SAN FRANCISCO AIRPORT COMMISSION MINUTES
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1 SAN FRANCISCO AIRPORT COMMISSION MINUTES March 3, :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 March 3, 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: Special meeting of February 13, Retirement Resolution - Ms. Bettye Lane William R. O Brien Employee of the Year Award - Mei-Lian Huang Team Recognition Service Award - West of Bayshore Habitat Enhancement Proj. Team E. ITEMS INITIATED BY COMMISSIONERS AMFAC Award - Kevin Kone 6-7 F. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 4. Award Contract Runway 28R-10L Overlay and Reconstruction Granite Rock Company, dba Pavex Construction Issue Request for Qualifications - Intn l Strategic Marketing Alliance Services G. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 6. Reject All Bids - Contract Terminal 1 Carpet Replacement Authorize Three Month Extension of Commercial Paper Dealer Agreements Modification No. 1 - Exercise One-Year Option - Manage and Staff Curbside Management Prog Cellular Site Leases Starting in FY2009/ Minutes, March 3, 2009, Page 2
3 10. Modification to Lease with U.S. Government for U.S. Drug Enforcement Administration H. NEW BUSINESS: 11 I. CORRESPONDENCE: 11 J. CLOSED SESSION: Potential Litigation 6 K. ADJOURNMENT: 11 Minutes, March 3, 2009, Page 3
4 A. CALL TO ORDER: AIRPORT COMMISSION MEETING MINUTES March 3, 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: Absent: Hon. Larry Mazzola, President Hon. Linda S. Crayton, Vice President Hon. Caryl Ito Hon. Rich Guggenhime Hon. Eleanor Johns C. ADOPTION OF MINUTES: The minutes of the special meeting of February 13, 2009 were adopted unanimously. No D. SPECIAL ITEM: Item No. 1 was moved by Commissioner Crayton and seconded by Commissioner Guggenhime. The vote to approve was unanimous. 1. Retirement Resolution - Ms. Bettye Lane No Resolution thanking Ms. Bettye Lane for 34 years of faithful service and to offer best wishes for a long and fruitful retirement. Mr. John Martin, Airport Director said that Ms. Lane has worked for the Airport for 34 years. She worked every shift in every terminal and participated in opening the International Terminal, the AirTrain Station and Rental Car Center. She was an outstanding team leader and Custodial Supervisor and trained many staff over the years. Commissioner Mazzola congratulated Ms. Lane on her retirement. Minutes, March 3, 2009, Page 4
5 Item No. 2 was moved by Commissioner Crayton and seconded by Commissioner Ito. The vote to approve was unanimous William R. O Brien Employee of the Year Award No Resolution commending Mei-Lian Huang for her outstanding level of dedicated and professional service to the Airport. Mr. Martin said that Mei-Lian Huang has been a Custodian with the City for 17 years, 12 years at the Airport. She has always received excellent evaluations from her supervisors and is well known for really setting a standard of a five star hotel. Mei-Lian used to work for the Four Seasons Hotel before she started at the Airport. She always has a very friendly attitude and smiling face and really promotes good will among fellow employees and among travelers at the Airport. This is a well deserved recognition for the William R. O Brien Employee of the Year Award. We look forward to Mei-Lian continuing to provide many more years of great service at the Airport. Commissioner Mazzola congratulated Mei-Lian. Ms. Mei-Lain Huang said that she is very happy to be here today to accept this award. She is very honored to be the first Custodian to receive this. She thanked Mr. John Martin, Theresa Lee, Gloria Louie, my supervisors and the Airport Commission. She enjoys working at the Airport and she will continue to work hard as a Custodian. She is very lucky to be able to work with many good and dedicated co-workers. Thank you for the honor. Item No. 3 was moved by Commissioner Crayton and seconded by Commissioner Ito. The vote to approve was unanimous Team Recognition Service Award No Resolution commending the West of Bayshore Habitat Enhancement Project Team on their outstanding level of dedicated and professional service to the Airport. Mr. Martin asked the team members to come forward. Although not all of the team members are present today, there will be a ceremony today at the Airport in which we will recognize Mei-Lian, the team and all of the nominees for these awards. This team shows that when there is a collaborative effort of this kind between many different divisions and sections of the Airport that we can really exceed our expectations, and this team did just that. They exceeded all of the expectations on the West of Bayshore Habitat Enhancement Project. Team members come from the Asset Management Group, Civil Engineering, Construction and Minutes, March 3, 2009, Page 5
6 Maintenance, Pavement and Grounds, Landscape, and Planning. They worked successfully to complete Phase 1 of a 10 Year Habitat Enhancement Program to protect endangered species on the West of Bayshore...the Red Legged Frog and the San Francisco Garter Snake. There was also teamwork with many different Federal, State and local agencies that played a regulatory role in approving the project. There were about 40 team members, to many to mention all of their names, but he thanked the team members for their outstanding work. Commissioner Mazzola offered his congratulations. He asked the team if they say a lot of snakes. Mr. Ernie Eavis, Deputy Director, Facilities responded that they caught and tagged almost 500 snakes before the project began. J. 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 9:10 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. Discussion and vote pursuant to Brown Act Section and Sunshine Ordinance Section on whether to disclose action taken or discussions held in Closed Session. The Commission reconvened its public session at 9:34 AM. 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. E. ITEMS INITIATED BY COMMISSIONERS: Commissioner Ito acknowledged Kevin Kone for receiving the AMFAC Managerial Award last week. It s a citywide recognition of his service and management skills in keeping us above water in the midst of these challenging times. Mr. Martin added that Kevin has worked for the Airport for 19 years. He and Leo Fermin were directly involved in hiring him right out of business school. Kevin has done an outstanding job, especially in managing our Capital Finance Program through very difficult times. He has become a star not only for the Airport but within the municipal Minutes, March 3, 2009, Page 6
