SAN FRANCISCO AIRPORT COMMISSION MINUTES

Transcription

1 SAN FRANCISCO AIRPORT COMMISSION MINUTES December 5, :00 A.M. Room City Hall #1 Dr. Carlton B. Goodlett Place (400 Van Ness Avenue) City and County of San Francisco EDWIN M. LEE, MAYOR COMMISSIONERS LARRY MAZZOLA President LINDA S. CRAYTON Vice President ELEANOR JOHNS RICHARD J. GUGGENHIME PETER A. STERN IVAR C. SATERO Airport Director SAN FRANCISCO INTERNATIONAL AIRPORT SAN FRANCISCO, CALIFORNIA 94128

2 Minutes of the Airport Commission Meeting of December 5, 2017 CALENDAR AGENDA RESOLUTION SECTION ITEM TITLE NUMBER PAGE A. CALL TO ORDER: 4 B. ROLL CALL: 4 C. ADOPTION OF MINUTES: Regular meeting of November 21, D. ITEMS INITIATED BY COMMISSIONERS: 4 E. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 1. Award International Terminal Duty Free and Luxury Stores Lease - DFS Group, L.P Commence RFP Process for Terminal 1 Food and Beverage Concession Leases Commence RFP Process for Terminal 1 Retail Concession Leases Accept Proposals for Six Terminal 2 Concession Leases Award Contract Ground Based Radar Water Perimeter Intrusion Detection System - Security Radar Integrators, Inc Modification No. 2 to Funding Agreement, Contract 8858, with the California State Parks Foundation F. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 7. Modification No. 3 (Annual Renewal) to Professional Services Contract No PMSS for REACH - Customer Hospitality, Boarding Areas A & G Project - The Allen Group, LLC / Avila and Associates Consulting Engineers, Inc., a Joint Venture Phase C1 to Contract 8465C.66 - Design-Build Services for Superbay Hangar Fire Suppression System Replacement Project - The Weitz Company, LLC Award Contract Construction Services for West Field and Domestic Garages Coating and Repairs Project - Olympos Painting, Inc Minutes, December 5, 2017, Page 2

3 10. Modification No. 3 to Professional Services Contract Project Management Support Services for Ground Transportation Unit (GTU) Relocation Project - PGH Wong Engineering, Inc Modification No. 4 to Contract Guest Service Enhancement Services - Customer Services Experts,Inc F. NEW BUSINESS: G. CORRESPONDENCE: 15 H. CLOSED SESSION: 15 I. ADJOURNMENT: 15 Minutes, December 5, 2017, Page 3

4 AIRPORT COMMISSION MEETING MINUTES December 5, 2017 A. CALL TO ORDER: The regular meeting of the Airport Commission was called to order at 9:00 AM in Room 400, City Hall, San Francisco, CA. B. ROLL CALL: Present: Hon. Larry Mazzola, President Hon. Linda S. Crayton, Vice President Hon. Eleanor Johns Hon. Richard J. Guggenhime Hon. Peter A. Stern C. ADOPTION OF MINUTES: The minutes of the regular meeting of November 21, 2017 were adopted unanimously. No D. ITEMS INITIATED BY COMMISSIONERS: There were no items initiated by Commissioners. E. ACTION ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: Item No. 1 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Johns. 1. Award of the International Terminal Duty Free and Luxury Stores Lease DFS Group, L.P. No Resolution (1) Awarding the International Terminal Duty Free and Luxury Stores Lease to DFS Group, L.P.; and (2) Directing the Commission Secretary to request approval of the Lease from the Board of Supervisors. Ms. Cheryl Nashir, Director, Revenue Development and Management... I m here this morning seeking award of the Duty Free and Luxury Stores Lease to DFS Group, L.P. In February of this year you authorized issuance of the RFP for Duty Free and Luxury Stores Lease. This new lease is for 12 stores covering about 46,000 sq. ft. primarily in the International Terminal, with one location in Terminal 1. The lease is exclusive for duty free sales and non-exclusive for duty paid sales. The term is for 14 years with a possibility of one up to 5-year option period if we build a central checkpoint in the International Terminal and require the Duty Free Minutes, December 5, 2017, Page 4

