SAN FRANCISCO AIRPORT COMMISSION MINUTES

Transcription

1 SAN FRANCISCO AIRPORT COMMISSION MINUTES July 7, :00 A.M. Room City Hall #1 Dr. Carlton B. Goodlett Place (400 Van Ness Avenue) City and County of San Francisco GAVIN NEWSOM, MAYOR COMMISSIONERS LARRY MAZZOLA President LINDA S. CRAYTON Vice President CARYL ITO ELEANOR JOHNS RICH GUGGENHIME JOHN L. MARTIN Airport Director SAN FRANCISCO INTERNATIONAL AIRPORT SAN FRANCISCO, CALIFORNIA 94128

2 Minutes of the Airport Commission Meeting of July 7, 2009 CALENDAR AGENDA RESOLUTION SECTION ITEM TITLE NUMBER PAGE A. CALL TO ORDER: 4 B. ROLL CALL: 4 C. ADOPTION OF MINUTES: D. SPECIAL ITEMS: Regular meeting of June 16, Retirement Resolution - Aileen Fokes Dedication of the Terminal 3 Hub in Honor of Congressman Tom Lantos E. PUBLIC HEARING: 3. Hearing on Proposed changes to the Airport s Rules and Regulations F. DIRECTOR S REPORTS: 4. Application of the BART Airport Surcharge of $4.00 Each Way on Employees - verbal report 8-9 G. ITEMS INITIATED BY COMMISSIONERS: 9 H. POLICY: 5. Passenger Facility Charge Increase I. ITEMS RELATING TO ADMINISTRATION, OPERATIONS AND MAINTENANCE: 6. Proposed Revisions to the Airport Quality Standards Program 4-5 J. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 7. Authorization to Issue a RFQ - Design-Build Services, Contract As-needed Baggage Handling Systems Improvements Award Ground Lease to Linde LLC for Advanced Fueling Facility for Hydrogen-Powered Vehicles Minutes, July 7, 2009, Page 2

3 9. Award Ground Lease to Hythane Co., for Hythane Vehicle Fueling Facility Authorize an Other Transaction Agreement With the TSA for Airport Surveillance Program Reject All bids - Contract Runway 1R-19L Overlay and Reconstruction Award Terminal 3 Concourse Specialty Store Lease - Air Sun, a J.V. of Sunglass Hut Trading, LLC and Corliss Stone-Littles, LLC Authorization to Issue a RFP for Sleep Units Lease Authorization to Accept Bids for Pay Phone Lease Authorization to Enter into a Ten-Year Agreement with San Mateo County Designating CCSF as the EMT-Paramedic Service Provider For SFO K. NEW BUSINESS: 12 L. CORRESPONDENCE: 12 M. CLOSED SESSION: Potential Litigation 4 N. ADJOURNMENT: 12 Minutes, July 7, 2009, Page 3

4 A. CALL TO ORDER: AIRPORT COMMISSION MEETING MINUTES July 7, 2009 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. Caryl Ito Hon. Eleanor Johns Hon. Rich Guggenhime M. CLOSED SESSION: Discussion and vote pursuant to Brown Act Section and Sunshine Ordinance Section on whether to conduct a Closed Session. The Commission voted unanimously to go into closed session. The public meeting was recessed at 9:06 AM and the closed session began. The Airport Commission will go into closed session in accordance with Government Code Section (b) to confer with legal counsel regarding potential litigation. The Commission reconvened its public session at 10:16 A.M. The Commission determined that it was not in the public interest to disclose the nature of the closed session and voted unanimously not to disclose it. Discussion and vote pursuant to Brown Act Section and Sunshine Ordinance Section on whether to disclose action taken or discussions held in Closed Session. I. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: Item No. 6 was removed from the calendar. 6. Proposed Revisions to the Airport Quality Standards Program Resolution approving the revisions to the Airport Quality Standards Program for airlines and airline Minutes, July 7, 2009, Page 4

