SAN FRANCISCO AIRPORT COMMISSION MINUTES

Transcription

1 SAN FRANCISCO AIRPORT COMMISSION MINUTES August 15, :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 Minutes of the Airport Commission Meeting of

2 August 15, 2017 CALENDAR AGENDA RESOLUTION SECTION ITEM TITLE NUMBER PAGE A. CALL TO ORDER: 4 B. ROLL CALL: 4 C. ADOPTION OF MINUTES: Special meeting of July 25, D. SPECIAL ITEM: 1. Retirement Resolution - Tony Eshabarr E. ITEMS INITIATED BY COMMISSIONERS: 5 F. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 2. Adopt Final Negative Declaration for Courtyard 3 Connector Project; Determination to Proceed with Courtyard 3 Connector Project; Adopt Improvement Measure I-TR - Coordinated Construction Traffic Control Plan; and Issue a RFQ/P for Professional Services Contract , Project Management Support Services for Courtyard 3 Connector Project Commence RFP Process for Six Terminal 2 Concession Leases Issue a RFQ/P for Professional Services Contract and , As-Needed Mechanical / Electrical / Plumbing / Fire Protection Engineering Support Services Bid Call - Contract , Construction Services for Central Plant Chillers No. 1 and No. 2 Replacement Project Modification No. 2 to Contract Communications and Marketing Services for Contracts Issued from the Communications and Marketing Pool Fuseideas/Eis Design, a JV G. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 7. Award Domestic Terminals Automated Teller Machines Lease A to Wells Fargo Bank, N.A Award Domestic Terminals Automated Teller Machines Lease B to Bank of America, N.A Minutes, August 15, 2017, Page 2

3 9. Modification No. 3 to Professional Services Contract As-Needed Engineering Support Services - AGS, Inc Modification No. 2 to Contract Public Sector Agreement for Oracle Cloud Services - Oracle America, Inc Modification No. 5 to Professional Services Contract Architecture and Engineering Design Services for Ground Transportation Unit Relocation Project - Paulett Taggart Architects Modification No. 1 to Contract Construction Services for Museum Video Screening Room Project - Galliera, Inc., dba Trico Construction Modification No. 2 to Contract Construction Services for Runway 10R-28L, Overlay and Reconstruction and Taxiways F2 and S Project Golden Gate Constructors, A Joint Venture Assignment of Rental Car Center Operations Lease No from EAN-Northern California, LLC to Enterprise Rent-A-Car Co. of San Francisco, LLC H. NEW BUSINESS: Taxi cabs I. CORRESPONDENCE: 18 J. CLOSED SESSION: 18 K. ADJOURNMENT: 18 Minutes, August 15, 2017, Page 3

4 AIRPORT COMMISSION MEETING MINUTES August 15, 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 special meeting of July 25, 2017 were adopted unanimously. No D. SPECIAL ITEMS: Item No. 1 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Johns. 1. Retirement Resolution for Mr. Antonio Eshabarr Resolution thanking Mr. Antonio Tony Eshabarr, Airport Risk Manager, for 18 years of dedicated service to the City and County of San Francisco. Mr. Ivar Satero, Airport Director... I m pleased to present this Retirement Resolution for Tony Eshabarr. Tony has had an exceptional career at the Airport and it s been my personal pleasure to have worked with him since he began in When you think about the importance of risk management at an airport and Tony has been part of the foundation of risk management ever since he began as an Auditor in 99. He came at the perfect time for the Airport as we were closing out the Master Plan Program and he was instrumental in the successful completion and closeout of the Program. Throughout his career he has been involved in all of our major construction programs and ensuring appropriate processes for insurance coverage and risk management processes were followed to a T. Tony s exceptional level of professionalism will be sorely missed. The other thing about Tony is he has been such a strong part of our Reaching for No. 1 committee... our one team committee, which is all about the comradery and morale of our employee base, and for five-six years Tony has dedicated himself to that committee. For three of those years he has been the co-lead. He was very Minutes, August 15, 2017, Page 4

