April 2020 Meeting Minutes

Open­ing:

The Semi-Vir­tu­al Board Meet­ing of the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict was called to order at 9:00 a.m., April 22, 2020 by Chair­man Lee. Board mem­bers were offered the option of call­ing in via Zoom, or attend­ing the meet­ing in per­son observ­ing the CDC’s rec­om­men­da­tion of main­tain­ing a dis­tance of at least six feet from others. 

The Invo­ca­tion was giv­en by Ms. Rhon­da Marchman.

The Pledge of Alle­giance was led by Chair­man Lee.

The Exec­u­tive Sec­re­tary called the roll and indi­cat­ed all the Board mem­bers were present. Every­one called into the vir­tu­al meet­ing except for Chair­man Lee and Mr. Nel­son who were phys­i­cal­ly present. 

The Agen­da was pre­sent­ed to the Board. Mr. Nel­son made a motion to accept the Agen­da. Mr. John­son sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

Reports:

Mr. Park­er McClel­lan pre­sent­ed and reviewed the Activ­i­ty Reports.

Ms. Dar­lene Nel­son pre­sent­ed and reviewed the Finan­cial Reports.

Con­sent Agenda:

1. Board Meet­ing Min­utes – March 25, 2020

This item pro­vid­ed for Board approval of the March 25, 2020 Board Meet­ing Minutes. 

1. Rat­i­fi­ca­tion of Ter­mi­nal Fire Pump Repair – Hiller Fire Protection

This item pro­vid­ed for Board rat­i­fi­ca­tion of repair pur­chase for the Ter­mi­nal Build­ing Fire Sup­pres­sion Sys­tem water pump.

The Annu­al Inspec­tion of the Fire Alarm and Fire Sup­pres­sion Sys­tem asso­ci­at­ed with the Ter­mi­nal Build­ing was con­duct­ed on Feb­ru­ary 20, 2020. The results of that inspec­tion result­ed in the Ter­mi­nal Fire Pump not being test­ed due to exces­sive move­ment and noise com­ing from the pump. The pump is the pri­ma­ry com­po­nent of the Airport’s Ter­mi­nal Fire Sup­pres­sion Sys­tem and is required to be oper­a­tional under NFPA fire code. 

As this item is con­sid­ered oper­a­tional­ly essen­tial four writ­ten quotes were obtained from ven­dors to per­form an emer­gency replace­ment of the pump. Two quotes were returned with options to repair the pump rather than replace the pump.

Due to the crit­i­cal nature of fire sup­pres­sion sys­tem water pump it was nec­es­sary for the Exec­u­tive Direc­tor to approve the pump repair.

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Funds for the pur­chase are avail­able in the cur­rent FY2020 O&M Bud­get, and Staff rec­om­mend­ed rat­i­fi­ca­tion of the Exec­u­tive Director’s autho­riza­tion to Hill Fire Pro­tec­tion to repair the Ter­mi­nal Fire Sup­pres­sion Sys­tem water pump in an amount not to exceed $17,360.

c. Approve 5‑Year Exten­sion Amend­ment for James Cor­ry Land Lease

This item pro­vid­ed for Board approval of a 5‑year Land Lease Exten­sion between the Dis­trict and James Corry. 

In May 2010, the Dis­trict and James Cor­ry entered into a Land Lease for the pur­pose of relo­cat­ing Mr. Corry’s hangar from the Pana­ma City-Bay Coun­ty Inter­na­tion­al Air­port, to the Premis­es at the North­west Flori­da Inter­na­tion­al Air­port. This Land Lease is set to expire on May 22, 2020. 

Both the Dis­trict and James Cor­ry have agreed to a new rental rate and wish to extend the Land Lease an addi­tion­al five (5) years, with the fol­low­ing amend­ments to the Term and to the Rent:

• Term shall ter­mi­nate on May 22, 2025
• Rent will be cal­cu­lat­ed at the rate of $0.36 per square foot per year
• On each Octo­ber 1 after the first year the annu­al rental rate shall be adjust­ed in accor­dance with the increase in the Con­sumer Price Index (CPI) for all items as pub­lished by the Bureau of Labor Sta­tis­tics for the Unit­ed States Depart­ment of Labor for the month of the pre­ced­ing June; how­ev­er, such increase shall not be less than 2% nor greater than 5%.

