Metropolitan Airports Commission

Transcription

1 Metropolitan Airports Commission Management and Operations Committee Agenda Rescheduled Regular Meeting on Tuesday, September 02, 2014 at 12:00:00 AM

2 SEE ATTACHED SECURITY CHECKPOINT INFORMATION MANAGEMENT AND OPERATIONS COMMITTEE Rick King, Chair Don Monaco, Vice Chair Dan Boivin, Commission Chair Timothy Geisler, F&A Chair Mike Madigan Lisa Lebedoff Peilen, Commission Vice Chair Paul Rehkamp, PD&E Chair Patti Gartland METROPOLITAN AIRPORTS COMMISSION NOTICE OF RESCHEDULED REGULAR MEETING MANAGEMENT AND OPERATIONS COMMITTEE TUESDAY, September 2, :00 p.m. Room 3048A, Terminal 1-Lindbergh Minneapolis-St. Paul International Airport AGENDA OPEN FORUM The Open Forum is a portion of the Committee meeting where persons will be allowed to address the Committee 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 Committee 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. Uninterruptible Power Supply (UPS) Maintenance and Repair Services Request for Proposals b. Treated Sodium Chloride (Road Salt) Procurement c. Automatic Dependent Surveillance-Broadcast Vehicle Transmitter Equipment Procurement d. Honeywell ProWatch Access Control System Support Agreement Renewal e. Internet Bandwidth Contract Jeff Nawrocki, Assistant Director MSP Operations/Facilities Paul Sichko, Assistant Director MSP Operations Sallie Karels, Buyer Dave Ruch, Director Information Systems Jeff Bjorklund, Manager Information Systems/Telecom and Support DISCUSSION ACTION 2. SECURITY CHECKPOINT QUEUE MANAGEMENT REQUEST FOR PROPOSALS Phil Burke, Director MSP Operations

3 3. DISTRIBUTED ANTENNA SYSTEM REQUEST FOR AUTHORITY Elizabeth Grzechowiak, Assistant Director Concessions and Business Development Jeff Bjorklund, Manager Information Systems/Telecom and Support 4. AUTOMATED TELLER MACHINE (ATM) CONCESSIONS AWARD Elizabeth Grzechowiak, Assistant Director Concessions and Business Development 5. CONTINUING CONSULTANTS STATE LEGISLATIVE CONSULTANT SERVICES REQUEST FOR QUALIFICATIONS Mitchell P. Kilian, Director Governmental Affairs DISCUSSION INFORMATION 6. TRANSPORTATION SECURITY ADMINISTRATION BRIEFING Clifford Van Leuven, Federal Security Director, MN 7. STREET PRICING PRESENTATION Elizabeth Grzechowiak, Assistant Director Concessions and Business Development 8. COMMISSION MEETING BROADCAST UPDATE Patrick Hogan, Director Public Affairs and Marketing Rebecca Brown, Information Systems Coordinator 9. FEDERAL LEGISLATIVE AFFAIRS UPDATE Mitchell P. Kilian, Director Governmental Affairs Materials for this meeting are available at the following website: Meetings/Board-Meetings.aspx

4 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 will be validated; please bring your parking ticket to the meeting. Directions to the Tram Level Information Booth From short-term parking: At the Lindbergh Terminal entrance, take the escalator or elevator down to the 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 Lindbergh Terminal s 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 Lindbergh Terminal s Mezzanine Level. From there, take an elevator or escalator to Tram Level. The information booth is straight ahead, in the center of the room.

5 MEMORANDUM ITEM 1a TO: Management and Operations Committee FROM: Jeff Nawrocki, Assistant Director MSP Operations/Facilities (612) SUBJECT: UNINTERRUPTIBLE POWER SUPPLY (UPS) MAINTENANCE AND REPAIR SERVICES REQUEST FOR PROPOSALS DATE: August 4, 2014 Staff is seeking authority to issue a best value 1 Request for Proposals (RFP) for a vendor to maintain and repair the uninterruptible power supply (UPS) at buildings owned and operated by the MAC at MSP and the Anoka County/Blaine Airport. BACKGROUND The current UPS maintenance contract with Master Electric began on January 1, 2009, for a three-year term which expired on November 30, The contract provided for three oneyear renewal options, which the Commission approved on November The contract is set to expire on December 31, If loss of power occurs, the UPS is engaged until power supplied by generators becomes available. This process allows for a seamless transition of power with no interruptions taking place. The contract includes maintenance, repair and testing of backup power sources. The cost of the contract in 2013 was $421, KEY BUSINESS TERMS 1. The term of the contract shall be three years with one three-year renewal option at MAC s sole discretion. 2. Proposers are required to provide fixed-rate fees for the first three years of the contract. Subsequent years pricing will be adjusted based on labor and material rates increases or decreases with a five percent cap annually. Proposers will also be asked to consider a discount rate for advance payment. 3. The contract contains liquidated damages for not meeting specific service parameters. MINIMUM REQUIREMENTS 1. Vendor must have a service center located within 50 miles of the Minneapolis- St. Paul International Airport. 2. Vendor must have service technicians available 24-hours per day. 1 A Best Value request for proposal under the Uniform Municipal Contracting Law can be used for selecting a vendor to perform repairs or maintenance work on real or personal property. The RFP must consider price and performance criteria and the award must be to the vendor offering the best value applying the weighted selection criteria.