5 service providers and authorizing implementation of the new Quality Standards Program, effective January 1, Mr. Martin apologized, saying that Item No. 6 would be put over to an August meeting. We are working to insure that no existing employees covered by the QSP suffer a loss in wages or in compensation. He explained that employees who are currently receiving $1.25 an hour by opting out of the healthcare will not lose that $1.25 an hour provided that they can demonstrate that they have health care coverage. He does not think that employees who cannot demonstrate that they have insurance would be protected from that loss. We will work toward ensuring that existing employees do not suffer a loss in wages or that form of compensation, and we will return to the Commission in August. Commissioner Mazzola said that this is a very complicated issue and we want to get it right. We don t want anyone to suffer any losses. The Director has agreed to try and fix that loophole. C. ADOPTION OF MINUTES: The minutes of the regular meeting of June 16, 2009 were adopted unanimously. No D. SPECIAL ITEM: Item No. 1 was moved by Commissioner Crayton and seconded by Commissioner Ito. The vote to approve was unanimous. 1. Retirement Resolution - Aileen Fokes No Resolution thanking Aileen Fokes for more than 25 years of faithful service to the City and County of San Francisco, all of which have been at San Francisco International Airport. Mr. John Martin, Airport Director said that Aileen Fokes is not here today. Aileen is retiring after 25 years of service working in the Airport s Communication Center as a Senior Dispatcher and a shift supervisor. She is an outstanding employee who trained many dispatchers over the years. For many years she volunteered as a Combined Charities Captain and also served as the department s Safety Coordinator. We thank Ms. Fokes for her outstanding and dedicated service over the last 25 years. Commissioner Mazzola congratulated Ms. Fokes on her retirement. Minutes, July 7, 2009, Page 5

6 Item No. 2 was moved by Commissioner Crayton and seconded by Commissioner Johns. The vote to approve was unanimous. 2. Dedication of the Terminal 3 Hub in Honor of Congressman Tom Lantos No Resolution approving the dedication of the Terminal 3 Hub to Congressman Tom Lantos and naming said area the Congressman Tom Lantos Hub. Mr. Martin said that Congressman Lantos served for 27 years representing San Mateo County and a portion of San Francisco in an area that included the San Francisco International Airport. In recognition of his outstanding service as a Congressperson and an international leader we would like to name the Hub of Terminal 3 for Congressman Lantos. A bas relief, similar to the one of Henry Berman in the International Terminal, will be placed at the entrance to United s Red Carpet Club. Commissioner Crayton said that Congressman Lantos is deserving of this honor and she is particularly happy to be on the Commission to vote for this approval. Ms. Shelley Kessler, San Mateo County Labor Council said she worked with Tom for over 20 years on issues involving the Airport and she thinks it is wonderful of the Commission to do this. He deserves the respect and the honor. She asked that his staff, who still meet regularly, be sent a copy of the resolution. E. PUBLIC HEARING: The Public Hearing was convened at 11:25 AM and adjourned at 10:33 AM, there being no further public comment. Item No. 3 was moved by Commissioner Crayton and seconded by Commissioner Guggenhime. The vote to approve was unanimous. 3. Hearing on Proposed Changes to the Airport s Rules and Regulations No Hearing and resolution adopting proposed changes to the Airport s Rules and Regulations by adding Section (E) Tenant Trip Reduction Program - Commuter Benefits Program. Mr. Martin said that this will conform to the Board of Supervisors and Mayor s requirements that all businesses in San Francisco offer a Commuter Check Program. This pretax benefit for employees is also a benefit to employers because it reduces their tax obligation. The Chamber of Commerce reports that the City requirement has overwhelming support from businesses in San Francisco because they have benefitted from this program financially. Mr. Tryg McCoy, Deputy Director, Operations and Security explained that the new rule is modeled after the City and County of San Francisco Commuter Benefits Ordinance passed by the Board of Supervisors on August 8, Both the City s Minutes, July 7, 2009, Page 6

