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From YouTube: Community Recovery Task Force, Airport - April 23, 2020
Description
You are watching the Charlotte City Council Community Recovery Task Force Committee Meeting (Airport) from Thursday, April 23rd. Thanks for watching.
To learn more about this committee and more, please visit Charlottenc.gov/citycouncil/committees.
A
And
welcome
to
the
first
meeting
of
the
Charlotte
economic
recovery
task
force,
Airport
working
route
and
that's
quite
a
mouthful.
My
name
is
Edie
Drake's
I'm,
the
district
7
member
of
Charlotte,
City,
Council
and
coordinator
for
this
group.
As
you
know,
our
mission
is
to
study
the
impact
of
the
COBE
virus
on
the
airport
and
all
of
its
stakeholders
and
to
make
recommendations
to
Charlotte
city
council
on
how
we
can
expedite
a
recovery
to
normal
operation
there.
A
This
is
a
public
meeting,
it's
being
broadcast
on
the
government
Channel
or
you
can
view
it
on
the
Facebook
or
YouTube
channels.
In
future
meetings
we
will
be
entertaining
public
input
by
having
written
submissions
that
will
then
be
considered
by
task
force
members,
and
so,
if
you
have
questions,
please
write
in
and
let
us
know,
and
we
will
take
them
up-
I'd
like
before
we
get
underway
to
hand
over
to
Donata
for
a
moment
to
talk
about
some
of
the
mechanics
of
this
call.
You
know.
B
That
hi
so
good
morning,
Thank
You
councilmember
dregs.
My
name
is
Danada
Jackson
I'm,
the
office
of
constituent
services
manager,
I
just
wanted
to
remind
everyone
that
is
on
the
virtual
call
to
be
sure
that
you're
speaking
directly
into
your
mic,
so
that
we
can
hear
you
after
your
introductions,
your
mic
will
be
muted.
So,
during
your
introductions,
mr.
Driggs
will
go
and
ask
everyone
to
introduce
themselves
we're
gonna
unmute
everyone's
mic,
but
after
then
we
will
mute
you
if
you'd
like
to
say
something.
B
You
can
then
raise
your
hand,
there's
a
little
tiny
hand
raised
once
you
do
that,
that'll
indicate
to
me
and
councilmember
Driggs
that
you'd
like
to
make
a
comment
or
ask
a
question
and
we'll
call
upon
you
and
Wendy
will
then
unmute
you,
okay,
so
just
remember
to
move
your
mouse
around
go
to
that
Center
small
person
with
the
three
lines
called
participants
open
up
that
right
hand.
Panel
there's
a
hand
raised.
You
can
click
that
hand
raised
and
then
unclick
it
just
click
it
back
and
it'll.
B
Take
your
hand
down
once
you've
asked
your
question
or
made
your
comment.
If
there
are
any
issues
feel
free
to
either
message
us
in
the
chat
function
or
you
can
text
me
directly.
I'll
give
you
my
phone
number,
it's
seven,
oh
four,
three,
six,
three,
five,
one:
zero,
four:
seven!
Oh
four,
three,
six,
three,
five
one:
zero
four
glad
you're
here
and
thank
you
so
much.
A
A
B
A
Okay,
I
wanted
to
mention
awesome
representatives
from
American
Airlines,
parodies
HMS
hosts,
maybe
also
on
the
call
to
answer
questions
and
any
Liberation's
wanted
to
mention.
Also
thank
you
to
the
staff
or
pulling
out
together.
It's
a
lot
of
works,
do
not
of
the
Angela
and
others.
Thank
you
so
much.
Today's
meeting
is
to
deal
with
the
airport
and
sickness
a
subject
to
input
from
others.
Attention
would
be
to
focus
on
concessionaires
at
next
week's
meeting
and
to
have
American
Airlines,
as
the
featured
speaker
of
the
week
after
that
and.
A
F
F
F
So
looking
at
the
impact
of
kovat
19
on
the
Aviation
Department
and
on
Charlotte
Douglas
International
Airport.
The
first
thing
to
look
at
is
what
has
been
the
impact
to
the
airport's
in
plane
to
passengers
and
I
want
to
sort
of
number
one
say
if
I
utilize,
acronyms
I
will
try
not
to
do
that
if
I
do
I
apologize.
Please
just
ask
me
to
clarify,
but
I
also
want
to
define
terms,
because
you
will
see
this
throughout
the
presentation,
so
in
planed,
passengers
or
in
claimants
is
basically
roughly
half
of
total
passengers
right.
F
There
are
in
planing
passengers
and
there
are
deplane
passengers.
So
when
you
see
numbers,
for
example,
in
January
of
this
year,
the
airport
announced
that
we
had
50
million
total
passengers.
That
would
be
25
million
in
planed
passengers,
so
in
claimants,
are
roughly
half
of
total
so
for
implant
passengers
in
FY
19,
we
had
just
under
24
million
total
in
plane.
F
Because
of
that,
we
have
created
a
budget
around
that.
So
before
cove
in
nineteen,
we
were
deep
into
our
budget
process
and
that's
what
the
next
kala
or
yes
row.
Column
stands
for
FY,
twenty-one
original
budget.
So
as
we
were
setting
our
budget
for
FY
twenty-one,
but
before
cove
in
nineteen,
we
had
anticipated
twenty
six
point:
1
million
annual
employments
that
has
been
revised
down
and
that's
what
you
see
the
FY
21
current
budget.
F
All
of
these
numbers
are
based
on
a
base
case,
recovery
scenario
and
I'll
get
into
that
a
little
bit
more
on
the
next
few
slides,
then
in
landed
weight
and
we're
seeing
again
and
I
won't
go
through
all
of
these,
but
I'll
cut
to
the
chase.
On
this
we're
seeing
significant
reductions
in
landed
weight,
although
landed
weight,
is
not
reduced
as
much
as
the
employment
and
that's
really
reflective
of
American
Airlines
and
the
other
carriers
at
Charlotte
continuing
to
fly
routes,
but
those
aircraft
are
there
by
and
large
empty.
F
There
are
very
few
passengers
on
those
aircraft,
but
America
merican
and
the
other
airlines
are
continuing
to
provide
service
for
the
passengers
that
are
flying
right
now.
So
another
activity
update
where
we're
at
right.
Now
we
have
seen,
as
we've
been
moving
through
Cova
19
crisis.