6 3. Provide 1-hour response time. 4. Provide 24 hour emergency telephone numbers. 5. Vendor must have three trained service technicians available at all times. 6. Vendor must have one electrician available at all times. 7. Vendor must have a minimum of five years UPS maintenance experience. 8. Technicians expected to work on this contract must have a minimum of three years UPS service experience. EVALUATION CRITERIA The RFP evaluation process will involve a focused review by Review Team members. The following information illustrates the major elements that will be evaluated and scored by each Review Team member for each proposal submitted. 1. Service Approach 300 Points Proposers are required to describe their service plan; list any subcontractors; demonstrate the ability to provide around-the-clock service; and to include any innovative methods or concepts that would be particularly beneficial to the MAC. 2. Personnel 300 Points Proposers are required to describe the number, tenure and titles of personnel that would have contact with MAC. Also, proposers are required to indicate the number of employees trained and available to provide the required services along with their years of experience in the field and their experience and training on tram systems. 3. Related Work Experience 300 Points Proposers are required to include a list of clients for which the company has provided services similar to those being requested and describe other prior work experience providing similar services. 4. Fee Structure 600 Points Fee structure will be evaluated by the first three years of the contract. Total Points: 1500 Points REVIEW TEAM The Review Team will consist of the following members: Scoring Team Members: Jeff Nawrocki, Assistant Director MSP Operations/Facilities Ryan Hemann, General Foreman Electrical Jessica Christiansen, Project Manager Michaud Cooley Erickson Jeff Courteau, Manager Landside Lori Dehn, Department Manager Delta

7 Additionally, as non-scoring advisors, the Review Team will be supported by: Non-Scoring Team Members: Sallie Karels, Buyer Purchasing Matt Krogh, Attorney Legal Mike Batt, Financial Analyst Finance Adrian Kregness, General Foreman Electrical Don Fairbanks, Principal Michaud Cooley Erickson Additions and substitutions may be made as needed, under the direction of the Director of MSP Operations. ADVERTISING AND DISTRIBUTION OF RFP The RFP will be posted on the MAC s website and advertised on the State of Minnesota online solicitations page. The RFP will also be mailed to known qualified firms on MAC s Purchasing Department mailing list. COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION AUTHORIZATION TO ISSUE A BEST VALUE REQUEST FOR PROPOSALS FOR UPS MAINTENANCE AND REPAIR SERVICES CONSISTENT WITH THIS MEMORANDUM FOR A THREE YEAR TERM WITH ONE THREE YEAR RENEWAL OPTION AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

8 MEMORANDUM ITEM 1b TO: Management and Operations Committee FROM: Paul Sichko, Assistant Director MSP Operations (612) Sallie Karels, Buyer (612) SUBJECT: TREATED SODIUM CHLORIDE (ROAD SALT) PROCUREMENT DATE: August 21, 2014 Per MAC policy for annual purchases in excess of $50,000, staff is seeking Commission authorization to purchase treated sodium chloride (road salt). The product is treated with an agriculture-based viscosity modifier that inhibits corrosion, reduces leaching, and extends the chemical reaction time of the product. Use of the modifier has reduced the frequency of sodium chloride applications. As a member of the Cooperative Purchasing Venture (CPV) Program as established by Minnesota State Statute , subd 15, the MAC is eligible to acquire this product under a state contract. The state contract for treated sodium chloride is currently held by the North American Salt Company at a price of $84.68 per ton. The CPV procurement process resulted in savings of approximately 9.5 percent when compared with individual contract pricing. Road salt use over the last two winters has been approximately 900 tons per season, down from an average of 1,100 tons used during comparable winters. COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION APPROVAL TO PROCURE TREATED SODIUM CHLORIDE (ROAD SALT) FOR THE WINTER SEASON FROM THE NORTH AMERICAN SALT COMPANY, AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

9 MEMORANDUM ITEM 1c TO: Management and Operations Committee FROM: Paul Sichko, Assistant Director MSP Operations (612) SUBJECT: AUTOMATIC DEPENDENT SURVEILLANCE-BROADCAST VEHICLE TRANSMITTER EQUIPMENT PROCUREMENT DATE: August 22, 2014 Airport authorities and the FAA are continuously attentive to safety issues and concerns at airports, and in particular to the potential serious consequences that can occur involving aircraft and vehicle movements on the airfield. Reduced visibility conditions such as low ceiling clearances (fog) and snow/rain storms may cause a loss of situational awareness for flight crews, air traffic controllers, and vehicle operators on the airfield. In an effort to mitigate such occurrences, the FAA is in the process of deploying a variety of systems and technologies to aid in reducing the number and severity of incidents and accidents and to increase situational awareness. The Automatic Dependent Surveillance- Broadcast (ADS-B) has been identified as a cornerstone of technology in the FAA s Next Generation Air Transportation System (NextGen) to modernize the safety and efficiency of the National Airspace System. The vehicle movement area transmitter (V-MAT) equipment will enhance airport safety by continuously reporting the position of a ground vehicle on the airfield through ADS-B transmissions that will be displayed in the Air Traffic Control (ATC) tower, resulting in a higher level of safety awareness to help reduce runway incursions. The ADS-B system combines satellite positioning, aircraft avionics and ground infrastructure to enable transmission of more accurate and timely information regarding a vehicles location and identification on ATC displays which will facilitate immediate and clear communication between the ATC and the vehicle when operating on runways and taxiways. The FAA Office of Runway Safety is strongly encouraging large hub airport participation in the grant program associated with this ADS-B technology. ADS-B transmitters are already in use at Boston and Denver airports, and equipment is currently being planed for the Atlanta, Chicago O Hare, Dallas-Ft. Worth, San Francisco and Detroit Metro airports. FAA is targeting all large hub and ASDE-X equipped airports to utilize this technology and is offering discretionary grants that will reimburse airport authorities up to 75 percent of eligible project costs. The complete cost to acquire up to twenty-four ADS-B Out Vehicle Transmitters with installation-oversight by the manufacturer is expected to be less than $250,000. MAC s final cost, after grant reimbursement, is estimated to be less than $62,500. Only one vendor, Exelis, has been approved by the FAA to sell and manufacture this particular product. To help minimize the cost of the installation, MAC trades and field maintenance personnel will assist in the installation of the units. Since the units are a sole source product from the only FAA approved vendor, staff is requesting the authority to negotiate and execute a sole source purchase order directly with Exelis for the procurement of the ADS-B Out Vehicle Transmitters including installationoversight. The purchase will be paid for via savings from the 2014 capital equipment budget with reimbursement from the FAA as described above.

