developing the scope of work. Once the scope of work and fee has been finalized, an independent fee estimate will be conducted, and the fee will be negotiated as applicable. These activities will be coordinated with FAA and FDOT. In the near future, a final scope of work, fee, and schedule will be submitted to CCAA for approval. PROJECT FUNDING Description Estimated Cost FAA FDOT PFC CCAA Apron, Taxilane, Taxiway Design and Construction 14,5M 90% Omnibus 10% Terminal, Café, Entrance Road Design and Construction 3.0M 50% JPA Up to $1.2M Total 17.5M 50% PROJECT SCHEDULE Milestone Description Completion Completed Date Select Consultant 08/16/18 Develop Scope, Fee, Schedule Sep-18 Secure FDOT Funding Oct/Nov-18 CCAA Accept FDOT Funding & Oct/Nov-18 Approve Consultant Fee Issue Notice to Proceed Nov-18 Submit FAA Grant Pre-Application Nov-18 Design and Permitting Apr-19 Advertise for Construction Bids May-19 Submit FAA Grant Application Jun-19 Secure FAA Funding Aug-19 Begin Construction Sep-19 End Construction TBD Closeout TBD PROJECT SKETCH CONTRACTS Firm Name Services Provided TBD Independent Fee Estimate Michael Baker International, Inc. Engineering Design, Permitting, Bidding, Construction Services, Closeout TBD Construction Fee

33 CAPITAL IMPROVEMENT PROGRAM REPORT SEPTEMBER 2018 PROJECT REPORT 4 Scope of Work Development PROJECT TITLE Runway Rehabilitation and Extension CIP No PROJECT DESCRIPTION This project consists of constructing a 593-foot extension on the south end of Runway and rehabilitating the existing runway pavement. In addition, Woodlawn Drive will be re-aligned to be outside the limits of the new Runway Protection Zone (RPZ) on the south end of Runway 33 once it is extended to the south. STATUS OF PROJECT Following the August 2, 2018 CCAA consultant selection, the scope of work has been developed. Currently, the independent fee estimate is being compared against the consultant s fee, and, applicable tasks are being clarified and the associated fee adjusted as discussed and negotiated. These activities will be coordinated with FAA and FDOT. A final scope of work, fee and schedule will be presented to CCAA for approval in the near future. PROJECT FUNDING Description Estimated Cost FAA FDOT PFC CCAA Rehabilitation of Existing Runway 5,3M 90% Entitlement 5% JPA 5% Design and Construction Runway 33 End Extension 4.2M 50% SIS 50% Design and Construction Total 9.5M PROJECT SCHEDULE Milestone Description Completion Completed Date Select Consultant 08/02/18 Develop Scope, Fee, Schedule Sep-18 Secure FDOT Funding Oct/Nov-18 CCAA Accept FDOT Funding & Oct/Nov-18 Approve Consultant Fee Issue Notice to Proceed Nov-18 Submit FAA Grant Pre-Application Nov-18 Design and Permitting Apr-19 Advertise for Construction Bids May-19 Submit FAA Grant Application Jun-19 Secure FAA Funding Aug-19 Begin Construction Sep-19 End Construction TBD Closeout TBD CONTRACTS Firm Name Fee Services Provided EG Solutions, Inc. Independent Fee Estimate Kimley-Horn Engineering Design, Permitting, Bidding, Construction Services, Closeout TBD Construction PROJECT SKETCH

34 CAPITAL IMPROVEMENT PROGRAM REPORT SEPTEMBER 2018 PROJECT REPORT 5 Scope of Work Development PROJECT TITLE Construct Replacement Hangar for Building Number 207 CIP No PROJECT DESCRIPTION This project consists of the construction of new replacement hangars for tenants located in Building 207. Building 207 will need to be demolished when the terminal access road is expanded to the north or if this area is designated for expansion of rental car parking. During the design process, other improvements will be determined. The replacement hangars will be located west of the New GA Terminal Facility and is planned to be constructed as part of the New GA Terminal Facility project. STATUS OF PROJECT Under the continuing engineering services contract, AECOM is developing the scope of work and fee. PROJECT FUNDING Description Estimated Cost FAA FDOT PFC CCAA Rehabilitation of Existing Runway 3.0M 100% Design and Construction Total 3.0M PROJECT SCHEDULE Milestone Description Completion Completed Date Select Consultant 08/02/18 Develop Scope, Fee, Schedule Sep-18 CCAA Approve Consultant Fee Oct/Nov-18 Issue Notice to Proceed Nov-18 Design and Permitting Mar-19 Advertise for Construction Bids May-19 Begin Construction Sep-19 End Construction TBD Closeout TBD CONTRACTS Firm Name Fee Services Provided AECOM Engineering Design, Bidding, Construction Services, Closeout TBD Construction PROJECT SKETCH