5 operator to build in a new central retail plaza during the term of their lease. Four proposals were received on September 15 and a six-member blue ribbon panel consisting of a former San Francisco Airport Commissioner, a former Airport Commissioner from the City of Chicago, a local technology company executive, a retail e-commerce executive, a global retail design professional, and an executive from SF Travel shortly thereafter began their work. In accordance with the RFP, the top three scoring proposers were invited in for an interview. One nuance I d like to point out is that all six panelists participated in the preliminary scoring which determined the shortlist for the interviews. Because we had difficulty scheduling all six panelists for the interviews, only five panelists conducted the interviews and only those five panelists scores are reflected in the interviews. Upon completion of the interviews and final scoring, DFS Group, L.P., our incumbent, was determined to be the highest ranking and most responsive and responsible proposer. They re just finishing a 17 year term with us, however, they ve been operating Duty Free at SFO since They operate worldwide, and notable locations are LAX, JFK, Honolulu, Sydney, Tokyo, Shanghai, Hong Kong, Singapore, Ho Chi Minh City, to name a few. In addition to the big Duty Free Galleria stores with multiple brands, they will also operate individual boutiques... Hermes, Gucci, Burberry, Yves Saint Laurent, and Coach. Yves Saint Laurent will be new to us and Hermes will be getting a second store. This is very good news for our travelers. The Airport has a 30% ACDBE goal for this concession. It s not a requirement but a goal, and DFS Group has partnered with five local ACDBE partners for a total of 25%. They are Skyline Concessions, J.R. Lester and Associates, Marilla Chocolate Company, and Bay Cities Concessions. Their duties range from making the buying and merchandising decisions and educating about wine to providing training and staffing certain locations. The Minimum Annual Guarantee (MAG) for this lease is $42 million and we asked proposers to propose a percentage rent structure at no less than 30%. DFS Group proposed a tiered percentage rent structure starting at 45.8% up to $100 million in sales, and dropping down to 41.8% and 30% for the upper tier sales. Last fiscal year DFS Group saw sales in the luxury boutiques and Duty Free stores of $114,833,000 million. They paid $26.2 million from these sales in rent to the Airport. During DFS first full year of operation under this new lease, with all stores open except Terminal 1 which comes a little later, they are forecasting sales of $156 million and first year rent will be $69.5 million if these sales are achieved. Our very conservative estimate for the first year sales is $140 million which would bring in $62.5 million in percentage rent and represents between $36 and $43 million in new rent above our $26.2 million. This lease also requires Board of Supervisors approval. No protests were received. Commissioner Guggenhime... the minimum guaranteed rent is $42 million? Ms. Nashir... correct. Commissioner Guggenhime... please explain when the 45% of gross revenues kicks in. Minutes, December 5, 2017, Page 5