10 In February 2003, the Commission approved: (i) Resolution No. 2014, which authorized the Commission or its Executive Director to execute acceptance of all Federal or State grant offers on behalf of the Commission, accept and execute the appropriate State grant agreements on behalf of said Commission, and to execute and affix their signatures to any and all further documents pertinent thereto and all amendments thereof; and (ii) Resolution No. 2015, which appointed the Commissioner of Transportation (Commissioner) of the State of Minnesota as its agent and authorized the Commissioner or the Commissioner s duly authorized representative as agent for the MAC on the project as required by state law. Therefore, no additional actions are needed to encumber the anticipated Federal funds associated with this project. COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION THAT STAFF BE AUTHORIZED TO NEGOTIATE A SOLE-SOURCE CONTRACT WITH EXELIS FOR THE PURCHASE, DELIVERY AND INSTALLATION-OVERSIGHT OF ADS-B OUT VEHICLE TRANSMITTERS AS OUTLINED ABOVE AT A COST NOT TO EXCEED $250,000, AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

11 MEMORANDUM ITEM 1d TO: Management and Operations Committee FROM: Dave Ruch, Director Information Systems (612) SUBJECT: HONEYWELL PROWATCH ACCESS CONTROL SYSTEM SUPPORT AGREEMENT RENEWAL DATE: August 22, 2014 This is a request to approve the renewal of the annual software maintenance and support agreement with Honeywell for the Secured Area Access Control System (SAACS). This system provides physical control of doors and field gates on the campus employing locking mechanisms with card readers, PIN number pads and biometric fingerprint readers. The MAC badges are produced by the ProWatch system and are the cards that are read at the doors to authorize access. For high security areas, staff is required to also enter a PIN number and, in some cases, pass the biometric fingerprint scan. Badges are provided to all airport employees whose work requires access. There are about 16,000 badge holders today. Badges expire and must be renewed after two years at most. There are about 570 doors and gates controlled by the system on the campus. MAC acquired its Secured Area Access Control System in 2005 following a Request for Proposals process. The vendor selected was Honeywell and its ProWatch system. This system is sold through a re-seller; in this case Pro-Tec Design Inc. of Plymouth MN. The MAC has support agreements with both companies: Honeywell supports the ProWatch software, and Pro- Tec Design Inc. provides on-site ProWatch system support. The Honeywell agreement provides the MAC with periodic software upgrades for the ProWatch system as well as access to expertise to address technical problems with the software. Problems that require system modifications in order to correct the issue are also included. Honeywell staff comes on site annually to review the ProWatch installation and its performance followed by any steps necessary to optimize the MAC s system. MAC staff receives annual training as part of the agreement as well. Honeywell is the sole source for this agreement since ProWatch is a proprietary software product. The annual renewal cost is $66, including sales tax. Funds for this have been included in the 2014 budget. COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION TO AUTHORIZE STAFF TO RENEW THE PROWATCH SYSTEM SUPPORT AGREEMENT WITH HONEYWELL BY AMENDMENT TO THE EXISTING CONTRACT FOR ONE YEAR FOR A COST NOT TO EXCEED $ , AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECCESARY DOCUMENTS.

12 MEMORANDUM ITEM 1e TO: Management and Operations Committee FROM: Dave Ruch, Director Information Systems (612) Jeff Bjorklund, Manager Information Systems/Telecom and Support (612) SUBJECT: INTERNET BANDWIDTH CONTRACT DATE: August 20, 2014 BACKGROUND In 2012, MAC staff issued a bid for Ethernet Dedicated Internet Access, which is how we provide internet services to the MAC. In December 2012, the Commission approved a contract with Zayo Enterprise Networks which commenced in July The contract with Zayo provides two 20 MB bandwidth connections to the MAC for redundancy. When the bid was issued, 20 MB was sufficient bandwidth for the MAC s daily needs. Recently with the move of many services to the cloud and the need for remote support of many of our systems, 20 MB is not sufficient and there are many times during the week that we have exceeded our 20 MB capacity, requiring Zayo to burst our connection temporarily to a higher bandwidth. The existing contract with Zayo is for three years with a three year optional extension. The initial term expires in June 2016, and the current cost is $22,390 per year. STAFF RECOMMENDATION MAC Staff has contacted Zayo about an increase in bandwidth from 20 MB to 100 MB on each connection. This would allow the MAC to have adequate bandwidth for the foreseeable future. Staff is recommending that the initial contract be amended to allow for this increase. The cost increase for this upgrade will be an additional $19,110 per year. Money for this increase is available in the IS budget. The existing term of the contract will not be changed. COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION THAT STAFF BE AUTHORIZED TO AMEND THE EXISTING CONTRACT WITH ZAYO ENTERPRISE NETWORKS TO INCREASE MAC S BANDWITH AT AN ADDITIONAL COST OF $19,110 PER YEAR AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECCESARY DOCUMENTS.

