Metropolitan Airports Commission

Transcription

1 Metropolitan Airports Commission Management and Operations Committee Agenda Regular Monthly Meeting on Monday, November 04, 2013 at 1:00:00 PM

2 SEE ATTACHED SECURITY CHECKPOINT INFORMATION MANAGEMENT AND OPERATIONS COMMITTEE Mike Landy, Chair Rick King, Vice Chair Daniel Boivin, Commission Chair Timothy Geisler, F&A Chair Mike Madigan Don Monaco Lisa Peilen, Commission Vice Chair Paul Rehkamp, PD&E Chair OPEN FORUM METROPOLITAN AIRPORTS COMMISSION NOTICE OF REGULAR MEETING MANAGEMENT & OPERATIONS COMMITTEE Monday, November 4, 2013 at 1:00 p.m. Room 3048A, Terminal 1 - Lindbergh Minneapolis-St. Paul International Airport AGENDA The open forum is a portion of the Commission meeting where persons will be allowed to address the Commission on subjects which are not a part of the meeting agenda. Speakers are asked to limit their remarks to two minutes each. Persons wishing to speak must complete a sign-up card prior to the start of the meeting. The sign-up card should be given to any staff person. The Commission may take action or reply at the time of the statement or may give direction to staff at the end of the meeting regarding investigation of the concerns expressed. CONSENT 1. PURCHASING /SERVICE CONTRACTS a. MAC Service Center Operations and Multi-Functional Devices Lease Request For Proposals b. Annual VMware Software Maintenance and Support Purchase c. Request for Authorization to Issue Request for Bids for Chiller Maintenance Brad Johnson, Purchasing Manager Dave Ruch, Director Information Systems Jeff Nawrocki, Assistant Director of MSP Operations/Facilities 2. LEASES a. Request Approval to Extend Now Boarding Agreement Amendment Karen Racek, Assistant Manager Airside Leasing and Tenant Relations

3 DISCUSSION ACTION 3. CONTINUING CONSULTANT SELECTION a. Environmental Law Services Continuing Consultant Recommendation b. General Legal Services Continuing Consultant Recommendation Thomas W. Anderson, General Counsel Wendy Bartlett, Legal Administrator DISCUSSION INFORMATION 4. UPDATE ON PUBLIC AND EMPLOYEE PARKING AT TERMINAL 2 - HUMPHREY Arlie Johnson, Assistant Director of MSP Operations/Landside Operations 5. SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 26 PRESENTATION Mr. Jordan Ash - SEIU Representative Materials for this meeting are available at the following website: Meetings/Board-Meetings.aspx SECURITY CHECKPOINT INFORMATION Stop by the information booth near the tram station on the Tram Level. At the information booth, you will be asked to complete a security checkpoint access form and show valid, government-issued photo identification, such as a driver s license. Take your completed access form with you up two floors, to the Ticketing Level security checkpoints. Show your approved access form to security checkpoint personnel. You will then be screened just as if you were traveling. Access forms are only valid for the purpose of attending a public MAC meeting at a particular date and time. Commission Chambers are located on the Mezzanine Level overlooking the airport s central shopping area (above Chili s Restaurant), past the main security checkpoints. Allow yourself at least 30 minutes to park, complete the access form and get through the security checkpoint prior to the meeting. Parking in the following areas will be validated; please bring your parking ticket to the meeting. Directions to the Tram Level Information Booth From short-term parking: At the Terminal 1-Lindbergh entrance, take the escalator or elevator down to Tram Level. The information booth is straight ahead, in the center of the room. From general parking: If you park in the Blue or Red ramps, take the elevator down to the tram, which will transport you directly to the Terminal 1-Lindbergh Tram Level. When you exit the tram, the information booth is straight ahead, in the center of the room. If you park in the Green or Gold ramps, take the skyway to the Terminal 1-Lindbergh Mezzanine Level. From there, take an elevator or escalator to Tram Level. The information booth is straight ahead, in the center of the room.

