SAN FRANCISCO AIRPORT COMMISSION MINUTES

Transcription

1 SAN FRANCISCO AIRPORT COMMISSION MINUTES March 7, :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 March 7, 2017 CALENDAR AGENDA RESOLUTION SECTION ITEM TITLE NUMBER PAGE A. CALL TO ORDER: 4 B. ROLL CALL: 4 C. ADOPTION OF MINUTES: D. Regular meeting of February 21, D. SPECIAL ITEM: 1. Retirement Resolution - Officer Norman Lee E. ITEMS INITIATED BY COMMISSIONERS: 5 F. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 2. Amend FY 2016/17 5-Year and 10-Year Capital Plans to Increase the Hotel Project Budget by $30 Million; and th Supplemental Bond Resolution, in Connection with the On-Airport Hotel Modification No. 1 to Contract Design-Build Services for AirTrain Extension and Improvements Program - Skanska Constructors Commence RFP Process for International Terminal A Food Hall and Café Concession Lease Issue RFQ/P for Professional Services Contract Capital Program Support Services for Capital Improvement Program Approve Artwork in Consolidated Administrative Campus - Artist Marc Fornes/Theverymany G. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 7. Award Professional Services Contract Construction Management Support Services for Runway 10R-28L Overlay & Reconstruction and Taxiways F2 and S Project - AECOM Modification No. 1 to Professional Services Contract with Landrum & Brown, Inc. to Add New Tasks to Airport Planning Scope of Services Determination to Proceed with As-Needed Airport Minutes, March 7, 2017, Page 2

3 Pavement and Drainage Improvements Project and Authorization to Call for Bids for Contract , Construction Services for As-Needed Airport Pavement and Drainage Improvements Project Determination to Proceed with International Terminal Building - Roadway Expansion Joints Repairs and Storm Drain Gutter System Replacement Project and Authorization to Call for Bids for Contract , Construction Services for International Terminal Building - Roadway Expansion Joints Repairs & Storm Drain Gutter System Replacement Project Modification No. 1 to Contract Design-Build Services for Airport Security Infrastructure Program - Hunt Construction Group Inc. - Time Extension H. NEW BUSINESS: 19 I. CORRESPONDENCE: 19 J. CLOSED SESSION: 19 K. ADJOURNMENT: 19 Minutes, March 7, 2017, Page 3

4 AIRPORT COMMISSION MEETING MINUTES March 7, 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: Absent: Hon. Linda S. Crayton, Vice President Hon. Eleanor Johns Hon. Richard J. Guggenhime Hon. Peter A. Stern Hon. Larry Mazzola, President C. ADOPTION OF MINUTES: The minutes of the regular meeting of February 21, 2017 were adopted unanimously. No D. SPECIAL ITEM: Item No. 1 was approved unanimously upon a motion by Commissioner Johns and a second by Commissioner Guggenhime. 1. Retirement Resolution for Officer Norman Lee No Resolution thanking Officer Norman Lee for 36 years of faithful service to the City and County of San Francisco. Mr. Ivar Satero, Airport Director... asked Officer Lee to come to the podium. It s our pleasure to present a retirement resolution for Officer Norman Lee. Officer Lee has 36 years with the City and 28 years with San Francisco International Airport. A tremendous career. He started with the Sheriff s Department and came to the Airport in He showed tremendous flexibility and adaptability as evidenced in the number of different assignments, including the SWAT team of 40 officers. Officer Lee was also a weapons specialist who trained the team. He was a plain clothes officer as well in a number of assignments that led to a number of significant arrests in his career. He was also a field training officer for a period which led to a number of recruits. Officer Lee was a recipient of a number of different citations, in particular after the Loma Prieta earthquake. As I understand it, Officer Lee was in Hawaii at the time and wanted to get back to the Airport. Although he was delayed for a day, he reported to duty in his Hawaiian outfit and Minutes, March 7, 2017, Page 4