13 MEMORANDUM ITEM 2 TO: Management and Operations Committee FROM: Phil Burke, Director MSP Operations (612) SUBJECT: SECURITY CHECKPOINT QUEUE MANAGEMENT REQUEST FOR PROPOSALS DATE: August 21, 2014 Staff is requesting authorization to issue a request for proposals for security checkpoint queue management at Terminal 1-Lindbergh and Terminal 2-Humphrey. BACKGROUND Line balancing There are seven security checkpoints at Terminal 1-Lindbergh (1, 2, 3, 4, 6, 7, and 10). Passengers are inclined to use the checkpoint closest to their check-in counter, or the one nearest their departure gate without regard. This causes backups at some checkpoints while others go under-utilized. Previously, the Transportation Security Administration (TSA) used checkpoint managers to balance the lines by taking groups of passengers and shepherding them from a checkpoint with a long line, to a checkpoint with shorter lines. MAC staff, TSA, and the airlines agree that this is not the best use of TSA management s time. In fall 2013, MAC staff worked with Traveler s Assistance to create the Navigator program to greet passengers as they entered the facility, assist with questions, and take over performance of checkpoint line balancing from the TSA. The Navigator program has been highly beneficial as a customer service addition; however due to volunteer schedules, and the daily necessity for line balancing tasks, the operational role supports an airport employee to improve future line balancing success. As a stopgap measure this spring, MAC Airport Police began assisting the Navigators with line balancing during the exceptionally challenging 2014 spring break period. However, the use of airport police in this role is not sustainable due to other policing responsibilities to serve the airport community. Pre-check monitor In the fall of 2013, TSA implemented Pre-check at MSP. Currently, more than 40 percent of all travelers departing MSP utilize the expedited screening process, and TSA has a goal of reaching 75 percent. Checkpoints 4 and 6 have specific lanes dedicated to Pre-check. To help make Pre-check successful, Delta began positioning an agent at the entrance to each Pre-check checkpoint lane to make sure that only passengers with Pre-check entered the lane. Without the Delta employee, passengers could stand in line without Pre-check credentials; make it to the front of the line, then be turned away by the TSA ticket document checker, creating a line bottleneck and unhappy customers. Delta is unable to be the sole staffing entity for the common Pre-check passenger lanes and advised the MAC, TSA, and the other airlines that they would cease providing this service in August.

14 At Terminal 2-Humphrey, the two busiest air carriers accomplish the checkpoint queue management functions by performing it themselves (Sun Country), or by contracting it out (Southwest). CURRENT SITUATION MAC Airport Police and volunteer Navigators continue to help with checkpoint line balancing when available. MAC staff requested the porter service contractor, G2 Secure Staff Services, to staff the front of the Pre-check lanes at checkpoints 4 and 6 as a temporary customer service assignment that will expire once the winning proposer is in place. RECOMMENDATION MAC staff meets weekly with TSA and the airlines to discuss security checkpoint operations and other front lobby customer service activities. This group reviewed a number of alternatives and concluded that a contractor hired by MAC is the best solution for both the line balancing and TSA Pre-check line duties. The proposed initial contract term is 16 months with the contract then converting to month-tomonth option contract after the initial term, up to a total maximum length of three years. Checkpoint 1 will be undergoing a major remodel in 2015 with an opening scheduled for sometime in early Once checkpoint 1 reopens, checkpoints 2, 3, and 4 would close leaving two large checkpoints remaining. With just two checkpoints, the thought is that security checkpoint line balancing may no longer be necessary due to the addition of line wait technology information for the passenger and the reconfiguration of the checkpoints. Similarly, TSA s Pre-check product should be better known to passengers and the incorporation of queueing considerations with the new checkpoint designs should allow the Pre-check monitor position to be phased out. AIRLINE SUPPORT The fees that the successful proposer will charge MSP for this service will be charged back to the airlines through rates and charges. Staff has worked with all of the airlines utilizing Terminal 1-Lindbergh and they fully support this initiative. Staff is currently working with Terminal 2-Humphrey airlines to gain their support. *Note: This service is included in the 2015 operating budget. MINIMUM REQUIREMENTS The minimum proposer requirements are as follows: A. Proposer must be qualified to do business in the State of Minnesota at the time of agreement execution. B. Staffing levels to meet operational requirements. C. Customer service oriented staff, proficient and literate in English. D. Proposers are encouraged to provide employee s a competitive compensation package and will be scored on their employee compensation and benefit plans as part of the Management and Operations plan criteria. At minimum, proposer must provide employees with a competitive market driven wage. MAC staff s analysis of current market wages indicates that range to be $10.50 to $17.00/hr. In addition, Proposer must also provide employees with a health insurance benefit and a paid leave program that, at a

