Mr. Piccolo gave a detailed briefing on the COVID-19 Mitigation Plan. He reviewed the effects and efforts by management, the employee workforce team, contractors, and our airport tenants in dealing with the COVID-19 crisis. He discussed the necessary changes and measures the airport is currently taking and requested the Board support the initiatives as presented. He noted that none of these changes were on our agenda just three weeks ago as we released February passenger traffic numbers that reflected the 24th straight month of record traffic. He reviewed a list of disease epidemics, which did not include a total meltdown of our economy as COVID-19 is causing. He reviewed various relief measures to rental charges for signatory and non-signatory airlines, relief measures to the rental car concessionaires' minimum annual guarantees, with an agreement from the rental car companies to allow the airport to increase the CFC to $5.50 any time after the year end 2020. He reviewed relief measures for the food and beverage retail concessionaires for the months of April, May and June, with the concessionaires paying the percentage of monthly gross revenues and any taxes during those months and changes to the operating hours for Paradies and Host restaurants and kiosks in the terminal. Hampton Inn will defer rental payments for six months.
The Parking facilities will take a significant hit and currently are at less than 5% capacity, which should be at overflow capacity now. The Shade Parking lot and Valet parking will be temporarily closed; the shuttle bus into long term has been suspended. Except for six month deferred rental payments for Hampton Inn, all other measures are limited to a three-month term, with further mitigation efforts possible in the future.
Mr. Piccolo discussed the importance of ensuring our employee group not suffer through this incident and noted different options that he will request Board approval today to permit employees the ability to use various types of leave to stay home or self-quarantine as necessary. All hiring (with exception of essential vacancies) and overtime (except emergencies) will be frozen. He stated that we have suspended the Ambassadors Program as most of our volunteers are in the age demographic most susceptible to COVID-19. He stated that Martin Lange will be retiring at the end of April and thanked him for his twenty-four years of service to the Airport. There was discussion on possibly a short extension to his time given the current situation.
Mr. Piccolo stated that all airport projects not in progress are on hold except for the fuel farm project and he reviewed other conservation measures including fuel, lighting, and adjustments to HVAC temperatures around the airport. Some positive news for the airport is that we have no current debt payments, our unrestricted reserves are over $19 million, the airport is in excellent physical shape and we will focus on keeping the airport's balance sheet healthy, maintain safety and security for the airport's workforce and tenants, and continue with numerous cost cutting objectives to reduce expenses as necessary. As the situation changes daily, he will keep the Board updated on new developments as they unfold. He requested the Board support the proposal and give blanket approval of the measures as discussed.
Commissioner Spencer made a motion to approve the plan as discussed by Mr. Piccolo and commended management and all employees for their participation in taking decisive action by moving forward to help the airport and community through this crisis.
MOTION: Commissioner Spencer moved to give blanket approval in support of the mitigation plan measures as presented by the President, CEO and authorize staff to prepare any documents necessary to implement these measures and authorize the Chair to execute any documents