Staff rec­om­mend­ed the approval of a 5‑year Land Lease Exten­sion between the Dis­trict and James Corry.

The fis­cal impact of the Land Lease Exten­sion will be an addi­tion­al five (5) years of lease rev­enue to be real­ized at the end of the lease term.

This item pro­vid­ed for Board approval to extend the agree­ment with Sun­Trust Bank for ATM Ser­vices for an addi­tion­al one (1) year term. 

d. Approve 5‑Year Exten­sion Amend­ment for Mar­ty Hasek Land Lease

This item pro­vid­ed for Board approval of a 5‑year Land Lease Exten­sion between the Dis­trict and Mar­ty Hasek. 

In May 2010, the Dis­trict and Mar­ty Hasek entered into a Land Lease for the pur­pose of relo­cat­ing Mr. Hasek’s hangar from the Pana­ma City-Bay Coun­ty Inter­na­tion­al Air­port, to the Premis­es at the North­west Flori­da Inter­na­tion­al Air­port. This Land Lease is set to expire on May 22, 2020. 

Both the Dis­trict and Mar­ty Hasek have agreed to a new rental rate and wish to extend the Land Lease an addi­tion­al five (5) years, with the fol­low­ing amend­ments to the Term and to the Rent:

• Term shall ter­mi­nate on May 22, 2025
• Rent will be cal­cu­lat­ed at the rate of $0.36 per square foot per year
• On each Octo­ber 1 after the first year the annu­al rental rate shall be adjust­ed in accor­dance with the increase in the Con­sumer Price Index (CPI) for all items as pub­lished by the Bureau of Labor 

Sta­tis­tics for the Unit­ed States Depart­ment of Labor for the month of the pre­ced­ing June; how­ev­er, such increase shall not be less than 2% nor greater than 5%.

Staff rec­om­mend­ed the approval of a 5‑year Land Lease Exten­sion between the Dis­trict and Mar­ty Hasek.

The fis­cal impact of the Land Lease Exten­sion will be an addi­tion­al five (5) years of lease rev­enue to be real­ized at the end of the lease term.

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e. Approve 5‑Year Exten­sion Amend­ment for Pre­ci­sion Land & Asset, Inc. Land Lease

This item pro­vid­ed for Board approval of a 5‑year Land Lease Exten­sion between the Dis­trict and Pre­ci­sion Land & Asset, Inc. 

In May 2010, the Dis­trict and Pre­ci­sion Land & Asset, Inc. entered into a Land Lease for the pur­pose of relo­cat­ing Precision’s hangar from the Pana­ma City-Bay Coun­ty Inter­na­tion­al Air­port, to the Premis­es at the North­west Flori­da Inter­na­tion­al Air­port. This Land Lease is set to expire on May 22, 2020. 

Both the Dis­trict and Pre­ci­sion Land & Asset, Inc. have agreed to a new rental rate and wish to extend the Land Lease an addi­tion­al five (5) years, with the fol­low­ing amend­ments to the Term and to the Rent:

• Term shall ter­mi­nate on May 22, 2025
• Rent will be cal­cu­lat­ed at the rate of $0.36 per square foot per year
• On each Octo­ber 1 after the first year the annu­al rental rate shall be adjust­ed in accor­dance with the increase in the Con­sumer Price Index (CPI) for all items as pub­lished by the Bureau of Labor Sta­tis­tics for the Unit­ed States Depart­ment of Labor for the month of the pre­ced­ing June; how­ev­er, such increase shall not be less than 2% nor greater than 5%.