5 much a part of driving the culture and core values of our Airport in his tenure, so he will be sorely missed, but we do recommend your approval of his retirement resolution. Commissioner Mazzola... congratulated Mr. Eshabarr on his retirement. Mr. Antonio Eshabarr... I would like to thank Ivar, Leo Fermin, Kevin Kone for acknowledging my 18 years of service at the Airport and for honoring me with this resolution. I would also like to acknowledge former Airport Director John Martin for creating the collegial working culture with the establishment of the Airport s core values which emphasized, among other things, that we are one team. To my Airport associates who are able to attend this morning s meeting, my life has been positively impacted by both your professionalism and your friendship. To the members of my immediate family who are present this morning, most of whom have already transitioned into retirement, thanks for your support over the years and I hope to see you all on the Big Island... just give us a couple of months to get things straight. And last, but certainly not least, the love of my life, my wife Ann for giving me moral and emotional support over our 31 years of marriage, to keep on keeping on towards the dream of retiring in paradise. In the immortal words of Rocky Balboa, you ll win, we did it. 'Ike au ia'oe a pau which in Hawaiian simply says, I ll miss all of you. Thank you. Commissioner Crayton... Mr. Eshabarr, on behalf of the Commission and others, I haven t heard such a wonderful declaration of retirement in terms of going into another life than I ve heard from you. Your dedication to the Airport has been greatly appreciated and I wish the best to you and your lovely wife. And to all of your colleagues who came out to support you, it s important for us to see that collegiality within an Airport framework and we re delighted today to not only witness it but to actually feel that through you. Thank you so much. Commissioner Guggenhime... You look much too young to retire and I need your phone number and address on the Big Island because if I ever retire, I m joining you. Congratulations. Commissioner Mazzola... congratulated Mr. Eshabarr on his retirement. E. ITEMS INITIATED BY COMMISSIONERS: There were no items initiated by Commissioners. F. ACTION ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: Item No. 2 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Stern. 2. Adoption of Final Negative Declaration for the Courtyard 3 Connector Project; Determination to Proceed with the Courtyard 3 Connector Project; Adoption of Improvement Measure I-TR - Coordinated Construction Traffic Control Plan; and Authorization to Issue a Request for Qualifications/Proposals for Professional Minutes, August 15, 2017, Page 5

6 Services Contract No , Project Management Support Services for the Courtyard 3 Connector Project No Resolution adopting the Final Negative Declaration and related California Environmental Quality Act findings for the Courtyard 3 Connector Project (San Francisco Planning Department File No ENV); determining to proceed with the Courtyard 3 Connector Project; and adopting Improvement Measure I-TR - Coordinated Construction Traffic Control Plan. The Project would develop pre- and post-security passenger connectors and additional terminal space, including three floors of administrative office space between Terminal 2 and Terminal 3 in the area above Courtyard 3. This action constitutes the Approval Action for the Project pursuant to Chapter 31 of the San Francisco Administrative Code. No And, Resolution authorizing the Director to issue a RFQ/P for Professional Services Contract , Project Management Support Services for the Courtyard 3 Connector Project. Ms. Judi Mosqueda, Director of Project Management... this items requests adoption of the Final Negative Declaration and related CEQA findings for the Courtyard 3 Connector Project and to make the determination to proceed with the Project. This request also seeks adoption of the Improvement Measure for the Construction Traffic Control Plan and Authorization to Issue an RFQ/P for Project Management Support Services for the Courtyard 3 Connector Project. The scope of the Courtyard 3 Connector Project will construct a new secure connector between Terminal 2 and Terminal 3 to provide greater flexibility for airline gate use, to improve overall passenger experience, and to create additional areas to meet airline and Airport operational needs. The scope also includes the development of a new approximately 91,000 sq. ft. office building. The building would include a new post security walkway between Terminal 2 and Terminal 3 and four levels of office space. The new building would make available valuable space in the International Terminal Building for new lease uses resulting in additional revenue generation. We would move some uses out of the International Terminal and put them in the new office building, freeing up the more valuable space for other uses. I have a project board with me today. I would be happy to go over the plans with anyone interested on the way out of the meeting, or I ll answer any questions as we go. The Project Management Support Services consultants will provide overall management expertise and oversight. Additionally the consultants will provide design and construction management services, project controls and reporting, scheduling, contract administration, cost estimating services and field inspections. The proposed contract duration is 40 months with an estimated cost of $13 Minutes, August 15, 2017, Page 6