5 served his shift in his full Hawaiian gear. That just shows the kind of dedication and passion that Officer Lee has for his trade and the wonderful commitment to SFO and the City over 36 years. We thank Officer Lee for his years of service. Commissioner Crayton... I want to thank you on behalf of the Airport Commission for your many years of service to the San Francisco Airport. You actually look too young to retire, but I know you ve got wonderful things planned for your future. Officer Norman Lee... yes, I do. I really am humbled. Thank you very much for this. I really don t deserve it. This is very humbling. Commissioner Guggenhime... working as a Police Officer at the Airport is one of the lower pressured jobs around, right? Thank you for all you do. 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 Guggenhime and a second by Commissioner Stern. 2. (1) Amendment of the Fiscal Year 2016/2017 Five-Year and Ten-Year Capital Plans to Increase the Hotel Project Budget by $30 Million; and (2) Twentieth Supplemental Bond Resolution, in Connection with the On-Airport Hotel, Increasing Airport Capital Plan Bond Authorization by $35 Million from $243 Million to $278 Million in Principal Amount, and Increasing Hotel Special Facility Bond Authorization by $35 Million from $225 Million to $260 Million in Principal Amount No No Resolutions approving the FY 2016/2017 Five-Year and Ten-Year Capital Plans to increase the Hotel Project Budget by $30 million; and approving additional bond authorization for the On-Airport Hotel, increasing Capital Plan bonds authorization by $35 million, from $243 million to $278 million in principal amount, and increasing Hotel Special Facility bonds authorization by $35 million, from $225 million to $260 million in principal amount. Mr. Leo Fermin, Chief Business & Finance Officer... last year you approved a Five and Ten Year Capital Plan which included $210 million for the hotel. Since then, construction in the Bay Area has been red hot, with construction costs increasing by 18% in the last year. We now recommend an increase to the hotel budget by 14%. With the team of advisors, we have analyzed this latest development extensively and compared two different courses of action for the hotel. Minutes, March 7, 2017, Page 5

6 The first course of action is to stick to the budget of $210 million. However, this would require reducing the number of guest rooms by 21%, from 351 rooms to 289 rooms. We would have 62 fewer guest rooms. We would also need to reduce revenue producing meeting and ballroom spaces by 37%, and restaurant seating by 22%. Instead, we recommend a second option of increasing the budget by $30 million. By increasing the budget we can maintain the original program of 351 guest rooms and meet higher brand standards of necessary square footage for food and beverage and event facilities. This option will also produce much better financial results. Under the second option of increasing the budget, because of more guest rooms and space for event facilities, annual revenues are forecast at $60 million more with a bottom line of $3.8 million. The hotel is forecast to be profitable every year from opening. By building fewer guest rooms and smaller event facilities, annual revenues will be less, $48 million instead of $60 million, or $12 million less. The bottom line will be $1.2 million, or $2.6 million less, and the hotel will lose money the first year after opening. With more rooms, the hotel is more operationally efficient due to economies of scale. This, together with the greater number of rooms, increases the bottom line. When we look at the 40 year life of the hotel building, the financial difference resulting from increasing the budget is very substantial. With 62 fewer rooms, we would forego $842 million in revenues over the 40 year life of the building and $164 million in net profits over this useful life. As passenger traffic grows, we will certainly need more guest rooms, not fewer. And if we build fewer guest rooms now, it will be problematic and more expensive to add more rooms in the future, if it is doable at all. We also did a sensitivity analysis under three downturn scenarios, a 10% drop in passenger traffic, a 20% drop in passenger traffic, and a drastic 30% drop. At a 10% and 20% drop in traffic, the hotel will still be profitable. At a drastic 30% drop in passenger traffic, the hotel will lose $5.6 million over a three year period. However, for this extreme possibility we will be building up reserve funds in the hotel s accounts. There are also benefits to society by maintaining the 351 guest rooms. With 351 rooms, the hotel will generate 214 local full time jobs. With 289 guest rooms, it will only be 176 jobs, or 38 fewer full time jobs. We have reviewed this recommendation to increase the budget separately with two of the Airport s advisory panels. First we presented this to the Capital Project Executive Advisory Board, and then to the Airport s Financial Advisory Committee. Both panels agreed with increasing the budget to achieve the better level of service and higher financial returns. The first resolution before you approves a requested budget increase of $30 million. The second resolution approves the financing authorizations. Commissioner Guggenhime... on the original proposal which came before us for approval, we had 289 rooms? Mr. Fermin... no, it was 351 rooms. Minutes, March 7, 2017, Page 6