35 CAPITAL IMPROVEMENT PROGRAM REPORT SEPTEMBER 2018 PROJECT REPORT 6 Design-Permitting PROJECT TITLE Wetland Mitigation Phase 1 and 2 of 2 CIP No PROJECT DESCRIPTION This project consists of the design, permitting and construction required to fill approximately 37 acres of existing wetlands within the airport operations area. This project also includes the purchase of required wetland mitigation credits. These wetlands were identified in the Airport s 2016 Wildlife Hazard Management Plan as having the potential to attract hazardous wildlife. STATUS OF PROJECT The Wetland Mitigation Phase 2 of 2 has been added to this project to reduce overall costs. Phase 1 was programmed as a FY 18 project and Phase 2 was programed as a FY 19 project. However, due to the delay in the Airport s receipt of the FAA s final determination on the Master Plan Update Environmental Assessment, the FY 18 Phase 1 project was placed on hold. After review, the best approach is to combine the projects to save duplication costs on several project tasks. As a result of the above, an agreement amendment is being developed with EG Solutions, Inc. to add the Phase 2 work. The initial amendment will authorize no design and use existing agreement dollars. It will authorize meetings with regulatory agencies to review (and revise as negotiated) the planning level wetland limits and calculate the dollar amount of wetland mitigation credits to purchase. Once this has been completed, a second agreement amendment will be negotiated with EG Solutions, Inc. to add the additional Phase 2 wetland work and be presented to the Airport Authority for approval. PROJECT FUNDING Description Estimated Cost FAA FDOT PFC CCAA Wetland Mitigation Phase 1 1,3M 90% Entitlement 10% Wetland Mitigation Phase 2 2,1M 100% Total 3.4M PROJECT SCHEDULE Milestone Description Completion Completed Date Select Consultant 01/18/18 Develop Scope, Fee, Schedule 04/05/18 CCAA Approve Scope of Work 04/19/18 (Phase 1) Amendment 1 Add Phase 2 Sep-18 (Permitting No Design) Submit FAA Grant Pre-Application Nov-18 Complete Initial Permitting Dec-18 Issue Amendment 2 - Design Dec-18 Design and Permitting Apr-19 Advertise for Construction Bids May-19 Submit FAA Grant Application Jun-19 Secure FAA Funding Aug-19 Begin Construction Sep-19 End Construction TBD Closeout TBD PROJECT SKETCH CONTRACTS Firm Name Fee Services Provided Kimley_Horn - Independent Fee Estimate 2,000 EG Solutions, Inc. Design, Permitting, Bidding, $261,423 Construction, Closeout

36 CAPITAL IMPROVEMENT PROGRAM REPORT SEPTEMBER 2018 PROJECT REPORT 7 Design-Permitting PROJECT TITLE Roadway Network Improvements CIP No PROJECT DESCRIPTION This project will construct; A right turn lane on Piper Road at Viking Avenue, one additional lane on Viking Avenue between Piper Road and Golf Course Blvd. and one additional lane on Airport Road between Piper Road and Golf Course Blvd. STATUS OF PROJECT The 60% construction plans were submitted to the Airport on August 28, Currently, the consultant is incorporating Airport review comments, preparing permit applications and 90% submittal items. PROJECT FUNDING Description Estimated Cost FAA FDOT PFC CCAA Design, Permitting, Bidding, Construction Services, Closeout 78,990 Actual Currently, CCAA is funding the design of this project. Once the design is complete and construction bids have been received, staff will seek federal and/or state funding. Construction TBD During the design process, a construction cost estimate will be developed. Total TBD PROJECT SCHEDULE Milestone Description Completion Completed Date Select Consultant 05/17/18 Develop Scope, Fee, Schedule 05/17/18 CCAA Approve Scope of Work 05/17/18 Issue Notice to Proceed 05/29/18 Design and Permitting Dec-18 Advertise for Construction Bids Dec-18 Seek Funding Jan-19 Secure Funding Mar-19 Begin Construction Apr-19 End Construction Aug-19 Closeout Sep-19 PROJECT SKETCH CONTRACTS Firm Name Services Provided Southwest Engineering and Design Engineering Design, Permitting, Bidding, Construction Services, Closeout TBD Construction Fee $78,990