7 million. The RFQ will contain minimum qualification requirements to assure appropriate technical skills given the size and complexity of the project. Upon successful negotiations, Staff will recommend award of the contract for Project Management Support Services for the Courtyard 3 Connector Project. The City s CMD has approved a 21% local business enterprise subcontracting participation requirement. Commissioner Johns... when is the projected date of completion of the entire project? Ms. Mosqueda... we will go through roughly six months of procurement and start the project in 2018, and by the beginning of 2020, the project will be rapping up. Commissioner Crayton... will there be any disruption to the public? Ms. Mosqueda... there is some impact to operations. Courtyard 3 is a connector from the front roadways to post security. There s a connection to the post security apron area. The primary use for that is fire truck access and tash removal. We will need to accommodate those two uses during construction. If we do block them during periods of construction, we will need to accommodate them through Courtyard 4 or other areas. Commissioner Crayton... so there s no passenger disruption at all? Ms. Mosqueda... there s very little passenger disruption. We will be impacting most importantly the Airport s Communications and Emergency Operations Center. We will be building above that zone of the Airport, so we have some early activities to take those uses and move them to the new location so that they are fully functional the whole time we are under construction. There s a little bit of passenger impact with the pre-security connector in particular and we would make sure that we accommodate passengers at all times. Commissioner Johns... when you talk about impact are you saying Courtyard 3 would be closed, or the connector part, or it would be used as a staging area for construction and then it would come back. Ms. Mosqueda... I m probably providing a little too much detail, but we would be phasing construction so as to minimize the affects on both passengers and operations. So, only those times when we are doing the pre-security connector would we re-route passengers around that connector and send them to the sidewalk during those periods. We also need to make sure that doesn t happen during rainy season. We will be building directly above the Courtyard below. There are certain activities, such as pile driving, etc. where it may block trucks traveling through Courtyard 3, where we would need to re-route them during those periods, but we would aim to keep access open as much as possible. I don t have specific dates yet for that. Once the Design Builder comes on board, we ll figure those pieces out. Item No. 3 was approved unanimously upon a motion by Commissioner Crayton Minutes, August 15, 2017, Page 7

8 and a second by Commissioner Johns. 3. Commence Request for Proposals Process for Six Terminal 2 Concession Leases No Resolution approving the proposed minimum qualification requirements and lease specifications, and authorizing Staff to issue Request for Proposals and conduct an informational conference for six Terminal 2 Concession Leases. Ms. Cheryl Nashir... I am here this morning to seek your approval to commence the RFP process for six Terminal 2 Concession Leases. It s hard to believe that it s time to re-lease Terminal 2 already but these were 7-year leases that started in 2011, so they re expiring next Spring. We have six spaces to lease. Today the locations are concepted as follows: XpresSpa; Mosaic Museum Store; InMotion Entertainment, which is an electronics store; Pacific Outfitters; Greetings at SF; and Natalie s Candy Jar. We re choosing to convert one of these six retail spaces to food and beverage based on the strong growth in food and beverage this Terminal has seen since it opened in Since that time, departing passengers in that Terminal has grown by 15%, retail sales have grown by 32%, and food and beverage sales have grown by 60%. We re expecting more growth in this Terminal in terms of departing passengers, so there s a lot of demand. And the high sales per square foot metric is just one thing that we monitor in this Terminal which points to success for food and beverage, but it also points to us nearing capacity. It makes us wonder if there s going to be lines at the concessions, and can the concession footprint handle all the demand as that number grows. We began to think that we have to add more space. These six leases will be the subject of a single RFP. The five retail leases will have 7-year terms, which is typical, and the single food and beverage lease in this RFP will have a 10-year term, which is typical for food and beverage due to the higher capital investment that s required for putting in a kitchen. Rent, as usual, will be the larger of a minimum annual guarantee or a tiered percentage rent. With your approval we d like to issue the RFP and schedule an informational conference to hear from interested parties about the business terms and then we ll be back to ask you if we can accept proposals. Commissioner Johns... I m looking at Attachment 3 for the existing leases and the proposed new leases. We currently have a Natalie s Candy with 928 sq. ft. and you re proposing a new candy confection store that s 740 sq. ft. And then, for example, there is Mosaic Gallery and they re going to be pushed out because that s location is intended for the restaurant. Ms. Nashir... correct. Commissioner Johns... if Natalie s Candy decided to bid and won the bid, they would have to start from scratch. I m curious as to how it all fits in the puzzle. One Minutes, August 15, 2017, Page 8

