Agenda Indianapolis Airport Authority October 18, :30 AM

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1 Agenda Indianapolis Airport Authority October 18, :30 AM I. Call to Order II. Approval of Minutes of the Pre-Board and Regular Meeting of September 20, 2013 III. Ordinances, Resolutions and Public Hearings Consider for approval Resolution No concerning the 1 st Amendment of the IMC Lease Agreement with the Greater Indianapolis Foreign Trade Zone, Inc. IV. Board Reports Vice President s Report V. Official Actions Consider for approval the individual items listed on the IAA General Agenda dated October 18, VI. Staff Reports a) Executive Director Report Bob Duncan b) Supplier Diversity Report Corey Wilson VII. Other Reports/Update VIII. Board Communications Next Meeting: Friday, November 15, 8:30 a.m. IX. Adjourn Page 1 of 1

2 MINUTES Board of Directors Meeting Indianapolis Airport Authority The Regular Meeting of the Indianapolis Airport Authority Board was called to order at 8:43 a.m., September 20, 2013, in the Airport s Board Room at the Indianapolis International Airport. Present at commencement of the meeting and comprising a quorum were: Kelly J. Flynn, Vice President Alfred Bennett, Secretary Jean Wojtowicz, Member Karen Caswelch, Member David C. Lewis, Member Philip C. Borst, Member Steve C. Dillinger, Member Jack T. Morton, Member Lynn T. Gordon, Advisory Member IAA executive staff attending: Robert A. Duncan, Executive Director Mike Medvescek, Sr. Director of Operations Marsha Stone, Sr. Director of Finance Joseph Heerens, General Counsel Shannetta Griffin, Sr. Director of Planning & Development Jamie Leap, Sr. Administrative Assistant/Recording Secretary APPROVAL OF MINUTES Upon a motion by Mr. Lewis, seconded by Ms. Wojtowicz and unanimously passed, approval was given to the Minutes of both the Pre-Board and Regular Meetings of August 16, ORDINANCES, RESOLUTIONS AND PUBLIC HEARINGS Vice President Flynn opened the public hearing and described General Ordinance No , concerning certain changes to the rates and charges for the remainder of 2013 as well as the establishment of the rates and charges for Mr. Joe Heerens, IAA s General Counsel, provided an overview of certain changes that were made to General Ordinance No since it was introduced at the Board s meeting in August Vice President Flynn next asked if there were any other comments or testimony. There being none, he asked for a motion. Upon a motion by Mr. Dillinger, seconded by Mr. Bennett and unanimously passed, approval was given to General Ordinance No

3 IAA Board Meeting Minutes September 20, 2013 Page 2 of 3 BOARD REPORTS Vice President s Report Vice President Flynn recognized Mr. Corey Wilson, IAA s Director of Supplier Diversity, who was recognized recently by the 100 Black Men of Indianapolis organization as one of 10 Emerging Leaders. Vice President Flynn also reported that the Indianapolis Department of Public Safety (Division of Homeland Security), due to renovations being made to their facility on the West side of Indianapolis, have temporarily relocated their offices to IAA s Operations Center at Indianapolis International Airport. He thanked the IAA staff for their time and effort in this regard. Mr. Flynn also mentioned the new snow equipment that has been acquired for IND and the positive impact it will have on snow removal operations. OFFICIAL ACTIONS INTRODUCTION AND APPROVAL OF THE INDIANAPOLIS AIRPORT AUTHORITY S GENERAL AGENDA, DATED September 20, 2013: Vice President Flynn introduced and then verbally described each of the individual items listed on the General Agenda, after which he asked for separate motions of approval, as follows: BP Upon a motion by Mr. Bennett, seconded by Mr. Morton and unanimously passed, approval was given to BP (Mr. Bennett spoke briefly about the Foreign Trade Zone, its purpose and importance.) BP Upon a motion by Mr. Morton, seconded by Mr. Borst and unanimously passed, approval was given to BP BP Upon a motion by Ms. Wojtowicz, seconded by Mr. Dillinger and unanimously passed, approval was given to BP BP Upon a motion by Mr. Borst, seconded by Mr. Bennett and unanimously passed, approval was given to BP BP Upon a motion by Mr. Lewis, seconded by Ms. Wojtowicz and unanimously passed, approval was given to BP BP Upon a motion by Mr. Bennett, seconded by Mr. Morton and unanimously passed, approval was given to BP BP Upon a motion by Mr. Lewis, seconded by Ms. Caswelch and unanimously passed, approval was given to BP

