SAN FRANCISCO AIRPORT COMMISSION MINUTES January 20, 2009 2:00 P.M. Room 416 - 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
Minutes of the Airport Commission Meeting of January 20, 2009 CALENDAR AGENDA RESOLUTION SECTION ITEM TITLE NUMBER PAGE A. CALL TO ORDER: 4 B. ROLL CALL: 4 C. ADOPTION OF MINUTES: D. SPECIAL ITEM: Regular meeting of December 16, 2008 09-0001 4 1. Retirement Resolution - Gretchen Nicholson 09-0002 4-5 2. Retirement Resolution - Don Whittaker 09-0003 5 E. ITEMS INITIATED BY COMMISSIONERS: 5 F. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 3. Award Trade Bid Package Set No. 2 to Contract 8757A - Design Build Services for Terminal 2/ Boarding Area D Renovations - Turner Construction Company 09-0004 6-7 4. Award Contract 3560D - Terminal Upper Level Viaduct Improvement, Phase II - Proven Management, Inc. 09-0005 7 5. Modification No. 1 to Contract 8757.9 - Construction Management Services for Terminal 2/Boarding Area D Renovations - T2 Partners, a JV of Parsons Transportation Group, EPC Consultants, Inc. and The Allen Group, LLC 09-0006 8 G. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 6. Bid Call - Contract 8908 - Domestic Terminal Pre-Conditioned Air 09-0007 8 7. Award Contract 8581 - Terminal Garage Expansion Joints Repair - Schembri Construction Co. 09-0008 9 8. Reject Proposals - Distributed Antenna System 09-0009 9-10 9. Modification No. 9 to Closeout Contract 5703A, Minutes, January 20, 2009, Page 2
Phase II - AirTrain Operations & Maintenance Bombardier Transportation (Holdings) USA 09-0010 10 10. Award Contract 8751R - Facility Renovations - Rubecon General Contracting 09-0011 10 11. Award Contract 8533R - Facilities Carpet Repair - Peacock Interiors & Gallery, Inc. 09-0012 11 12. Issue RFP to Establish Pool of Consultants For Airport Management Consulting Services 09-0013 11 13. Commence Competitive Selection Process for Terminal 3 Concourse Specialty Store Lease 09-0014 11 14. Bid Call - Contract 8547 - Central Plant High Temperature Water System Improvements 09-0015 11 15. Rescind Award of Contract 8110 - Runway Rubber Removal - Ackerman and Sons Co. 09-0016 11-12 16. Bid Call - Contract 8590 - Telecommunications Infrastructure - Airport Wide 09-0017 12 17. RFP for Professional Services, Contract 8136D 100% In-Line Explosives Detection Baggage Inspection Systems High Tech Maintenance 09-0018 12 18. Exercise Second of Five, One-Year Options To Extend Contract with SFO Shuttle Bus Co. 09-0019 12 19. Ratify Emergency Declaration to Replace Central Plant Boilers 09-0020 12-13 20. Authorization to Seek, Accept and Expend Funds from California Air Resources Board for Advanced On-Airport hydrogen Vehicle Fueling Station 09-0021 13 21. Design Approval for Artwork in Terminal 2 09-0022 13 22. Approve Lease at 837 Malcolm Rd, Burlingame 09-0023 13 H. NEW BUSINESS: 13 I. CORRESPONDENCE: 13 J. CLOSED SESSION: Potential Litigation 14 K. ADJOURNMENT: 14 Minutes, January 20, 2009, Page 3
A. CALL TO ORDER: AIRPORT COMMISSION MEETING MINUTES January 20, 2009 The regular meeting of the Airport Commission was called to order at 2:00 PM in Room 416, City Hall, San Francisco, CA. B. ROLL CALL: Present: Absent: Hon. Larry Mazzola, President Hon. Caryl Ito Hon. Eleanor Johns Hon. Rich Guggenhime Hon. Linda S. Crayton, Vice President C. ADOPTION OF MINUTES: The minutes of the regular meeting of December 16, 2008 were adopted unanimously. No. 09-0001 D. SPECIAL ITEM: Item No. 1 was moved by Commissioner Massola and seconded by Commissioner Ito. The vote to approve was unanimous. 1. Retirement Resolution - Gretchen Nicholson No. 09-0002 Resolution approving the Retirement Resolution commending Gretchen Nicholson for a job well done as an employee of the City for 31 years and recognizing her significant and valuable contribution to the success of the Airport in the 25 years that she has served SFO. Mr. John Martin, Airport Director said that Gretchen is retiring from the City Attorney s Office after 31 years, with 25 years at the Airport. Gretchen is admired greatly for her creativity and can do attitude as a member of the City Attorney s team, although she has always been viewed as a member of the Airport team. Her can do attitude resulted in a number of firsts at the Airport in which Gretchen played an important role... the Opt-Out Screening Program, the Registered Minutes, January 20, 2009, Page 4