We
have
seen
employments
reduce
to
basically
5%
of
previous,
so
they
have
been
reduced
by
95%
and
we
are
projecting
the
recovery
to
begin
in
August
of
this
year.
F
So
our
revenue
summary,
obviously
the
vast
majority
of
our
revenues
are
dependent
on
passenger
activity,
airline
revenues
for
the
FY
2008.
We
estimated
90
point
six
million
dollars
in
airline
revenues
and
what
that
means
is
that's
how
much
we
would
charge
the
airlines
who
use
Charlotte,
Douglas,
International
Airport
for
the
services
and
the
facilities
that
they
use.
All
airline
Billings
by
federal
requirement
are
cost
based.
There
is
no
net
revenues
when
it
comes
to
airline
Billings.
F
So
really,
when
we
talk
about
airline
revenues,
that
also
is
the
same
number
as
the
expense
that
the
airport
incurs
to
provide
the
facilities
and
services
that
the
airlines
use
to
conduct
their
business.
So
in
FY,
2008
of
ninety
point:
six
million
dollars.
That
estimate
has
reduced
to
81
point
five
million
dollars
and
again
you
can
see
for
the
for
the
original
budget,
the
pre-code,
the
19
budget.
We
had
estimated
98.5
million
dollars.
F
So
again,
our
current
estimate
is
far
off
from
where
we
thought
we
would
be
in
21,
which
has
led
us
to
a
new
revised
fiscal
year.
21
current
budget
airline
revenues
of
seventy
nine
point:
seven
million
dollars
going
to
the
non
Airlines
side,
so
these
are
predominantly
made
up
of
terminal
concessionaires
parking,
those
kinds
of
revenues
that
are
operating
revenues
that
come
in
now
these
revenues
there
is
a
margin
on
them.
There
are
net
revenues
and
these
are
the
revenues
that
we
rely
on
as
an
enterprise
fund.
We
do
not
receive
local
tax
dollars.
F
These
are
the
revenues
that
we
rely
on
to
maintain
our
financial
metrics,
to
pay
our
operating
costs
and
to
fund
either
debt
debt
service
for
future
capital
projects
or
to
directly
fund
capital
projects
on
a
pay-as-you-go
basis.
So
you
can
see
there
has
been
a
significant
decline
in
these
revenues,
so
FY
20,
but
was
a
hundred
and
fifty
four
million
dollars.
The
revised
estimate
is
120
million
dollars,
so
a
roughly
thirty
four
million
dollars.
Thirty
five
million
dollar
decline
in
revenues.
F
For
the
current
fiscal
year
in
FY,
21
pre
Kovan
19,
we
were
estimating
a
hundred
and
sixty-five
million
in
non
air
line,
revenues
and
again
we're
now
projecting
FY
21
revenues
to
be
flat
and
maintained
at
about
a
hundred
and
twenty
million.
So
again,
a
significant
decrease
from
where
we
thought
we
would
be
going
into
FY
21
about
a
forty
five
million
dollar
decrease
in
non
airline
revenues.
F
So
the
next
few
slides
try
to
graphically
depict
where
we
are
and
where
we
think
will
be
so.
This
slide
graphically
depicts
using
2019
as
the
index
employment
activity
month
by
month,
starting
in
July
19,
which
is
the
first
month
of
fiscal
year,
20
for
the
city
and
the
airport,
and
running
through
20
through
the
end
of
fiscal
year
21.
F
So
you
can
see
April
of
2000
point.
That's
basically
where
we
are
and
employments
have
dropped
to
next
to
zero,
using
our
forecast
and
using
industry
information.
We
project
a
recovery
into
fiscal
year,
twenty
one,
but
that
recovery
will
top
out
at
about
90
percent
of
previous
year's
monthly
activity,
and
we
get
to
about
90
percent
of
previous
years
around
January
of
2021,
and
we
maintain
at
that
level
throughout
the
rest
of
the
fiscal
year.
And
what
that
really
is
indicative
of
is
once
we
get
to
that
level.
F
F
F
We
are
planning
and
basing
our
planning
on
the
current
activity
forecast,
but
we
are
also
running
our
models
for
a
possible
slow
recovery
in
a
slow
recovery,
rather
than
getting
to
about
90
percent
of
where
we
were
in
the
prior
year
by
January
of
21
we
get
to
about
50%
of
where
we
were
in
the
prior
year
by
January
of
2021,
and
we
maintain
that
level
with
standard
growth.
Beyond
that.
F
So
the
base
case
scenario
the
current
scenario
that
we're
using.
We
also
wanted
to
give
you
some
information
on
why
we
think
it's
a
reasonable
forecast
to
use
right
now
we
have
been
consulting
with
other
airports
with
industry
groups,
with
investment
banks
with
the
rating
agencies,
and
what
you
can
see
are
two
different
well.
There
are
three
different
scenarios
here,
one
from
Fitch
rating
agency,
one
from
JP
Morgan
and
then
the
Charlotte,
the
Charlotte
base
case
forecast
and
we
are
basically
falling
in
effect
right
between
those
two.
This
is
the
Fitch
and
the
JP.
F
Morgan
are
really
based
on
industry
outlooks
as
a
whole.
They
are
not
specific
to
Charlotte,
but
they
are
based
on
their
thinking
on
the
industry
as
a
whole
and
what
the
industry
recovery
could
look
back,
look
like,
and
so
we
feel
good
at
where
we're
at
right
now,
but
we
also
are
prepared
to
make
adjustments
to
our
operating
budgets.
If
we
start
to
see
that
the
base
case
scenario
is
overly
optimistic,
we
are
prepared
to
make
those
adjustments
as
we
move
into
FY
21
and
start
to
understand
better
what
the
true
recovery
looks
like.
F
So
our
priorities
in
responding
to
Kovan
19
first
priority
obviously
is
sustaining
airport
operations,
supporting
our
mission,
critical
operations,
safety,
security,
making
sure
that
the
terminal
is
accessible,
that
the
airfield
is
operational
well
I
think
we
all
know
that
the
as
we
as
I've
said
the
employment
forecast
is
down.
There
are
still
10
to
15
thousand
people
daily,
utilizing
the
airport
and
they
are
traveling
because
they
need
to
travel
right.
F
Second,
priority:
protecting
Aviation,
Department
employees-
this
is
an
obligation
of
the
2020,
cares
act
or
the
stimulus
funds
that
are
now
available
for
Charlotte
Douglas
International
Airport.