6 Ms. Nashir... on day 1. So, on an annual basis they pay the greater of the $42 million in MAG, or a percentage rent. Commissioner Johns... when you talked about the oral interviews and that only five members of the panel were present, was that consistent for all of the entities? Ms. Nashir... yes, it was. Mr. Manuel Soto IV... I m the owner of Skyline Concessions, one of the local ACDBE partners with DFS Group. I want to thank the Commission today for this opportunity. I also want to thank Airport Director Ivar Satero, Cheryl Nashir, and her staff at Revenue Development. I d also like to thank Dana Lang in the SFO s Small Business Office. And my wife, Judy, and I would like to thank DFS for asking us to partner on this incredible opportunity. We are very grateful for this opportunity. I like to thank you all for continuing to stress the importance and significance of small business operations at SFO. Thank you very much. Ms. Rilla Ginsberg... I ve been at San Francisco Airport for 32 years on November 5. I am an ACDBE partner and I m currently operating Marilla Chocolate Company and SF Uncork d. So what I really want to say is thank you Airport and Commissioners for this opportunity again. I thought I was at the end of my journey and I m starting my journey again. I also want to thank DFS for giving consideration and including me in this phenomenal opportunity. Thank you. Ms. Apryl Stewart, President of Skyview Concessions... It is indeed a pleasure to be before you this morning. I want to also echo my many thanks to the Airport and Commission, to Cheryl Nashir and staff. This marks a milestone for me in that I m celebrating my 10 th year in business and I m so delighted to be DFS partner. It s also a milestone because I started as an employee with DFS 30 years ago. So it s a full circle and a phenomenal opportunity to now be their joint venture partner. I know them as a fine employer. They are the standard in terms of ACDBE partnership and I m very delighted to be their partner. Thank you. Ms. Njambi Mungai, President and CEO of JR Lester & Associates, Ltd... it s a small company that s been in airport concessions business for 21 years. I stand before you today very proud to be a part of this successful proposal. I m proud to be an ACDBE because without a program like this, I would not be standing here and I m proud to be given the opportunity to spend the next 14 years proving why that life changing decision to allow DFS to manage the Duty Free operations at SFO was the right one. Thank you so very much. Mr. Mark Sullivan, Managing Director, DFS North America... on behalf of DFS and our 250 employees at San Francisco Airport I would like to start by thanking the San Francisco Airport authority, Director Ivar Satero, Cheryl Nashir, John Reeb, and their teams for managing a clear and transparent bid process. This was a highly competitive bid for all parties and DFS is truly thrilled that our response has been accepted. We sincerely look forward to continuing the partnership with San Francisco Airport and providing an exceptional retail experience to travelers to and from San Francisco and the Bay Area. We have submitted a strong bid based on our understanding of the market and future Minutes, December 5, 2017, Page 6

7 opportunities at San Francisco Airport. I would also like to take a moment to thank the five ACDBE local business partners who joined with us in this proposal. We put a great deal of care and energy finding local talent with whom we can partner and mentor in order to create special stores reflective of San Francisco and the Bay Area. But finally I would like to thank you, the Commission, for considering the Airport s recommendation. Thank you. Commissioner Crayton... I want to applaud the Airport and Cheryl for the job that you ve done. I m very pleased to see the minorities really getting a participation in this contract. The outreach that you did for this contract and the kind of work that the staff put together to come up with this proposal. As I look at the scoring and the things that I see here, I m pleased, but I m more pleased that the Airport is rising to a level that really is inclusive in terms of making sure that everyone is represented, that the people are secured financially and are able to move forward. I take my hat off to you today and let you know that I recognize the work that you and your team have done to make this a very viable effort for the Airport. Item No. 2 was approved unanimously upon a motion by Commissioner Guggenhime and a second by Commissioner Crayton. 2. Commencement of the Request for Proposals Process for the Terminal 1 Food and Beverage Concession Leases No Resolution approving the proposed minimum qualification requirements and lease specifications, and authorizing Staff to issue a RFP and conduct an informational conference for the Terminal 1 Food and Beverage Concession leases. Ms. Nashir... this item seeks your approval to commence the RFP process for the Terminal 1 Food and Beverage Concession Leases. There s a lot of excitement and interest around these opportunities. A preview of the Terminal 1 Concessions plan was held in August with over 250 attendees. We continuously conduct outreach and, as always, we let the marketplace know that we have a strong desire for local concepts and local ownership. There are 20 food and beverage locations in Terminal 1 which will open in three phases between 2019 and We are seeking authorization to issue an RFP for a total of nine restaurants opening in the first two phases between July 2019 and February They include five quick serve restaurants, two sit-down restaurants, a café, and a market and café. Each lease will be for a single location The term for each is 10 years and the MAGs range from $240,000 to $620,000, depending on the size and sales potential for the location. We estimate that these nine restaurants will generate annual sales of $37 million and pay rent of approximately $4.25 million. Starting with this leasing effort we will evolve our evaluation process in the following ways: 1) We will require proposers to disclose which restaurants they have executed Letters of Intent with for the Terminal 1 opportunity. This will be a data collection effort which we have not undertaken before. We hope to ascertain the extent to which larger operators are taking great concepts off the market Minutes, December 5, 2017, Page 7