Staff rec­om­mend­ed the approval of a 5‑year Land Lease Exten­sion between the Dis­trict and Pre­ci­sion Land & Asset, Inc. The fis­cal impact of the Land Lease Exten­sion will be an addi­tion­al five (5) years of lease rev­enue to be real­ized at the end of the lease term.

f. Approve 5‑Year Exten­sion Amend­ment for Lar­ry Thack­er Land Lease

This item pro­vid­ed for Board approval of a 5‑year Land Lease Exten­sion between the Dis­trict and Lar­ry Thacker. 

In May 2010, the Dis­trict and Lar­ry Thack­er entered into a Land Lease for the pur­pose of relo­cat­ing Mr. Thacker’s hangar from the Pana­ma City-Bay Coun­ty Inter­na­tion­al Air­port, to the Premis­es at the North­west Flori­da Inter­na­tion­al Air­port. This Land Lease is set to expire on May 22, 2020. 

Both the Dis­trict and Lar­ry Thack­er have agreed to a new rental rate and wish to extend the Land Lease an addi­tion­al five (5) years, with the fol­low­ing amend­ments to the Term and to the Rent:

• Term shall ter­mi­nate on May 22, 2025
• Rent will be cal­cu­lat­ed at the rate of $0.36 per square foot per year
• On each Octo­ber 1 after the first year the annu­al rental rate shall be adjust­ed in accor­dance with the increase in the Con­sumer Price Index (CPI) for all items as pub­lished by the Bureau of Labor 

Sta­tis­tics for the Unit­ed States Depart­ment of Labor for the month of the pre­ced­ing June; how­ev­er, such increase shall not be less than 2% nor greater than 5%.

Staff rec­om­mend­ed the approval of a 5‑year Land Lease Exten­sion between the Dis­trict and Lar­ry Thacker.

The fis­cal impact of the Land Lease Exten­sion will be an addi­tion­al five (5) years of lease rev­enue to be real­ized at the end of the lease term.

g. Approve 5‑Year Exten­sion Amend­ment for Tin Cup Invest­ments, LLC Land Lease

This item pro­vid­ed for Board approval of a 5‑year Land Lease Exten­sion between the Dis­trict and Tin Cup Invest­ments, LLC. 

In May 2010, the Dis­trict and Youngstown Prop­er­ties, LLC entered into a Land Lease for the pur­pose of 

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relo­cat­ing Youngstown Prop­er­ties’ hangar from the Pana­ma City-Bay Coun­ty Inter­na­tion­al Air­port, to the Premis­es at the North­west Flori­da Inter­na­tion­al Air­port. On Octo­ber 20, 2014 Youngstown Prop­er­ties, LLC assigned their Lease Agree­ment to Tin Cup Invest­ments, LLC. This Land Lease is set to expire on May 22, 2020. 

Both the Dis­trict and Tin Cup Invest­ments, LLC have agreed to a new rental rate and wish to extend the Land Lease an addi­tion­al five (5) years, with the fol­low­ing amend­ments to the Term and to the Rent:

• Term shall ter­mi­nate on May 22, 2025
• Rent will be cal­cu­lat­ed at the rate of $0.36 per square foot per year
• On each Octo­ber 1 after the first year the annu­al rental rate shall be adjust­ed in accor­dance with the increase in the Con­sumer Price Index (CPI) for all items as pub­lished by the Bureau of Labor Sta­tis­tics for the Unit­ed States Depart­ment of Labor for the month of the pre­ced­ing June; how­ev­er, such increase shall not be less than 2% nor greater than 5%.

Staff rec­om­mend­ed the approval of a 5‑year Land Lease Exten­sion between the Dis­trict and Tin Cup Invest­ments, LLC. The fis­cal impact of the Land Lease Exten­sion will be an addi­tion­al five (5) years of lease rev­enue to be real­ized at the end of the lease term.

Mr. Nel­son made a motion to accept the Con­sent Agen­da, and Mr. Math­is sec­ond­ed the motion. The vote was tak­en and the motion passed except for Vice Chair­man McDon­ald who didn’t vote due to tech­ni­cal difficulties.