7 Commissioner Stern... so, if we don t approve this, we would have to revert back to the plan of 289 rooms? Mr. Fermin... yes, a much smaller hotel. Commissioner Guggenhime... so, what we approved before was 351 rooms? Mr. Fermin... that s correct. Commissioner Crayton... this is a major issue for me in terms of the capital budget, etc. I would have liked, as a Commissioner, to have a separate briefing on this and this alone. I d look through all of the finances and try to follow all of the paper trails. I did have some difficulty. This is really important. We have a Financial Advisory Committee and the Capital Project Committee that advise you, and were those the same committees that were in place last year when we approved the number of rooms? So I m wondering what happened in terms of the construction costs. Isn t that what predicated the increase in the capital project? Mr. Fermin... correct. There are pretty much four general areas where we saw construction costs increasing, the electrical, the mechanical, glazing and interior finishes. The estimates that we ve come up with, not just us but the project construction team, and extensive discussions with potential sub-contractors, the electrical, a budget should be around $120 per square foot today because of the escalation and construction activity over the past year. We had planned on $85 to $90 per sq. ft. On the mechanical side, all the mechanical sub-contractors out there are currently engaged, so there s not very much competition for the new work that s going on. There s a lot of construction going on and there s only one response from a potential mechanical sub so that s driving up the cost in that area. In glazing we had planned on a budget of $110 per sq. ft. and the estimates are now coming in at a $140 per sq. ft. We had hoped to receive bids from two large sub-contractors but they ve dropped out of the project to work on other construction projects. There s just so much construction activity going on now, there s a lot of competition for these subs. Finally, we think the interior finishes should be at $110 per sq. ft. This is based on some of the four-star hotels that are coming up. Commissioner Johns... What is the time frame of when we originally projected this cost and when we determined that we would need an additional $30 million. Mr. Fermin... we originally projected this cost at the end of 2015 and we came before you to approve this cost as budget in June Since the end of 2015 up through now, construction costs have increased at a rate of 18%. Now, we re requesting approval to increase the budget by 14%, primarily because of these four main areas. Commissioner Johns... will the room rate increase because we increased the budget? Mr. Fermin... yes. Minutes, March 7, 2017, Page 7

8 Commissioner Johns... think we may have already discussed that. Mr. Fermin... yes. The average daily room rate is projected to go up, I think it was from about $279 to $295, not because of these costs but because the average daily hotel rates in the Airport vicinity have all been rising. We re just being competitive. It has nothing to do with the construction cost. Commissioner Johns... we ve already negotiated with someone to run the hotel for us. I assume that in the negotiation we ve discussed a certain amount of rooms. If, for some reason, we did not approve this additional $30 million, would that affect that negotiated agreement with Hyatt to run the hotel? Mr. Fermin... I don t believe the management agreement specifies a certain number of rooms per. Commissioner Crayton... what is the largest hotel in the area and how many rooms do they have? Mr. Fermin... I believe it s the Hyatt Regency in Burlingame with about 540 or 550 rooms. Commissioner Crayton... have we checked with the tourism industry or visitor s and convention bureau regarding occupancy rates for hotels in the Airport vicinity? Mr. Fermin... yes, the occupancy rates are very high. In fact, we have feedback not just from the San Mateo visitor and convention industry but also from airline representatives that we meet with on a regular basis who tell us that they often have a difficult time finding hotel rooms. It s especially difficult around the Airport. Commissioner Johns... I hope if we approve this that we don t have additional costs coming up in change orders to come. I hope we have planned appropriately. Commissioner Stern... With the high demand in the construction industry and capacity issues, does that put any risk to our timelines for delivery?. Mr. Fermin... we ve already delayed our timelines by about two to three months. Item No. 3 was approved unanimously upon a motion by Commissioner Johns and a second by Commissioner Stern. 3. Modification No. 1 to Contract No Design-Build Services for the AirTrain Extension and Improvements Program - Skanska Constructors - $7,573,000 No Resolution approving Modification No. 1 to Contract No , Design-Build Services for the AirTrain Extension and Improvements Program with Skanska Constructors, in an amount of $7,573,000 for a new contract amount of $27,550,000 and an extension of 240 days for a new total contract duration of 480 consecutive calendar days. Minutes, March 7, 2017, Page 8