4 MEMORANDUM ITEM 1a TO: Management & Operations Committee FROM: Brad Johnson, Purchasing Manager ( ) SUBJECT: MAC SERVICE CENTER OPERATIONS AND MULTI-FUNCTIONAL DEVICES LEASE REQUEST FOR PROPOSALS DATE: October 17, 2013 Staff is requesting authority to issue a Request for Proposals ( RFP ) to identify a firm to operate the service center at the MAC General Office and to lease and maintain multi-functional devices (print, copy, scan and fax) at all MAC campus offices. BACKGROUND Loffler, Incorporated was awarded the current six-year agreement that began in February 2008 and is set to expire in March The average annual cost of the contract over the past six years has been $159,120. Currently, this vendor leases and maintains 29 multi-functional devices in seven different buildings. These devices provide printing, copying, scanning, and faxing for MAC staff throughout the MAC campus. This vendor also staffs and operates the service center at the MAC General Office building. The service center provides mailroom services and provides copying and printing services for large projects as needed by MAC staff. GOALS The goals are to provide the MAC staff with state-of-the-art multi-functional devices throughout the MAC campus and to provide copy and mailroom services so copying and mailing projects can be completed timely and efficiently. SUMMARY OF KEY BUSINESS TERMS The term of this Agreement shall be five (5) years. The pricing will be firm for the duration of this agreement with no options to renew. EVALUATION CRITERIA Each proposal will be evaluated on the following criteria: A. Pricing of Leased Equipment, Maintenance, and Service Center Staff 400 points B. Company Qualifications and Experience 250 points C. Leased Equipment Specifications Including Network Technology 250 points D. Service Center Employee Qualifications and Staffing Plan 100 points Total Possible Points: 1000 Points

5 MINIMUM RFP REQUIREMENTS The minimum proposer requirements are as follows: A. At least 5 years experience in directing copy centers, mailroom services, and leasing and maintaining multi-functional devices B. At least 3 experienced employees capable of operating a service center and mailroom C. Ability to lease multi-functional devices that meet or exceed specified technical requirements ADVERTISING AND DISTRIBUTION OF THE RFP This RFP will be advertised on the State of Minnesota s online solicitation page as well as posted to the MAC website. Notification of this solicitation will be provided to the vendors that have recently provided these services to MAC as well as to any vendor making a request for the document. MINNESOTA DATA PRACTICES ACT Under the Minnesota Government Data Practices Act, once proposal responses are received, the information submitted cannot be discussed with anyone outside of MAC until a proposer has been selected and a contract has been negotiated. During this same time period, information created by MAC as part of the selection or evaluation process is not public. However, at the present time, there are no restrictions on Commissioners discussions on this topic. REVIEW TEAM The proposed Review Team will consist of: Brad Johnson, Purchasing Manager Cynthia Findlay, Police Records Management Administrator Sallie Karels, Purchasing Buyer Shelly Lopez, ADO Administrative Supervisor Jennifer Felger, Planning and Environment Coordinator Donna Helin, IS Coordinator Dao Thao, Facilities Administrative Assistant Additions and substitutions may be made as necessary as determined by the Vice President, Finance and Administration. MAC s Finance and Legal Departments will serve as advisors to the Review Team. COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION THAT STAFF BE AUTHORIZED TO ISSUE A REQUEST FOR PROPOSALS FOR THE OPERATION OF THE MAC SERVICE CENTER AND THE LEASE OF MULTI-FUNCTIONAL DEVICES AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

6 MEMORANDUM ITEM 1b TO: Management & Operations Committee FROM: Dave Ruch Director, Information Systems ( ) SUBJECT: ANNUAL VMWARE SOFTWARE MAINTENANCE AND SUPPORT PURCHASE DATE: October 23, 2013 This is a request to purchase annual maintenance and support services for the VMware software from Software House International. VMware is the product that enables the MAC to operate one physical computer as if it were several computers. This capability reduces the number of actual computer servers needed since applications formerly running on separate physical servers can now run on one underlying, virtualized server. Another benefit of virtualizing servers is that staff can save a copy of the virtual server as backup. In the event of a system failure, it takes only a few minutes to restore the server from the VM backup. In contrast, restoring a server from backup tapes can take hours. Each piece of software has to be re-installed on the server separately when restoring from tape. Before the IS department initiated server virtualization in 2008, MAC IS had 125 physical servers in use. Post virtualization, that number has dropped to 18 physical servers that host 215 virtual servers today. This represents cost savings for the servers themselves as well as significant staff time, space, power and cooling conservation. The VMware maintenance and support is available under the State of Minnesota purchasing contract from Software House International, the reseller approved in that contract. The cost for the coming year is $61, This expense is included in the approved 2013 Operating Budget. COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION APPROVAL OF THE PURCHASE OF ANNUAL VMWARE MAINTENANCE AND SOFTWARE SUPPORT FOR $62, FROM SOFTWARE HOUSE INTERNATIONAL, AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