Busi­ness Items:

1. ZHA Task Order #50 – Air­craft Apron Park­ing – Plan­ning, Design & Con­struc­tion Admin­is­tra­tion Services

This item pro­vid­ed for the Board’s approval of Task Order #50 to ZHA as the Airport’s con­tin­u­ing engi­neer­ing con­sul­tant to per­form required Plan­ning, Design & Con­struc­tion Admin­is­tra­tion Ser­vices for the Air­craft Apron Park­ing Project.

The Air­port and the EDA have been dili­gent­ly work­ing with sev­er­al com­pa­nies on the Avi­a­tion Cen­ter of Excel­lence, specif­i­cal­ly Projects Gator, Venus and Good­wrench, which will be locat­ed between West Bay Park­way and the Air­field Com­plex. The projects are mov­ing for­ward at dif­fer­ent paces. Project Gator has been approved by Bay Coun­ty Com­mis­sion, and Space Flori­da is mov­ing for­ward with the finan­cial pack­age. The Air­craft Apron Park­ing will sup­port tran­sient air­craft at the Air­port and will be adja­cent to 

The Tran­sient Apron, which is cur­rent­ly under construction.

The apron will be approx­i­mate­ly 75 – 100 feet x 400 – 500 feet and designed to accom­mo­date all clas­si­fi­ca­tions of air­craft. The apron park­ing will include paving, drainage, stormwa­ter man­age­ment sys­tem mod­i­fi­ca­tions, secu­ri­ty, poten­tial relo­ca­tion of some exist­ing util­i­ties, apron edge light­ing mod­i­fi­ca­tions, apron mark­ings, final grad­ing, grass­ing, and oth­er com­po­nents relat­ed to the project. Addi­tion­al­ly, the plan­ning will include con­cep­tu­al plan­ning of the south cam­pus air­field sup­port areas and also grad­ing, drainage and stormwa­ter plan­ning for the areas adja­cent to the project on the west side of John­ny Reaver Road.

The Task Order will be for the Plan­ning, Design & Con­struc­tion Admin­is­tra­tion Ser­vices which include: 

1. Inter­fac­ing with the Air­port, FAA, TSA, FDOT, Bay Coun­ty and oth­ers as Project is devel­oped through design and procurement. 

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1. Prepar­ing and sub­mit­ting the FAA Air­space Study Check­list, if required by FAA, for pro­posed on-air­port improve­ments, after Air­port review. 
2. Review­ing as-built infor­ma­tion avail­able, exist­ing con­di­tions, and inspect­ing the site to ensure exist­ing con­di­tions are dealt with in the design documents.
3. Com­mis­sion­ing a sur­vey and geot­ech­ni­cal test­ing required to pre­pare the design for the Project.
4. Par­tic­i­pat­ing in coor­di­na­tion meet­ings with the Air­port and ten­ants to con­firm the ten­ants’ build­ing loca­tions and inter­face requirements.
5. Prepar­ing 30% design draw­ings for Air­port review.

1. Iden­ti­fy­ing stormwa­ter man­age­ment sys­tem mod­i­fi­ca­tions found by stormwa­ter engi­neer in order to com­ply with the stormwa­ter per­mit, and incor­po­rat­ing those changes or mod­i­fi­ca­tions in design.
2. Prepar­ing 90% design/​permitting draw­ings and tech­ni­cal spec­i­fi­ca­tions for the Project to be pro­cured under a lump sum bid con­struc­tion con­tract, with unit pric­ing for change orders purposes.

1. Par­tic­i­pat­ing with Air­port and oth­ers in a meet­ing to review 90% doc­u­ments and dis­cuss Project and its pro­cure­ment and implementation.
2. Prepar­ing 100% design/​permitting/​procurement doc­u­ments includ­ing all review com­ments of the 90% design documents.
3. Par­tic­i­pat­ing in the pre-bid con­fer­ence and assist Air­port, as required, and pro­vid­ing any addi­tion­al infor­ma­tion or clar­i­fi­ca­tions of the pro­cure­ment doc­u­ments to the poten­tial bid­ders as request­ed by Airport.