9 Mr. Geoff Neumayr, Chief Development Officer... this item seeks your approval of Modification No. 1 for the AirTrain Extension and Improvements Project Design Build contract with Skanska Constructors for design services. This project provides for the design and construction of an elevated concrete guideway extension to serve Lot DD and for the design and construction of a new AirTrain station at the new hotel and the Long Term Parking Garage. This Modification to the Design Build Contract will increase the not to exceed amount by $7.6 million to establish a new not to exceed contract amount of $27.55 million, and establish a new contract duration of 480 consecutive calendar days. The Programming Phase is now completed and the Design Phase is set to proceed. The Programming Phase has now defined the design and project scope. Staff has negotiated the design fee for all design services as identified during the programming phase. The current contract forecast is $130 million and staff is working through the design process to revise scope to bring the project within the contract budget of $127.3 million. This modification will provide for design services and all project trade packages. Skanska Constructors will competitively bid all trade packages as required by the San Francisco Administrative Code, and we will submit those trade package sets for your approval. The City s Contract Monitoring Division has approved a 22% LBE subconsultant goal for design services and a 20% LBE subcontracting goal for construction services. Skanska is committed to meeting these contract goals. Commissioner Stern... will extending the route delay the amount of frequency in which someone could be picked up? Are we going to speed up the train or add another train to that process as well? Mr. Ivar Satero, Airport Director... We will add cars to the train. When we purchased additional vehicles a number of years ago it was in anticipation of this extension, so we anticipate that the headways won t be dramatically affected. Commissioner Crayton... this is going to go to the hotel, correct? Mr. Neumayr... the existing guideway does pass by the location of the new hotel. It does include building the station at the hotel. We included structure to support the hotel station, so it was planned for back in the original Master Plan days and we re implementing it now. The second part is building a new station at Lot DD, which is the purpose of the extension. The extension is going from the existing Rental Car Center to the long term parking garage center. Commissioner Crayton...have they actually started? Minutes, March 7, 2017, Page 9

10 Mr. Neumayr... they have not started construction yet. We ve gone through the programming phase, initial concepting and engineering studies. Now we re negotiating the design fees and we ll start design services. Those contracts and sub-contracts will start to go out for trade package bids, and we ll bring those to you. Commissioner Crayton... didn t we approve this in June or July of last year? Mr. Neumayr... you awarded the design build contract to Skanska for programming services and initial pre-construction trade activities and utility identification at that point. This is the second approval required for the design fees to begin design. Once the design is done we ll start the buyout and return to the Commission for approval of construction trade packages. Commissioner Crayton... do we normally take this long to wrap it up? Mr. Neumayr... yes. This is the normal process for the progressive design model. Commissioner Crayton... I was concerned that we hadn t moved forward. Was there protest, or something like that? Mr. Neumayr... no. We selected the design build out of certain cost components, management fee, we go through the programming phase, identify the project construction cost, negotiate the design services. When the design packages are appropriate, we bid the trade packages per the Administrative Code and then return to you for approval of those trade packages and the forecast as we move forward. Commissioner Crayton... so this is not an increase? Mr. Neumayr... it is not. Commissioner Johns... does this encompass all of the improvements and additions we intend to do with AirTrain for all of our construction projects, or are there still some others out there? Mr. Satero... there are other minor improvements such as weather protection, but this is the only major one. Longer term there maybe a need to add another vehicle, but that s much longer term as we watch our growth over the next few years. Commissioner Crayton... but this doesn t include the stations? Mr. Neumayr...it includes construction of new two stations, one at the hotel and the other at the long term parking garage. Item No. 4 was approved unanimously upon a motion by Commissioner Stern and a second by Commissioner Guggenhime. 4. Commencement of the Request for Proposals Process for the International Terminal A Food Hall and Café Concession Lease Minutes, March 7, 2017, Page 10