8 so to speak by signing multiple concepts when they can only bid one location. 2) We will bolster our desire for maximum authenticity in operating the brand by asking proposers to discuss their experience in operating the brand. We are also assigning more points to this portion of the evaluation criteria. We are renaming the criteria from Customer Service and Quality Control to Operation Concept to further underscore what it is we re looking for, and we re adding language around that regarding how often the owner will be on site, what is your background for this concept, and just making the proposers, if they re licensees, work harder to explain how they can deliver this authentic concession. The owners who are proposing will not have any problem maximizing their points in this area. 3) Finally, we ll see a panel of at least five evaluators rather than the three that we have used on some RFP processes in the past. We will provide them with written instructions rather than being given verbal instructions. These are updates based on conversations we ve had with you within the last month or so. With your approval we d like to publish the RFP and schedule an informational conference to hear from interested parties what they think about this business opportunity. Commissioner Johns... regarding the new aspect where the licensee would have to indicate how much involvement... how would we follow up on their commitment of what they indicated they would do? Ms. Nashir... we will write lease language around it requiring what we minimally want to see and we would consider, as well, taking a portion of their proposal that discusses how they re going to pull this off and attaching that to the lease as an exhibit so that it becomes a live requirement. Commissioner Johns... so they understand up front that it s not just giving a name in a menu concept, but there s more hands on involvement? Ms. Nashir... yes. Commissioner Crayton... in essence, are you saying that the principal owners would have to have more involvement and be on Airport? So, prior to now the process was not as intense as it is going to be in the future? Ms. Nashir... correct. We have some owners who are very involved and others who rarely come out. Commissioner Crayton... I would assume that we were going to need more staff in order to be able to accommodate that. Ms. Nashir... I imagine we will be growing our staff as we bring on more and more leases and there are more and more complexities. Commissioner Johns... will you be running workshops so that these folks who want to get involved understand what their involvement will mean? Minutes, December 5, 2017, Page 8

9 Ms. Nashir... we will highlight this in our preview sessions and our informational conferences because the operators will want to know exactly what we expect. Commissioner Johns... thank you. I think it s a good addition. Item No. 3 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Stern. 3. Commencement of the Request for Proposals Process for the Terminal 1 Retail Concession Leases No Resolution approving the proposed minimum qualification requirements and lease specifications, and authorizing Staff to issue a RFP and conduct an informational conference for the Terminal 1 Retail Concession leases. Ms. Nashir... we are seeking your approval to issue the RFP for the Terminal 1 Retail Concession Leases. The majority of these locations represents stores that will open in Phase 1 and in Phase 2 of the Terminal 1 development program. They too were presented to the industry in August at our preview session. We are requesting authorization to issue an RFP for seven leases comprising eight locations. Five of these locations will open in July of 2019 (Phase 1) opening of Terminal 1, two will open in February of 2020 (Phase 2), and one will open in the very last Phase which will open in November of These leases are for three newsstands, one electronics store, one regional gift store, one bath & beauty store, one sunglasses store, and one convenience store. We always set the terms as short as possible to ensure that the operator has enough time to properly amortize the capital investment. Five of the seven leases have 7-year terms with two, one-year options. Two of the leases are proposed to have 10-year terms. One will require a larger than typical investment because it s in an area of the Terminal where they have to build a double height store front and make a really big design statement in doing so. It s in our town square so it s different than the other stores because it will have a heavier capital investment requirement. The other lease for which we ve identified a 10-year term has a second location in baggage claim which performs at a lower rate than our other concessions and the sales will be suppressed a little with this location in the lease. The MAGs range from $124,000 to $480,000. First year sales from these locations is estimated at $18.2 million with rent estimated at $2.6 million. We ve identified two leases, a newsstand and a regional gift store as small business set asides. This means that the business has to be small business certified earning no more than $7.5 million per year in their current operation. This is a federal definition that we use. We re setting aside for retail, but not food. We have much less small business participation in our retail portfolio than our food and beverage portfolio. Also the definition small business for a quick serve good location is no more than $11 million per year. This is actually much higher than most of the statistics we see come in, particularly for local food and beverage operators, and food and Minutes, December 5, 2017, Page 9

