Metropolitan Airports Commission
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- Eugenia Hodges
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1 Metropolitan Airports Commission Management and Operations Committee Regular Monthly Meeting Minutes Monday, February 04, :00 pm
2 REPORTS C METROPOLITAN AIRPORTS COMMISSION MANAGEMENT & OPERATIONS COMMITTEE REGULAR MEETING Monday,, 1:00 p.m. Room 3048A, Terminal 1-Lindbergh Minneapolis-St. Paul International Airport "CONSENT ITEMS" Call to Order A regular meeting of the Management and Operations Committee, having been duly called, was held, in Room 3048A, Terminal 1-Lindbergh, Minneapolis-St. Paul International Airport. Chair Landy called the meeting to order at 1:00 p.m. The following were in attendance: Commissioners: Landy, King, Boivin, Geisler, Madigan, Monaco, Rehkamp, Crimmins Staff: S. Busch, T.W. Anderson, J. Hamiel, D. Probst, R. Fuhrmann, G. Schmidt, S. Wareham, D. Ruch, D. Foster, E. Johnson, M. Batt, G. Warren, J. Greer, M. Grimm, P. Burke, P. Rasmussen, C. Boyd, J. Kedrowski, M. Krogh, M. Kilian, P. Hogan, M. Scovronski, J. Laurent, B. Peters, J. Karels, R. Breezee, A. Irish Others: Frank Lorenz, Hulke & Gheer; Ross Kramer, Messerli and Kramer, representing Sun Country Airlines; Louis C. Henry, Courtney Henry, Missy Schmidt, McDonalds; Dale Lund, Theisen Vending; Butch Howard, HMS Host; Dan Minning, Suzanne Wheeler, ABM; Hank Moody, Delta Airlines OPEN FORUM The Open Forum is a portion of the Committee meeting where persons are allowed to address the Committee on subjects which are not a part of the meeting agenda. Public comments were received from Mr. Frank Lorenz, Hulke & Gheer. He spoke about upcoming legislation related to MSP flight patterns and noise that impact neighborhoods near MSP. AGENDA ITEMS C1. REQUEST AUTHORITY TO ISSUE A REQUEST FOR QUALIFICATIONS FOR REAL ESTATE MARKETING AND BROKERAGE SERVICES CF 2379 Over the past few years staff has been working on developing a non-aeronautical land development program at the Reliever Airports for the purpose of generating additional operating revenue through long term land leases. This process has taken a long time for a number of reasons, such as the extensive process to get FAA approval for a land release, and working with the individual cities regarding zoning and development standards.
3 Page 2 Staff is now seeking the services of a professional real estate firm which will first develop a marketing package for sites available at the Anoka County Blaine and Flying Cloud airports. The next step would be for the firm to seek developers that might be interested in developing available sites at the MAC. The consultant would work with the developer to walk the project through the required city approval process. At the completion of this phase of the project, and following the execution of a long term land lease with the developer, the consultant would be entitled to a brokering fee for their services. To be considered, consultants must submit qualification statements that comply with the MAC consultant and professional services policies and requirements of the Request for Qualifications (RFQ). The Commission approved review team will evaluate qualifications statements and make a recommendation for the Management and Operations Committee s consideration. RECOMMEND TO THE FULL COMMISSION 1) THAT STAFF BE AUTHORIZED TO ISSUE A REQUEST FOR QUALIFICATIONS FOR REAL ESTATE MARKETING AND BROKERAGE SERVICES; 2) APPOINTMENT OF THE REVIEW TEAM TO CONDUCT THE INTERVIEWS OF FIRMS AS PART OF THE SELECTION PROCESS, AND 3) THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS. C2. RECOMMEND AWARD OF CCTV SYSTEM SUPPORT AND SERVICES CONTRACT CF 2380 The MAC is seeking experienced system support and maintenance services of its existing closed circuit television (CCTV) System at Minneapolis St. Paul International Airport (MSP). The current MAC CCTV System includes more than 1,200 cameras and a variety of controls, digital recording equipment and computers. The cameras are installed throughout the airfield, parking ramps, and terminal facilities, both indoors and outdoors. This contract is for CCTV support and services related to the existing, legacy system and not the new ivisn system. After staff issued a Request for Proposals (RFP), two proposals were received for review. The staff evaluation committee reviewed each proposal and awarded points to vendors based on the RFP evaluation criteria. Based on the conclusions reached by the evaluation committee, staff recommends award of the CCTV System Support and Service contract to Pro-Tec Design. RECOMMEND TO THE FULL COMMISSION TO AWARD THE CCTV SYSTEM SUPPORT AND SERVICE CONTRACT TO PRO-TEC DESIGN FOR ONE (1) YEAR WITH THREE (3), OPTIONAL, ONE (1) YEAR RENEWAL OPTIONS, AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.