11 No Resolution approving the proposed minimum qualification requirements and lease specifications, and authorizing staff to issue a Request for Proposals and conduct an informational conference for the International Terminal A Food Hall and Café Concession Lease. Ms. Cheryl Nashir, Director, Revenue, Development and Management... this item approved commencing the Request for Proposal (RFP) process for the International Terminal A Food Hall and Café Concession Lease. The food hall is new to SFO, but the concept exists other places. It s a take on the food court and a marketplace. Our vision is that the space feels like there are three distinct operators in it and we re requiring that the three concepts in the food hall all be concepts that exist in San Francisco today. They must include coffee, Asian food and a third category that is not burgers or sandwiches. We believe that we ll have enough of those two food categories on the concourse with our other restaurants. The food hall will also include an expanded Grab and Go market area and this is where the operator can get really creative with vegan or gluten-free or gourmet pre-packaged foods and lots of different drinks. It s much like what the Napa Farms Market does for us today. This will boost the average sales for each of the passengers that walk through this space. We re pairing this lease with a small café in our new Consolidated Administrative Campus (CAC) building which is set to open in about one year. This café will offer coffee, drinks, snacks and probably sandwiches and salads. There won t be a hood for cooking, it s a small operation and it s more of a service for Airport staff and a great business opportunity. That s why we ve paired it with this larger more attractive space in the International Terminal. We ve chosen a food hall concept and ask that the brands all be based in San Francisco because this space sits right next to our new historic San Francisco restaurant, for which you gave authorization to issue an RFP at the last meeting. We are very excited about creating sort of a San Francisco restaurant row in this area in the International Terminal. The food hall operator will have the opportunity to brand this space with a Tastes of San Francisco theme. Like the historic restaurant, proposers with the top three scores will be invited to an oral interview, after which an additional 10 points could be granted to them in their scoring. This lease is for a 3,200 square foot space in Boarding Area A, and the 700 square foot café in the CAC building. Like our other food and beverage leases, the term is 10 years with two one year options. The minimum annual guarantee is $495,000, and there s a tiered percentage rent structure. With your approval we would like to publish the RFP and hold an informational meeting to hear what the business community has to say about this business offer. Commissioner Guggenhime... is Coach and Burberry is going away? Ms. Nashir... we ve got four new luxury spaces identified for them closer to our big Duty Free Galleria store. We re getting that space by converting a restaurant to luxury and also converting some restroom spaces to luxury. So, we ll have a double loaded Duty Free street to walk through just past the checkpoint. Minutes, March 7, 2017, Page 11

12 Commissioner Crayton... we already have this concept at the Airport, do we not? Ms. Nashir... we have food courts. Commissioner Crayton... I thought there was a place where I purchased something, maybe I was in Philadelphia. They ve got that concept where you can get food or pre-packaged things that you can purchase and take with you. Ms. Nashir... Napa Farms Market is much like that. The little nuance here is that when you re in Napa Farms Market not all of the food counters are specific brands. We do have the Tyler Florence counter, but then there s a pizza counter that just belongs to Napa Farms Market and there are sandwiches and salads. This thing will look like Napa Farms Market but each counter will have a distinct brand that exists in the City already. Commissioner Johns... I am pleased that you ve added the oral interviews to the top three which was missing in some previous. I think that s a good item. Ms. Nashir... yes, it will be interesting. Item No. 5 was approved unanimously upon a motion by Commissioner Johns and a second by Commissioner Guggenhime. 5. Authorization to Issue a Request for Qualifications/Proposals for Professional Services Contract No Capital Program Support Services for the Capital Improvement Program No Resolution authorizing the Director to issue a RFQ/P for Professional Services Contract , Capital Program Support Services for the Capital Improvement Program. Mr. Neumayr... this item authorizes issuance of a RFQ/P for Professional Services for Capital Program Support Services for the Airport s Capital Improvement Program. The Airport is undergoing a significant investment in its assets and is implementing over $6 billion in capital projects in the next decade. This contract will provide Management Support Services and scope will include program level management of cost and schedule, Airport-wide construction logistics, and will provide for specialized services such as database management, maintenance of the Airport Program Management System which is Unifier, computer aided design support, Geographical Information System support and administrative support. The Airport has a Capital Program Support Services contract currently with CIP Partners, and this contract has been utilized to develop a Capital Program Master Schedule, implemented the Unifiers Project Management System, and developed program level reporting structures. This contract will soon reach its contract capacity and will not be renewed. Airport staff recommends seeking a new contract for Capital Program Support Services with a broader scope of services than the current contract, and provide for a longer duration of services. Minutes, March 7, 2017, Page 12