9 business is going to be pushed out because there will be five instead of six. I have no idea where that goes but it s the way you re doing it, it almost pushes everybody out. Even if they wanted to stay and rebid, they have to start over. Could you explain that thought process? Ms. Nashir... going forward in this RFP we laid out the space based on revenue maximization. For instance, today the Candy Store is in a glass box in the triangle in Terminal 2. It s a prime space and while candy is a good use, electronics is much better because it pays us more rent, has a higher level of sales, and is more sought after by passengers. So, we thought it best to put electronics out in the midst of all the passengers in the glass box and hopefully really blow out the sales. As for the Museum store, it s been an under performer in almost 1,600 sq. ft. We like the use, but we re moving that to a smaller location. Commissioner Johns... is there a Museum store in Terminal 2? I thought that s a new concept. Ms. Nashir... the store is called Mosaic. It s not aligned with a local museum but the merchandise category we would call a Museum store. Commissioner Johns... you re saying that if Mosaic wanted to continue they would apply for the Museum store? Ms. Nashir... they would apply for Lease No.4. Commissioner Johns... but they re not a museum store. Ms. Nashir... it s a museum with a merchandise category or selection that they carry. We, in the retail business, consider that museum type merchandise. It s coffee table books and jewelry and art for the home. Commissioner Johns... by museum store you re being very generic as opposed to MOMA, or Fine Arts Museum, or something like that. Ms. Nashir... yes. We hope they will compete for this. Regarding a store moving out, say Natalie s Candy Jar, if they re successful again they ll have to completely rebuild because we ve relocated them to another space in the building. That s always the case with all the leasing we do. We expect after 7, or 10, or 12 years that the finishes are worn out and the design/aesthetics is no longer current. Commissioner Johns... are these lessees aware of these plans? Ms. Nashir... they are. Commissioner Johns... has there been any push back or input? Ms. Nashir... we ve had no push back. We don t have a spa going forward at this point in Terminal 2. I spoke with the owner last week and he said to trust my gut. Minutes, August 15, 2017, Page 9

10 He knows his sales have not been as strong as they are for retail in that building. We may have space in the future if the American Airlines Club is handed over to Concessions, so we may be able to add back service we might lose now. Commissioner Mazzola...asked if there s rent credit on tenant improvement work. Ms. Nashir... no, there is not. Commissioner Mazzola... whatever you have to spend is on you and there is no credit later? Ms. Nashir... correct. We build a sample profit and loss statement before we do any leasing and we try to make sure that we project the capital improvement cost, and that they work within the P&L based on the rent and term of the lease. Commissioner Stern... so, you should get better lease terms moving into a smaller space for their concept vs. paying more for a larger space? Ms. Nashir... yes. If they can drive the same amount of sales out of a smaller space, it s half the capital investment, potentially. Commissioner Johns... so we assume over seven years of the lease that they have made up their tenant improvements and more? Ms. Nashir... yes. We test all of that before we put out the RFPs because we don t want the industry to say this business deal does not work. Commissioner Johns... right. It s interesting. Commissioner Crayton... as an innovative airport we re always looking for new concepts to try to drive up the attraction for people coming through the terminals, so it has to be competitive. When people bid on these leases they understand that. We are always looking for new opportunities and when your lease is coming up and if it can stand the test of time in terms of innovation and ability to draw customers and make money, they will be a part of that process. Ms. Nashir... absolutely true, and the industry knows that. If there s a really successful incumbent that wants to stay on with us, they are already thinking about they can evolve their concept to make it competitive. Commissioner Crayton... we also have to meet the demands of the public. Ms. Nashir... yes. Commissioner Johns... I assume that construction will be phased so that our passengers are not completely impacted with services. Ms. Nashir... true. We can holdover leases to help phase construction. Minutes, August 15, 2017, Page 10