15 minimum, provides employees an average paid leave equivalent to 1 hour of paid leave for every thirty hours worked at the Airport. EVALUATION CRITERIA Each proposal will be evaluated on the following criteria: A. Company qualifications and experience 500 points B. Management and operations plan 500 points C. Financial submission 500 points REVIEW TEAM The Review team consists of: Phil Burke, Director MSP Operations, Anita Bellant, Manager - Diversity, Jeff Nawrocki, Assistant Director MSP Operations/Facilities, Greg Failor, Manager Labor Relations, Jeannine Ashworth, Director Airport Customer Service-Delta Airlines and Terry TenCate, General Manager American Airlines. MAC s Legal, Finance, Customer Experience, and Purchasing Departments will serve as advisors to the Review Team. Replacements to the review team may be made if schedules require. ADVERTISING AND DISTRIBUTION OF THE RFP The Security Checkpoint Queue Management Service opportunity will be advertised in the Twin Cities Business Journal, AAAE and ACI-NA web sites, and on the MAC web page. All the current service providers at MSP will be provided a copy as well. COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION AUTHORIZATION FOR STAFF TO ISSUE A REQUEST FOR PROPOSALS FOR SECURITY CHECKPOINT QUEUE MANAGEMENT SERVICES CONSISTENT WITH THE TERMS ABOVE AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

16 MEMORANDUM ITEM 3 TO: FROM: SUBJECT: Management and Operations Committee Elizabeth Grzechowiak, Assistant Director Concessions and Business Development (612) Jeff Bjorklund, Manager Information Systems/Telecom and Support (612) DISTRIBUTED ANTENNA SYSTEM REQUEST FOR AUTHORITY DATE: August 18, 2014 Staff is seeking permission from the Commission to directly negotiate a contract for installation and management of a Distributed Antenna System (DAS) for cell phone services at Terminal 2-Humphrey and management of the existing DAS at Terminal 1-Lindbergh. A DAS is a network of spatially separated antenna nodes connected to a common source via fiber that provides wireless service within a building. It provides better reception for cell phones and mobile devices with cellular data connectivity in areas where external cell antennas will not adequately serve customers. BACKGROUND Terminal 2 currently lacks a DAS resulting in passengers, airlines, MAC staff and MSP employees receiving limited or no cellular reception inside the terminal. Prior to the marked increase in passengers at Terminal 2, a few wireless carriers had adequate reception while others struggled. With increased use of smart phones, tablets and other devices, all cellular customers are now experiencing poor voice reception and data throughput on their mobile devices. Since cellular customers have become ever reliant on their smart phones and devices for everyday tasks limited cellular service at Terminal 2 has become a serious customer service and operational issue. The public Wi-Fi and the existing DAS in Terminal 1-Lindbergh were previously managed and maintained by a single vendor from 2001 to This management included that installation of the DAS and managing the Carrier Access Agreements whereby cell carriers gain access to the DAS. Over the years, the Carrier Access Agreements between the MAC and the cellular carriers had been mismanaged and were in disarray. In 2012, MAC s Commercial Management and Airline Affairs (CMAA) and Information Services (IS) departments made the decision to separate the services. MAC assumed control of the DAS management for Terminal 1 and bid out the Wi-Fi for both terminals. CMAA managed and cleaned up the contracts and IS handled the day-to-day management and maintenance of the DAS system. In 2010, there was no interest from the cellular carriers to join a DAS in Terminal 2 based on the number of passengers (1.2 million) and lack of customer complaints. In 2012, with the terminal experiencing substantial growth to 2.1 million passengers, the MAC was approached by both Verizon Wireless and AT&T Wireless about building a DAS at Terminal 2. Both carriers offered to build a DAS, allowing for other carriers to join their system for a fee. This scenario would have been revenue neutral to MAC because one carrier would have made the capital improvements at its expense and then charged the other carriers directly for the privilege of access. Staff at that time started to investigate the possibilities of building a

17 MAC-owned and operated system, allowing the carriers to join it for a fee. The process stalled while working through options of how to build, fund and manage the system. MAC has received increasing complaints from numerous parties unable to receive an adequate cellular signal to use their devices. Passengers, tenant airlines and their employees, airport employees and MAC staff have reported the difficulty in connecting to a reliable network. Employees are inhibited from performing their daily duties. The lack of service presents challenges for all Terminal 2 employees when responding to emergencies or urgent operational issues. In an attempt to remedy these issues, MAC explored three options for installing a DAS at Terminal 2: 1. MAC builds out and pays for a DAS at Terminal 2 and manages the contracts consistent with Terminal MAC issues a Request for Proposal (RFP) for installation of a DAS at Terminal 2 and management of the Terminal 1 and Terminal 2 DAS. 3. MAC direct negotiates with existing Wi-Fi vendor for installation of a DAS at Terminal 2 and management of the Terminal 1 and Terminal 2 DAS. Option 1 would take the most time to complete and implement (approximately 18 months), leaving service at inadequate levels the longest. Additionally, it would need to be funded by MAC at an estimated cost of $3.5 million to $4 million for the build out cost, would require, at a minimum, one full-time employee for ongoing maintenance and support, and ongoing reinvestment into the system and continuous upgrades to meet the carriers needs. MAC would be responsible for maintaining the contracts and agreements which is currently taking a little over one half full-time employee today. This option would potentially capture the highest revenue stream, assuming that MAC could lease the system to all network providers currently under agreement at Terminal 1. Option 2 to issue an RFP allows for a competitive proposal process with minimal investment by MAC and no ongoing maintenance cost. This option, however, extends the timeline in order to draft, request and execute the RFP process, thus delaying the time frame to address the customer service issues by approximately eight months. Option 3 provides the fastest resolution to the problem. MAC Staff would directly negotiate with the existing Wi-Fi provider, Advanced Wireless Group (AWG) to build out a neutral host DAS at Terminal 2 at no initial cost to the MAC. Having a single vendor provide Wi-Fi and DAS services allows for technical synergies, lessens interferences and reduces some of the necessary cable runs and management of equipment. AWG would require approximately three to six months to design and build the DAS. They would solicit carriers and manage the contracts for an agreed upon time. Staff currently has a great working relationship with the vendor and they have an excellent response time to staff questions and technical complaints. Under this option, AWG would be responsible for managing and maintaining the DAS at Terminal 1 as well as all of the Carrier Access Agreements between the carriers and the MAC, thus removing the need for additional staff for the maintenance, repairs and contract management. MAC staff (CMAA, Finance, Legal and IS) have met internally to explore all of the above stated options and is now recommending to the Management and Operations Committee that staff be authorized to enter into negotiations with AWG. MAC s policy on Awarding Concession Agreements, (Policy #10001) dictates that MAC may negotiate concessions agreements directly when it is in MAC s best interest. Factors for consideration to directly