7 Ordinance and this proposal take advantage of an existing Federal tax law that allows employers to deduct as a business expense qualified transportation benefits that the employer provides. The law also benefits employees by allowing them to purchase qualifying transit passes or reimbursement for van pool expenses up to the current maximum of $230 per month with pretax dollars. So it s a win-win proposal that allows both the employers to reduce their payroll tax and employees to use pretax dollars to reduce their commute to work costs while utilizing public transit. The proposed amendment to the Tenant Trip Reduction Section of the Airport s Rules and Regulations will require employers with 20 or more employees to implement a commuter benefits program within six months of adoption of this proposal. The rule will cover employees working at least 10 hours per week, so full time and the vast majority of part time employees will be covered. Covered employers must provide at least one of the following commuter benefit programs as part of the amendment to the Rules and Regulations for all employees. They need to offer a pretax transit election program, an employer paid public transit benefit, or an employer provided transit program. The pretax program can be utilized on MUNI, BART, Amtrak, CalTrans, SamTrans, Golden Gate Transit or van pool. The City and County of San Francisco has offered this program for many years to all Airport Commission employees. Last month with the assistance of the San Francisco Chamber of Commerce, Airport staff held three meetings with SFO employers to explain the program. To insure employer compliance, Appendix C, the Fine Schedule of the Airport Rules and Regulations, includes a $200 per day fine for failure to submit a trip reduction program, or a program update as required, and a separate $200 per day fine for failure to implement this new program within six months. Commissioner Ito asked how this will be monitored. Mr. McCoy responded that this will be monitored through the Airport s Landside department. A trip reduction coordinator, similar to what we have with the QSP Coordinator, will be responsible for this program. All employers will have to submit their program to that department as part of compliance. It will also be part of our New Tenant Orientation. Commissioner Guggenhime noted that fines could come to $5,600 a month. Mr. McCoy said that it saves the employer on their payroll tax, so it is an incentive both ways to do this. Mr. Stuart Baker, Accor Services/Commuter Check said that the savings to employers is about $20 per participating employee on payroll taxes, and to those same participating employees the savings is up to 40% of their transit costs. For example, the savings for an employee taking BART to work at a cost of about $230 per month would be about $100 per month. That s why the Chamber of Commerce, the Golden Gate Restaurant Association and the Union Square Business Association all support the San Francisco Transit Benefit Ordinance. He Minutes, July 7, 2009, Page 7

8 is also working with the City of Richmond which is likely to pass the ordinance at their City Council meeting tonight, and Berkeley which will hopefully pass their ordinance in September. He is also working with the County of Sacramento and different civic groups in Chicago. It s a very popular concept; very environmental. There is no excessive burden for employers and that is the reason why the business community has supported it in the way that it has. F. DIRECTOR S REPORTS: 4. Application of the BART Airport Surcharge of $4.00 Each Way on Employees - verbal report Mr. Martin said the $4.00 per trip surcharge went into effect on July 1, For an employee commuting to the Airport this translates to an additional $2,000 per year... a very unfair and unjustified burden on our employees. We are running a shuttle bus to the Millbrae Station with ridership at about 500 per day. We have received many compliments from employees grateful for the help and support. We are continuing discussions with BART. We want this surcharge lifted, and at an absolute minimum no more than the $1.50 surcharge that was in effect prior to June 30 th, For example, the round trip fare from 16 th & Mission is $8.10 without the surcharge... with the surcharge it is $ BART has offered a 25% discount but that would still mean that an employee commuting from 16 th & Mission would pay $12.08 a day versus what should be $8.10. We view this as unfair. We will keep you informed of our continuing discussions with BART. Mr. Whitfield, SEIU, said that he has provided the Commission with letters collected from 1 st when the surcharge went into effect. He thanked the Commission for the shuttle bus. While it does help to alleviate some of the problems, not all workers are able to use it due to the operating hours, employee start and stop times, and the fact that BART doesn t run 24 hours a day. However, the problem remains that employees who work an 8 hour shift at the Airport pay $1.00 an hour to come to work. They have employees who have been fighting for three years for a cent salary increase and have been told that their wages have been frozen, and in less than 30 minutes BART hit them with what amounts to a $1.00 per hour reduction in their salaries. They cannot survive. Employees are struggling just to come to work every day. Anything the Commission can do to remove the surcharge would be appreciated greatly. Commissioner Mazzola noted the petitions Mr. Whitfield submitted. Mr. Whitfield responded that they have additional petitions and they are going to the BART Board of Directors. The workers are very upset about this. These petitions (on file with the Commission Secretary) were collected in two days. Commissioner Crayton said that is what we want. Ms. Shelley Kessler said that the San Mateo Labor Council represents 110 unions and about 70,000 workers in San Mateo County. They have received numerous Minutes, July 7, 2009, Page 8