37 CAPITAL IMPROVEMENT PROGRAM REPORT SEPTEMBER 2018 PROJECT REPORT 8 Design-Permitting PROJECT TITLE Terminal Curbside Traffic Improvements CIP No PROJECT DESCRIPTION This project will add a fourth lane to the terminal curbside pick-up and drop-off lanes. It includes slight modifications to the short-term parking lot. STATUS OF PROJECT The consultant, Southwest Engineering and Design, Inc. continues design work on the development of the construction plans. The schedule has been revised to match the Airport Roadway Network Improvements project. PROJECT FUNDING Description Estimated Cost FAA FDOT PFC CCAA Design, Permitting 34,600 Currently, CCAA is planned to fund the design and permitting of this project. Once the design is complete and construction bids have been received, staff will seek federal and/or state funding. Construction TBD During the design process, a construction cost estimate will be developed. Total TBD PROJECT SCHEDULE Milestone Description Completion Completed Date Select Consultant & Approve Scope 08/02/18 and Fee Issue Notice to Proceed 08/10/18 Design and Permitting Dec-18 Advertise for Construction Bids Dec-18 Seek Funding Jan-19 Secure Funding Mar-19 Begin Construction Apr-19 End Construction May-19 Closeout May-19 PROJECT SKETCH CONTRACTS Firm Name Services Provided Southwest Engineering and Design Engineering Design, Permitting TBD Construction Fee $34,600 TBD

38 CAPITAL IMPROVEMENT PROGRAM REPORT SEPTEMBER 2018 PROJECT REPORT 9 Planning 0081 Master Plan Update, Airport Layout Plan and Environmental Assessment As background, the Airport received United States Fish and Wildlife Service (USFWS) comments on June 15, 2018 as part of the Environmental Assessment (EA) process. The USFWS requested the Airport conduct surveys for the Florida Bonetted Bat within forested areas in and around the Airport. On June 22, 2018, a contract amendment was issued to AECOM to conduct the surveys. The results of the survey were submitted to USFWS on August 10, The survey deemed five (5) potential roosts locations. Two (2) were within the property boundary of the Airport and both were deemed as unsuitable roosts. The remaining three (3) potential roosts locations are located off Airport property (east of the RW 22 End). Two (2) of those sites need further investigation due to access issues. It is noted that calls consistent with the Florida Bonetted Bat were detected on and off Airport property. However, as stated above, the detected calls on Airport property were determined unsuitable for roosts. The bats are likely traveling to the site to forage from their roosting site. Currently, we are awaiting any comments on the bat surveys from the USFWS. Any updated information will be presented at the CCAA meeting. The next steps following no further comments from USFWS are as follows: AECOM Submit Revised Draft EA to FAA Notice of Availability of Draft EA to Start Public Comment Period (requires FAA approval) Public Hearing/Workshop Public Comment Period Ends (Assume 30-day duration, but can be up to 45 days) AECOM Submit Preliminary Final EA to FAA FAA Approve Final EA (includes FAA ADO, SE Region and Legal Review and Coordination) FAA Issue Environmental Decision (no less than 30-day hold by statute) 0093 Passenger Facility Charge Application No. 2 and Amendment to PFC Application No. 1 The air carrier notice letters were sent out on July 11, 2018 and the Airline consultation meeting were held on August 13, At todays, CCAA board meeting, a Resolution will be presented authorizing the formal PCF Application submittal to FAA. It is noted that FAA can t approve the PFC application until after the results of the Environmental Assessment determination, which is expected to occur by January 2019.

39 CAPITAL IMPROVEMENT PROGRAM REPORT SEPTEMBER 2018 PROJECT REPORT 10 Construction Phase PROJECT TITLE Replace T-Hangar Doors CIP No PROJECT DESCRIPTION The project consists of providing all labor, materials, equipment, and permitting to replace sixty-four (64) existing aircraft t-hangar doors on Buildings 202, 203 and 204. STATUS OF PROJECT Construction activity continues. As of September 13, 2018, 18 of the 42 doors have been completed and work continues on the remaining doors. The project will replace 42 T-hangar doors and is scheduled to be completed during the first quarter of calendar year It is notes that Phase 1 of this project has been completed which replaced 22 T-hangar doors on Building 202. PROJECT FUNDING Description Estimated Cost FAA FDOT PFC CCAA Construction 1,680,000 (Actual) 50% 50% Total 1,680,000 PROJECT SCHEDULE Milestone Description Completion Completed Date Building Doors Advertised for Bids 04/10/17 CCAA Approved Contractor Bid and 05/18/17 Accepted FDOT Funding Issued Notice to Proceed 06/15/17 Building Department Permit Issued 08/16/17 Material Fabrication and Shipment 09/25/17 Begin Construction 09/25/17 Complete Construction 02/02/18 Building 203 and Doors CCAA Approved Contractor Bid and 04/19/18 Accepted FDOT Funding Issued Notice to Proceed 04/25/18 Building Department Permit Issued 05/18/18 Material Fabrication and Shipment 05/21/18 Begin Construction 05/21/18 Complete Construction Jan-19 Closeout Feb-19 PROJECT SKETCH CONTRACTS Firm Name Services Provided Alen Construction Group, Inc. Construction Fee $1,680,000

40 CAPITAL IMPROVEMENT PROGRAM REPORT SEPTEMBER 2018 PROJECT REPORT 11 Closeout Phase Commercial Air Carrier Ramp Expansion CIP No This project is in the closeout phase. This grant will remain open to until receipt of a new Airport Sweeper vehicle. The new vehicle is scheduled to arrive in October 2018.