4 IAA Board Meeting Minutes September 20, 2013 Page 3 of 3 BP Upon a motion by Mr. Bennett, seconded by Ms. Caswelch and unanimously passed, approval was given to BP BP Upon a motion by Ms. Caswelch, seconded by Mr. Borst and unanimously passed, approval was given to BP BP Upon a motion by Ms. Wojtowicz, seconded by Mr. Bennett and unanimously passed, approval was given to BP STAFF REPORTS Executive Director Report Mr. Bob Duncan, IAA s Executive Director, introduced Mr. Mike Medvescek, Sr. Director of Operations, who provided the following reports: o Mr. Medvescek presented the Board with a plaque from the Special Olympics in appreciation for the IAA s participation and support of the 2013 Special Olympics Plane Pull. Eighty teams participated and approximately $181,000 was raised. o Mr. Medvescek also spoke briefly about the most recent Indy Honor Flight held on September 7, 2013, in which many World War II veterans participated. They were applauded by approximately 2,000 visitors in Civic Plaza. ADJOURNMENT Vice President Flynn announced that the next Board meeting is scheduled for October 18, There being no further business, the meeting was adjourned at 9:03 a.m. INDIANAPOLIS AIRPORT AUTHORITY* Kelly Flynn, Vice President Alfred R. Bennett, Secretary Date: *Signed under authority of IAA Board Resolution #6-2013

5 Resolution No BOARD MEMO LEASE AGREEMENT To: From: IAA Board of Directors Robert A. Duncan, Executive Director Date: October 2, 2013 Board Date: October 18, 2013 Subject: 1 st Amendment to Lease Agreement with Greater Indianapolis Foreign Trade Zone, Inc. at the Indianapolis Maintenance Center Background The Indianapolis Airport Authority (IAA) operates as the Foreign Trade Zone (FTZ) grantee representing central Indiana communities. In 1980, the IAA created a separate company, the Greater Indianapolis Foreign Trade Zone, Inc. (GIFTZ), a not-for-profit 501C (6), to administer the FTZ program. The GIFTZ s mission is to foster business growth for companies located in its service area. In February 2013 under Resolution No , the GIFTZ operation was strategically relocated to warehouse space within the Indianapolis Maintenance Center (IMC) to better support future air cargo development opportunities at the former USPS Eagle Hub, and IMC. In continuation with this strategy the GIFTZ Leasehold is being expanded to include a cargo container storage yard in the IMC courtyard that will provide a more secure location for short term storage of in-transit cargo containers. Scope The GIFTZ is requesting to amend its existing Lease by adding 79,358 sq. ft. of vacant land at the IMC to support its strategic initiatives. The current Lease Agreement is for one (1) year, commencing on February 1, It is the expectation the Lease Agreement will be extended an additional year. IAA Staff is requesting IAA Board adoption of Resolution No , authorizing a 1 st Amendment to the IMC Lease Agreement with GIFTZ for the leasing of vacant land at the IMC. Schedule October 18, 2013: Execution of the 1 st Amendment to IMC Lease Agreement with the Greater Indianapolis Foreign Trade Zone, Inc. Page 1 of 2

6 Memo Re: 1 st Amendment to IMC Lease Agreement with GIFTZ Revenue and/or Operating Cost Implications Revenue: 79,358 sq. ft. of container storage $0.08 psf = $6, per annum. Operating Costs: No additional costs are incurred to support this amendment. Supplier Diversity Participation Not applicable. Recommendation The IAA Staff recommends the Board consider for approval Resolution No concerning the 1 st Amendment of the IMC Lease Agreement with the Greater Indianapolis Foreign Trade Zone, Inc. Resolution No Page 2 of 2