7 MEMORANDUM ITEM 1c TO: Management & Operations Committee FROM: Jeff Nawrocki, Assistant Director, Operations/Facilities ( ) SUBJECT: REQUEST FOR AUTHORIZATION TO ISSUE REQUEST FOR BIDS FOR CHILLER MAINTENANCE DATE: November 4, 2013 MAC Staff is requesting authority to issue a request for bids ( RFB ) for chiller maintenance. On January 1, 2008, after a bid process, the MAC entered into a three-year agreement with Johnson Controls for chiller maintenance at Terminal 1 - Lindbergh, Terminal 2 - Humphrey, other MSP campus buildings and at the St. Paul Downtown Airport facility. The agreement allowed for an optional three-year renewal that was subsequently approved, which expires on December 31, Chillers utilized at MSP are very large refrigerant devices at the MAC s Energy Management Center (EMC). EMC personnel are not certified to work on existing chillers. Therefore, maintenance and repairs are contracted out to companies with certified technicians. The arrangement between EMC personnel and the chiller contractor has worked well. EMC personnel are responsible for operating the chillers and doing light maintenance such as adding oil and leak testing while the contractor is responsible for heavy maintenance and repairs. Historical costs for chiller maintenance service are as follows: YEAR COST UNITS 2013 $77,048.45* $25, $78, Total $180, $84, $40, $69, Total $195, *As of September 24, Increased expenses of $28, are due to chiller repairs. MAC Staff proposes the term of the agreement to be three years with an optional three year renewal. COMMITTEE ACTION REQUESTED RECOMMEND TO THE FULL COMMISSION THAT STAFF BE AUTHORIZED TO ISSUE A REQUEST FOR BIDS FOR CHILLER MAINTENANCE CONSISTENT WITH THIS MEMORANDUM AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

8 MEMORANDUM ITEM 2a TO: FROM: SUBJECT: Management & Operations Committee Karen Racek, Assistant Manager Airside Leasing & Tenant Relations ( ) REQUEST APPROVAL TO EXTEND NOW BOARDING AGREEMENT AMENDMENT DATE: October 28, 2013 In November 2010, the Commission approved an amendment to Now Boarding s Agreement to set rent for equal to the greater of (1) ground rent plus building rent (essentially becoming a Minimum Annual Guarantee) or (2) a variable percentage of annual gross sales. At the conclusion of this three year period, rent would revert to the original formula of ground rent plus building rent plus percent rent. The following table illustrates the total rent due as a percent of sales. The higher percentage rates are applicable to those gross revenues in excess of the previous tier. Annual Gross Sales Less than $1.9M 11% $1.9M-$2.2M 18% $2.2M - $2.7M 24% $2.7M - $2.9M 30% Over $2.9M 36% Under the original terms, rent is paid for ground + building ($1.20 psf for ground + $2.50 for building = $177,114 annually) + 9% of gross sales. Building rent escalates 2.5% per year. In June 2013, with the amendment set to expire at the end of the year, representatives of the Animal Humane Society (Now Boarding s parent company) met with MAC staff to discuss the expiration of the amendment and request further rent mitigation. Although sales revenue at Now Boarding continues to grow each year, the revenue level needed to support their business model profitably has yet to materialize; primarily due to unfavorable construction loans and initial sales projections. As a result, the Animal Humane Society continues to subsidize losses on an annual basis. To date, the Animal Humane Society has subsidized $2,590,000 since opening its doors in November Efforts made by the Animal Humane Society and Now Boarding staff to alleviate the losses include reducing operating costs, increasing revenue through unique marketing and program offerings, and just recently, refinancing construction loans. While these efforts assist in reducing the losses, until the level of annual sales exceed $2,075,000, losses will continue. The Animal Humane Society will continue to subsidize the losses and requests continued support from MAC staff in the reduction of rent through the remaining term of the Agreement. The fifteen (15) year Agreement expires on December 31, Sales history for Now Boarding is presented in Exhibit A.

9 Through review and analysis of Now Boarding s request, staff considered whether to extend the modification of percent rent for the remainder of the lease term, or to extend the rent formula for an additional five (5) years, ending in Based upon Now Boarding s sales, sales projections, operating, and capital investment costs, staff believes extending the term of the amendment modifying the rent formula for an additional five (5) years is the appropriate action. Staff and Now Boarding representatives developed and are proposing a mutually agreeable amendment. Staff supports this extension based upon the following considerations: 1. MAC would continue to receive, at a minimum, the $177,114 ground + building rent each year. 2. Now Boarding continues to offer a high quality, award winning, unique customer service concession, receiving excellent customer satisfaction ratings that other airports seek to duplicate. 3. Now Boarding s $4.4M facility investment remains ranked as one of the larger investments by a tenant over the last several years. At the end of the lease term (2023), MAC will take possession of the property and all of its improvements. COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION TO EXTEND THE TERM OF THE NOW BOARDING AGREEMENT AMENDMENT MODIFYING THE RENT FORMULA AS STATED IN THIS MEMORANDUM FOR THE PERIOD OF JANUARY 1, 2014 THROUGH DECEMBER 31, 2019; AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