As
we
have
made
our
budget
adjustments
our
operating
budget
adjustments,
our
commitment
has
been
no
reductions
in
staff.
If
you
work
for
the
Aviation
Department,
your
job
is
safe.
F
Now
we
have
taken
actions
just
like
the
city
on
hiring
freeze
and
we
may
have
reductions
in
total
staffing
levels
through
attrition,
but
we
will
not.
We
are
not
considering
at
this
point,
a
reduction
in
force.
The
third
item,
commitment
to
our
investors,
the
Aviation
Department-
has
about
800
million
dollars
of
outstanding
debt.
F
F
Our
immediate
reactions,
so
the
first
thing
that
we
did
is,
as
I
said,
the
current
fiscal
year
is
really
it's
kind
of
a
tale
of
two
financial
forecasts.
Three
extraordinary
quarters
followed
by
what
is
shaping
up
to
the
to
be
the
worst
quarter
that
we
have
ever
had
when
it
comes
to
reduction
in
service.
F
So
the
first
things
that
we
did
is
for
the
first
six
months
of
the
year
we
calculated
the
the
the
rough
amount
of
profit
share
that
would
be
due
under
the
airline
use
agreement,
the
existing
airline
use
agreement,
the
signatory
Airlines,
and
we
released
the
first
six
months
of
profit
sharing
to
the
airlines.
We
did
that
about
three
weeks
ago
that
money
they
are
entitled
to
under
the
terms
and
conditions
of
their
use
agreement.
So
this
really
wasn't
something
that
we
went
outside
of
the
use
agreement.
F
It
was
just
making
that
those
fund
those
funds
available
a
little
bit
earlier
than
we
have
in
the
past.
The
second
thing
we
did
we
received
in
the
current
year,
where
we
are
in
the
process
of
receiving
the
first
year
of
funding
from
the
North
Carolina
Airport
improvement
grant
program.
This
is
a
new
program
that
the
General
Assembly
approved
last
year
for
this
for
this
budget
year.
It
is
about
twenty
eight
million
dollars
that
CLT
is
provided
under
the
North
Carolina
Airport
improvement
grant
program.
F
We
immediately
programmed
the
NCA
IP
funding
towards
our
current
debt
service
obligations
in
the
current
fiscal
year
and
these
our
debt
service
obligations
that
are
not
already
backed
by
other
federal
sources
like
federal
airport
improvement
grant
program
or
passenger
Facility
Charges.
We
also
have
reduced
our
OEM
budget,
our
operations
and
maintenance
expenses
for
the
current
year
and
for
next
year,
corresponding
with
the
impacts
to
the
business.
We've
adjusted
our
capital
improvement
program
and
we
are
evaluating
how
to
utilize.
F
The
airport
cares
Act
funding
some
of
the
things
that
we've
done
on
the
operating
side,
a
hiring
freeze,
restrictions
on
overtime,
elimination
of
any
requests
requested,
new
positions
for
next
fiscal
year
and
a
reduction
in
service
levels
on
demand,
driven
contracts,
and
now
these
are
contracts
that
are.
These
are
contracted
parties
that
provide
services
to
the
airport.
This
is
not
tenants
or
Airlines.
These
would
be
folks
who
are
contracted
by
the
airport
and
they're
on
service
level,
driven
contracts,
so
as
the
the
need
for
certain
services
has
reduced
down
to
zero.
F
F
Those
kinds
of
things
have
been
significantly
reduced
or
eliminated
from
our
operating
budget,
for
fiscal
year
20,
and
for
fiscal
for
the
remainder
of
fiscal
year
20
and
for
fiscal
year,
21
debt,
servicing
capital
outlays
again
I
mentioned
the
nca
IP
and
we
have
eliminated
or
postponed
capital
outlays
associated
with
equipment
and
rolling
stock.
For
fiscal
year
21
we
have
also
suspended
or
delayed
major
new
major
capital
projects,
concourse
a
expansion
phase
2
it's
currently
under
design
and
had
been
anticipated
to
move
into
construction
soon.
F
So
we
are
finishing
design
and
we
are
deferring
or
delaying
start
of
construction
on
that
project.
Until
we
can
see
what
the
Cova
19
recovery
really
looks
like,
and
we
are
comfortable
that
demand
has
returned
enough
to
warrant
our
Joint
Operations
Center
again,
we
have
deferred
that
project.
We
are
making
do
with
with
an
alternate
project
that
does
not
involve
a
new
facility,
but
will
retrofit
an
existing
facility,
and
that
will
allow
us
to
avoid
the
majority
of
the
cost
associated
with
that
contract.
The
concessionaires
we
were
working
on
a
distribution
and
receiving
center.
F
That
would
be
for
the
use
of
the
concessionaires
at
the
airport.
That
project
has
been
cancelled
and
will
may
come
back
based
on
demand
at
some
point
in
the
future,
but
its
future
is
unknown
and
the
federal
inspection
service
and
concourse
D
renovations.
This
is
the
International
Arrivals
area.
Again,
the
design
has
been
deferred
pending
the
recovery,
major
capital
projects
that
are
proceeding.
F
The
terminal
lobby
expansion
is
already
underway
and
is
continuing
concourse
e
expansion,
phase
9
is
underway
and
continuing
a
ramp
expansion,
our
fuel
farm
expansion
and
then
a
couple
design
and
construction
projects
related
to
the
airfield
our
North
End
around
taxiway
and
our
south
cross
cross
field.
Taxiway
the
design
is
continuing,
and
today
we
anticipate
moving
forward
with
construction,
but
that
could
change
depending
on
the
status
of
the
recovery.
F
So
looking
at
what
this
means
on,
you
know
we
always
talk
about
Charlotte's,
very
competitive
position
when
it
comes
to
cost
per
and
planed
passenger
or
CPE
Charlotte
is
by
far
the
lowest
CPE
or
has
the
lowest
CPE
of
any
large
hub
airport
in
the
business,
and
that
is
a
huge
financial
strength
for
the
airport,
and
it
also
is
very,
very
important
to
the
airlines
that
serve
the
airport.
So
I
will
focus
on
the
bottom
row,
which
is
the
total
all
airline
cost
per
and
planed
passenger
in
FY
19.
F
F
F
So
our
budget
summary
again.