18 negotiate include, but are not limited to, type of business opportunity, number of interested parties, maximizing revenue to MAC, current economic conditions, customer service and level of investment required by a new or existing concessionaire. To efficiently and swiftly address the outstanding customer and service inconvenience related to the existing underserved cellular system at Terminal 2, directly negotiating an agreement is appropriate in this instance. Staff will bring the negotiated agreement back to the Management and Operations Committee for approval. COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION THAT STAFF BE AUTHORIZED TO DIRECTLY NEGOTIATE WITH THE CURRENT WI-FI VENDOR TO BUILD AND MANAGE A DISTRIBUTED ANTENNA SYSTEM (DAS) AT TERMINAL 2-HUMPHREY AND MANAGE THE CARRIER ACCESS AGREEMENTS AT TERMINAL 1-LINDBERGH AND TERMINAL 2- HUMPHREY AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

19 MEMORANDUM ITEM 4 TO: FROM: SUBJECT: Management and Operations Committee Elizabeth Grzechowiak, Assistant Director Concessions and Business Development (612) AUTOMATED TELLER MACHINE (ATM) CONCESSIONS AWARD DATE: August 19, 2014 MINNESOTA GOVERNMENT 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 negotiating the contract with the selected proposer(s). The names of the bidders, however, are public at the time and date the proposals are due. Information in the bids and the Not Public Memorandum is not public and should not be disclosed to anyone other than MAC Commissioners and staff. Notwithstanding the foregoing, Commissioners may discuss the information in the bid(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 in this memorandum is public data. There is no Not Public Memorandum associated with this item. BACKGROUND At its June 16 th, 2014, Commission meeting, staff was authorized to issue a Request for Bids (RFB) for the operation of the ATM concession at MSP. Staff issued the RFB June 25 th, advertising the opportunity in the print and online editions of the Pioneer Press, Star Tribune, Airport Council International North America, Aviation News, American Association of Airport Executives Airport Report Today and on the MAC s website. Staff directly contacted banking institutions that previously expressed interest in the concession opportunity. On July 10 th, representatives of six companies (Big Apple Services, Cardtronics, TCF National Bank, U.S. Bancorp, Wells Fargo, and Wings Financial) attended a mandatory prebid conference to learn more about the ATM concessions opportunity. The deadline for submission of bids was August 15 th. SUMMARY OF KEY BUSINESS TERMS A. The term of this Agreement shall be five years. B. Bidders shall set a Minimum Annual Guarantee (MAG) for each year of the agreement. The Year 1 MAG must be no lower than $655,065. The MAG must escalate by a minimum of 2 percent annually. C. The MAG will increase by a minimum of $60,000 starting January 1, 2016, with the inclusion of the three G Concourse locations. This addition to the MAG will escalate at the same rate as the bid MAG.

20 D. Bids will be evaluated by calculating the net present value formula of all five years MAG s to determine the total bid amount. E. In addition to the MAG, the successful bidder shall pay to the MAC 50 percent of all surcharges including out-of-network fees. MINIMUM REQUIREMENTS A. Bidder must submit a bid deposit in the amount of $5,000. B. Bidder must be licensed to do business in the State of Minnesota and currently manage or operate a banking facility that provides personal and business banking services in Minnesota at one or more location for at least the previous three years. C. Bidder must provide a minimum of three business and one financial reference. D. Bidder must be a Federal Deposit Insurance Corporation Approved Financial Institution. E. Bidder must have no pending, active or previous legal action that could, in MAC s sole judgment, prevent the bidder from fulfilling the terms of an agreement. F. Bidder must submit all required bid documents. SUMMARY OF AWARD One bid, submitted by U.S. Bancorp (U.S.Bank), was received. TCF National Bank and Wells Fargo each sent staff notices that they were declining to participate. The bidder proposed a fully conforming bid consisting of a MAG of $655,065 in year one with an annual increase of 2 percent per year for the five year term plus a concession fee of 50 percent share of all surcharge transaction fees collected at all ATMs. Additionally, the MAG will increase by $60,000 on January 1, 2016, when the three additional G Concourse locations are added to the concession. The MAG as bid by U.S. Bank commences at a 3 percent increase over the 5 th year MAG of the current ATM contract. Concession fees are expected to remain consistent under the new agreement. COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION ACCEPTANCE OF THE BID PROPOSED BY U.S. BANCORP; AUTHORIZE STAFF TO NEGOTIATE FINAL AGREEMENTS AND RELATED DOCUMENTS; AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