11 Item No. 4 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Guggenhime. 4. Authorization to Issue a Request for Qualifications/Proposals for Two Professional Services Contract Nos and , As-Needed Mechanical / Electrical / Plumbing / Fire Protection Engineering Support Services No Resolution authorizing the Director to issue a RFQ/P for Professional Services Contract No and , As-Needed Mechanical / Electrical / Plumbing / Fire Protection Engineering Support Services. Mr. Geoff Neumayr, Chief Development Officer... this item authorizes the Director to issue a RFQ/P for two Professional Service Contracts for As-Needed Mechanical / Electrical / Plumbing / Fire Protection Engineering Support Services. Implementation of the Airport s Capital Improvement Program (CIP) and ongoing facilities development and maintenance programs require engineering support services to augment and assist the current Engineering s staff with the additional project work associated with the CIP. These contracts also provide specialized services outside the expertise of Airport design staff. These services will include as-needed support for existing building and site renovations including interior renovations for primary and support facilities, new building and site construction for primary and support facilities, and special studies, investigations, technical service and reports as requested. The RFQ will contain minimum qualification requirements to assure appropriate technical skills given the size and complexity of the individual projects. Upon successful negotiations, Staff will recommend award of two individual $2.4 million contracts and a contract duration of five years to the two successful proposers. Staff will negotiate individual contract service orders (CSO) with each and set a fixed price or not-to-exceed amount as appropriate for the CSO scope Staff will work with the City s Contract Monitoring Division to develop a local business enterprise sub-consultant participation requirement for each contract. Commissioner Mazzola... you know how I feel about these contracts. To me it s privatizing, but it s okay with me providing that you re manned up. If you have budgeted 20 carpenters and you want to have somebody on call, that s fine. But if you only have 10 carpenters and you want to have somebody on-call, I think that s counter productive. I think we ought to see if all of your shops are full and if you have all the people working that are supposed to be working or have been budgeted to work. Then I think I could go along, otherwise I don t know exactly what I m getting. You need to help me out a little bit. Mr. Neumayr... these are for professional services for engineering. It s to support our Engineering and Architectural department. When we have certain tasks come up that are beyond our expertise for engineering services or architectural support, we go through a process of checking not only our own staff availability, but we also check downtown with other departments as well. Minutes, August 15, 2017, Page 11

12 Commissioner Mazzola...even though it says mechanical, they re for engineering? Mr. Neumayr... mechanical engineering, electrical engineering, civil engineering. Commissioner Mazzola... I stand corrected. I thought you were looking for folks to do the work also. Mr. Neumayr... we re very much aware of the other concern. Item No. 5 was approved unanimously upon a motion by Commissioner Guggenhime and a second by Commissioner Crayton. 5. Authorization to Call for Bids - Contract No , Construction Services for the Central Plant Chillers No. 1 and No. 2 Replacement Project No Resolution approving the scope, budget, and schedule for Contract No , Construction Services for the Central Plant Chillers No. 1 and No. 2 Replacement Project, and authorize the Director to call for bids. Mr. Neumayr... this item seeks approval for the scope, budget and schedule, and authorization to call for bids for construction services for the Central Plant Chillers No. 1 and No. 2 Replacement Project. This Project will replace two of the Airport s four Central Plant chillers to provide a modern, reliable cooling system for the Airport Terminal complex. The chillers have almost 40 years of service and their mechanical and electrical equipment have reached the end of their useful lives. These chillers cool the air throughout the Terminals for the comfort of the traveling public. This project provides for additional energy efficiency measures that will be implemented to help meet the Airport s sustainability and operations objectives. The new chillers will be highly efficient as they utilize modern technologies. Unnecessary and inefficient pipes will be removed, a higher efficiency heat exchanger will be installed, and smart digital controls will operate the equipment. The energy efficiency measures were recommendations from a previous energy assessment to save the Airport energy and utilities costs. The Engineer s estimate for this work is $12 million and the contract duration is 525 consecutive calendar days. The City s Contract Monitoring Division has established an 11% sub-contracting goal. Item No. 6 was approved unanimously upon a motion by Commissioner Johns and a second by Commissioner Crayton. 6. Modification No. 2 to Contract No Communications and Marketing Services for Contracts Issued from the Communications and Marketing Pool Fuseideas/Eis Design, a Joint Venture - $1,180,000 No Resolution (1) Approving Modification No. 2 to Communications and Marketing Services Contract No with Fuseideas/Eis Design, a Joint Venture, to increase the total compensation payable Minutes, August 15, 2017, Page 12