This
shows
you
all
of
the
key
metrics
that
we
utilize
for
the
budget,
and
so
you
can
see
I
won't
go
into
every
one
of
these,
because
a
lot
of
these
have
our
he
been
talked
about,
but
this
basically
shows
all
of
it.
In
summary,
it
shows
the
reductions
and
and
really
where
we
think
will
be
again.
You
have
the
FY
2021
budget,
which
is
based
on
the
base
case
recovery
scenario,
and
then
you
have
the
FY
2021
slow
recovery
or
worst
case
scenario
columns.
F
So
we
are
a
double
A
rated
Airport,
which
is
the
highest
rating
that
airports
are
given
by
the
rating
agencies.
We're
really
proud
of
that,
and
we
want
to
maintain
that,
because
that
significantly
reduces
our
cost
of
capital.
When
we
issue
debt
we
have
financial,
metrics
and
targets
established,
and
these
targets
are
very
important.
F
They
are
in
our
annual
financial
report
every
year
and
the
investors
watch
these
and
they
watched
the
airport's
reaction
in
the
good
times
and
in
the
bad
times,
and
they
watch
that
we
are
committed
to
maintaining
our
targets
as
we
committed
to
them
when
we
issue
that
debt,
so
the
first
is
days
cash
on
hand.
This
is
really
a
measure
of
liquidity
for
the
airport.
Another
thing
about
these
is
management's
target
is
based
on
the
industry
medians
or
the
rating
agency
medians
for
Double
A
rated
airports.
F
So
these
were
not
just
sort
of
thought
up
by
me
or
by
my
finance
staff.
A
lot
goes
into
these
and
they
can't
change
over
time
because
rating
agency
expectations
change
right
now
days,
cash
on
hand
or
liquidity.
The
rating
agencies
would
say
800
days
for
a
large
hub.
Double
rate
double
a
rated
Airport
is
really
where
we
need
to
be.
F
We
have
always
had
strong
liquidity
and
we
will
maintain
liquidity
throughout
the
recovery
above
the
target,
now
again,
you'll
note
that
liquidity
starts
to
starts
to
decline
out
into
2025
again
remember
what
we
really
focus
on
on
this.
You
can
think
about
this.
Chart
almost
is
a
stoplight
chart
right
above
the
target
is
green
with
near
the
target
within
plus
or
minus
two
or
three
percent
is
yellow
below
the
target
becomes
red.
If
one
metric
is
red
in
one
year,
that's
not
particularly
alarming,
especially
if
it's
in
the
out-years.
F
What
that
really
means
is,
as
we
move
through
our
planning
process,
those
become
things
that
we
start
to
work
to
fix,
but
if
the
whole
chart
is
red,
that
is
alarming.
So
right
now-
and
these
are
financial
metrics
based
on
our
base
case
scenario
and
our
current
FY
21
budget,
so
liquidity
is
good.
Our
passenger
facility
charge
fund
balance
remaining.
We
target
about
fifty
million
dollars
as
a
minimum
fund
balance
again.
We're
in
the
good
range
were
significantly
above
that
now
and
we're
in
a
good
range
right.
F
Now
the
PFC
leverage,
so
this
is
how
leveraged
we
are
on
our
passenger
facility
charge
cash
flows.
Again
we
want
to
keep
that
within
eighty
percent.
We
are
good
on
that
right
now
we
have
some
work
to
do
in
the
out-years.
Our
garb,
so
garb
is
general
airport
revenue
bonds.
These
are
bonds
that
the
city
issues
they
are
not
taxpayer
supported
and
they
are
not
supported
or
paid
via
federal
sources.
F
So
these
garbs
roll
directly
into
airline
rates
and
charges
so
garbs
we
look
at
our
debt
per
and
planed
passengers
again
we're
looking
at
$60
per
in
plane
to
passenger
and
again
we
we
feel
confident
that
we're
in
a
reasonable
spot,
our
debt
service
coverage
or
DSC.
There
are
two
ways
to
calculate
DSC
and
that's
why
they're
on
here?
The
first
is
the
way
that
is
required
under
our
bond
ordinance
and
again
I'll
talk
through
this,
but
the
DSC
for
the
bond
ordinance
requires
our
our
target
is
two
times
and
you
can
see.
F
We
are
significantly
above
two
times
we're
in
safety
category.
The
reason
we
calculate
debt
service
coverage
under
the
ratings
method
is
because
rating
agencies,
generally
speaking,
do
not
calculate
debt
service
coverage.
The
way
that
our
bond
order
does
and
I
won't
go
into
the
weeds
of
why
that
is.
This
is
very
common
for
airports,
and
so,
while
we
calculate
debt
service
coverage
by
the
bond
ordnance,
we
also
know
that
every
rating
analyst
that
we
ever
talked
to
is
going
to
ask
for
debt
service
coverage
the
way
they
calculate
it.
F
So
we
just
go
ahead
and
make
that
calculation
for
them
again.
The
target
is
150
or
one
point
five
times
and
again
we
are
maintaining
that
throughout
and
then
we
have
our
cost
per
employment.
Now
there
is
no
target
on
this
because
the
lower
the
better
you
know,
maintaining
a
very
competitive
cost
per
employment
is
the
goal.
And
again
you
can
see.
We
are
doing
that
again
in
2025.
F
We
need
to
structure
and
we
need
to
take
some
look
another
look
at
how
we
fix
that,
but
that's
what
we
will
be
doing
as
we
progress
through
the
years
and
as
we
see
what
the
recovery
looks
like
the
cares
act.
So
CLT
has
received
an
allocation.
We
receive
final
notification
from
the
FAA
nine
days
ago,
so
recently,
Co
T's
allocation
is
135
million
dollars.
The
funds
can
be
used
for
any
lawful
airport
expense.
F
The
FAA
identifies
some
priorities
for
that
and
our
uses
are
in
line
with
those
priorities.
First
is
making
sure
that
we
can
pay
debt
service,
so
the
first
bucket
is
to
again
pay
our
debt
service
for
fiscal
year
2021.
The
second
bucket
is
because
passenger
facility
charges
are
driven
by
passenger
volume.
We
will
see
a
decline
in
the
amount
of
passenger
Facility
Charges
that
we
collect.
So
we
have
some
debt
outstanding
that
is
backed
by
PFC
cash
flows.