7 RESOLUTION NO RESOLUTION OF THE INDIANAPOLIS AIRPORT AUTHORITY APPROVING A LEASE AMENDMENT TO GIFTZ LEASE WHEREAS, the Indianapolis Airport Authority (the "Authority") owns the Indianapolis Maintenance Center (the "IMC") at the Indianapolis International Airport (the "Airport") which was partially financed with the proceeds of Indianapolis Airport Authority Special Facility Revenue Bonds, Series 1995 (United Airlines, Inc.--Indianapolis Maintenance Center Project) (the "Bonds"); and WHEREAS, since May 9, 2003, when United Airlines vacated the IMC and turned over possession of the IMC to the Authority, the Authority has been operating and maintaining the IMC in order to protect the IMC and maintain it in a leaseable condition; and WHEREAS, the Authority has worked diligently since 2003 to evaluate the best reuse of the IMC including use of outside marketing professionals, evaluated the potential tenants that might be compatible with such reuse, evaluated the state of the market for the various facilities comprising the IMC, analyzed the rental rates currently borne by those markets and conducted a thorough search for new tenants; and WHEREAS, Authority Staff has reported to the members of the Board of the Authority on the progress of various efforts to relet the IMC and have updated the Board throughout the negotiations with Greater Indianapolis Foreign Trade Zone, Inc. (GIFTZ or the "Tenant"); and WHEREAS, Authority and Tenant entered into a Lease Agreement dated February 1, 2013, providing for Tenant s occupancy of a portion of the warehouse space at the IMC; WHEREAS, the Authority has come to agreement on the terms for amending the Lease Agreement with Tenant at the IMC; and WHEREAS, the terms of the Lease Amendment are consistent with the range of rents for similar space located in the IMC and market rates, demonstrating to the Authority that the Authority should not expect to negotiate a significantly more favorable lease for such space with any tenant than that negotiated with the GIFTZ; NOW, THEREFORE, BE IT RESOLVED BY THE INDIANAPOLIS AIRPORT AUTHORITY AS FOLLOWS: 1. The Authority hereby finds that the Authority has used reasonable efforts to relet the applicable portion of the IMC for rentals equal to the full rental due from United Air Lines for such space and with terms and provisions substantially similar to those contained in the lease with United Air Lines, but the Authority has found no tenant or tenants who are willing to lease the entire IMC, who are willing and able to pay the full rental paid by United and who are willing to pay the full operating cost of the IMC. Therefore, the Authority hereby finds that no United-like lease or leases can be executed. INDY v1

8 2. The Authority has used its reasonable efforts to negotiate for the best available lease (for the portion of the IMC covered by the Lease, as amended) for generating projected total net rentals in light of then-prevailing market conditions and without materially reducing the expected total rentals over the term of the lease in return for commitments from Tenant for job creation or other concessions. 3. The Authority has determined that proceeding with a Lease Amendment is a far superior option compared to continuing to fund operating expenses without a tenant in such space. 4. It is hereby found that the execution of the Lease Amendment, as presented to this meeting, complies with the essential and governmental purposes and provisions of the Act and would be in the best interests of the Authority, the holders of the Bonds and the community of Indianapolis and Marion County. 5. The Authority hereby authorizes and directs the President, Vice President and/or the Secretary or the Assistant Secretary of the Authority to execute all collateral documents required for execution of the Lease Amendment on behalf of the Authority. 6. If any provision of this Resolution shall, for any reason, be held to be invalid or unenforceable, the invalidity or unenforceability thereof shall not affect any of the remaining provisions of this Resolution. Remainder of page intentionally left blank. INDY v1-2 -

9 Adopted this day of, INDIANAPOLIS AIRPORT AUTHORITY* Kelly J. Flynn, Vice President Alfred R. Bennett, Secretary *Signed under authority provided in IAA Board Resolution CERTIFICATE OF AUTHENTICITY I, Alfred R. Bennett, Secretary of the Indianapolis Airport Authority Board of Directors, hereby certify that the foregoing is a true and correct copy Resolution No adopted by the Indianapolis Airport Authority Board on the day of, Alfred R. Bennett, Secretary INDIANAPOLIS AIRPORT AUTHORITY INDY v1-3 -