9 complaints about the surcharge and they have communicated with the Airport Director and staff regarding how they can of assistance to try to eliminate it. At this time when unemployment in the State of California is over 11% and people need their jobs desperately in this economic crisis, to burden them with an additional $4 - $8 a day just for the privilege of being able to have a job is really inappropriate. They wrote to the BART Directors and told them that people should not be penalized for the ability to go to work and that this should be eliminated. The other issue is the percentage drop... currently that s for airline employees and does not impact all the other employees for whom there is not a discount. And in particular for people who do not qualify under the Quality Standards Program, those individuals in food service, retail, and in janitorial and some of the other job classifications, this is a tremendous hit on their salaries. Those people that are not in QSP that do not have those higher wage standards for doing security related issues, those are some of the lowest paid and some of them are not in unions and they don t even have those protections for their wages and benefits as well. For employees, whether they are in a union or not, we are very concerned that this surcharge is a terrible burden on them... across the board thousands of workers are detrimentally impacted by this surcharge. They stand ready to do whatever they can to assist in eliminating the surcharge and to see if there is something that can be set up to assist the Airport so that employees don t have to go to Oakland to access the discount. Employees come from the nine Bay Area Counties to work at SFO and they are very appreciative of Director Martin s offer to bring some of that in-house so employees don t have to travel to access that benefit. Mr. Tim Paulson, Executive Director, San Francisco Labor Council, echoed Shelley s comments. He submitted a letter to BART on behalf of the Council, with copies to the Commission and Director Martin. He thanked Director Martin for his great diligence on this issue. He wanted to be on the record that the Council finds this extra fee on workers to be appalling, and anything that you need us to do, and anything that you can do to influence that decision would be greatly appreciated. Commissioner Guggenhime said that he wanted everybody here to know that this is something that all of us have thought a lot about and we are 100% in agreement. We ve spent a lot of time talking about it. Having been born and raised in San Francisco he finds this action unconscionable, especially as it applies to people who are being penalized for working at the Airport. Hopefully, with all of the various entities and individuals pressuring their friends and people involved with BART they will see fit to change this. G. ITEMS INITIATED BY COMMISSIONERS: There were no items initiated by Commissioners. H. POLICY: Minutes, July 7, 2009, Page 9

10 Item No. 5 was moved by Commissioner Johns and seconded by Commissioner Guggenhime. The vote to approve was unanimous. 5. Passenger Facility Charge Increase No Resolution urging Congress to authorize airports to impose a Passenger Facility Charge (PFC) of up to $7.50, with indexing for inflation. Mr. Martin asked for the Commission s support in urging Congress to authorize an increase in the PFC cap. PFCs have been capped at $4.50 since April, In that time our construction costs have increased almost 90% yet we have not been able to index this. We are seeking to raise the cap to $7.50 and provide for an annual indexing factor. This will increase our PFC revenue from about $70 million a year up to $110 - $115 million and will go a long way toward future investments in capital projects. The House of Representatives has approved an increase to $7.00; the U.S. Senate is now considering the FAA Re-authorization Bill that includes reference to the PFC. That s where we are focusing our efforts. He will be traveling to Washington next week to support efforts to increase the PFC. Commissioner Guggenhime asked how we compare with other airports. Mr. Martin responded almost all big airports are at $4.50. Houston is the only one that comes to mind that is at $3.00. Even San Jose and Oakland are at $4.50. J. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: The Consent Calendar, Item Nos. 7 through 15, was moved by Commissioner Crayton and seconded by Commissioner Guggenhime. The vote to approve was unanimous. 7. Authorization to Issue a Request for Qualifications for Design-Build Services Contract No As-Needed Baggage Handling Systems Improvements No Resolution authorizing the Airport to issue a Request for Qualifications for Design-Build Services for Contract 8933, As-needed Baggage Handling System Improvements in the amount of $1,000,000 for the first year of services, with two (2) one-year options. 8. Award a Ground Lease to Linde LLC for an Advanced Fueling Facility for Hydrogen-Powered Vehicles - Linde LLC No Resolution awarding a ground lease to Linde LLC for an advanced fueling facility for hydrogenpowered vehicles. Minutes, July 7, 2009, Page 10