13 The estimated value of this contract is $25 million with a duration of 60 months. Staff will convene a selection panel to review and score proposals and the oral interviews. Staff will prepare a recommendation of award for your approval following successful negotiations with the highest ranked responsive bidder. The City s Contract Monitoring Division has approved a 21% Local Business Enterprise subcontracting participation requirement for this contract. Commissioner Crayton... The evaluation selection criteria for the panel notes that the oral interview is 275, however project approach was only 50, the introduction executive summary, which really concerns me, was only 10, and the proposals, experience, and qualifications was 40. Would you share the rationale for your scoring weight, because there are items that I feel are more important. Mr. Neumayr... we try to equally value between a technical proposal and the orals so the technical approach and executive summary in these varied, and also key personnel, who are in a written proposal. We do give a lot of weight to the oral interviews because we are looking for someone who can actually understand our culture at SFO. Sometimes it s very hard to see that through a technical write up because they are often written by marketing professionals. So, we limit that review strictly to technical qualifications and then we shortlist it at that point. Our goal is to shortlist qualified teams who are technically capable. The oral interviews look deeper into scenario-based interviews to see if they understand who we are as an Airport, how we manage, do you have the right people here? It s worked out very successfully for us. We put a lot of value on the oral interviews because the scenario-based interviews ask questions where the individuals must participate in the process and we really get to see who are they bringing to the team instead of just looking at the culture or a marketing approach to the executive summary. It s a way of balancing the evaluation of the team, and it s been very successful for us. Commissioner Crayton... how do we know that the people who come to those oral interviews to impress you who will be the ones on the job. Mr. Neumayr... they must submit their key personnel through an organization chart as well as submit their resumes in the technical proposal. We require those people to be at the oral interview. During contract negotiations we actually write the hourly rates and those people in the contract. If for some reason they can t make those people available to us, it could compromise the negotiations at that point. With that said, there are times when people leave companies. It does happen on occasion, and we re seeing more and more of that so there are no guarantees. Commissioner Johns... key personnel, like the top ten? Mr. Neumayr... it could be. Commissioner Johns... is that a hard and fast number?. Mr. Neumayr... it could range anywhere from 8 to 10 people. Commissioner Crayton... so those key personnel are people that you will be seeing Minutes, March 7, 2017, Page 13

14 on sight and you will be interacting with during the entire project? Is that correct? Mr. Neumayr... correct. Commissioner Guggenhime... This is an on-going project and a relationship between those involved and Airport staff is critical. I think proposed key project personnel (125 points) and oral interview (275 points) are the paramount and most preeminent points so I would agree with the way you ve done it. But, I think it s important that we somehow figure out a way to keep those who were involved in the presentation. Can we say that if 25% of the people leave the company we can renegotiate? I don t know whether that s ever done. Mr. Neumayr... we haven t had a mass exodus of people. We get one, on occasion. If someone decides to move to another project, then we would have a say, but if an employee leaves the company it would be more challenging for us. We re very conscientious about the people and the culture that they bring to us. And these contracts will be renewed on a yearly basis... we only come for one year at a time. So, based on their performance for that year, if they don t meet what we need we would not renew the contract for the following year. That s why we set those limits on professional services management contracts and why we come back to you for an annual approval. We want them to understand that five years is not a guarantee. It is based on a performance criteria. Commissioner Crayton... I understand what you re doing in coming back year after year, but I still have some concerns about that. For some people this may be the first time they can actually compete at this level so they re going to be nervous. If it s someone from another country with the experience and know how, the oral interview may be too heavily weighted for them. I m not an expert, but I m concerned about inclusion, allowing new interest into the process. When I look at this, it excludes a lot of people. These are exclusionary issues here and I think that if there s a way to make some allowance for the work that they ve done, or do they get to come back again? I just want to make certain that we give people an opportunity to move up. Let the larger companies continue to get larger, but the other companies can t grow because they can never get to this point with us. So that s my concern. Mr. Neumayr... we completely agree with you, Commissioner. One of the things we ve done that s been very receptive by the consultant community, is to use a scenario-based interview. It s not a series of questions, or bring a powerpoint presentation. We ask the team to solve actual problems that would speak to their technical approach as to what they would do. They are more or less graded or scored on how they saw it from a technical perspective, not from a performance perspective. We have actually seen really talented people who would not otherwise have gotten a chance shine in the interview process because they are not going through a pre-canned set of questions or having to put on a performance. They are actually getting to be themselves as engineers or architects or builders. It has worked well and I m not aware of any complaints about that process. I found that people have been very impressed with it. In fact, other airports have begun to use the scenario-based interview and are getting away from the Q&A type questions. Minutes, March 7, 2017, Page 14