4 Page 3 C3. EXERCISE OPTION TO RENEW CONTRACT WITH ABM JANITORIAL SERVICES CF 2381 The MAC contracts with ABM Janitorial Services for cleaning the MSP terminals and the maintenance, trades, general office and other satellite buildings. The current agreement expires May 31, 2013 and was structured with two, two-year renewal options should the Commission choose to do so, subject to satisfactory performance and mutually acceptable rates. ABM has been the cleaning contractor for MSP since 1997 and has proved to be versatile and responsive to the daily challenges inherent to the airport cleaning and maintenance atmosphere. To assist in tracking over three million square feet of space that is utilized 24 hours per day, seven days per week, the MAC staff and ABM utilize a document referred to as the Cleaning Matrix. The Matrix is the part of the contract that details where/what/how often and the cost of over 2,000 line items associated with cleaning and maintenance. One method of evaluating ABM s performance is through the Airports Council International-NA s Airport Service Quality (ASQ) customer survey process. The surveys measure customer satisfaction of airport travelers in more than 30 categories. Of particular importance to the Facilities department are the Terminal Cleanliness and Restroom Cleanliness ratings. While there is certainly room for continued improvement, both categories are running at or above the panel average even while competing with many newer facilities in warmer, easier to keep clean climates. ABM continues to utilize Targeted Group Business (TGB) vendors to provide janitorial services at the MAC General Office, Field Maintenance, Trades, Navy, and Air Cargo buildings, as well as for a portion of janitorial work at the Lindbergh Terminal. ABM also partners with LifeWorks. LifeWorks provides job opportunities to individuals with disabilities and, along with ABM, has identified numerous job functions where individuals thrive at the airport. ABM also partners with Step-Up, a Minneapolis jobs program that recruits, trains and places low-income young people in jobs. ABM is actively looking to incorporate the program here at MSP. RECOMMENDATION The MAC staff continues to be pleased with ABM s performance and recommends that the MAC exercise its option to renew the agreement for a two-year term, from June 1, 2013 through May 31, 2015; and enter into an amendment to establish the new term. RECOMMEND THAT THE FULL COMMISSION EXERCISE ITS OPTION TO RENEW THE CLEANING CONTRACT WITH ABM JANITORIAL SERVICES FOR A TWO-YEAR TERM, AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.
5 Page 4 C4. EXERCISE OPTION TO RENEW CONTRACT WITH VAN DEUSEN & ASSOCIATES FOR TRAM, ELEVATOR, ESCALATOR, AND MOVING WALK CONSULTING SERVICES CF 2382 The MAC oversees all aspects of maintenance, repair and day-to-day operation of 208 elevators, escalators and moving walks and two automated people mover (APM) systems on the MSP campus, except for those on the G Concourse. Given the volume of traffic traveling through the terminals, layout of MSP facilities, the airport s high visibility as a transportation center, and the risk of equipment failures contributing to missed flights, proper operation of all vertical and horizontal transportation equipment is critical to MSP s overall operation. Because specialized training, experience, and licensing is required to conduct the equipment inspections, the MAC has contracted these inspection services and other oversight tasks since The MAC has received good value by contracting for this expertise rather than adding staff with the requisite knowledge, and staff recommends continuing with a contractual approach. The MAC staff recommends that the MAC exercise its option to renew the agreement for a three-year term, from June 1, 2013 through May 31, 2016; and enter into an amendment to establish the new term. RECOMMEND THAT THE FULL COMMISSION EXERCISE ITS OPTION TO RENEW THE TRAM, ELEVATOR, ESCALATOR, AND MOVING WALK CONSULTING SERVICES CONTRACT WITH VAN DEUSEN & ASSOCIATES FOR A THREE-YEAR TERM, AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS. C5. REQUEST TO RENEW CISCO EQUIPMENT SUPPORT AGREEMENT CF 2383 The MAC has historically purchased Cisco equipment for the network switches and routers both for Information Services and CIP project use. The equipment and support are available through a State of Minnesota Contract through Cisco s authorized re-seller, CDWG. There is a major, multi-year, Commission-approved project to upgrade the MACNet equipment, which, over time, will replace the Cisco equipment. It is important that the current Cisco equipment continues to be supported during the transition to insure network availability. Support is specific to Cisco equipment and is available only from authorized Cisco resellers. The software support and upgrades are the key elements needed to maintain the network equipment since the hardware itself has a low rate of failure. Staff recommends approval of payment to CDWG to renew Cisco network equipment support for 2013.