1. Par­tic­i­pat­ing in the bid open­ing and eval­u­a­tion process and for­mu­lat­ing and pre­sent­ing a bid award rec­om­men­da­tion to the Air­port for consideration.

1. Prepar­ing a con­formed set of con­struc­tion doc­u­ments incor­po­rat­ing any adden­da items, clar­i­fi­ca­tions, addi­tion­al infor­ma­tion, or oth­er request­ed mod­i­fi­ca­tions for the con­struc­tion contract.

1. Pro­vid­ing Con­struc­tion Admin­is­tra­tion Services.

Staff rec­om­mend­ed this Task Order with a not-to-exceed cost of $278,800 to be fund­ed through reserves and oth­er pos­si­ble fund­ing sources includ­ing, but not lim­it­ed to, USE­DA, FDOT, and FAA. Mr. McClel­lan addressed the Board to fur­ther explain this Task Order. He said this Air­craft Apron Park­ing Project was not includ­ed in the FY20 Bud­get because it was after the Bud­get was approved that the Avi­a­tion Cen­ter of Excel­lence at the Air­port devel­oped, Project Gator began mov­ing for­ward, and a need to design a ramp to con­nect the Avi­a­tion Cen­ter of Excel­lence to the Taxi­way was realized.

Mr. McClel­lan added that the ongo­ing con­struc­tion of anoth­er piece of ramp – the Tran­sient Apron Project – was approved in the FY20 Bud­get, and can be used as part of this Air­craft Apron Park­ing Project. Mr. McClel­lan said that even if Project Gator does not go through, once this ramp is built, it will reduce costs for future projects in that location. 

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Mr. Ken Nel­son rec­om­mend­ed wait­ing for a month to see what hap­pens with our finances due to COVID-

19, and Mr. McClel­lan explained that we already have accept­ed the 50% State Grant for the $800K match on the $1.6M Con­struc­tion por­tion of the Taxi­way E1/​Transient Apron Project which must be com­plet­ed by June 2021 to receive fund­ing. Ms Melz­er ques­tioned when the CEI and Engi­neer­ing costs would be billed. Mr. McClel­lan said that we will not con­tract for the CEI for this Project until we move for­ward with the Con­struc­tion, though the fund­ing for the esti­mat­ed $82K is includ­ed in the FAA AIP Grant and the FY20 Bud­get, and was expect­ed to cov­er all three Projects. He added that it would be advan­ta­geous for us to have projects already designed, on the shelf and ready, when more Con­struc­tion Grants become available.

Mr. McClel­lan invit­ed Bay EDA Pres­i­dent Bec­ca Hardin to add her com­ments via phone, and she stressed that this Project is very ben­e­fi­cial for the Air­port because it does not depend on pas­sen­ger traf­fic for the rev­enues it will gen­er­ate, and asked that the Board keep it going in a pos­i­tive direc­tion. ZHA’s Pres­i­dent Rick Mellin esti­mat­ed via phone that the Design por­tion of this Project would take 5 – 6 months, and AVCON’s Site Devel­op­ment Man­ag­er Tonya Nation also com­ment­ed via phone that because a stormwa­ter review had to be done in Phase 1 of the poten­tial three-phase Project, the cost is slight­ly high­er, but that the Design cost would decrease in Phas­es 2 and 3 because that stormwa­ter review was already done for the area.

Chair­man Lee said in his per­son­al opin­ion, with the Fed­er­al Gov­ern­ment putting tril­lions of dol­lars into the econ­o­my to pre­vent a fur­ther reces­sion, he felt we still need to watch our costs, but we should move for­ward and pre­pare for the future. Vice Chair­man McDon­ald con­curred and the­o­rized that with the mon­ey we will receive from the CARES Act, we could have an esti­mat­ed nine months of Air­port oper­at­ing expens­es covered.

Vice Chair­man McDon­ald made a motion to approve ZHA Task Order #50 – Air­craft Apron Park­ing – Plan­ning, Design & Con­struc­tion Admin­is­tra­tion Ser­vices, and Mr. Math­is sec­ond­ed the motion. The vote was tak­en and the motion passed except for Mr. Nel­son who vot­ed ​“no.”