13 by an amount not-to-exceed $1,180,000 for a new total not-to-exceed amount of $4,030,000; and (2) Authorizing an increase in the aggregate not-toexceed amount for contracts awarded from the Communications and Marketing Services contract pool of $1,600,000 per year to $2,350,000 per year. Mr. Jon Ballesteros, Chief External Affairs Officer... the item before you makes two requests relative to the Marketing and Communications pool that you approved in The first is to increase the annual aggregate pool not to exceed expenditure cap from $1.6 million to $2.35 million. The second is to increase the budget for one of the firms within this pool by $1,180,000. Now to provide some clarity, a brief history might be helpful. Prior to 2015, these contracts were separate and distinct. In 2015 you created a joint Marketing and Communications pool that had two aims. The first was to establish or engage new firms to bring fresh, new ideas into our Marketing and Communications efforts, and to create tighter migration between the Marketing and Communications campaigns and messaging that use. After the RFP process, five firms were selected for the Pool. Three firms were awarded contracts for three year terms. We established two spending control measures to apply to the contracts... an annual spending cap for each firm, and a spending mechanism with an annual aggregate cap for the entire pool of $1.6 million. In March 2016, you took three actions with this contracting pool. The first added contract authority for Davis & Associates who are part of this pool. The second added contract authority for Fuseideas/Eis Design, also part of this pool. At the same time we changed the spending cap for the individual firms from an annual spending cap to a life of the contract spending cap. So, a three year cap for these new ones. However, an oversight was made and we failed to also adjust the annual aggregate annual pool cap to reflect these changes that were made for the individual firms. So, with this oversight we exceeded the aggregate pool cap by $66,255 in However, we remained well within the three year life of the contract cap that we established. So, we have conflicting caps there. That s why we re coming to you today to have an adjustment made and create alignment for these two spending caps, and it obviously needs to be retroactive. So our first request is to increase the annual aggregate pool cap to $2,350,000 to allow us to capture the anticipated expenditures for the final year of the contract. The second request is to increase the Fuseidea/Eis contract by $1,180,000 for a total three year amount of $4,030,000, to meet unanticipated needs stemming from the tremendous success we have seen in aviation development efforts, particularly international aviation development. As a result of these successes, we have experienced the need for increased air service support. On average, between 2010 and 2012, we had one new airline or air route per year. In 2015 we saw five, in 2016 eight, and 2017 we ll see eight. It requires a lot more marketing service to make that successful and keep them maintained. We ve seen increased need for consumer messaging, expanded brand awareness, and we need to meet ever-evolving digital and social media expectations. Minutes, August 15, 2017, Page 13