21 MEMORANDUM ITEM 5 TO: Management and Operations Committee FROM: Mitchell P. Kilian, Director Governmental Affairs (612) SUBJECT: CONTINUING CONSULTANTS STATE LEGISLATIVE CONSULTANT SERVICES REQUEST FOR QUALIFICATIONS DATE: August 25, 2014 The purpose of this memo is to request authority to initiate and complete a selection process for a continuing consultant to provide state legislative consultant services. MAC s Policy regarding the Use, Selection, Monitoring and Payment of Consultants requires a competitive selection process for continuing consultant services that may exceed $50,000 per year. Within that Policy, a continuing consultant is defined as a consultant selected for potential use in generally defined areas of work. In addition, the Policy requires that the Commission initiates a competitive selection process for the services provided by a continuing consultant every six years. BACKGROUND Due to the uncertainty of the workload, the potential for conflicts of interest and the increased expertise that two outside firms provide, the MAC has traditionally authorized the use of at least two firms to assist with these services. Faegre Baker Daniels and McGrann Shea Carnival Straughn & Lamb, Chartered, were last selected to provide state legislative consulting services in 2014, and each firm has two years remaining on their six year review cycle. However, MAC staff is requesting authorization to issue this Request for Qualifications prior to the expiration of Faegre Baker Daniels six-year review cycle, due to the upcoming retirement of one of Faegre Baker Daniels lead attorneys on our account. Overall, Faegre Baker Daniels has served MAC exceptionally well over the years. MAC staff is proposing that McGrann Shea Carnival Straughn & Lamb, Chartered remain on their current review cycle, and that MAC seek additional interest for the role currently fulfilled by Faegre Baker Daniels. SCOPE OF WORK State legislative consulting services are needed to advise and assist the Commission with state and local governmental relations issues. The scope of work includes, but is not limited to, representing MAC before the State Legislature, local units of government and other governmental agencies. ALTERNATIVES CONSIDERED MAC staff has considered using internal resources to perform MAC s state legislative work, however, staff has determined that outside consultants provide legislative expertise in a cost effective manner that in-house staff cannot provide.

22 PROPOSED SCHEDULE MAC staff is proposing the selection process be conducted pursuant to the following timeline: September 22, 2014 Mail and publish notice of Request for Notice of Qualifications Statements and issue Request for Qualifications. October 10, 2014 Qualifications Statements due back from prospective firms. October 21-24, 2014 Review Team meets to review Qualifications Statements. November 4-13, 2014 Interviews of firms by Review Team. December 1, 2014 Review Team s recommendation to Management and Operations Committee. December 15, 2014 Full Commission considers recommendation. REVIEW TEAM MAC s policy provides that the interviews of the firms will be conducted by the review team when the scope of work is estimated to be under $300,000 per year. Therefore, a staff review team consisting of Tom Anderson, General Counsel; Denny Probst, Executive Vice President; Mitchell P. Kilian, Director Governmental Affairs; and assisted by Chairman Boivin, will review the qualification statements, conduct interviews and make a recommendation to the Management and Operations Committee. EVALUATION CRITERIA 1. Key Personnel 2. Experience with Governmental Entities 3. Local Government and Transportation Committee Expertise 4. Responsiveness 5. Depth of Personnel 6. Potential Conflicts of Interest and Clients with Related Issues COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION TO AUTHORIZE STAFF TO PROCEED WITH A REQUEST FOR QUALIFICATIONS PROCESS FOR STATE LEGISLATIVE CONSULTANT SERVICES, AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

23 MEMORANDUM ITEM 6 TO: FROM: SUBJECT: Management and Operations Committee Roy Fuhrmann, Vice President Management and Operations (612) TRANSPORTATION SECURITY ADMINISTRATION BRIEFING DATE: August 21, 2014 In response to a request by the Management and Operations Committee Chair Rick King, Mr. Clifford Van Leuven, Federal Security Director, MN for the Transportation Security Administration, will provide a briefing at the Management and Operations Committee meeting on September 2, THIS IS AN INFORMATION ITEM ONLY; NO COMMITTEE ACTION IS REQUESTED.