10 IAA Board Meeting General Agenda October 18, 2013 General: BP Consider for approval a maintenance contract with KONE for all the Covered Equipment KONE for a ten (10) year term, commencing November 3, 2013, in the initial amount of $624,000 annually, plus an escalation cap not-to-exceed 2.5% for contract years 2-10, along with all of the other discounts and special pricing negotiated by IAA staff as described herein Capital Program: BP BP Consider for approval an Amendment 3 to the professional services contract with DLZ Indiana, LLC for Construction Phase Engineering Services for Demolition of Old Terminal and Associates Structures in an amount not-to-exceed $110, (fees) and $4, (expenses) for a total not-to-exceed amount of $115, MBE 94.38% (DLZ Indiana, LLC, Shrewsberry & Associates, LLC), WBE 5.61% (Enginuity), and VBE 56.36% (Shrewsberry & Associates, LLC) Consider for approval increasing the budget amount to $856, and award of contract for Building 7 Rehabilitation, Project # I , to J.C. Ripberger Construction Corporation in an amount not-to-exceed $588, plus a 3% construction reserve of $17, for a total of $606, J.C. Ripberger Construction Corporation was the lowest responsive and responsible bidder. MBE 13.74% (First Electric Supply, Elite Painting, Sexson Mechanical Corp.), WBE 2.00% (Indiana Sign & Barricade), and VBE 0% General Agenda October 18, 2013 Page 1 of 1

11 BP BOARD MEMO APPROVAL OF CONTRACT To: From: IAA Board of Directors Michael Medvescek, Sr. Director of Operations Date: September 26, 2013 Board Date: October 18, 2013 Subject: Approval of Contract with KONE for Elevator, Escalator and Power Walk Maintenance at IAA Airports Background The terminal and parking garage at Indianapolis International Airport (the Airport ), and the former U.S. Postal Service Eagle Hub, contain, in the aggregate, a total of 36 elevators, 18 escalators, and 14 power walks manufactured and installed by KONE, Inc. ( KONE ). The Downtown Heliport has 1 elevator not manufactured by KONE. The foregoing equipment contains many parts and accessories, including, but not limited to, software, control systems, power units, rails, guides, hydraulic systems, controllers, electrical systems, doors, signals, microprocessors, motors, safety systems, handrails, CPUs, safety relays, bypass switches, transformers, fuses and transmissions (hereinafter referred to as the Covered Equipment ). Since the opening of the Midfield Terminal in 2008, KONE has provided maintenance and repairs (including replacement parts) for the Covered Equipment under a contract that currently ends on November 2, In recent months, IAA staff has met with KONE s representatives to discuss a continuation of the relationship, including new terms, conditions, and pricing. IAA staff has focused its efforts on renewing its contract with KONE for several reasons, including the fact that the Covered Equipment installed at the Airport was manufactured by KONE and is unique in many respects, and having another company provide maintenance would not be efficient or cost-effective because it would have to obtain replacement parts from KONE. Accordingly, we view this as a sole source arrangement under Indiana law, which means, essentially, that when the compatibility of equipment, accessories and/or replacement parts is a substantial consideration in the purchase, and only one source meets the reasonable requirements, the governmental entity may proceed to sign a contract with that sole source without seeking bids or proposals from other companies. IAA staff has negotiated the following rate reductions in consideration of a ten (10) year contract with KONE: (1) Monthly routine maintenance rates for Covered Equipment will be reduced by an average of 5%, which provides an annual savings of $33,000; Page 1 of 2

12 Memo Re: Approval of Contract with KONE (2) Hourly overtime billing rates will be reduced by approximately 20%; (3) Cost of billable materials will be reduced by 10%; (4) Expanded scope of work provided at no additional cost, which includes providing maintenance services for 3 elevators at the Downtown Heliport and former Eagle Hub that are not currently covered, providing cleandowns for all escalators and power walks, and providing mechanic standby services for the Airport s garage facility while glass elevator doors are being cleaned; (5) Any increase in contract price will be capped at 2.5% per year maximum (the cap under the current contract is 4% annually). The proposed contract would continue maintenance of the Covered Equipment in the amount of $624,000 annually which is included in the 2014 Operating Budget; subject, however, to annual adjustments not-to-exceed 2.5% as noted above and any overtime labor and materials. In addition, IAA will have the right to terminate the new contract at any time, with or without cause, upon 30 days prior written notice to KONE. There is no renewal option in the proposed contract. Because the length of the proposed contract is 10 years, it requires the Board s review and approval. Scope Under the terms and conditions of the proposed contract, KONE will provide services to examine, maintain, adjust, test, and lubricate all the Covered Equipment. In addition, KONE will repair or replace a majority of our equipment if necessitated by normal wear and tear. KONE will continue to provide 2 technicians on-site Monday thru Friday, from 6:00a.m. to 6:00 p.m. (the Normal Business Hours ). As in the current contract, any work performed by KONE outside of these Normal Business Hours will require prior approval by IAA s staff, as it may cause overtime charges to apply. Supplier Diversity Because of the sole source nature of this arrangement and no known diverse vendors for maintenance services, this contract is not subject to supplier diversity requirements. Recommendation The IAA staff recommends that the Board consider for approval a maintenance contract with KONE for all the Covered Equipment KONE for a ten (10) year term, commencing November 3, 2013, in the initial amount of $624,000 annually, plus an escalation cap not-to-exceed 2.5% for contract years 2-10, along with all of the other discounts and special pricing negotiated by IAA staff as described herein. BP Page 2 of 2