10 beverage operators that would be new to SFO. For this RFP, we will also use five member panels, provide written instructions to panelists, and focus on brand operation and authenticity in our scoring. We would like to publish this RFP and hold an informational conference. Commissioner Crayton... you stated that you discovered that most of the small businesses did more than $11 million. At the Airport we encourage startup businesses. Some have started here and have been very successful and have gone on to many, many more things in larger businesses. $11 million gross is a lot for a small business, to be honest, and that is not at the Airport. So, how does someone gain access to even start out to get up to that level? Ms. Nashir... in two ways, with our extensive outreach and our desire, which we say over and over again, for local owners and local concepts. We work very hard to bring in locals, and this language in the RFP that we re beefing up and making proposers talk about the authenticity of the brand, how often are you here. Some actually own the brand in town, operate it, and is the proposer. It will probably fair better in that part of the scoring process than someone coming in with a licensed concept and can only say that they are going to have the owner out here every month or two. We re trying to come out from that direction and to give these local small operators a chance to really shine in the proposal and scoring process. Item No. 4 was approved unanimously upon a motion by Commissioner Guggenhime and a second by Commissioner Crayton. 4. Authorization to Accept Proposals for Six Terminal 2 Concession Leases No Resolution approving the revised minimum qualification requirements and lease specifications, and authorizing Staff to accept proposals for six Terminal 2 Concession Leases. Ms. Nashir... this item seeks your approval to modify the RFPs for the Terminal 2 Specialty Retail Store Leases and the Terminal 2 Casual Dining Food and Beverage Lease and also gain your approval to accept proposals. We currently have six retail stores in Terminal 2 that expire between April and September of This is the first time we re leasing concessions since we re-opened Terminal 2 in In September we issued two RFPs, one for five specialty store locations and one for a food and beverage facility. Our analysis shows that we re lacking food and beverage square footage so we re converting a retail store to a restaurant in this process. The business opportunities and key business terms were presented at an informational conference on October 26. Sixty-six different companies were in attendance. The industry sent in numerous questions and comments, and a request for clarification, and three are in the memorandum before you today. They ve asked and we are recommending to change the minimum qualification requirement for the retail stores from $500,000 per year in sales to $450,000 per year in sales. We are further recommending changing the lease we identified for a sunglass and cosmetic store to a wellness location which Minutes, December 5, 2017, Page 10

11 could be a spa, a gym, or combination of both, and it could also have related merchandise. The MAG would drop from the $200,000 that we published in the RFP to $135,000. The percentage rent would drop from a tiered structure of , to 12% for services and 14% for merchandise sales. After hearing from the industry we feel this is a very desired customer amenity. We have a spa today and we think the right decision is to keep a spa or a gym service in Terminal 2. Finally, it was requested that we further restrict the type of food that can be served for the restaurant lease. Currently, the RFP stipulates that it cannot be a Mexican concept, a Japanese, or a burger concept because we have those covered in Terminal 2. It was requested that we add pizza to the list and we recommend saying that this restaurant as well cannot be a pizza concept because we ve got pizza across the hall from this restaurant in Terminal 2. Proposals are due January 31. We anticipate to return to you in March for award. Commissioner Guggenhime... we already approved this, you received comments from interested parties, and you re returning with some of those comments. Ms. Nashir... correct. Commissioner Johns... the wellness concept, I think in Terminal 2, there was a massage area. So, there will be just one wellness concept in all of Terminal 2, not two? Ms. Nashir... that s right. Commissioner Johns... which retail area are we doing away with in order to add a food concession? Ms. Nashir... Mosaic. It s museum type merchandise. That space is large enough for a casual dining restaurant. None of the other retail stores were large enough. Commissioner Johns... can Mosaic propose on another retail location? Ms. Nashir... yes. Item No. 5 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Johns. 5. Award of Contract No Ground Based Radar Water Perimeter Intrusion Detection System - Security Radar Integrators, Inc. - $2,826,537 No Resolution awarding Contract for Ground Based Radar Water Perimeter Intrusion Detection System to Security Radar Integrators, Inc. in an amount not to exceed $2,826,537 for a three year term beginning Jan. 1, 2018 with one two-year option to extend the term, exercised at the sole discretion of the Airport Commission. Minutes, December 5, 2017, Page 11