14 In summary, because of the non-alignment we need to make the adjustment and then also recognize the need for additional services as a result of our successes. So, we are asking for an increase in the total three-year contract amount for Fuseideas/Eis of $1,180,000, and your authorization to increase the annual aggregate pool amount for the overall pool from $1.6 million to $3.5 million, retroactive to FY16/17. We will return next year as these contracts will expire. Commissioner Johns... you re adding $750,000 to make up that difference? Mr. Ballesteros... correct.. We re adding more to Fuse. Some of the other increase is a carryover from the prior year because we started campaigns that we anticipated being complete, but were carried over.. Commissioner Johns... I take it with the three, Hill+Knowlton, Davis and Fuse, that Fuse is the lead? They have the most money budgeted. Mr. Ballesteros... not necessarily the lead, it s where their strength lies. Originally we anticipated launching an app specific to SFO. After we saw the evolution of social media and digital marketing needs, we saw that the app wasn t really appropriate. Originally, Davis was to do the app development and launch. Then we moved to a new approach, using a mobile device with our website and applying that more generally and making that more advantageous to the passenger. We knew that was the direction we should go and that s where the industry was headed. The mobile website design was already assigned to Fuse and that s why there was some movement there. Commissioner Johns... how do we evaluate these services that we re contracting for? Our outcome seems to be good and we re getting more international service. Who oversees this and who gives direction, and who evaluates what we re getting for our money? Mr. Ballesteros... that would be the Directors of Marketing and Communications. Charles Schuler heads up Communications and Sara Magoffin from Marketing. They are in charge of evaluating the strengths of each firm within this pool as well as their response to the RFQ. Commissioner Johns... do they also coordinate the services of all three? Mr. Ballesteros... absolutely. The principles within all three firms report directly to the managers of those two units. Commissioner Johns... I m not singling out the Communications team because I always ask these questions relative to getting our monies worth from consultants. Mr. Ballesteros... thank you. Commissioner Crayton... thank you for this report and for the segmentation that you presented to us so that we have a clear understanding of how all of that is put together. I m amazed that you explained it so well as you have not been with us long. Am I to understand that Davis, Fuse, Hill+Knowlton, none of these people Minutes, August 15, 2017, Page 14

15 travel on our behalf to Europe checking out markets, etc? Mr. Ballesteros... this is a different contract. The one to which you refer will be presented to you at a later time. That s within International Aviation Development. Commissioner Crayton... so these people only deal within the United States? Mr. Ballesteros... correct. They do assist with our capital improvement plan, but international route development and in country marketing is another contract. So, to answer your question, none of these folks travel. Commissioner Crayton... I m assuming that they have different areas of segmentation. Is it by ethnic origin? Mr. Ballesteros... it s primarily based on digital communications relative to media buying, relative to airline service events. Commissioner Crayton... I don t notice a lot of advertisement for SFO on the air, but I do notice ads for the San Jose Airport in terms of travel. I know we re doing really well. Are we doing most of it internationally rather than domestically? Mr. Ballesteros... we do quite a bit here. What you might not notice is that some of them are joint, meaning it s for an airline new route. You might be seeing a new route that we re helping to promote. However, we did just have a campaign. Commissioner Crayton... what was the campaign? Mr. Ballesteros... we just had a campaign for Europe. It s disappointing that you didn t see it. There were banners downtown, and it was on Muni.. Commissioner Crayton... anything on TV? Mr. Ballesteros... no. Commissioner Crayton... that s fine. I ve been at the Airport and we re not suffering from a lack of passenger. I just want to make sure that I understand where this money is going. I know you re doing an excellent job. I just want to make sure that we see not only in the ethnic areas and in other areas that we re getting what we re paying for. Mr. Ballesteros... The other contract I mentioned handles what we do in other countries. This contract covers this country. G. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: The Consent Calendar, Item Nos. 7 through 14, was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Guggenhime. 7. Award of the Domestic Terminals Automated Teller Machines Lease A to Wells Fargo Bank, N.A. Minutes, August 15, 2017, Page 15