13 BP BOARD MEMO AMENDMENT #3 To: From: IAA Board of Directors Shannetta Griffin, P.E., Sr. Director of Planning & Development Date: September 27, 2013 Board Date: October 18, 2013 Subject: Approval of Amendment #3 with DLZ Indiana, LLC for Demolition of Old Terminal and Associated Structures, Project # I Background The terminal facilities on the east side of the Indianapolis International Airport ( Old Terminal ) have been vacant since the new Midfield Terminal opened in The Demolition of Old Terminal and Associated Structures project will remove the existing terminal, concourses, administration building, and elevated roadways, including all subsurface structures, and perform all required environmental abatement/remediation to ready the site for new development before the end of The project is in the approved 2013 Capital Budget as a multi-year project. It was accelerated to a one (1) year project to improve the marketability of the site. On November 12, 2012, this project was approved for implementation by the Senior Management Team as a one year project. On November 13, 2012, the IAA issued a Request for Proposals (RFP) to select a designer for this project. Nine (9) proposals were received on November 30, DLZ Indiana, LLC (DLZ) was ranked highest by the review committee and a contract was executed by the Board with DLZ on December 21, 2012 for the project s design through bid phase. In addition to the design contract, there are three (3) other contracts associated with this project: 1) 3/15/ Board awarded to Veit & Company, Inc. for Construction Demolition in amount of $3,872,008.00; 2) 4/19/ Board awarded to Harmon Construction, Inc. for Construction Management Services in amount of $311,550.00; and 3) 4/29/2013 Executive Director Approval to CTL Engineering, Inc. for Materials Testing Services in amount of $86, The original design contract with DLZ included the services only through the bid phase of the project to allow the project to be further defined during design so the construction phase services could be better aligned with the final design. Page 1 of 4

14 Memo Re: DLZ Indiana, LLC Amendment Amendment #1 with DLZ added the construction and post construction phase responsibilities for the designer to their contract. Amendment #2 added the asbestos and other environmental abatement engineering oversight services. This Amendment, Amendment #3, is necessary to provide oversight of Force Account work prompted by the discovery of additional asbestos containing materials (ACM) throughout the building. The original design work was done on a fast track in order to meet the accelerated schedule. The design team utilized existing asbestos drawings to identify the location of ACM. Those drawings were the result of a change in OSHA rules regarding ACM in buildings. All suspicious materials that might be encountered by employees during maintenance or cleaning of buildings were to be identified by building owners. The drawings did not reference ACM that would be beyond arm s length, behind bulkheads, or sandwiched between construction materials, and no destructive testing was done at that time to detect those materials. As undocumented ACM was encountered in the buildings during the demolition process, many attempts to obtain an agreed upon price to remove the materials failed for the lack of enough documentation from the contractor to evaluate the proposals. As a result, the contractor was instructed to proceed to remove the undocumented ACM under Force Account as allowed for in IAA s specifications by tracking time and materials. Utilizing Force Account allowed the project to proceed. Force Account work requires an increased level of oversight to track the manpower, equipment, and materials. DLZ has utilized Shrewsberry & Associates, LLC, part of their engineering oversight team, to assist with the monitoring of the contractor s extra work which has resulted in increased professional services. Scope This amendment provides the additional asbestos abatement and other environmental abatement engineering oversight services required by the extensive amount of oversight work during Force Account work to remove ACM between the windows and metal panels on the fifth floor, on the ceilings of the sixth floor of the Administration Building, on the ceilings and structural beams of concourse B, on piping in Tunnel A, and on additional elbows, fittings, and pipe insulation throughout the rest of the building. Budget This amendment for the additional services for DLZ Indiana, LLC is not to exceed $110, (hourly fees) and $4, (expenses) for a total not-to-exceed amount of $115, and is within the design & soft cost portion of the project budget. Project Costs Construction Contract (including 3% reserve) $3,988, Phase (Old PARCS Demo & Optimization Plan) 81, Design & Soft Costs 711, Construction Manager Services 311, Testing 86, AOA Fence Installation 26, BP Page 2 of 4

