SAN FRANCISCO AIRPORT COMMISSION MINUTES

Transcription

1 SAN FRANCISCO AIRPORT COMMISSION MINUTES May 2, :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 May 2, 2017 CALENDAR AGENDA RESOLUTION SECTION ITEM TITLE NUMBER PAGE A. CALL TO ORDER: 3 B. ROLL CALL: 3 C. ADOPTION OF MINUTES: Regular meeting of April 18, D. ITEMS INITIATED BY COMMISSIONERS: 3 E. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 1. Award Contract Design-Build Services for International Terminal Checked Baggage Inspection System Modernization Program & Baggage Handling System Improvements Project - Skanska USA Award Contract Design-Build Services for B/A A Gate Enhancements Project - Skanska USA Modification No. 2 to Contract Design-Build Services for Airport Hotel Project - Webcor Award Contract General Airport Security Services - HSS, Inc Award Professional Services Contract CEQA Consulting Services - Environmental Science Assoc F. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 6. Award Professional Services Contract As- Needed Structural Engineering Support Services - TT/Bello JV Modification No. 3 to Professional Services Contract As-Needed Project Management Support Services - Hill International, Inc. - Time Extension Modification No. 3 to Professional Services Contract As-Needed Project Management Support Services - CPM-Alta Joint Venture, Time Extension G. NEW BUSINESS: 11 H. CORRESPONDENCE: 11 I. CLOSED SESSION: 11 J. ADJOURNMENT: 11

3 AIRPORT COMMISSION MEETING MINUTES May 2, 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 April 18, 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 Guggenhime and a second by Commissioner Stern. 1. Award Contract Design-Build Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project - Skanska USA Building, Inc. - $18,290,943 No Resolution awarding Contract No , Design- Build Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project, to Skanska USA Building, Inc. in an initial amount of $18,290,943 with a contract duration of 1,080 calendar days, and authorizing a corresponding contingency amount. Mr. Geoff Neumayr Chief Development Officer... this item awards the designbuild services contract for the International Terminal Checked Baggage Modernization and Baggage Handling Improvements to Skanska in the initial Minutes, May 2, 2017, Page 3

4 amount of $18.3 million and a contract duration of 1,080 days. A portion of this work is funded by the Transportation Security Administration through an Other Transaction Agreement (OTA) previously approved by the Commission. The OTA will reimburse the Airport 100% of the TSA eligible scope. We estimate that portion to be in the $15-$20 million range. This contract provides designbuild services for the International Terminal Checked Baggage Modernization and Baggage Handling System Improvement Project to replace equipment and systems that are beyond their useful life and impact the reliability of the existing systems in both the International Terminal and boarding areas. This contract will also address the Airport s passenger growth with improved reliability redundancy and capacity for the baggage handling system. Two proposals were received in response to this RFP. A four-member selection panel was convened to evaluate the technical proposals and interviews. All proposers were invited to the interviews. The Skanska team was determined to be the highest ranked proposer. Staff has negotiated the scope of services, the contract terms and conditions, and the initial amount of this contract to include programming services, management fees for design build services and an allowance for pre-construction services to support the programming efforts. This initial contract award amount is the first Commission action for the contract. During the program phase, the project team comprised of the design builder, Airport Staff and stakeholders will jointly refine the project s scope, cost and schedule. Upon completion of the programming phase, Staff will return with any refinements to the cost or schedule and a recommendation to authorize the negotiated design fee. Following the design phase Staff will return to the Commission for approval of trade package sets, provide updates on the project cost forecast and schedule, will identify any significant discrepancies and recommend mitigation measures as required. This project is Federally funded through the an OTA with the TSA, therefore, there are no local business subconsultant participation goals for this contract. The Airport has set an airportwide goal of 40% small business participation. The Airport will encourage proposers to utilize certified small businesses with local, state, or federal small business designations as sub-contractors, lower tier sub-contractors, and suppliers throughout the duration of this contract. Commissioner Guggenhime... will this speed up the baggage. What s the goal? Mr. Neumayr... there are a couple of things going on. The first phase has to do with the TSA, which is introducing new screening machines and reducing the number of screening machines throughout the Airport. The TSA is paying for that portion. They are able to reduce the number of machines because the 9800 machines that they ll be installing have better technologies. Also, the new machines have a higher reliability in terms of screening so it pushes more bags through and our production goes up as a result. The other part of this is the upgrading of what happens post security and the distribution throughout to the boarding areas, and this will speed that up as well. Both things happen at the same time. This is the original system that was installed when the International Terminal was constructed. It was the first in-line system in the United States. Commissioner Crayton... have they done this type of work before? Minutes, May 2, 2017, Page 4