1. (i) COVID-19 Update/CARES Act Update

Mr. McClel­lan invit­ed Mr. Dar­lene Nel­son to assist him in pre­sent­ing to the Board a finan­cial fore­cast update show­ing graph­ic illus­tra­tions com­par­ing the Approved FY20 Bud­get, the Pro­ject­ed Growth Rate, and the Cur­rent Pro­jec­tion. The Approved Bud­get was an esti­mat­ed $19.7M in revenues/$10.5M in expens­es, and the Pro­ject­ed Growth Rate through the end of FY20 (pro­ject­ed before the impact of COVID-19 began to affect the indus­try) was an esti­mat­ed $21.8M in rev­enues and $9.9M in expens­es. The Cur­rent Pro­jec­tion (cal­cu­lat­ed since the onset of COVID-19 in March), shows a steep decline in March rev­enues, lev­el­ing out and match­ing expens­es through the end of the fis­cal year. 

Mr. McClel­lan described to the Board pro­vi­sions for the CARES Act (Coro­n­avirus Aid, Relief, and Eco­nom­ic Secu­ri­ty Act). He informed the Board that near­ly $10 bil­lion will pro­vide for eli­gi­ble U.S. air­ports to pre­vent, pre­pare for, and respond to coro­n­avirus impacts, includ­ing sup­port for con­tin­u­ing air­port oper­a­tions. He report­ed the Act stip­u­lates the Air­port must keep 90% of its Staff employed through the end of the cal­en­dar year; clar­i­fied funds are appro­pri­at­ed by the FAA from a Gen­er­al Fund (not part of an Air­port Improve­ment Pro­gram (AIP) or Air­port and Air­way Trust Fund; and can be used for either 100% oper­a­tional costs, 100% for devel­op­ment costs, or for both.

Mr. McClel­lan report­ed that Staff felt option using funds for both would work best for the Air­port, and asked the Board to approve mov­ing for­ward with Staff com­plet­ing and sub­mit­ting the appli­ca­tion to use the funds for both oper­a­tional costs and for devel­op­ment. Mr. Nel­son ques­tioned the pos­si­bil­i­ty that we will not receive the funds and Mr. McClel­lan report­ed that the FAA already con­firmed we are guar­an­teed $6.3M, and the prospect­ed date of receiv­ing the funds could be as ear­ly as mid-May. 

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This item was for infor­ma­tion­al pur­pos­es only, and after Board dis­cus­sion, required no for­mal Board action. 

(ii) COVID-19 Update/Air Car­ri­er Pro­gram

Mr. McClel­lan report­ed that regard­ing the Air Car­ri­er Pro­gram, all four air­lines signed off on and were all very hap­py with the offer of defer­ring their rent and fees by extend­ing the pay­ment due dates, with all charges being remit­ted pri­or to the end of our fis­cal year; and that dis­cus­sions have start­ed regard­ing the renew­al of their Lease Agree­ment at the end of Sep­tem­ber (to come back to the Board for review in the upcom­ing months).

This item was for infor­ma­tion­al pur­pos­es only, and after Board dis­cus­sion, required no for­mal Board action. 

(iii) COVID-19 Update/Rental Car Program

Mr. McClel­lan informed the Board that the Rental Car com­pa­nies have sev­er­al hun­dred cars stored on the Air­port that were part of their sum­mer fleet, as well as their win­ter fleet. 

Mr. McClel­lan remind­ed the Board that a vote was tak­en and the motion passed unan­i­mous­ly at last month’s Board Meet­ing to approve the con­cept of an Air­line and Rental Car Relief Pro­gram and the devel­op­ment of an agree­ment for each line of business. 

Mr. McClel­lan explained this Res­o­lu­tion con­firms what was approved at the last Board Meet­ing and autho­rizes the use of the Cus­tomer Facil­i­ty Charge (CFC) reserves to pay for the Rental Car com­pa­nies’ April MAG, but he also said that the Rental Car com­pa­nies have since expressed they would pre­fer to use some of the CARES Act mon­ey instead; there­fore a mod­i­fi­ca­tion to the Rental Car plan may come to the Board at the next meet­ing on how to make that adjustment.