11 Mr. Robert Boyd, Linde LLC, said that they are pleased to be involved in this project with SFO and the Hythane Company. Linde will be providing hydrogen to the Hythane project and we will also provide a compact transportable hydrogen vehicle fueling station which will serve as an anchor point and a waystation for fuel cell vehicles based in Northern California and the Sacramento area. 9. Award a Ground Lease to the Hythane Company for a Hythane Vehicle Fueling Facility - Hythane Company No Resolution awarding a ground lease for a vehicle fueling facility dispensing Hythane fuel, a proprietary blend of hydrogen and compressed natural gas (CNG). Mr. John Nadeau, representing Hythane Company, thanked the Commission for supporting alternative fuel projects at the Airport. By using hythane fuel we get an 8% reduction in carbon dioxide, 12% in carbon monoxide, 47% reduction in total hydrocarbons, and 43% in non-methane hydrocarbons and this is all compared to a natural gas baseline. The 27 vehicles for this project will be replacing diesel vehicles so the actual benefits will be even greater. 10. Authorize an Other Transaction Agreement (OTA) with the Transportation Security Administration (TSA) for the Airport Surveillance Program - Up to $5 million No Resolution authorizing an OTA with the TSA for the Airport Surveillance Program in an amount up to $5 million. 11. Reject All Bids - Contract No Runway 1R-19L Overlay and Reconstruction No Resolution rejecting all bids for Contract No. 8663, Runway 1R-19L Overlay and Reconstruction. 12. Award of the Terminal 3 Concourse Specialty Store Lease - Air Sun, a Joint Ventue of Sunglass Hut Trading, LLC and Corliss Stone-Littles, LLC No Resolution awarding Terminal 3 Concourse Specialty Store Lease to Air Sun, a joint venture between Sunglass Hut Trading, LLC and Corliss Stone-Littles, LLC, for a minimum annual guarantee of $150,000 for the first lease year. 13. Authorization to Issue a Request for Proposals for the Sleep Units Lease No Resolution approving the revised minimum Minutes, July 7, 2009, Page 11

12 qualification requirements, lease specifications, and proposal requirements, and authorizing staff to accept proposals for the Sleep Units Lease. 14. Authorization to Accept Bids for the Pay Phones Lease No Resolution approving minimum qualifications requirements and lease specifications, and authorizing staff to accept bids for the Pay Phones Lease. 15. Authorization to Enter into a Ten-Year Agreement with the County of San Mateo Designating the City and County of San Francisco as the EMT-Paramedic Service Provider for San Francisco International Airport No Resolution authorizing the Airport Director to enter into a ten-year agreement with the County of San Mateo designating the City and County of San Francisco as the EMT-Paramedic Service Provider for San Francisco International Airport. K. NEW BUSINESS: 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 three (3) minutes. Please fill out a Request to Speak form located on the table next to the speaker s microphone, and submit it to the Commission Secretary. There were no requests to speak. L. CORRESPONDENCE: There was no discussion by the Commission. M. ADJOURNMENT: There being no further calendared business before the Commission the meeting adjourned at 10:45 A.M. Original Signed by Jean Caramatti Jean Caramatti Commission Secretary Minutes, July 7, 2009, Page 12