12 Mr. Ralf Ruckelshausen, Director of Safety and Security... the Airport is requesting award of Contract for Ground Based Radar Water Perimeter Intrusion Detection System (PIDS) to Security Radar Integrators, Inc. (SRI) in the amount not to exceed $2,826,537 for a three year term beginning Jan. 1, 2018, with one twoyear option to extend the term exercisable at the sole discretion of the Commission. On Dec. 1, 2015 the Commission authorized staff to issue a RFP for PIDS and enter into negotiations with the highest ranked proposer. On July 19, 2016 the Commission approved Resolution No to reject all proposals and reissue a revised RFP to clarify the minimum qualifications. Five proposals were received on Sept. 19, 2016 and one was deemed not to meet minimum qualifications. A three member selection panel was convened to review and score the proposals in conformance with the criteria set forth in the RFP. The panel consisted of two Airport employees and one panelist from Oakland International Airport. Scoring processes included reviewing written proposals as well as an on-site demonstration of the proposers system in the Airport s operational environment. There were three scenarios in the on site demonstrations: SFO Fire Department personnel on a jet ski, an Airfield Safety Officer traversing the airfield adjacent to the Bay, and a 24- hour passive test to determine the alarm rate of the radar system. SRI earned the highest score and we have successfully concluded negotiations and reached an agreement on contract terms and conditions. SRI will provide a ground based radar system that will detect intrusion into the water side perimeter, integrated thermal infra-red zoomed cameras, all processing and display components, operating software with upgrades, training and maintenance services. The system will add a proactive layer of security that operates 24/7, 365 and will create an industry leading water perimeter system for SFO. Commissioner Guggenhime... How much of an improvement is this over the security we now have of activities on the water? Mr. Ruckelshausen... today we have a 200 yard buoy system and we do patrols. We get boats that breach the perimeter, we get water skiers, and sometimes hang gliders. This system will actually activate way before someone breaches our perimeter and then we ll be able to take the appropriate proactive action. Item No. 6 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Guggenhime. 6. Modification No. 2 to the Funding Agreement, Contract No. 8858, with the California State Parks Foundation No Resolution approving Modification No. 2 to the funding agreement with the California State Parks Foundation to address the manner in which certain wetland mitigation credits are provided and to extend the agreement termination date to March 31, Mr. Nixon Lam, Environmental Affairs Manager... this item requests authorization to modify the funding agreement with the California State Parks Foundation that the Airport entered into to address the Master Plan Wetland Mitigation obligation required by the Regional Water Quality Control Board under Board Order No. R2- Minutes, December 5, 2017, Page 12