6 Page 5 RECOMMEND TO THE FULL COMMISSION THAT STAFF BE AUTHORIZED TO PAY THE 2013 ANNUAL CISCO SUPPORT RENEWAL IN THE AMOUNT OF $106, TO CDWG, AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS. C6. CONTINUING CONSULTANT SELECTION FOR AVIATION LIABILITY CLAIM SERVICES CF 2384 The MAC currently has an aviation liability insurance policy with ACE USA ( ACE ). The policy includes an annual claim limit, and a deductible per claim. The deductible portion of the policy is currently administered by Berkley Risk Administrators Company, LLC ( Berkley ). Berkley recently informed the MAC staff of their intention to eliminate their liability claims adjusting services. The MAC issued a Request for Qualifications (RFQ), and a total of three (3) firms submitted qualifications statements in response to the RFQ. All three firms satisfactorily complied with the RFQ requirements, and the MAC review team interviewed all three firms. The criteria evaluated by the review team included background information, personnel & staffing, experience with claims management, loss runs, initial start up & transition plan and loss prevention & control, fees, actual or potential conflicts of interest and references. Based upon the contents of the qualifications statements and the interviews conducted, the review team recommends that Claims Management and Consulting, Inc. be designated to provide Aviation Liability Claim Services to the Commission as a continuing consultant for a term of six years. RECOMMEND TO THE FULL COMMISSION THAT CLAIMS MANAGEMENT SERVICES, INC. BE SELECTED AS A CONTINUING CONSULTANT FOR AVIATION LIABILITY CLAIMS SERVICES; AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS. C7. RECOMMENDATION TO AWARD SNACK AND BEVERAGE VENDING CONCESSION AGREEMENT CF 2385 Matt Grimm, Manager Concessions & Business Development, outlined the main points of this item. With Commission authorization, staff issued a Request For Proposals ( RFP ) for a Snack and Beverage Vending Concession, and proposals were received from: ARAMARK, Midwest Vending, Taher and Theisen Vending. The MAC Review Team then met to discuss and score the proposals.
7 Page 6 Each proposal was evaluated and scored by the Review Team based on a set of criteria: Minimum Requirements Financial Offer and Projections Company Qualifications and Experience Management and Operations Plan Type and Quality of Equipment, Including Vending Technology Quality and Variety of Merchandise Proposed DBE Participation The Review Team members reviewed and evaluated the four (4) proposals received. Based upon the scoring criteria, it is the Review Team s unanimous recommendation that Theisen Vending be selected to operate the Snack and Beverage Concession at MSP. In response to Commissioner questions, Mr. Grimm indicated that the previous concession had a term of (8) eight years. Part of the reason for this lengthier term is the significant amount of investment and capital into the vending program. Despite not offering the best financial package, Theisen Vending received the highest score because their proposal most closely matched the RFQ criteria which emphasized not only the rent proposed, but complied with the other financial requirments as well. Theisen Vending will install new machines that offer state of the art functions, such as colorful displays, touch screens, payments via credit cards and cell phones, all of which is projected to elevate revenues by attracting more travelers. COMMISSIONER KING MOVED AND COMMISSIONER MADIGAN SECONDED TO RECOMMEND TO THE FULL COMMISSION 1) AWARD OF THE SNACK AND BEVERAGE VENDING CONCESSION TO THEISEN VENDING; 2) AUTHORIZE STAFF TO NEGOTIATE FINAL AGREEMENTS AND RELATED DOCUMENTS WITH THE WINNING PROPOSER; 3) AUTHORIZE STAFF TO NEGOTIATE FINAL AGREEMENTS WITH THE NEXT BEST PROPOSER SHOULD THE PROPOSED WINNER FAIL TO EXECUTE AND DELIVER THE AGREEMENT TO MAC WITHIN THE TIME PERIOD OUTLINED IN THE RFP; AND 4) THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS. C8. REQUEST AUTHORITY TO ENTER INTO AN AGREEMENT WITH MCDONALD S FOR THE OPERATION OF A RESTAURANT IN THE FORMER AIRPORT MD SPACE CF 2386 Matt Grimm, Manager Concessions and Business Development, presented an overview of this item. With Commission approval, staff entered into direct negotiations with prospective tenants to return to the Management and Operations Committee with a newly proposed agreement for the former would-be Airport MD Medical Clinic space located next to XpresSpa at the entry to the D pod. In August 2012, in response to negative stories in the local news media and numerous requests for the brand by the traveling public and from airport employees, staff reached out to McDonald s Corporation in an attempt to gauge their interest in constructing a