15 Memo Re: DLZ Indiana, LLC Amendment Contingency (17%) 658, Total Expected Project Costs** $5,863, **Due to favorable bids, the unutilized project budget is $5,471, Funding for this project will be 100% Airport Cash. This project is a capacity project that will allow for the expansion of other land use related projects that have a need for available apron/runway access. This project alone does not meet the IAA s hurdle rate, but readies the site for future revenue producing development. Schedule This amendment does not change the term of the contract. The contract with DLZ Indiana, LLC expires on June 30, Supplier Diversity Participation The Director of Supplier Diversity approved the following MBE/WBE/VBE participation goals: AMOUNT % FIRM MBE WBE VBE MBE WBE VBE DLZ Indiana, LLC $ 42,145 $ 0 $ Shrewsberry & Assoc., LLC $ 62,470 $ 0 $62, Enginuity $ 0 $6,220 $ Totals $104,615 $6,220 $62, Contract Summary to Date Contract/Amendment & Execution Date Original Contract December 21, 2012 Amendment 1 March 15, 2013 Amendment 2 April 19, 2013 Amendment 3 October 18, 2013 Supplier Diversity Participation % Service & Term Amount MBE WBE VBE Professional Services Term:12/21/12-6/30/14 $341, (1) Professional Services $102, No change in term. Professional Services $ 99, No change in term. Professional Services $115, No change in term Revised Contract NTE $658,735 Revised Supplier Diversity Participation BP Page 3 of 4

16 Memo Re: DLZ Indiana, LLC Amendment (1) Not specified in December 2012 contract, although includes participation by a VBE firm, Shrewsberry & Associates. VBE goal went into effect January 1, Recommendation The IAA staff has reviewed the proposal and recommends that the Board consider for approval an Amendment 3 to the professional services contract with DLZ Indiana, LLC for Construction Phase Engineering Services for Demolition of Old Terminal and Associates Structures in an amount not-to-exceed $110, (fees) and $4, (expenses) for a total not-to-exceed amount of $115, MBE 94.38% (DLZ Indiana, LLC, Shrewsberry & Associates, LLC), WBE 5.61% (Enginuity), and VBE 56.36% (Shrewsberry & Associates, LLC). BP Page 4 of 4

17 BP BOARD MEMORANDUM BID AWARD To: From: IAA Board of Directors Shannetta Griffin, P.E., Sr. Director of Planning & Development Date: September 30, 2013 Board Date: October 18, 2013 Subject: Award of CIP/Project # I to J.C. Ripberger Construction Corporation for Building 7 Rehabilitation Background Building 7 was vacated in 2010 upon the opening of the new Airline Cargo Building. The facility was built in the mid 1970 s and consists of approximately 81,000 square feet and has not had any major improvement or upgrades since last occupied by Purolator Currier in the mid 1980 s. The facility has many years of useful life left, but is in need of upgrades in order to better market the facility to the general public for lease. Currently, FedEx leases 35,168 sq. ft. (43.4%) of the northern portion of the building. Indianapolis Airport Authority (IAA) earns $109,020 in annual rental from the FedEx lease. A commitment by the IAA to FedEx, within the lease, includes the IAA making capital improvements to the building. This renovation project to make the capital improvements is included in the 2013 Capital Budget. On December 10, 2012, this project was approved for implementation by the Senior Management Team. The RFP for this project was initiated on March 28, On July 19, 2013, the Board approved plans & specifications for CIP/Project # I Building 7 Rehabilitation and authorized the public bidding process. On September 10, 2013, the IAA staff received two (2) bids. The project contained a base bid and two (2) alternate bid items. This contract will consist of the base bid only. The bids received, for base bid only, ranged from $588, to $727, J.C. Ripberger Construction Corporation was the lowest responsive and responsible bidder in the amount of $588, On October 14, 2013, Senior Management Team approved increase in budget of $154, increasing total project budget to $856,500.00, which can be accommodated within the overall 2013 Capital Budget. Page 1 of 3