41 CAPITAL IMPROVEMENT PROGRAM REPORT SEPTEMBER 2018 PROJECT REPORT 12 Financial Summary 2019 CIP Project Title EST COST FAA ENT FAA 1BILL FDOT FDOT SIS CCAA PFC Acquire Pavement Sweeper 141, ,900 14,100 Acquire Avigation Easement in RW 33 Approach RPZ (MPU #1) 20,000 20,000 Master Plan Update 125, ,500 6,250 6,250 Acquire Property RW 22 RPZ (MPU #2) 506, ,370 PFC Application No. 2 20,000 20,000 T-Hangar Door Replacement Phases 2 & 3 (MPU #51-#52) Wetland Mitigation Phase 1 (MPU #20) Extend and Rehabilitate Runway Rehab (MPU #3) Extend and Rehabilitate Runway Extension (MPU #3) Construct New GA Terminal Taxiways and Apron (MPU #54) Construct New General Aviation Taxiway and Apron (MPU #53) Construct New General Aviation Terminal, Parking, Access (MPU #58, #60) Wetland Mitigation Phase 2 (MPU #21) 484, , ,000 1,300,000 1,170, ,000 5,251,354 4,726, , ,568 4,189,395 2,094,698 2,094,697 8,635,809 7,772, ,581-5,836,348 5,252, ,635 2,400,000 1,200,000 1,200,000 2,078,057 2,078,057 Roadway Network 28,990 28,990 Improvements Terminal Curbside 14,600 14,600 Improvements Construct Replacement 3,000,000 3,000,000 Hangar for Building CIP Totals 34,030,923 6,135,618 13,024,941 1,710,818 2,094,698 4,525,940 6,538,908

42 1 MARKETING & COMMUNICATIONS REPORT AUGUST 2018 MARKETING & COMMUNICATIONS REPORT AUGUST 2018 News Releases Allegiant Announces 4 New Destinations 8/21/18 PGD Surpasses One Million Passengers in /10/18 Media Coverage Monthly news coverage, reach and advertising value is compiled within the News & Media section of the website: Advertising value of August TV & Internet news coverage estimated at nearly $800K Summary of August News Coverage Outreach & Events Various meetings/outreach: Charlotte County Chamber, Punta Gorda Chamber, Tourism Development Council and Economic Development Partnership August 21 Coordinated press announcement for Allegiant s four new destinations: Albany, New York; Appleton, Wisconsin; Omaha, Nebraska; and Syracuse, New York

43 2 MARKETING & COMMUNICATIONS REPORT AUGUST 2018 Upcoming Events Sept. 27 (Tentative) Allegiant s 40-Million Passenger Press Event at Bailey Terminal Oct th Anniversary Coin Treasure Hunt Oct Florida International Air Show Nov th Anniversary Event FlyPGD.com Website Reach 82,740 total web page views in August Top performing subpages in order: arrivals/departures, airlines, parking/directions, main terminal, destinations map, employment, rental car info Top website users by state during August: Social Media Top Facebook & Twitter Posts: Allegiant s new destinations, passenger milestone, I-75 advisories, Business Observer article, lightning safety 141 new Facebook likes totaling 2,788 by the end of August.

44 3 MARKETING & COMMUNICATIONS REPORT AUGUST 2018 Facebook Post Likes spiked in reaction to Allegiant s new destinations announcement.

45 4 MARKETING & COMMUNICATIONS REPORT AUGUST 2018 Advertising in Place Billboards placed in Punta Gorda, Englewood, Cape Coral, North Port Charlotte, North Port and Venice Englewood Chamber Community Guide - year-round Charlotte County Chamber Community Guide - year-round Punta Gorda Chamber Member & Visitors Guide year-round FLY PGD Marketing Tools Prepared PGD BUZZ blog page and e- newsletter to launch in early September DESTINATION PGD Marketing Tools Coordinated with partner airports to develop two initial Destination Spotlights to launch in September - Quad City Airport & Chicago Rockford Airport BUSINESS PGD Marketing Tools Developed new brochure, print ad, map, video and ppt presentation with the New Heights, New Horizon business view of PGD