5 Mr. Neumayr... both Turner and Skanska have built major terminal buildings which typically include the baggage handling system. Turner will have a baggage handling consultant. There is also a build-out of new rooms for inspection, and a relocation of utilities. It s more general contractor type work. It s important that we have a sub that interacts with the general and Skanska and Turner are both very experienced in aviation. Commissioner Crayton... Skanska is also the company that s either upgrading AirTrain system? Mr. Neumayr... they are doing the the AirTrain guideway extension. Commissioner Crayton... Assuming that they have the capacity to do all of this, or is this another arm of Skanska? Mr. Neumayr... this is Skanska. Commissioner Johns... I saw something on TV about a 3D scanning system that looks at luggage, etc. and makes it easier for inspectors. Is there any of this new technology in what they re doing? Mr. Neumayr... I don t know much about the scanning process. These machines are provided by the TSA. We do know that the scanning looks almost like an MRI and it actually gives 3D representation. The actual difference between the old machines and the new machines is that this technology looks at the slices that it takes and it s able to push things through a lot faster. Commissioner Johns... so they can see more. That s what had seen. Mr. Neumayr... right. For example, in the old system you would just see an iphone, but the new system now sees the iphone and all its parts. The original problem that they were having was building logistics into their computer software that would identify an iphone so you don t have to identify all 20 parts of the phone to clear it. They resolved that issue. If you recall, we got into some issues with the TSA in trying to make the technology work when we began this project. We ve now gone through all of those issues and developed a physical process to actually make it work now. Item No. 2 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Johns. 2. Award of Contract No Design-Build Services for the Boarding Area Gate Enhancements Project - Skanska USA Building, Inc. - $14,468,053 No Resolution awarding Contract No , Design- Build Services for the Boarding Area A Gate Enhancements Project, to Skanska USA Building, Inc. in an initial amount of $14,468,053 with a contract duration of 1,165 calendar days, and authorizing a corresponding contingency amount. Minutes, May 2, 2017, Page 5

6 Mr. Neumayr... this item awards Design-Build Services for the Boarding Area A Gate Enhancements Project to Skanska Constructors in an initial amount of $14.5 million and a contract duration of 1,165 calendar days. The forecasted total of the contract at completion is $84 million. The project addresses our increasing passenger load and changing aircraft in the International Terminal at Boarding Area A. This project will create flexibility at the existing gates by replacing aircraft parking positions, installing or replacing passenger boarding bridges with new bridges, and relocating fuel pits, and installing associated utilities. Two proposals were received in response to this RFP. A four-member selection panel was convened to score the technical proposals and the oral interviews and the Skanska team was determined to be the highest ranking proposer. Staff has negotiated the terms and conditions in an initial contract amount for programming services, management services, as well as early trade packages. This is the initial contract award, but during the programming phase the project team, similar to the other project, will develop and refine the cost and then return to you for approval of the design fee. Following the design phase, staff will return for approval of the trade package sets and will provide updates to the Commission on the cost forecast. The City s Contract Monitoring Division (CMD) approved a 20% LBE sub-consultant goal for design services and an 11% LBE sub-contracting goal for construction services. Skanska has committed to meeting these goals. Commissioner Crayton... I don t know anything about Skanska, and I don t have a problem, but I m trying to understand the project that we just approved is absolutely major and very important. They also have another contract that s major and important. I m just trying to understand the capacity. Turner is another company. Knowing that they have all of these contracts, they were chosen again by ths panel and I question that. I think that you know it s sending a signal to me. Maybe we need to do more training of the other companies that bid. There must be something wrong with their bid that they can t get a contract and Skanska continues to receive all of these contracts. Mr. Neumayr... it s something we are dealing with and trying to understand. We have our moments in time where we have different contractors who end up with a series of projects. We ve experienced this with Hensel-Phelps and Webcor, and now we re experiencing it with Skanska. What we found through the process is that they only go after work when they have the capacity. But when contractors get a lot of work at the Airport, for example Hensel Phelps and Webcor, they do not bid on the next jobs. For example, Webcor isn t going after thet3 West project. There are capacity problems with all of the contractors within this $5.7 billion program. It s tough because once someone picks up work they do have challenges going after other projects. We were challenged to get people on T3 West because of capacity. We only know of two firms going after that right now. I think that this is just a result of where their staff is. Turner was the only one that went after it. They are working on our office block and tower demolition project in Terminal 2. It ebbs and flows. Remember that when these firms compete at the Airport they have to bring their best people to get the job. So when these firms commit their best people to other jobs, they re not as competitive on the next one. We do see these things happen on occasion. Minutes, May 2, 2017, Page 6