24 MEMORANDUM ITEM 7 TO: FROM: SUBJECT: Management and Operations Committee Elizabeth Grzechowiak, Assistant Director Concessions and Business Development (612) STREET PRICING PRESENTATION DATE: August 19, 2014 BACKGROUND When the Metropolitan Airports Commission (MAC) bid the concession batch contracts in 2004, a new requirement of the lease agreements called for each tenant to operate under a strict Street Pricing guideline. Street Pricing requires products sold at MSP to be priced comparably to items sold locally at similar locations outside of the airport. This program was designed to establish consumer confidence in airport vendor s pricing with hopes of increasing the volume of purchases at MSP. In 2008, the guideline was called into review in an effort to solve a number of issues stemming from the establishment of Street Pricing. Concourse G, under the control of Northwest Airlines at the time, was not required to participate in MAC s Street Pricing guidelines thus causing customer confusion and resulting in tenants operating similar venues with separate pricing structures within the same terminal. At the time, tenants also complained of the deteriorating economy and the elevated cost of doing business in an airport environment. In November 2008, the Commission approved a modification allowing for products to be priced at no more than ten percent above Street Price for a test period of twelve months. In 2009, after a full year of success during the economic downturn, the Commission approved an additional one year extension of the program. In October 2010, the Commission approved an extension to carry through the remaining lease term. LEASE REQUIREMENTS Pursuant to section IX.F.3.a. of the General Terms and Conditions (GTAC), each Operator is required to conduct a price check on twenty-five percent of its store or the top 25 best-selling items and submit findings to MAC on a quarterly basis (see below for more detail). For the purpose of establishing Street Prices, MAC uses the Mall of America and Southdale Mall as the first two comparable locations. Pursuant to the GTAC, Operator and Operator s subtenants use the regular, everyday prices at an existing facility at the Mall of America or Southdale Mall. If an existing facility exists at both the Mall of America and Southdale Mall, the average of the two facilities shall be used. STREET PRICING AUDITING PROCESS All concession tenants are required to submit a Street Pricing Comparison Report (Street Pricing Report). The Street Pricing Report includes each tenant s current price list of the top 25 percent best-selling items (high profile items) for each concession location. However, if a store has a high volume of product, tenants are allowed to submit the top 25 best-selling items instead to minimize administrative burden while protecting MAC s interests.

25 For those concession tenants who use either pre-printed or uniform/corporate pricing, such as magazine or book pricing, MAC will accept a letter stating that they use pre-printed prices or uniform/corporate pricing. Otherwise, they are required to submit a completed Street Pricing Report. Concession tenants who submit a letter stating that they use either pre-printed or uniform/corporate pricing are still required to submit the current price list of the top 25 percent best-selling items. If a store is only located within an airport setting (no street side locations), they are required to submit to the MAC the other airport locations nearest to MSP together with the contact information of each airport location (up to three comparable shopping locations are required). Additionally, MAC may request the Operator to conduct spot or random surveys of the prices charged at the airport. MAC staff reviews the submissions and compares stated prices to pricing standards established by MAC staff. Prices that are questioned or deemed outside of price scope are returned to the Operator who has one week to correct any price overage discrepancies or to submit written justification for retaining current prices. THIS IS AN INFORMATION ITEM ONLY; NO COMMITTEE ACTION IS REQUESTED.

26 MEMORANDUM ITEM 8 TO: Management and Operations Committee FROM: Patrick Hogan, Director Public Affairs and Marketing (612) Rebecca Brown, Information Systems Coordinator (612) SUBJECT: COMMISSION MEETING BROADCAST UPDATE DATE: August 11, 2014 Staff will update commissioners on progress toward live-streaming and recording MAC board and committee meetings. THIS IS AN INFORMATION ITEM ONLY; NO COMMITTEE ACTION IS REQUESTED.

27 MEMORANDUM ITEM 9 TO: Management and Operations Committee FROM: Mitchell P. Kilian, Director Governmental Affairs (612) Pablo Nuesch, Spiegel & McDiarmid Law Firm, Washington, D.C. (202) SUBJECT: FEDERAL LEGISLATIVE AFFAIRS UPDATE DATE: August 22, 2014 Just five weeks away from the beginning of the new federal fiscal year, and with only a few legislative days left in the Congressional calendar between the time Congress reconvenes after the summer recess and before members return to their districts to campaign for the mid-term elections, none of the 12 appropriations bills necessary to fund the government have been sent to the President for his signature. Although from a policy perspective the House and the Senate do not seem to be far apart in their respective Transportation-HUD and Homeland Security appropriations bills, it remains unclear when or if those bills will be enacted into law. FY 2015 FAA Funding Should Remain Level On June 30, the full House approved the Transportation-HUD spending bill that would fund the Department of Transportation at $71.6 billion, considerably below the President s request and $1 billion below current level. However, the House bill would fund the Federal Aviation Administration (FAA) at $15.7 billion, a level that is $500 million higher than the President s request and slightly higher than current level. For its part, the Senate Appropriations Committee adopted its Transportation-HUD a bill on June 5. The bill has not come to the floor of the Senate yet (and is not expected to do so on a stand-alone basis; more on this below). The Senate s bill would fund DOT at almost $73 billion, and FAA at $15.8 billion. Both bills would fund FAA Operations at $9.75 billion, as requested by the President, and both bills would protect funding for the federal contract tower program to ensure that all current contract towers remain fully funded in the new fiscal year. The main difference between the President s request and the House and Senate bills is in the Airport Improvement Program funding levels. By eliminating entitlement funds to medium and large hub airports, such as MSP, the President s proposal would reduce AIP funding to $2.9 billion, a decrease of $450 million from current FY 2014 levels. In exchange, the President s proposal would increase the Passenger Facility Charge (PFC) cap to $8.00 per enplaned passenger (currently set at $4.50/enplaned passenger). 1 The House and Senate appropriators rejected the proposed PFC increase (in part, for being outside of their jurisdiction), and proposed to fund the AIP at $3.35 billion and $3.48 billion respectively, consistent with current funding levels. 1 Under current law, medium and large hub airports that collect PFCs must forfeit up to 75% of their AIP entitlements. The President s proposal would have eliminated MAC s remaining AIP annual entitlements of approximately $4.7 million, while making it possible for MAC to collect an additional $120 million in annual PFCs.