F
So
we
will
utilize
stimulus
funds
to
augment
or
supplement
and
make
sure
that
we
can
make
those
debt
service
payments
on
the
PFC
back
to
debt.
We
also
have
existing
projects
that
are
underway
that
are
pay.
As
you
go
capital
projects
being
paid
out
of
PFC
collections
again,
PFC
collections
are
reduced,
so
we
will
utilize
Kerr's
Act
funding
to
pay
to
continue
those
projects
to
keep
the
cash
flow
sufficient.
Beyond
that,
we
are
evaluating
how
we
can
utilize.
The
remainder
of
the
cares
Act
funding
for
two
things,
one
to
cover
FY
2020
one's
operating
expenses.
F
These
are
operating
expenses
for
the
Aviation
Department
and
two
if
it
makes
sense
to
bring
back
some
of
the
capital
projects
that
we
have
deferred
sooner.
If
the
recovery
we
think
is
stronger
than
we
thought,
then
it
may
make
sense,
while
traffic
is
still
diminished
to
bring
back
some
of
these
capital
projects.
But
that
is
the
final
bucket,
and
at
this
point
we
have
we're
really
making
no
guesses
as
to
whether
or
not
that
will
be
feasible.
Really.
What
we
are
looking
at
is
the
first
two
buckets
debt
service,
PFC
s
and
then
onm.
C
Brent,
thank
you
for
the
presentation.
My
questions
about
our
CPE
number,
which
I
know,
is
one
of
our
significant
competitive
advantages
against
some
of
our
peer
airports.
As
we
see
that
likely
to
increase
I,
didn't
hear
you
say
if
our
peer
or
competitive
airport
set
would
also
probably
be
seeing
a
similar
increase,
and
thereby
we
maintain
our
advantage
in
that
metric
or
whether
that's
unique
to
us.
So.
F
Yes,
sir,
so
could
we
go
back
to
the
presentation?
So
so
you
are
absolutely
right:
everybody
CPE
climbs
when
employments
go
down
and
while
everyone
will
make
adjustments
to
their
cost
of
O&M
again,
the
the
amount
of
facilities
that
we
are
using
is
the
same
today.
So
there
are
certain
basic
requirements
that
we
have
to
utilize
that
we
have
to
meet
to
keep
the
airport
safe
and
operational,
so
the
CPE
for
all
airports
is
going
to
do
sort
of
funny
things,
but
ours
because
it
started
out
lower,
will
remain
lower
than
others.
F
The
other
thing
I
will
point
out
to
you.
Well,
two
more
things
that
I'll
point
out:
one
is
the
the
actual
CPE
for
FY
2021
would
be
or
will
be
impacted
as
we
start
to
make
decisions
about
Kerr's
Act
funding
that
would
go
towards
covering
onm
and
it
would
be
impacted
in
a
positive
direction.
Ie
it
will
be
reduced.
So
for
this
presentation
and
for
the
assumptions
that
we've
made
in
the
budget,
we
have
not
assumed
any
specific
use
of
Kerr's
Act
funding
towards
om
yet,
but
we
will
be
making
those
decisions.
F
The
other
thing
I
will
point
out
on
this
slide
so
because
CPE
is
doing
a
doing
funny
things
what
we
really
focused
on.
If
you
look
at
the
bottom
line
on
this,
the
bottom
row
that
net
airline
payments
is
basically
how
much
the
airlines
pay
us
to
use
the
facility
netted
against
the
projected
profit
share
annually.
So
one
of
the
things
that
we
were
absolutely
seeking
to
do
just
in
budget
reductions
and
that
we've
already
done
without
utilizing
Kerr's
Act
funding
yet
is
keep
the
net
airline
payments
flat
or
in
this
case
reduced.
F
So
you
can
see
the
FY
2020
estimated
net
airline
payments
of
59
point:
2
million
against
an
FY
2021
budget,
56
point
three
million
dollars,
so
those
that
has
been
achieved
even
with
the
losses
in
operating
revenue,
so
a
reduction
in
the
profit
share
with
commensurate
reductions
in
operating
budget.
What
we
use
the
cares
Act
you
know
when
we
use
the
cares,
Act
funding
towards
om
those
numbers
will
just
get
better
and
that
will
be
reflected
in
a
lowered,
CPE.
A
Brandy
said
the
reduced
traffic,
the
resumption
back
to
90
percent.
Are
we
assuming
that
the
limitations
there
are
related
to
the
economy
or
are
there
likely
to
be
kind
of
restrictions
on
air
travel
even
after
the
stay
at
home?
Order
is
lifted
because
the
threat
of
the
virus
is
expected
to
continue?
How
exactly
do
we
think
that
is
going
to
evolve?
Are
we
gonna
have
airplanes
crowded
with
people
starting
as
soon
as
the
stay
at
home
owner
is
lifted,
or
what
measures
need
to
be
taken
so.
F
F
The
industry
is
going
to
change
how
people
travel
customer
preferences
when
they're
in
the
airport,
how
they
park
all
of
those
things
will
be
fundamentally
changed
and
because
of
that,
we
really
are
not
assuming
that
even
after
we
recover
we're
really
making
the
assumption
that
there's
a
new
normal
in
the
base
case
scenario,
the
new
normal
looks
like
about
90
percent
of
where
we
were
in
the
worst
case
scenario.
The
new
normal
looks
like
about
50
percent
of
where
we
were.
A
I
would
like
to
acknowledge
that
Tracy
Montross
from
American
Airlines
is
on
the
call
and
I'm
sure.
American
has
a
lot
to
say
about
that
as
well.
Our
intention
is
to
have
a
session
devoted
to
American
Airlines
as
the
90
percent
kind
of
tenant
at
the
airport.
In
a
couple
of
weeks,
oh
I
see
thank
you
for
joining
us
today,
but
I.
Don't
think
I'm
gonna
start
down
the
road
asking
you
questions
right
now
about
how
you
see
these
things.
A
We
have
been
struggling
in
the
city
to
interpret
some
of
these
things
and
in
particular,
some
funds
we
received
yesterday,
so
any
lawful
airport
expense
as
we
move
forward
and
we're
thinking
of
ways
to
kind
of
address.
The
repercussions
of
this
does
lawful
expects
airport
expense
for
you
any
latitude
to
negotiate
with
people
who
are
contract
partners
or
whatever
and
and
and
fund.