8 Page 7 restaurant in the space. The reintroduction of the most popular quick service brand in the world will remedy the most frequent customer complaint and will provide an alternative for families, employees, and those in need of a quick meal while traveling. Over the last several months staff has been negotiating with the McDonald s Corporation to operate a restaurant in this location. Staff discussed the key business terms and customer service issues related to the Agreement. In response to questions from Commissioners, Mr. Grimm indicated that when the previous McDonalds concession vacated the G Concourse at MSP, the MAC had no say in the change, because McDonalds agreement was directly with Delta Airlines, which manages the G Concourse tenants. The proposed agreement would be with McDonalds corporate, with Mr. Louis Henry as the franchisee. Mr. Henry addressed the committee and described parts of his strategic plan in his commitment to the success of this McDonalds. The MSP McDonalds will have the full standard menu and will maintain value pricing to provide optimal customer service. COMMISSIONER REHKAMP MOVED AND COMMISSIONER BOIVIN SECONDED TO RECOMMEND TO THE FULL COMMISSION APPROVAL OF AN AGREEMENT WITH MCDONALD S CORPORATION OR FRANCHISEE ON THE BASIS OUTLINED ABOVE FOR THE OPERATION OF A MCDONALD S RESTAURANT CONCESSION, AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS. C9. AUTHORIZATION FOR A PUBLIC HEARING ON A REVISION TO MAC ORDINANCE NO. 94 CF 2387 John Kedrowski, Attorney, gave an overview of this memo, which is requesting authority to conduct a public hearing on a revision of the MAC Ordinance No. 94 relating to building code requirements at MSP. Proposed changes to the ordinance include: (i) resetting the fees paid for building, plumbing and mechanical work to be equivalent to other cities; (ii) establish fees for miscellaneous inspections performed by code officials such as telecommunications and sign work; (iii) establishing a minimum fee for any permit or inspection required by the various state code(s); and, (iv) general clean-up of language within the ordinance. Chair Boivin stated that the Management & Operations committee shall be the hearing officers for the public hearing. In response to Commissioner questions, the inspection process and the role of outside (non-mac) entities was discussed. COMMISSIONER REHKAMP MOVED AND COMMISSIONER BOIVIN SECONDED TO RECOMMEND TO THE FULL COMMISSION THAT STAFF BE AUTHORIZED TO PROCEED WITH A PUBLIC HEARING PROCESS TO ADOPT AN ORDINANCE REVISING MAC ORDINANCE NO. 94.
9 Page 8 C10. PINNACLE AIRLINES HEADQUARTERS CF 2388 Thomas W. Anderson, General Counsel, updated Commissioners on this item. Staff has been working for the past several months with representatives of Greater MSP, the State of Minnesota, Delta Air Lines and Pinnacle Airlines to secure the Pinnacle corporate headquarters. Staff is pleased to report that the MAC has reached an agreement in principle and have identified the Building C Office Tower as the location for this facility. Under the proposed agreement, Delta would agree to sublease certain portions of the Building C Office Tower to Pinnacle and MAC would consent to the sublease. MAC would agree to fund up to $550,000 in tenant improvements to help prepare the facility for Pinnacle s needs, and Delta would repay that amount to MAC as supplemental rent amortized over 10 years at 6% interest. This transaction is part of a larger negotiation taking place as Pinnacle emerges from bankruptcy and is being acquired by Delta. Staff believes that these financial concessions to Delta and Pinnacle are necessary to secure the relocation of the headquarters and recommends approval of the agreement as outlined. COMMISSIONER GEISLER MOVED AND COMMISSIONER MADIGAN SECONDED TO RECOMMEND TO THE FULL COMMISSION APPROVAL OF A LEASE AMENDMENT WITH DELTA AIR LINES, INC. AND CONSENT TO A SUBLEASE BETWEEN DELTA AND PINNACLE AIRLINES ON THE BASIS OUTLINED, AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS. The meeting was adjourned at 1:44 pm.
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