18 Memo Re: J.C. Ripberger Construction Corp. In addition to the contract amount, IAA is requesting a construction reserve of 3% of the total contract amount for this project. A construction reserve of 3% has been previously approved by the Board on other projects and successfully implemented to ensure timely approval of minor changes necessary due to unforeseen conditions and circumstances. There are sufficient dollars within this project s budget to accommodate the funding of the 3% contingency for construction reserve. Any change orders exceeding the contract and construction reserve will be submitted to the Board for approval. Scope The base bid package provides for the Building 7 Rehabilitation, which is to include repairs to parking lot and apron, refurbishment of six (6) restrooms, office area and vestibule, new lighting of eastern portion of interior storage area, installation of seven (7) garage doors, and full exterior shell patch/repair and paint. Budget This project was included in the 2013 Capital Budget at a total cost of $702, The revised budget for this project, as requested in this paper, is $856, Additional architectural and engineering fees have been incurred that were not anticipated due to the nature of the project. The contingency was increased and there is an increased potential for unforeseen conditions due to a lack of as-built plans. While the revised project budget is above the approved project budget, it is within the capacity of the overall 2013 Capital Budget appropriation. The total base bid plus 3% construction reserve is $606, Revised Project Costs Contract Amount (including 3% reserve) $ 606, Previous Construction* 16, Design Fees 99, Construction Admin & Soft Costs 64, Contingency (12%) 70, Total Anticipated Project Costs** $ 856, *Previous construction includes $2, for concrete core samples, $8, for demolition of lean-to structure and $5, for capping of electrical/fire suppression system within lean-to structure were completed before the rehabilitation contract. Funding for this project will be 100% Airport capital improvement funds. This project is being undertaken to preserve an asset that is currently rented and will be fully leased in the future to a third-party tenant. The additional revenue from a future building lease is expected to be $6.00 to $7.00 per square foot, which would result in an internal rate of return on this project in excess of the Authority's hurdle rate of 12.5%. In addition to the current proposed improvements, the Authority anticipates that a tenant improvement allowance may be included in a future lease. To the extent BP Page 2 of 3

19 Memo Re: J.C. Ripberger Construction Corp. that a tenant improvement allowance is included in a future lease, that investment will be included in the Authority's calculation of the project's aggregate internal rate of return. Schedule Contract award anticipated October 2013 with a substantial completion date of February Supplier Diversity Participation The Director of Supplier Diversity has approved the following: Recommendation The IAA staff has reviewed the bids and recommends that the Board consider for approval increasing the budget amount to $856, and award of contract for Building 7 Rehabilitation, Project # I , to J.C. Ripberger Construction Corporation in an amount not-to-exceed $588, plus a 3% construction reserve of $17, for a total of $606, J.C. Ripberger Construction Corporation was the lowest responsive and responsible bidder. MBE 13.74% (First Electric Supply, Elite Painting, Sexson Mechanical Corp.), WBE 2.00% (Indiana Sign & Barricade), and VBE 0%. BP Page 3 of 3

20 AGENDA INDIANAPOLIS AIRPORT AUTHORITY RELIEVER AIRPORTS SUB-COMMITTEE MEETING MEETING DATE: October 18 th, 2013 LOCATION: South Administration Conference Room Level 4 TIME: Immediately following Board Meeting 1. Review previous meeting minutes 2. Capital Project Update S. Zellers 3. Proposed traffic pattern change at Eagle Creek Airport B. Duncan 4. Vitesse Hangar at Indianapolis Regional E. Anderson 5. Reliever Budget K. Ebbing 6. Fuel Activity Report K. Ebbing 7. T-Hangar Vacancy Report K. Ebbing 8. Page 1 of 1