You
know
some
changes
with
the
federal
government
money,
or
is
it
really
limited
to
your
your
own
em
line
items
and
the
things
that
that
you
spend
on
your
normal
operations?
Yeah.
F
So
there's
a
couple
reasons
that
the
FAA
has
put
this
out
here:
one
is
it's
just
the
norm.
What
they're
really
saying
is
revenue?
Diversion
rules
still
apply,
so
you
can't
take
the
hundred
and
thirty
five
million
dollars
and
use
that
for
things
that
you
couldn't
use,
Airport
revenues
for
before
revenue,
diversion
rulz
absolutely
still
apply.
The
other
thing
they're
saying
is
really
you
can't
use
it
to
just
you
know.
F
One
thing
that
you
could
say
is
well:
the
impact
of
kovat
19
means
a
reduction,
an
estimated
reduction
of
forty-five
million
dollars
in
my
revenues,
so
I'll
just
take
forty
five
million
dollars
and
put
it
towards
airport
revenues
and
that'll
be
that
it
has
to
be
a
documented
expense
of
the
Aviation
Department.
It
has
to
be
one
of
our
expenses,
because,
while
there
is
a
streamlined
application
process,
we
will
still
have
to
apply
for
the
use
of
the
funds
and
then
provide
specific
documentation
as
to
how
the
funds
were
used.
A
D
One
question:
there
is
a
lot
of
talk
about
an
infrastructure
package
coming
out
because
of
code.
It
are
there
any
specific
projects
that
shuttle
Douglas
can
submit
or
benefit
from
that
package.
On.
Yes,.
F
There
is
a
lot
of
talk
about
it
and
Charlotte
Douglas,
so
myself
and
Mike
Hill,
the
airport
CFO
are
working
with
Dana
Fenton
right
now
to
pull
together
a
short
list
of
projects
that
we
think
would
be.
We
think
would
be
good
candidates
if
additional
cares.
Act
funding
for
infrastructure
comes
out,
so
the
answer
is
yes.
There
are
about
four
or
five
projects
that
we
have
already
identified
as
good
candidates.
B
A
H
Thank
You
Seth
Bennett
here
the
Spectrum
Center
in
Charlotte,
wanted
senior
vice
president
consumer
engagement,
Brynn.
Thank
you
for
your
presentation.
I
have
two
questions
for
you
just
to
clarify
for
me
how
many
of
the
in
claim
eight
actual
employments
originate
in
Charlotte
and
recently
there
was
a
report
that
the
FAA
may
be
adjusting
the
amount
allocated
to
airports.
Other
was
at
least
a
medium
report.
Is
that
somewhat
fact
showed
that
a
possibility
that
135
could
be
increase?
Thank
you.
F
Historically,
over
the
last
couple
years
it
has
been
about
four
all
airlines
about
a
70/30
mix
70%
connecting
passengers,
30%
local
passengers,
that
local
passenger
mix
has
been
growing
steadily
and
very
strong
over
the
last
five
years
and
as
we
recover,
we
would
expect
that
trend
to
continue.
Your
second
question
related
to
cares
act.
Funding
I
have
not
heard
that
there
may
be
additional
cares,
Act
funding
associated
with
airports,
but
if
that's
a
discussion
being
had,
we
certainly
support
it,
and
and
and
and
I
can
follow
up
with
mr.
Fenton's
to
determine.
F
A
I
Yeah
recent
recently
moved
to
Charlotte
from
New
York
last
fall
I'm
an
aviation
lawyer
for
about
20
years,
I'm
delighted
to
participate
with
you
and
my
question
that
has
to
do
with
what
plans
has
the
airport
made
to
start
instituting
social
distancing
measures
once
the
travel
starts
to
increase
again
I've
been
talking
to
JFK
a
lot
about
this
and
they're
trying
to
figure
it
out
so
once
once
people
start
flying
again,
how
do
they
handle
it
safely
and
I?
Don't
think
they
have
an
answer
yet
yeah.
F
And
we
are
just
like
JFK
and
every
other
airport
in
the
country.
We
are
at
the
point
where
we
are
trying
to
figure
that
out
too.
You
know
I
think
that
our
response
to
covin
19
I'm
gonna
break
it
down
into
three
kind
of
categories.
So
far
the
first
was
really
purely
operationally
operational.
What
do
we
do
when
we
start
staggered
staffing?
How
do
we
ensure
that
we
have
staffing
necessary
over
the
length
of
this
crisis?
It
was
really
focused
on
operational
and
staffing
needs.
The
second
phase.
F
We
really
started
talking
about
financial
implications,
and
what
do
we
think
the
recovery
looks
like
and
I
would
say
right
now,
we're
at
the
tail
end
of
that
second
phase
and
and
I
think
airports
in
general
are
at
the
front
end
of
the
third
phase,
which
is
really
trying
to
determine
what
an
airport
looks
like
post,
Kovan
19,
because
it
will
not
be
the
same.
Some
of
the
services
we
provided
I'll,
give
you
a
great
example
right
now,
one
of
our
best
parking
products,
business
valet
that
has
been
a
great
parking
product.
F
It
is
closed
right
now
we
have
28,000
parking
spots
at
the
airport,
22,000
of
which
are
closed
because
of
no
demand
we're
starting
to
look
at
what
does?
What
does
it
look
like
as
demand
comes
back
business
valet?
Will
customers
accept
a
parking
product
that
has
a
stranger
getting
in
their
car
and
if
they
do,
what
do
we
need
to
do
to
ensure
that
they're,
safe
and
their
cars
are
sanitized
before
they
get
back
in,
but
does
there
are
a
thousand
questions
on
the
airline
side
on
the
concessionaire
side
on
and
on
the
airport
side?
F
And
that's
really.
What
we're
looking
at
now
is
what
our
passenger
expectation
is
going
to
be,
and
how
do
we
provide
services
in
the
way
passengers
wanted
to
make
them
feel
safe
when
they're
traveling
in
the
future,
and
we
have
some
ideas
about
that,
but
we're
also.
We
have
just
launched
a
stakeholder
workgroup
with
all
of
the
stakeholders
at
the
airport
to
talk
about
that.
What
does
post
Kovan
19
operations
look
like
so.
A
J
Thanks
ed,
so
mine
is,
can
you
hear
me?
Okay?