Mr. McClel­lan asked the Board to adopt the Res­o­lu­tion approv­ing the use the CFC reserves to pay the Rental Car com­pa­nies’ April MAG pay­ments with the require­ment that the com­pa­nies repay the amount to the CFC reserves. The Res­o­lu­tion also rat­i­fies the $4.50 CFC rate that pays the Rental Car com­pa­nies’ rent dur­ing times of extra­or­di­nary force majeure. 

Vice Chair­man McDon­ald made a motion to adopt this Res­o­lu­tion. Mr. Tusa sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

(iv) COVID-19 Update/Con­ces­sion Program

This item pro­vid­ed an update on the impacts of the COVID-19 Pan­dem­ic on the Con­ces­sion Pro­gram includ­ing the restau­rant, news/​gift shop, park­ing, adver­tis­ing and ground transportation.

The sig­nif­i­cant reduc­tion in pas­sen­ger traf­fic has had a sub­stan­tial adverse impact on our con­ces­sions. The busi­ness mod­el uti­lized by the con­ces­sions is pas­sen­ger based.

In mid-March the Airport’s pas­sen­ger traf­fic began drop­ping, result­ing in a 95% reduc­tion in the num­ber of pas­sen­gers uti­liz­ing the Air­port. This reduc­tion has led to a sig­nif­i­cant loss in rev­enue for the con­ces­sions and as a result, they have approached the Air­port for finan­cial relief. 

As a result of the sub­stan­tial adverse effect of the COVID-19 Pan­dem­ic, Staff has imple­ment­ed or pro­pose the imple­men­ta­tion of the fol­low­ing actions:

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• Ground Trans­porta­tion: Rat­i­fy the reduc­tion of the fees for the Queue Con­tracts from $135 per month to $20 per month for the months of April and May. The esti­mat­ed finan­cial impact is $5,500.

• Park­ing: Case-by-case basis, reduc­tion of the park­ing rate by 50% from March 27, 2020 to May 1, 2020 based on COVID-19 impacts.

• Restau­rant (Food and Bev­er­age) Con­ces­sion: Waive the Min­i­mum Annu­al Guar­an­tee (MAG) for the months of April and May, con­ces­sion­aire would con­tin­ue to pay 12% of gross rev­enues. The esti­mat­ed finan­cial impact is esti­mat­ed to be $9,700.

• Gift Shop (News and Sun­dries) Con­ces­sion: Waive the Min­i­mum Annu­al Guar­an­tee (MAG) for the months of April and May, con­ces­sion­aire would con­tin­ue to pay 12% of gross rev­enues. The esti­mat­ed finan­cial impact is esti­mat­ed to be $5,500.

• Adver­tis­ing Con­ces­sion: Waive the Min­i­mum Annu­al Guar­an­tee (MAG) for the months of April, May and June, con­ces­sion­aire would con­tin­ue to pay 30% of gross sales. The esti­mat­ed finan­cial impact is esti­mat­ed to be $6,250.

The bud­get impact for the months of April and May is esti­mat­ed to be $28,250, and Staff rec­om­mend­ed accep­tance of the relief efforts to the con­ces­sions as presented.

Mr. John­son made a motion to accept Staff’s rec­om­men­da­tion of the relief efforts as pre­sent­ed for the Con­ces­sions, and Ms. Melz­er sec­ond­ed the motion. The vote was tak­en and the motion passed unanimously.

1. Pre­sen­ta­tion: Con­struc­tion Update (infor­ma­tion only)

Mr. McClel­lan informed the Board that this pre­sen­ta­tion would com­bine the Ter­mi­nal Expan­sion, Tran­sient Apron, Taxi­way E1, and the State Road 388 Updates, and invit­ed Mr. Richard McConnell to address the Board. Mr. McConnell report­ed that a great deal of activ­i­ty has tak­en place on all four Projects. 