21 MEETING MINUTES INDIANAPOLIS AIRPORT AUTHORITY RELIEVER AIRPORTS COMMITTEE MEETING MEETING DATE: July 19 th, 2013 LOCATION: South Administrative Conference Room Level 4 ATTENDEES: BOARD MEMBERS Al Bennett, Committee Chair Jack Morton Karen Caswelch Steve Dillinger IAA Staff Members Bob Duncan Mike Medvescek Shannetta Griffin Susan Zellers Kent Ebbing Tim Method Corey Granneman Jamie Leap, Recording Secretary 1) The Chairman asked for any questions, issues or feedback on the prior meeting minutes. Ms. Jamie Leap pointed out an error in the date of the next meeting within the minutes. Upon correction of that error, the committee approved the prior meeting minutes. 2) Ms. Susan Zellers, Deputy Director of Planning and Development provided an update on Capital Projects at the various Reliever Airports: a) Eagle Creek Airpark Rehabilitate Taxiway A. Bids are due July 25, FAA anticipates providing a modification to standards (MOS) to rehabilitate in place since the separation from the runway is less than the current standard of 240 feet runway centerline to taxiway centerline. The MOS will contain the requirement that future taxiway construction on either taxiway will need to increase the separation to current standards and to update the airport layout plan (ALP) to plan for these improvements. With the ALP requirement, the ALP programmed for 2016/2017 will need to move up to 2014/2015 with the T-hangar taxilane project that was programmed for that time to move back to 2016/2017. b) Downtown Heliport Structural Slab Replacement. Initial investigation identified structural repairs that are needed in addition to replacing the slab. Thus, this project is under design for construction starting in spring 2014 to have more grant funding available for the larger construction project as the structural repairs will be most economical while the slab is off. Page 1 of 2

22 c) Hendricks County Airport/Gordon Graham Field Wildlife Fence Construction Phase III contract approved today. Will complete 10 fence around airfield and adjoin 6 feet around hangars. Wildlife Hazard Management study underway to identify means to mitigate wildlife attractants. Wildlife fence is one measure already being implemented. d) Indianapolis Regional Airport Extension of Runway 7-25 and Taxiway A programmed for funding in T-hangar taxilane rehabilitation 2013, IAA is undertaking a short-term limited area repair of t-hangar taxilanes with airport capital funds to extend life to pursue grant funding for more extensive repairs. e) Metropolitan Airport Rehabilitate T-hangar Taxilanes (north set of 4 taxilanes). Bids are due July 25, Project competing for state apportionment/discretionary grant funding. Airport Layout Plan Update, FAA forecast comments have been received and revised forecast document provided to FAA. ALP and report is in process of final IAA internal review and anticipate submittal to start FAA ALP review in August. 3) Mr. Dexter Salenda, Foreign Trade Zone Operations Manager provided an update on fuel activity thus far in Jet A is on track to meet or exceed the goal, 100LL is below the average and Mogas is still too new to judge, but not taking off as well as hoped. Mr. Kelly Flynn stated that an annual report of fuel activity is sufficient for the committee. All other committee members present agreed. 4) Mr. Salenda also provided an update on t-hangar vacancy. Currently, the Relievers have a 6.59 % vacancy rate, implying out of 349 total units, 23 are vacant. Ms. Karen Caswelch requested control limits be added to future hangar occupancy and fuel sales reports to assist the committee in identifying if trends are normal or seasonal variation or need further analysis. Ms. Zellers agreed that engineering can assist in that effort as needed. 5) Mr. Eric Anderson, Director of Properties provided an update on recent initiatives put in place to encourage hangar development. At this time, there has not been an in interest in new hangar development although initiatives will continue. 6) Mr. Anderson also announced changes to the ownership of the Hendricks County Flight School. The current operator, Mr. Gary Hood was planning to close the school when the Authority was approached by Mr. Byron Hines about his interest in opening a flight school. The two have been in negotiations for Mr. Hines to take over the existing flight school. The details are being worked out and the transition should take place in the next 30 days. Mr. Bennett, Committee Chairman would like to recognize Mr. Hood at a future board meeting. 7) The meeting adjourned at approximately 10:31 A.M. The next meeting is scheduled for Friday, October 18 th, 2013 immediately following the full Board Meeting. Page 2 of 2