7 finance industry he is recognized as one of the foremost players in the country. Commissioner Mazzola congratulated Kevin on receiving this award. F. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: Item No. 4 was moved by Commissioner Crayton and seconded by Commissioner Guggenhime. The vote to approve was unanimous. 4. Award of Contract No Runway 28R-10L Overlay and Reconstruction Granite Rock Company, dba Pavex Construction - $12,966,655 No Resolution awarding Contract 8617, Runway 28R- 10L Overlay and Reconstruction, to the lowest responsive, responsible bidder, Granite Rock Company, dba Pavex Construction in the amount of $12,966,655. Mr. Eavis said that this contract will overlay and reconstruct Runway 28R-10L, repair the pavement, upgrade the runway and taxi lighting system and to increase the visibility of the runway pavement markings. This project was funded through the FAA s AIP Program and he believed this project will receive funding from the Stimulus program which will augment the AIP funding on the project. We received five bids that were within 10% of each other. Pavex Construction is the lowest responsive, responsible bidder and we recommend awarding Contract No to Pavex in the amount of $12,966,655. Commissioner Guggenhime asked how the engineer s estimate was $15,500,000 and all five bids came in under that. Mr. Eavis responded that when we made the engineer s estimate the economy wasn t nearly as bad as it is now. Everybody is hungry for work. Item No. 5 was moved by Commissioner Crayton and seconded by Commissioner Guggenhime. The vote to approve was unanimous. 5. Authorization to Issue a Request for Qualifications to Establish a Pool of Qualified Contractors to Provide International Strategic Marketing Alliance Services for Varied Scopes of Work for Key Overseas Locations No Resolution authorizing issuance of a Request for Qualifications (RFQ) to establish a pool of qualified contractors to provide international strategic marketing alliance services for varied scopes of work for overseas locations and to negotiate with contractors in the pool in order to increase Minutes, March 3, 2009, Page 7
8 international passenger and cargo traffic and airport revenues. Ms. Kandace Bender, Deputy Director, Communications and Marketing said that more than ten years ago San Francisco Airport established the International Aviation Development Program to help attract and retain new international travel to our Airport. Since that time we ve attracted numerous new international carriers. We have increased services with our existing carriers and we have secured on the ground representation with more than a dozen countries around the globe, including India and we were the first city in America to do so. All of this has helped to establish SFO as an important gateway to the United States. But the competition out there is fierce, with every state in the union now represented in China for instance, and increasingly airports and other cities are knocking on the doors of potential new carriers. Dallas/Forth Worth recently announced a $4 million incentive program with marketing and rental incentives to try and attract new international service. Los Angeles Airport recently hired a marketing firm to take back their share of the market which they lost over the last 5-6 years so we are expecting a lot of competition out there from our competitors. When your business, in this case passengers, is increasing exponentially every year there is no need to do intensive marketing efforts. But when you start to see a decline in your business or a potential decline that is the time to do marketing and to redouble your efforts. It is pretty clear that international traffic, while not necessarily in a free fall is definitely a bit shaky at airports around the world so we want to be sure that as we move into the next 4 or 5 years that we are positioned to attract and retain new international service at our Airport. For the past 10 years we have been well served in our endeavors by our partnership with the San Francisco Convention and Visitor s Bureau and while we have no complaints about the level of service provided by this organization we felt the time was right to seek assistance from more than one qualified marketing firm. Having more than one vendor will obviously provide us with a large menu of available services and keep the process competitive and healthy. Therefore, we are seeking approval to Issue a Request for Qualifications and enter into negotiations for International Marketing Services. We anticipate a very vigorous response to the RFQ, including the Convention and Visitors Bureau. We propose establishing a pool of the three most qualified firms whose services we can utilize as projects arise and who can provide us with the best level of service for each of our projects depending on their individual strengths. The scope of work is yet to be finalized but certainly it will include international representation, media buys in foreign countries, international market research, joint marketing programs for new airlines and multiple language translations of all of our collateral. The total RFQ would not exceed $1.7 million per year and we would establish separate contracts with each of the three firms to provide services as we require them. According to City regulations the pool of firms must be refreshed every two years with the Commission approving their selection. Even if we entered into a five year contract with Marketing Firm A for instance, at the end of two years they would have to resubmit their qualifications to make sure that they are still meeting Minutes, March 3, 2009, Page 8