13 Under the Board Order the Water Board agreed to credit the Airport for the $4 million paid for 12 acres of title marsh wetlands at the Yosemite Slough Restoration Project. The Foundation restored 7 acres in Then, with rising remitigation costs and after conferring with Airport staff, the Foundation obtained Water Board approval to transfer two of the remaining five acres of wetland creation to Inner Bair Island in Redwood City at a cost of $660,000 of the $4 million the Airport paid to the Foundation to satisfy our wetland mitigation obligation. On November 11, 2014 the Airport Commission approved Resolution No to modify the agreement with respect to the transfer and extended the funding agreement to December 31, In this past year the Foundation informed the Airport that US EPA remediation and cleanup of Yosemite Slough would delay any wetland restoration until For this reason the Water Board approved the transfer of the remaining three acres of obligation to Ducks Unlimited for the Ravenswood Tidal Marsh Restoration Project in Menlo Park at a cost of $990,000 of the $4 million. The agreement would be extended to March 31, 2018 to allow the Foundation sufficient time to make payment to Ducks Unlimited. Commission approval of Modification No. 2 would close all of the remaining wetland acreage credit committed to the Yosemite Slough Restoration Project as obligated by the Airport s Master Plan Wetland Mitigation Permit from the Water Board. Commissioner Crayton... I was thinking that it was over in December 31, 2016, so prior to that the Commission extended it to 2017? Mr. Lam... correct, with Modification No. 1. F. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: The Consent Calendar, Item Nos. 7 through 11, was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Guggenhime. 7. Modification No. 3 (Annual Renewal) to Professional Services Contract No Project Management Support Services for the REACH - Customer Hospitality, Boarding Areas A & G Project - The Allen Group, LLC / Avila and Associates Consulting Engineers, Inc., a Joint Venture - $3,190,263 No Resolution approving Modification No. 3 (Annual Renewal) to Professional Services Contract , Project Management Support Services for the REACH - Customer Hospitality, Boarding Areas A & G Project, with the Allen Group, LLC / Avila and Associates Consulting Engineers, Inc. - a J.V., in the amount of $3,190,263 for a new contract amount not to exceed $5,532,863 for services thru July 8, Approval Phase C1 to Contract 8465C.66 - Design-Build Services for the Superbay Hangar Fire Suppression System Replacement Project - The Weitz Company, LLC - $2,880,880 No Resolution approving Phase C1 to Contract No. Minutes, December 5, 2017, Page 13

14 8465C.66, Design-Build Services for the Superbay Hangar Fire Suppression System Replacement Project, with The Weitz Co., LLC, to increase the contract capacity by $2,880,880 for a new contract capacity amount of $12,208,201 and extend the total contract duration to 840 consecutive calendar days, and authorize a corresponding contingency amount. 9. Award Contract Construction Services for the West Field and Domestic Garages Coating and Repairs Project - Olympos Painting, Inc. - $1,829,000 No Resolution awarding Contract No , Construction Services for the West Field and Domestic Garages Coating and Repairs Project, to Olympos Painting, Inc., in the amount of $1,829,000, with a contract duration of 230 consecutive calendar days, and with a corresponding amount in contingency authorization. 10. Modification No. 3 to Professional Services Contract No Project Management Support Services for the Ground Transportation Unit (GTU) Relocation Project - PGH Wong Engineering, Inc. - $344,089 No Resolution approving Modification No. 3 to Professional Services Contract , Project Management Support Services for the Ground Transportation Unit (GTU) Relocation Project, with PGH Wong Engineering, Inc., in the contract amount not to exceed $344,089 for a new total contract amount not to exceed $3,296,781 and with a new contract duration of 40 months thru July 28, Modification No. 4 to Contract No Guest Service Enhancement Services Customer Services Experts, Inc. - $328,500 No Resolution approving Modification No. 4 to Contract 9299, Guest Service Enhancement Services, with Customer Service Experts, Inc. to exercise the final of two (2) one-year options to extend the term of the contract through December 31, 2018, and to increase the contract amount by $328,500, for a new not to exceed contract amount of $1,350,000. G. NEW BUSINESS: Discussion only. This is the Public Comment section of the calendar. Individuals may Minutes, December 5, 2017, Page 14

15 address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes. Please fill out a Request to Speak form located on the table next to the speaker s microphone and submit it to the Commission Secretary. There were no requests to speak. H. CORRESPONDENCE: There was no discussion by the Commission. I. CLOSED SESSION: There are no planned agenda items for a Closed Session for the current meeting. In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session, the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections (b)(2) and ) and Sunshine Ordinance (San Francisco Administrative Code Section 67.11). If the Airport Commission enters Closed Session under such circumstances, the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section ) and Sunshine Ordinance (San Francisco Administrative Code Section 67.12). J. ADJOURNMENT: There being no further calendared business before the Commission the meeting adjourned at 9:39 AM. (Original signed by: Jean Caramatti) Jean Caramatti Commission Secretary Minutes, December 5, 2017, Page 15