Mr. McConnell report­ed that all but one of the Ter­mi­nal Expan­sion mod­ules had been deliv­ered, with the last one expect­ed to be deliv­ered by the end of the week. He said that as of this morn­ing three of the mod­ules had been set (with the remain­der expect­ed to be set by end of week), all the trades were present (plumbers, elec­tri­cians, HVAC, etc.), and the Project was slight­ly ahead of schedule. 

He said that every­one has been mov­ing quick­ly and much of the prep work is fin­ished on Taxi­way E1, with the lime sta­bi­liza­tion being deliv­ered, and the first asphalt expect­ed to be laid by end of next week.

Mr. McConnell report­ed that the State Road 388 Project had also been tak­ing advan­tage of the reduced traf­fic, with the final sur­charge being added on the west side of West Bay Pkwy result­ing in two 15-foot areas of sur­charge on either side of the Air­port Entrance.

1. Pre­sen­ta­tion: State Road 388 Con­struc­tion Update (infor­ma­tion only) (this Item was com­bined with Busi­ness Item 4©

The Bay EDA Update:

Bay EDA Pres­i­dent Bec­ca Hardin addressed the Board via phone and report­ed that they are tak­ing advan­tage of all the options for fed­er­al fund­ing assis­tance that might be out there. She report­ed that Bay EDA hopes to be receiv­ing CARES Act fund­ing as well, to help sup­port Air­port project development.

21600 

The Moore Agency Update:

Ms. Katie Spill­man of The Moore Agency report­ed via phone on their March mar­ket­ing and adver­tis­ing activ­i­ty. Ms. Spill­man report­ed that they had planned to run the same dig­i­tal cam­paign ads as last month, includ­ing paid search and social cam­paigns tar­get­ing trav­el­ers and pro­mot­ing the DCA non­stop offer­ing, how­ev­er, social ads were paused mid-March due to COVID-19.

Ms. Spill­man report­ed that as a result of COVID-19, search vol­ume and inter­est in trav­el search terms con­tin­ued to decrease dur­ing the month of March. To help mit­i­gate the impact on our Paid Search cam­paign, they added new neg­a­tive key­words for COVID-19, and advi­so­ry and can­cel­la­tion-relat­ed search­es to pre­vent our ads from match­ing to irrel­e­vant search queries. Ms. Spill­man report­ed that web­site traf­fic was down 24%, organ­ic traf­fic was down 26%, and new vis­i­tors were down 24.59%.

Ms. Spill­man report­ed that in March there were 579 air­line web­site click con­ver­sions and 129 assist­ed con­ver­sions as a result of our cam­paign; 4,174 Escape page views; 16,017 new web­site vis­i­tors; 33,732 total web­site ses­sions; 1,744,384 earned media impres­sions; and 33.3% of our sub­scribers opened the newslet­ter. Ms. Spill­man shared a logo the The Moore Agency cre­ative team designed to cel­e­brate ECP’s upcom­ing 10^th year in oper­a­tion that could be used the remain­der of the year on social media, on bal­loons, on the web­site, and in email sig­na­ture blocks.

Exec­u­tive Direc­tor Report:

Mr. McClel­lan addressed the Board by inform­ing them that there will be some kind of soft cel­e­bra­tion on May 23 to acknowl­edge ECP’s 10^th year, with some­thing more in the future as the coun­try and state opens up. Mr. McClel­lan report­ed on the Air­port get­ting a lot of ​“Projects With­out Pas­sen­gers” done, i.e. paint­ing, replac­ing cracked gray floor tiles, etc.; and he asked every­one to rec­og­nize Exec­u­tive Assis­tant Kathy Gilmore, and Denise Beach in the Pub­lic Safe­ty Build­ing, on this Admin­is­tra­tive Pro­fes­sion­als Day.

Pub­lic Comments:

There were no pub­lic comments.

Adjourn­ment:

The meet­ing was adjourned at approx­i­mate­ly 10:22 a.m.

________________________________ ________________________________

Kathy Gilmore, Exec­u­tive Sec­re­tary Del Lee, Chairman