7 Commissioner Crayton... when they come back for cost overruns and we modify and modify contracts, we ll remember those pieces. I know that you do the best that you can and clearly I don t have an issue with the selection because I actually looked back at the minutes of past Commission meetings to see who s getting the contracts. That s the only reason why the antenna went up. Mr. Neumayr... on a positive note, it s not so much a cost issue as this is primarily a qualification based selection. Our biggest concern is making sure that we re getting the best people. Once they commit enough of their best people, even though, for example, Turner and Hensel Phelps are big, we re still dependent upon their local people. So at times it really boils down to people selection rather than just a company selection because their people are committed. Everyone has A players and B players, and we want all the A players. Commissioner Crayton... where is Skanska located? Mr. Neumayr... they re headquartered in New York, I believe, but they do have a local presence. They re also working on the BART project, so they do have a presence in the Bay Area. Commissioner Johns... both of these are in the International Terminal, correct? Mr. Neumayr... correct. Commissioner Johns... isn t that a plus? Is there a connection between the two? Mr. Neumayr... conceivably, that could be a plus in the end. I hadn t thought about that. Commissioner Johns... I just meant that the baggage handling is in International Terminal and now they re doing this other Commissioner Crayton... more passenger disruption. Mr. Neumayr... it won t disrupt passengers because it s outside of passenger areas. It s underneath the building where passengers can t see it. And the gates will be on the outside of the building, and we plan to do them one at a time. Item No. 3 was approved unanimously upon a motion by Commissioner Guggenhime and a second by Commissioner Stern. 3. Modification No. 2 to Contract No Design-Build Services for the Airport Hotel Project - Webcor Construction LP dba Webcor Builders, Inc. - $12,262,063 No Resolution approving Modification No. 2 to Contract , Design-Build Services for the Airport Hotel Project, with Webcor Construction LP dba Webcor Builders, Inc., increasing the contract amount by $12,262,063 for a new contract amount of $37,091,556. Minutes, May 2, 2017, Page 7

8 Mr. Neumayr... this item approves Modification No. 2 to the Webcor Construction contract for design build services for the Airport Hotel to increase the contract amount by $12.2 million and to establish a new contract amount of $37.1 million, with a corresponding amount of contingency authorization and no change to the contract duration. This contract provides for design build services for the design and construction of the new Airport Hotel which will include meeting rooms, ballrooms, dining facilities and other amenities including a fitness center. The contract also includes the design and construction of a bridge that connects the Airport Hotel to the new AirTrain station. The current budget for this contract is $219.7 million with an estimated overall duration of 1,226 days. This modification provides for design services and geotechnical studies. The programming phase is finished and the schematic design phase has just begun. Following the design phase Staff will return to the Commission for approval of the trade package sets and to provide updates to the Commission on the project cost, forecast and schedule, and will identify any significant variances and recommended mitigation measures as required. The Contract Monitoring Division has approved a 20% LBE sub-consulting goal for design services and a 25% LBE sub-contracting goal for construction services. Webcor is committed to meeting these contract goals. Item No. 4 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Guggenhime. 4. Award Contract General Airport Security Services - HSS, Inc - $6,500,000 No Resolution awarding Contract No , General Airport Security Services to HSS, Inc. for a period of three years, with one 2-year options, in amount not to exceed $6.5 million. Mr. Ralf Ruckelshausen, Director, Safety and Security... staff is seeking award of Contract No , General Airport Security Services, to HSS, Inc. in the amount not to exceed $6.5 million for a period of three years, and one two-year option to extend at the discretion of this Commission. On November 1, 2016 the Airport Commission authorized Staff to issue an RFP to seek the best qualified security firm and enter into negotiations with the highest ranked proposer. The Contract Monitoring Division waived the Local Business Enterprise sub-contracting goal as there were no LBE firms certified or qualified to perform this work. Proposals were reviewed and the top three firms were interviewed by a panel consisting of representatives from San Jose Airport, airlines and SFO. HSS, Inc. earned the highest score and the Airport has successfully concluded negotiations and reached agreement on contract terms and conditions. HSS will provide general Airport security services for post-security vendor screening of merchandise and goods, guarding passenger screening checkpoints at exit lanes during non-tsa operating hours, random inspection at direct access points, and on-call security services. These security services not only ensure TSA regulatory compliance but align with the Airport s Reaching for Number 1 Core Value, Safety and Security is Our First Priority. Commissioner Guggenhime... hasn t Covenant had this for years? Minutes, May 2, 2017, Page 8