Yes,
yes,
mine
is
really
more
of
a
comment,
and
that
is
if
I
look
at
Brenda
I,
look
at
your
pro
formas
going
back
to
90%,
you
know
and
what
I
would
consider
you
know
a
fairly
short
period
of
time.
I
can
tell
you
that
my
businesses,
you
know
that-
is
extremely
optimistic
right
for
at
least
for
my
business.
J
Having
said
that,
I
will
tell
you
that
there
is
strong
in
my
company
pent-up
demand
for
domestic
travel
and
for
international
travel,
and
it's
it's
just
an
interesting
dichotomy
in
that
you
know.
We
don't
see
our
business
bouncing
back
to
90
percent
as
quickly,
but
I
can
tell
you.
Our
people
are
clamoring
to
get
back
on
airplanes,
to
get
to
see
their
customers
and
see
their
suppliers.
So
I
just
share
that
with
the
group.
F
We're
not
making
assumptions
on
that,
but
but
we
do
think
history
is
a
good
indicator
and
I
will
say
this
is
really
the
advantage
of
being
a
primary
hub
for
American
Airlines.
It's
also.
This
is
where
our
cost
advantage
counts.
In
a
downturn,
we
have
a
huge
cost
advantage
over
every
other
Airport
in
the
country
when
it
comes
to
CPE
and
it's
in
these
hard
financial
times
that
that
really
pays
off
for
us,
and
it
is
our
intention
to
do
everything
we
can
to
safeguard
our
metrics
and
be
on
the
front
end
of
the
recovery.
A
Thank
you,
brandy,
I
think
the
takeaway
from
what
you've
told
us
is
that
the
airport
is
fortunate
to
be
in
a
strong
financial
position,
does
have
the
benefit
of
the
government
support
and
therefore,
as
it
stands,
right
now
can
weather
this
crisis
without
disastrous
consequences.
If
that's
a
fair
synopsis,
I
would
like
onto
Haley
Gentry,
who
is
the
chief
business
and
information
officer
at
the
airport
and
is
going
to
give
us
a
quick
overview
of
the
airport's
business
relationships
with
concessionaires,
America
I
sure.
K
Am
Thank
You,
councilmember,
Drake's
and
good
morning,
task
force,
members
and
council
members.
My
name
is
Haley
Gentry
and,
as
the
airport's
cbio
I
am
responsible
for
managing
the
airport
concession
program.
I
have
a
great
team
that
supports
this
program,
specifically
white,
to
mention
Ted,
Kaplan
and
Jennifer,
while
they're
both
home
call-
and
we
also
have
two
very
well
respected
industry
leaders
that
are
our
concession
partners
for
in
terminal
concessions
and
that
would
be
host
international
and
therapies
luggage.
Air.
K
So
we're
very
fortunate
to
have
both
of
these
companies
who
have
international
reputations
in
Charlotte
and
really
great
working
relationships
with
both
of
them
and
as
a
supplement
to
that.
Charlotte
is
also
fortunate
to
have
a
very
well-respected
group
of
local
business
owners,
known
as
ACD
bees
and
we'll
get
into
that
in
just
a
moment.
K
Next,
five
Lindy
I'm
going
to
try
and
go
quickly
through
this
in
observance
of
time,
so
we
can
have
Q&A
at
the
end,
but
I'm
going
to
try
and
share
with
you
a
very
high-level
overview
of
what
is
the
airport
concession
program
I'm,
going
to
hit
the
highlights
of
two
very
complicated
long-term
contracts.
These
contracts
are
essential
to
the
airport's
revenue
portfolio
and
keep
in
mind
the
FAA
tasks,
the
airport
with
being
financially
self-sufficient,
and
this
is
one
of
the
ways
we
do
this
combined.
K
This
program
produces
almost
50
million
dollars
in
revenue
a
year
for
the
airport,
which
is
the
second
highest
non
aeronautical
revenue
stream
behind
Airport
parking,
so
you'll
see
some
of
the
details
here
host
is
the
food
and
beverage
provider.
Parody's
is
the
retail
combined.
We
have
well
over
100
locations
and
many
of
those
are
operated
by
a
CD
VES.
You
do
have
some
a
CD
ves
who
are
operating
in
both
contracts.
That
is
not
unusual.
As
I
said,
we
have
a
very
sophisticated
group
of
AC
DBE
operators
here,
and
that
is
not
unusual
for
Charlotte.
K
Although
unusual
for
some
markets,
you
can
see
the
gross
sales
for
each
company
and
then
you
can
see
the
net
revenue.
Our
agreement
is
based
on
a
profit
sharing
agreement,
so
they
not
only
pay
us
50
percent
of
revenue
that
we
also
collect
a
space
rental.
On
top
of
that,
so
you'll
see
airport
revenue,
net
revenues
or
host
or
thirty
four
million
and
four
parodies
there.
K
Next
slide,
please!
So
what
is
an
AC
DBE?
This
is
a
federal,
federally
defined
program
and
we
do
have
staff
that
manages
this
as
an
extension
of
our
legal
team.
Charlotte
is
very
fortunate
to
have
very
sophisticated
and
very
successful.
Acd
bees
use
not
always
the
situation.
Many
of
my
counterparts
at
other
airports
are
continually
dealing
with
struggling
ACD
bees
and
I.
K
Think
that
is
a
testament
to
the
to
the
master,
concessionaires,
parodies
and
host
being
able
to
vet
and
well
match
people
who
not
only
meet
the
brand
requirements
it
can
financially
and
business-wise
actually
manage
the
commitment
that
it
takes
to
operate
in
in
your
poor
environment.
It
is
very
different
operating
it
in
your
putti
environment,
many
of
our
a
CD
bees.
Do
you
have
Street
businesses
and.
B
K
Think
they
are
the
first
ones
to
tell
you
that
there
is
a
dramatic
difference
there
on
the
requirements
that
you
see
on
the
screen.
We've
really
reduced
them.
As
you
can
imagine,
the
federal
descriptions
are
very
lengthy,
but
these
are.
These:
are
the
the
top
criteria
51%
owned
by
socially
and
economically
disadvantaged
persons,
based
on
the
federal
description
of
that
and
then
controlled
by
one
or
more
of
these
individuals
who
own
it?
K
So
what
does
that
really?
Look
like
in
our
environment?
I
thought
some
of
you
may
find
these
demographics
interesting.