9 our needs. We think this is very healthy and competitive. We ask for Commission approval to issue an RFQ for International Marketing Services. We will return to the Commission to authorize any contracts entered into with any of the firms. Commissioner Ito assumed that our arrangements in the various countries where the Convention Bureau has hired staff will be terminated and we will start with new staff. Ms. Bender responded that if they become the firm that can best provide us with representation in those countries we will continue with our partnership, if not we will select new ones. Commissioner Crayton asked if we are unhappy with what they are doing now? Ms. Bender responded that we are very happy, but we have had a 10 year contract with them and there is so much change in the marketing world and so much competition we think it is healthy for everyone to be competitive. G. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: The Consent Calendar, Item Nos. 6 through 10, was moved by Commissioner Guggenhime and seconded by Commissioner Mazzola. The vote to approve was unanimous. 6. Reject All Bids - Contract No Terminal 1 Carpet Replacement No Resolution rejecting all bids for Contract No. 8577, Terminal 1 Carpet Replacement and authorizing the Director to rebid the contract when ready. Mr. Adrian Laekas, Sales Manager for Bentley Prince Street, a California based carpet manufacturer. He said that it now appears that this project will go out to rebid. He asked for help from Mr. Martin and the Commission in directing the Airport authorities to help them. They received a letter yesterday that was written by counsel and by Deputy Director Eavis and it gives them some hope as a California manufacturer that they may finally be able to provide carpet to the Airport again. He wanted to take this opportunity to ask the Commission to help give some direction to the Airport. He read two sentences in a letter to his President: We understand and appreciate Bentley Prince Street has worked hard to develop a product having an acceptable design however, Bentley has not presented the Airport with a backing to its carpet that meets the specifications. They acknowledge that. The next line further down is our research has identified three manufacturers who can meet this specification... CNA, Mohawk and Interface. They are an Interface Co. He asked that the Airport architectural staff, or whomever, give them very specific direction on what product staff has identified that Interface manufactures that can be provided to the Airport. Minutes, March 3, 2009, Page 9
10 It s been frustrating and he feels that there may be some hard feelings because they have fought very aggressively to try and stay in this project as a California manufacturer with 500 employees looking for work every day. They are delighted that the Airport has said that our corporation makes an acceptable backing, but asked if the Airport would tell them what it is. They would like a little clarification otherwise they will be back in the same situation of returning to the Commission on appeal. Mr. George Maibach, Vice President of International business for Bentley Prince Street. They have tried to put forth their best efforts. They are very passionate about the work and they are very passionate about providing product here in California. Bentley Prince Street has provided what they believed to be a performance alternative to the product backing that was specified on the bid proposal. They still believe that and, as Adrian mentioned, they are a part of Interface, Inc., and in the corporation they have access to all backing technologies within the group. They chose to offer a product they could make in California because they didn t think it would be right for them to bring a product in from Georgia and apply it in their plant in California. They wanted to do everything internally, so ultimately they would like the opportunity to provide an alternate backing option for this purpose as the other manufacturers that were mentioned in the memo yesterday are all from Georgia. They believe that they will be able to provide the Airport with an acceptable alternative. The other thing that concerns them greatly is that they, and each of the other bidders who proposed products for this bid proposal, put forth what they all believed to be their best efforts. The bids were announced in a public forum and the low bid is now public knowledge for all of the bidders to see. They are concerned that everyone will understand the number that needs to be exceeded to win the project. 7. Authorization of Three Month Extension of Commercial Paper Dealer Agreements No Resolution authorizing a three-month extension of Commercial Paper Dealer Agreements to June 30, 2009, with no additional funding. 8. Modification No. 1 to Exercise First One-Year Renewal Option with DAJA International, LLC to Manage and Staff the Airport s Curbside Management Program - $3,270,000 No Resolution approving Modification No. 1 to exercise the first one-year option of Contract #OPS PS with DAJA International, LLC to manage and staff the Airport s Curbside Management Program through June 30, 2010 at a cost not-to-exceed $3,270,000 for the one-year option period. Minutes, March 3, 2009, Page 10
11 9. Cellular Site Leases Starting in Fiscal Year 2009/10 No Resolution authorizing execution of new lease agreements for Cellular Service Antenna sites at the Airport starting in Fiscal Year 2009/ Modification to a Lease with the U.S. Government for the U.S. Drug Enforcement Administration No Resolution approving supplemental lease agreements to Lease #GS-09B with the U.S. Government to extend the term of the lease and modify the rent for space occupied by the U.S. Drug Enforcement Administration. H. 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 from the public to speak. I. CORRESPONDENCE: There was no discussion by the Commission. K. ADJOURNMENT: There being no further calendared business before the Commission the meeting adjourned at 9:50 AM. Original Signed by Jean Caramatti Jean Caramatti Commission Secretary Minutes, March 3, 2009, Page 11
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