10 January 2009 March May July September November January 2010 March May July September November January 2011 March May July September November January 2012 March May July September November January 2013 March May July September Thousands Exhibit A Now Boarding Gross Sales $ $160 $140 $120 $100 $80 $60 $40 $20 $0 Gross Sales

11 MEMORANDUM ITEM 3a TO: Management & Operations Committee FROM: Thomas W. Anderson, General Counsel ( ) Wendy Bartlett, Legal Administrator ( ) SUBJECT: ENVIRONMENTAL LAW SERVICES CONTINUING CONSULTANT RECOMMENDATION DATE: October 25, 2013 The purpose of this memo is to recommend the selection of continuing consultants to provide environmental law services. Minnesota Data Practices Act Under state law, information submitted by proposers to MAC and information created or maintained by MAC as part of the evaluation process remains not public until MAC has completed the contract with the selected proposer(s). The names of the proposers, however, are public once the proposals are opened. Information contained in the proposals and the Not Public Memorandum is not public and should not be disclosed to anyone other than MAC Commissioners and staff. However, Commissioners may discuss the information contained in the proposal(s) or the Not Public Memorandum at the Committee and Commission meetings to the extent reasonably necessary to conduct the business at hand. The information contained in this memorandum is public data. MAC uses environmental legal services consultants for legal representation relating to a wide array of environmental issues, such as state and federal environmental assessments, environmental impact statements, air quality issues, reliever airports environmental issues, sewer and water issues, and groundwater contamination issues, environmental permitting, and litigation. The firms that presently provide environmental law services, and for whom the 6 year terms will expire at the end of the year, are: Bloomberg & Podpeskar, Dorsey & Whitney, and Jardine, Logan & O Brien. At the August 2013 Commission meeting, staff was authorized to issue a Request for Qualifications (RFQ) for environmental law services. The Commission also authorized the Review Team to conduct the interviews and then present the Team s recommendation to the Management and Operations Committee. MAC issued the RFQ and five (5) firms submitted qualifications statements. The firms who submitted qualifications statements are: Bloomberg & Podpeskar Briggs & Morgan Dorsey & Whitney Larkin Hoffman Daly & Lindgren Lindquist & Vennum

12 The Review Team (Wendy Bartlett, Toni Howell, John Kedrowski, Chad Leqve, Evan Wilson and Commissioner Madigan) independently reviewed the qualifications statements and then met collectively to discuss the qualifications statements. The criteria evaluated by the Review Team included relevant legal experience, responsiveness to the needs of MAC, and fees and expenses. All five firms who submitted qualifications statements satisfactorily complied with all of the requirements of the RFQ. After a discussion of the qualifications statements received, the consensus of the Review Team was to interview three of the law firms that submitted responses to the RFQ. The firms who interviewed are: Bloomberg & Podpeskar Dorsey & Whitney Lindquist & Vennum The three firms were interviewed and were allowed time for a presentation followed by a question and answer period. Based on the qualifications, statements received, and the interviews, the Review Team recommends that Bloomberg & Podpeskar, Dorsey & Whitney and Lindquist & Vennum be designated to provide environmental law legal services as continuing consultants for a term of six years. COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION THAT BLOOMBERG & PODPESKAR, DORSEY & WHITNEY AND LINDQUIST & VENNUM BE DESIGNATED AS CONTINUING CONSULTANTS TO REPRESENT MAC WITH RESPECT TO ENVIRONMENTAL LAW LEGAL SERVICES; AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