15 Item No. 6 was approved unanimously upon a motion by Commissioner Johns and a second by Commissioner Guggenhime. 6. Approval for Artwork in the Consolidated Administrative Campus - Artist Marc Fornes/Theverymany - $400,000 No Resolution approving the commissioning of the Artist Marc Fornes/Theverymany to provide artwork for the Consolidated Administrative Campus, Phase 1 Building in an amount not to exceed $400,000. Ms. Susan Pontious, Director, Public Art Program, San Francisco Arts Commission... I m pleased to present the proposal for the lobby of the new Consolidated Administrative Campus (CAC) building which is artwork designed by Marc Fornes in his studio, Theverymany, and called Hollow Flow. This project is inspired as the artist asks how would the pilot of an air show understand the long straight tunnel of space of the lobby. What acrobatic gestures might he or she attempt within it. How would the sense of spacial interpretation transform a static linear path into a wide awake dynamic experience. So, that is the inspiration of the artwork and sort of the motion that you see in the upper portion of the board on display here. The piece is actually constructed by riveted strips of aluminum, so it is very durable and of light weight construction. The artist and his studio, Theverymany, is based on the focus of research and development of applied computer science and digital fabrication of art and architecture. He work has been in a number of permanent collections. The artist for this project was selected by means of a group of qualified candidates. The Arts Commission does what we call a pre-qualified panel which is a national open call for artists to apply for consideration for projects sponsored by the Arts Commission every two years. So, a group of candidates were taken from this fiscal year s pre-qualified pool and presented to a selection panel that consisted of J.D. Beltran, the President of the Arts Commission, the Senior Associate Architectural Design and Construction lead for SFO, the Senior Project Manager from Perkins, Blake Summers, and Shelley Willis, Director of the Sacramento Metropolitan Arts Commission. The panel reviewed the applicants and chose four finalists. Those artists were asked to prepare a proposal and that proposal was put on public display at the Airport for public comment, as well as being on our website. The panel reconvened and selected this proposal by Marc Fornes. Commissioner Crayton... thank you very much for that report and information about the process. I want to make sure I m understanding correctly... the San Francisco Arts Commission, which is part of the City, is going to place art in the CAC. Do you normally to that? Ms. Pontious... yes. Commissioner Johns... we are required to provide the funding. Ms. Pontious... it s a City Ordinance. Commissioner Crayton... you re not a part of the other artwork that s around? Minutes, March 7, 2017, Page 15

16 Ms. Pontious... yes. Commissioner Crayton... Arts Commissioners are appointed by the Mayor? Ms. Pontious... the San Francisco Arts Commission is a City agency. Commissioner Crayton... what I was trying to get to is I assumed that there was another committee that was selecting art for some reason. Ms. Pontious... The Arts Commission is the agency that runs the permanent art and the selection of artwork for the Airport and every department in the City. We like to say we work with every department from the Airport to the Zoo. That s our mandate. In terms of the art selection, every project has a different panel, and every panel has a representative of the client agency, the Arts Commission, often the project architect and outside arts professionals. That s kind of our standard practice for every project, whether it s the Airport or Rec and Park, or any other project. Commissioner Crayton... when you think of this, and clearly it s an exceptional piece, do you look at minority artists also. Ms. Pontious... we actively recruit. Cultural equity is a huge value of my Commission and my personal performance is based on our efforts and trying to make sure we have a diverse collection. My project managers and I actively recruit artists for consideration. We had four finalists in this group, but only one artist was selected. Among the four finalists was a Latino artist. The Airport collection is very diverse. We have a nice diversity of artists, including racial minorities, which is about 25-30%. Commissioner Crayton said okay that s and thank you very much for that. At sometime, when you have an opportunity, I would like to see a list of all of those. Ms. Pontious... we can provide that information. In fact, we are doing an analysis of our collection because we are about to expand it. I think you ll be very impressed. Commissioner Crayton... I think I will be too. Thank you so very much. Commissioner Johns... I d like to make a comment since I m the Airport representative. I requested that this item be put on our regular calendar rather than our consent calendar because I thought it was important, since we have so much construction going on and we re going to spending $20 million. Mr. Satero... It s $23 million for the Terminal 1 program. Commissioner Johns... I think it s important for all of us to know what we re spending the money on, not just me, and that there ll be a process so that we are aware of who s doing the selection. Commissioner Crayton... that s why I m asking the questions. Minutes, March 7, 2017, Page 16