9 Mr. Ruckelshausen... no, actually HSS is the incumbent. Commissioner Guggenhime... but Covenant was before that, correct? Covenant was here for a long time. I distinctly remember that. Commissioner Johns... that s what I m trying to understand. Are these the screeners? Mr. Ruckelshausen... no. These do no passenger work. Commissioner Johns... Covenant has the screeners through the TSA? Mr. Ruckelshausen... yes. Covenant has the contract with the TSA for passenger screening and baggage screening. This is the other work that s required at checkpoints during non-tsa hours. These individuals guard that. They also guard what we refer to as exit portals. They also do inspections for the merchandise and the goods that come into the Airport. Item No. 5 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Stern. 5. Award Professional Services Contract California Environmental Quality Act (CEQA) Consulting Services for the Recommended Airport Development Plan Environmental Impact Report - Environmental Science Associates - $2,400,000 No Resolution awarding Professional Services Contract No to Environmental Science Associates for CEQA consulting services for the Recommended Airport Development Plan Environmental Impact Report in a total contract amount not to exceed $2,400,000 for a five year term. Mr. John Bergener, Airport Planning Director... this Item seeks award of a Professional Services Contract to prepare an Environmental Impact Report or EIR for the recommended Airport Development Plan. The last EIR completed at the Airport was for the 1989 Master Plan, certified by the Planning Commission and adopted by the Airport Commission in The San Francisco Planning Department is the lead CEQA agency for the Airport and other City departments and has advised that an EIR would be required to analyze the potential environmental effects of the recommended ADP. Airport Staff issued an RFP to the Planning Department s pre-qualified pool list of 16 CEQA consultants. A threeperson selection panel of subject matter experts, which included an Airport staff member and two staff from other California airports, convened to review and score written proposals. Each of the panelists has had between years of planning experience and all have been in their respective airport positions for at least ten years. The scope of services to be provided under this contract is comprised of tasks necessary to complete an EIR, according to State CEQA guidelines, Chapter 31 of the San Francisco Administrative Code and the Planning Department s Environmental Review guidelines. Staff negotiated the scope of services, terms and conditions, reimbursable expenses such as mass Minutes, May 2, 2017, Page 9

10 printing costs for public notices and billing rates. All tasks will be paid on a time and materials not to exceed amount basis. The CMD has approved an 8% subconsultant participation requirement for the EIR and the contractor has committed to meeting the requirement. No protests were received. Funding for the EIR is included in the Airport s operating budget. Upon certification of the final EIR, which we are targeting to complete in two years, staff will return to the Commission for adoption of the EIR findings and mitigation measures, and approval of the draft final recommended ADP as the final recommended ADP under separate resolution. F. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: The Consent Calendar, Item Nos. 6 through 8, was unanimously approved upon a motion by Commissioner Crayton and a second by Commissioner Guggenhime. 6. Award of Professional Services Contract No As-Needed Structural Engineering Support Services - TT/Bello JV - $800,000 No Resolution awarding Professional Services Contract No , As-Needed Structural Engineering Support Services, to TT/Bello JV in an amount not to exceed $800,000 and a duration of five years. 7. Modification No. 3 to Professional Services Contract No As-Needed Project Management Support Services - Hill International, Inc. - Time Extension Only No Resolution approving Modification No. 3 to Professional Services Contract No , As- Needed Project Management Support Services, with Hill International, Inc. to increase the contract duration by one year for a new duration of four years. 8. Modification No. 3 to Professional Services Contract No As-Needed Project Management Support Services - CPM-Alta Joint Venture - Time Extension Only No Resolution approving Modification No. 3 to Professional Services Contract No , As- Needed Project Management Support Services, with CPM-Alta Joint Venture to increase the contract duration by one year for a new duration of four years. G. 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 Minutes, May 2, 2017, Page 10

11 on the table next to the speaker s microphone and submit it to the Commission Secretary. 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 9:28 AM. (Original signed by: Jean Caramatti) Jean Caramatti Commission Secretary Minutes, May 2, 2017, Page 11