Clearly
this
varies
from
airport
to
airport
and
what
region
of
the
country
or
the
world
that
you
may
be
in
I.
I.
Think
that
all
of
these
titles
are
the
federally
defined
groups,
and
this
is
what
it
looks
like
for
us
here
in
shortly.
K
So
what
does
the
contract
actually
look
like
I
mentioned
to
you
that
both
of
these
firms
are
very
well
respected
in
the
industry.
They
are
the
leaders
in
this
type
of
business.
For
those
of
you
who
have
been
around
a
while
on
HMS
host
was
a
former
name
for
host
international.
You
may
remember
it
as
host
Marriott.
K
These
are
familiar
names,
but
post
has
been
in
the
airport
environment
in
Charlotte
for
more
than
25
years,
through
various
buyouts
and
mergers,
and
initially
they
had
both
lines
of
business.
They
have
crated
food
and
beverage
and
they
also
operated
retail
in
2010.
They
gave
up
their
rights
to
the
retail
in
exchange
for
a
contract
extension,
and
we
we
did
that
process
went
through
a
bid
process
did
that
contract
out
in
Paradise
was
selected,
and
you
can
see
the
evolution
of
these
contracts
right
now.
Host
is
expiring
in
2030,
parody's
is
expiring
in
2028.
K
K
K
So
you've
been
hearing
a
lot
about
relief
in
our
environment,
and
Britt's
presentation
clearly
indicated
that
we
are
in
a
very
different
place.
What
a
difference
30
days
can
make.
We
were
exceeding
50
million
passengers
and
probably
had
one
of
the
most
successful
concession
programs
in
the
country,
and
this
situation
has
really
decimated
the
program
as
we
have
done
it.
We
do.
We
have
worked
with
all
of
our
concessionaires
to
close
businesses
during
this
time,
really
at
their
will
in
consultation
with
us.
K
We
do
have
a
contract
provision
that
requires
them
to
operate,
but
clearly
our
goal
has
not
been
to
put
any
of
these
business
is
under
in.
They
are
working
on
a
skeleton
crew.
Right
now
we
do
have
some
people
are
still
flying
as
Brent
mentioned,
and
we
do
have
minimal
operations
functioning
right
now
in
the
terminal
building,
I'd
like
to
actually
recognize
both
of
them
for
being
so
creative.
K
During
this
time,
they're
actually
doing
things
targeted
at
the
employees
that
are
there
as
well
operating
a
general
store
kind
of
environment
to
keep
employees
keep
employees
from
having
to
go
outside
the
airport.
While
they
are
there,
can
they
pick
up
a
couple
of
cursor
ease
and
other
things
that
are
needed.
K
During
this
situation,
we
have
learned
that
not
not
many
people
have
this
and
they
are
having
to
negotiate,
as
this
situation
has
arose,
which
is
making
for
a
difficult
time
making
decisions
when
people
are
under
such
duress
and
involvement
from
local
political
bodies
as
well.
So
our
contracts
do
have
some
provisions
or
abatement.
These
are
excerpts
of
the
language
and
you
can
see
that
each
contract
has
an
opportunity
if
certain
conditions
are
met
to
receive
rent
abatement.
K
In
conjunction
with
these,
the
airport
has
taken
the
action
to
additionally
defer
any
fixed
space
rental
for
the
remainder
of
this
fiscal
year.
We
bill
in
advance,
so
the
March
bills
have
already
been
taken
care
of
that
April
May
Jim.
We
are
deferring
that
rent
and
it
will
not
be
due
until
January
or
2021
beyond
June.
K
We
intend
to
follow
the
contract
in
both
of
these
abatement.
Provisions
will
kick
in
if
the
situation
continues.
As
we
know
it
today,
we've
been
closely
monitoring,
what's
been
happening
with
employments
and
what
our
traffic
looks
like,
and
we
expect
both
of
these,
and
we
know
that
during
March
it
has
gone
below
65%.
K
K
Different
people
have
been
involved
in
those
negotiations
not
only
on
the
airport
side,
but
also
on
the
concession
side.
So
we've
worked
very
closely
with
our
legal
counsel
and
with
host
impurities
to
come
to
a
I
feel
like
a
very
amenable
spot
for
how
we
are
going
to
apply
this
language
moving
forward
during
this
time
period,
and
those
are
all
the
slides
that
I
happen
to
be
happy,
rent
or
myself.
To
take
any
questions
you
may
have.
L
Hear
me:
I:
can
okay
I
just
wanted
my
trunk
connecting
the
dots
between
for
2021
and
how
that
jobs
with
what
you
just
shared
as
far
as
the
red
abatement,
so
the
revenue
projections
on
on
the
remaining
of
this
fiscal
year
and
next
year
does
that
consider
or
how
is
that
impacted
by
way
just
share?
Have
those
two
been
against
each
other
or
no?
What's
the
assumption
I've
been
asking.
A
K
You
have
the
gross
revenue
for
all
of
host
units,
and
then
you
have
the
net
revenue
that
net
revenue
you
could
divide
in
half
and
half
of
that
is
what
would
be
the
net
revenues
for
host
and
then
half
of
that
would
be
the
net
revenues
for
the
airport
and
the
figure
that
the
next
figure
you
see
on
the
sheath.
It
talks
about
the
airport
net
revenues.
That
is
not
only
the
net
from
the
from
the
sales,
but
it
includes
our
fixed
face
rental.
K
A
A
Thank
you,
I,
don't
see
any
hands
up.
Are
there
any
questions,
if
not
I
think
we
could
wrap
up?
I
just
want
to
say
today's
meeting
was
intended
to
provide
a
foundation
and
information
for
our
continuing
conversation.
So
next
week
we
are
going
to
revisit
the
subject
of
questioning
the
concessionaires
with
host
and
parodies
and
representatives
the
concessions
and
get
one
further
into
their
situation
and
I.
A
Think
that's
going
to
be
one
of
our
key
goals
here,
particularly
given
the
vbe
component
of
the
concessionaires
at
the
airport,
from
the
city
standpoint
and
and
given
our
inclusion
program
is
to
identify
areas
where
the
greatest
hardship
might
be
occurring
and
think
about
what
we
might
be
able
to
do
about
that.
But
with
that
we're
done
for
now.
If
anybody
has
any
questions
or
comments
about
format
and
so
on,
please
feel
free
to
get
in
touch
with
me
and
if
no
one
has
anything
else.