17 Commissioner Johns... I thought that was very important because in the last year some of the process wasn t as good as it could have been. I think that we all should be aware of how this money is being spent. Not that there s anything wrong with it, but just that we should be aware. Some of the questions that I ve asked, not just about the process, but I m concerned about the artwork and what s built into the budget for maintenance. As I walked through Terminal 2 yesterday and I saw our beautiful mosaic being dusted by one of our Airport workers, I was concerned as to how that would be maintained. Ms. Pontious... that s part of our maintenance agreement with the Airport. Commissioner Johns... I know that but I think the Airport needs to be aware of that. I saw the big net, I don t know what it s called. I m concerned about how that s going to be maintained. Ms. Pontious... it s maintained. We have an annual MOU that we sign with the Airport. In exchange for a reduction in the percentage for art allocation that we get as the budget amounts rise, the Airport Museums program helps maintain the work at the Airport. The Airport has an annual allocation that goes to the Museums program, and Blake can speak more to that as well as the Arts Commission. The art work at the Airport is well maintained. We also have a conservation set aside which is a percentage of the art enrichment allocation for any capital cost. That does not include dusting, but rather some sort of major conservation. If something were to happen, we would have the funds to take care of it. Commissioner Johns... I think it s important for my fellow Commissioners to understand this. G. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: The Consent Calendar, Item Nos. 7 through 11, was approved unanimously upon a motion by Commissioner Johns and a second by Commissioner Stern. 7. Award of Professional Services Contract No Construction Management Support Services for the Runway 10R-28L Overlay and Reconstruction and Taxiways F2 and S Project - AECOM Technical Services, Inc. - $1,100,000 No Resolution awarding Professional Services Contract No , Construction Management Support Services for the Runways 10R-28L Overlay and Reconstruction and Taxiways F2 and S Project, to AECOM Technical Services, Inc. in an amount not to exceed $1,100,000 for one year of services. 8. Modification No. 1 to Professional Services Contract with Landrum & Brown, Inc. to Add New Tasks to the Airport Planning Scope of Services - $1,300,000 Minutes, March 7, 2017, Page 17

18 No Resolution approving Modification No. 1 to the Professional Services Agreement with Landrum & Brown, Inc. to add new tasks to the Airport Planning scope of services in support of ongoing Airport Planning projects, and increasing the contract amount by a not-to-exceed amount of $1,300,000, for a new total contract amount not to exceed $3,000, Determination to Proceed with the As-Needed Airport Pavement and Drainage Improvements Project and Authorization to Call for Bids for Contract No , Construction Services for the As-Needed Airport Pavement and Drainage Improvements Project No Resolution determining to proceed with Airport Pavement and Drainage Improvements, approving the scope, budget, and schedule for Contract No , Construction Services for the As-Needed Airport Pavement and Drainage Improvements Project, and authorizing the Director to call for bids. This action constitutes the Approval Action for Airport Pavement and Drainage Improvements pursuant to Section 31.4(h) of the San Francisco Administrative Code. 10. Determination to Proceed with the International Terminal Building - Roadway Expansion Joints Repairs and Storm Drain Gutter System Replacement Project and Authorization to Call for Bids for Contract No , Construction Services for the International Terminal Building - Roadway Expansion Joints Repairs and Storm Drain Gutter System Replacement Project No Resolution determining to proceed with the International Terminal Building - Roadway Expansion Joints Repairs and Storm Drain Gutter System Replacement Project, approving the scope, budget, and schedule for Contract No , Construction Services for the International Terminal Building Roadway Expansion Joints Repairs and Storm Drain Gutter System Replacement Project, and authorizing the Director to call for bids. This action constitutes the Approval Action for the International Terminal Building - Roadway Expansion Joints Repairs and Storm Drain Gutter System Replacement Project pursuant to Section 31.4(h) of the San Francisco Administrative Code. Minutes, March 7, 2017, Page 18

19 11. Modification No. 1 to Contract No Design-Build Services for the Airport Security Infrastructure Program - Hunt Construction Group Inc. - Time Extension No Resolution approving Modification No. 1 to Contract No , Design-Build Services for the Airport Security Infrastructure Program, to increase the contract duration 180 consecutive calendar days for a new total duration of 420 consecutive calendar days, with no increase to the contract amount. 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. There were no request to speak. 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 9:52 AM. Original signed by: Jean Camaratti Jean Caramatti Commission Secretary Minutes, March 7, 2017, Page 19