13 MEMORANDUM ITEM 3b TO: Management & Operations Committee FROM: Thomas W. Anderson, General Counsel ( ) Wendy Bartlett, Legal Administrator ( ) SUBJECT: GENERAL LEGAL SERVICES CONTINUING CONSULTANT RECOMMENDATION DATE: October 25, 2013 The purpose of this memo is to recommend the selection of continuing consultants to provide general legal services. Minnesota Data Practices Act Under state law, information submitted by proposers to MAC and information created or maintained by MAC as part of the evaluation process remains not public until MAC has completed the contract with the selected proposer(s). The names of the proposers, however, are public once the proposals are opened. Information contained in the proposals and the Not Public Memorandum is not public and should not be disclosed to anyone other than MAC Commissioners and staff. However, Commissioners may discuss the information contained in the proposal(s) or the Not Public Memorandum at the Committee and Commission meetings to the extent reasonably necessary to conduct the business at hand. The information contained in this memorandum is public data. MAC uses general legal services consultants for a number of areas of law, including: eminent domain, zoning, land use, real estate, leasing and redevelopment, unlawful detainers, property acquisition, municipal law/local government law (including public bidding, ethics, open meeting, data practices, and ordinances, but excluding criminal prosecution), construction law, intellectual property, commercial transactions, employment law (including labor relations, EEO, benefits, employment litigation and human rights complaints), constitutional law (first amendment, due process, inverse condemnation, bankruptcy law (airline and airport tenants); and litigation, including appellate advocacy. The firms that presently provide general legal services, and for whom the 6 year terms will expire at the end of the year, are Briggs & Morgan, Faegre Baker Daniels, Greene Espel, and McGrann Shea Carnival Straughn & Lamb. At the August 2013 Commission meeting, staff was authorized to issue a Request for Qualifications ( RFQ ) for general legal services. The Commission also authorized the Review Team to conduct the interviews and then present the Review Team s recommendation to the Management and Operations Committee. MAC issued the RFQ and eleven (11) firms submitted qualifications statements. The firms who submitted qualifications statements are: Arthur Chapman Briggs & Morgan

14 Dorsey & Whitney Faegre Baker Daniels Flaherty Hood Foley & Mansfield Greene Espel Larkin Hoffman Daly & Lindgren Leonard Street & Deinard Lindquist & Vennum McGrann Shea Carnival Straughn & Lamb The Review Team (Wendy Bartlett, Roy Fuhrmann, Matt Krogh, Denny Probst, Pam Rasmussen and Commissioner Madigan) independently reviewed the qualifications statements and then met collectively to discuss the qualifications statements. The criteria evaluated by the Review Team included relevant legal experience, responsiveness to the needs of MAC, and fees and expenses. All eleven firms who submitted qualifications statements satisfactorily complied with all of the requirements of the RFQ. After a discussion of the qualifications statements, the consensus of the Review Team was to interview six of the law firms that submitted responses to the RFQ. The firms interviewed are: Briggs & Morgan Faegre Baker Daniels Foley & Mansfield Greene Espel Lindquist & Vennum McGrann Shea Carnival Straughn & Lamb The six firms were interviewed and were allowed minutes for presentation followed by a question and answer period. Based on the qualifications statements received and the interviews conducted, the Review Team recommends that Briggs & Morgan, Faegre Baker Daniels, Greene Espel and McGrann Shea Carnival Straughn & Lamb be designated to provide general legal services as continuing consultants for a term of six years. COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION THAT BRIGGS & MORGAN, FAEGRE BAKER DANIELS, GREENE ESPEL AND MCGRANN SHEA CARNIVAL STRAUGHN & LAMB BE DESIGNATED AS CONTINUING CONSULTANTS TO REPRESENT MAC WITH RESPECT TO GENERAL LEGAL SERVICES; AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

15 MEMORANDUM ITEM 4 TO: Management & Operations Committee FROM: Arlie Johnson - Assistant Airport Director, Landside Operations ( ) SUBJECT: UPDATE ON PUBLIC AND EMPLOYEE PARKING AT TERMINAL 2 - HUMPHREY DATE: October 24, 2013 At the October 7, 2013 Finance and Administration Committee meeting, Commissioners expressed interest in receiving an update on public and employee parking use at Terminal 2 Humphrey. At the November 4, 2013 Management & Operations Committee meeting, staff will provide an update to include utilization and trends of both public and employee parking at Terminal 2 Humphrey. THIS IS AN INFORMATION ITEM ONLY; NO COMMITTEE ACTION REQUESTED.

16 MEMORANDUM ITEM 5 TO: Management & Operations Committee FROM: Roy Fuhrmann Vice President Management & Operations ( ) SUBJECT: SERVICE EMPLOYEES INTERNATIONAL UNION (SEIU) PRESENTATION DATE: October 27, 2013 Mr. Jordan Ash from the Service Employees International Union (SEIU) Local 26 has asked to address the Management & Operations Committee. THIS IS AN INFORMATION ITEM ONLY; NO COMMITTEE ACTION IS REQUESTED.