16 No Resolution (1) Awarding the Domestic Terminals Automated Teller Machines Lease A to Wells Fargo Bank, N.A.; and (2) Directing the Commission Secretary to request approval of the lease from the Board of Supervisors. 8. Award of the Domestic Terminals Automated Teller Machines Lease B to Bank of America, N.A. No Resolution (1) Awarding the Domestic Terminals Automated Teller Machines Lease B to Bank of America, N.A.; and (2) Directing the Commission Secretary to request approval of the lease from the Board of Supervisors. 9. Modification No. 3 to Professional Services Contract No As-Needed Engineering Support Services - AGS, Inc. - $1,000,000 No Resolution approving Modification No. 3 to Professional Services Contract No , As- Needed Engineering Support Services, in an amount not-to-exceed $1,000,000 for a new contract amount not-to-exceed $3,000, Modification No. 2 to Contract No Public Sector Agreement for Oracle Cloud Services - Oracle America, Inc. - $809,304 No Resolution approving Modification No. 2 to Contract 10612, Public Sector Agreement for Oracle Cloud Services, with Oracle America, Inc., in a not-toexceed amount of $809,304 for a new contract amount not-to-exceed $2,585,204 and extending the contract duration by 365 consecutive calendar days to September 24, Modification No. 5 to Professional Services Contract Architecture and Engineering Design Services for the Ground Transportation Unit Relocation Project - Paulett Taggart Architects - $365,000 No Resolution approving Modification No. 5 to Professional Services Contract Architecture and Engineering Design Services for the Ground Transportation Unit Relocation Project, to Paulett Taggart Architects to increase the contract amount by $365,000 for a new total contract amount Minutes, August 15, 2017, Page 16

17 of $3,100,834 and extend the contract duration by 243 consecutive calendar days thru April 16, Modification No. 1 to Contract Construction Services for the Museum Video Screening Room Project - Galliera, Inc., dba Trico Construction - $20,000 No Resolution approving Modification No. 1 to Contract No , Construction Services for the Museum Video Screening Room Project with Galliera, Inc., dba Trico Construction, in the amount of $20,000 for a new contract amount of $629,385, and with no change to the contract duration. 13. Modification No. 2 to Contract No Construction Services for the Runway 10R-28L, Overlay and Reconstruction and Taxiways F2 and S Project Golden Gate Constructors, A Joint Venture - Time Extension Only No Resolution approving Modification No. 2 to Contract 8981, Construction Services for Runway 10R-28L Overlay and Reconstruction and Taxiways F2 and S Project (Project), with Golden Gate Constructors, A Joint Venture, to extend the contract duration by 100 consecutive calendar days to December 18, 2017 with no change to the contract amount. 14. Assignment of the Rental Car Center Operations Lease No from EAN- Northern California, LLC to Enterprise Rent-A-Car Co. of San Francisco, LLC No Resolution consenting to the assignment of the Rental Car Center Operations Lease No from EAN-Northern California, LLC to Enterprise Rent-A-Car Co. of San Francisco, LLC. H. NEW BUSINESS: Discussion only. This is the Public Comment section of the calendar. Individuals may 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. Mr. Tariq Mehmood, Taxi Driver... I have just come to say thank you very much for what you have done for taxi drivers in 2010 when you saved 7,000 drivers from the plan that would limit their short rides to Burlingame and San Bruno. The taxi drivers were angry when SFO wanted the electronic system and established a geo-fence area but Minutes, August 15, 2017, Page 17

18 after six years when it happened we accepted it. Chairman Mazzola you re simply asking question from the Airport Director in the last meeting. Once again save 5,500 drivers from a wrong plan which was to kick us out of the SFO lot. I m thankful to you, to your Commissioners, and Airport Director Mr. Ivar for giving us back the lot which was taken away from us. We really appreciate it. It was a very catastrophic situation. And we appreciate you re being kind with us. You are the best Chairman of all the Boards, all the Commission in City. There s no match to your kindness. You saved the drivers over the year, hundreds of millions of dollars. Thank you very much. As regard to SFO congestion, they cannot solve it in five or 20 years. They do not have the right kind of team among the people who are supposed to fix it. When taxis started circling SFO, I told Paul Foster of SFO it s a three-second job. And he took four months to start talking about it. And then he drains hundreds of the taxi driver with a proposal. Today I say it to SFO that SFO congestion solution is a ten-minute job. You want it, I ll sit down with you, I ll do the math, and I ll show how it can be fixed. Lastly, once again we thank Airport Commission and Airport Director for returning the taxi lot back to us. I. CORRESPONDENCE: There was no discussion by the Commission. J. 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). K. ADJOURNMENT: There being no further calendared business before the Commission the meeting adjourned at 9:45 AM. (Original signed by: Jean Caramatti) Jean Caramatti Commission Secretary Minutes, August 15, 2017, Page 18