Traveler Program, SFO Fuel... the airline corporation that Gretchen took the lead in setting it up legally. Gretchen also played an important role on the legal side in setting up the In-line Explosives Detection System, a leading program in the industry, and in many other programs like this over the years that are too numerous to mention. Mr. Martin thanked Gretchen personally for all of the support she provided him and to the Airport s Senior Management team. Gretchen promoted good will among employees and is well known for her writing of lyrics for Administration s annual holiday party, and as a member of the singing group the Legalettes. Commissioner Mazzola congratulated Ms. Nicholson. Ms. Gretchen Nicoholson, Deputy City Attorney thanked Mr. Martin for his kind words and the Commission for this honor. It has been a pleasure and an honor to serve the City for these 31 years, and representing the Airport for the last 25. She will miss everyone. Commissioner Mazzola wished Ms. Nicholson good luck in her retirement. Item No. 2 was moved by Commissioner Guggenhime and seconded by Commissioner Ito. The vote to approve was unanimous. 2. Retirement Resolution - Don Whittaker No. 09-0003 Resolution thanking Don Whittaker for his 20 years of service with the City and County of San Francisco at the San Francisco Airport. Mr. Martin said that Don is not be here today. He is retiring after 20 years of service with the Airport. Prior to his City service Don worked for 19 years in the airline industry for World Airways and Pacific Southwest Airways. He was Airport Deputy Director for Operations supervising Airfield Safety, Communications and Dispatch, Emergency Operations and Planning and handled our annual certification process with the FAA. Don is a very strong and clear minded leader for the Airport who helped to always insure that the we operated at the highest safety standard. We appreciate Don s outstanding work over the years. Commissioner Mazzola congratulated Mr. Whittaker on his retirement. E. ITEMS INITIATED BY COMMISSIONERS: There were no items initiated by Commissioners. Minutes, January 20, 2009, Page 5
F. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: Item No. 3 was moved by Commissioner Guggenhime and seconded by Commissioner Ito. The vote to approve was unanimous. 3. Award of Trade Bid Package Set No. 2 to Contract No. 8757A - Design Build Services for Terminal 2/Boarding Area D Renovations - Turner Construction Company - $45,213,295 No. 09-0004 Resolution awarding Trade Bid Package Set No. 2 (Bid Packages 2.30, 2.40, 21.00, 22.00 and 26.10) to Contract No. 8757A, Design Build Services for Terminal 2/ Boarding Area D Renovations with Turner Construction Company, in the amount of $45,213,295. Mr. Ivar Satero, Deputy Director, Design and Construction said that this item requests authorization to award Trade Bid Package Set No. 2 for various scopes of work including micropiles, pre cast driven piles, fire protection, HVAC and the electrical load centers for the Terminal 2 Renovations Project. As required by the administrative code these trade bid packages were bid to a minimum of three prequalified bidders. Staff reviewed the bids and determined that the low bidders are responsive and that the bids appropriately reflect the agreed upon scope of work. The proposed award to the listed subcontractors is within the overall budget for this work and it is approximately $2.8 million less than the engineer s estimate. As shown in Attachment B of your package the bids for fire protection came in substantially higher than the engineer s estimate and what we found was the estimate did not contain scopes of work related to the deluge system which is a water fire protection system that protects the glass on the exterior of the building. Any glass that is within 100 feet of hydrant fueling pits has to have this type of protection and so that was not in the estimate. We also did not have in the estimate the FM 200 Fire Protection System which is a chemical system that protects special systems rooms. As shown in Attachment C the Airport is forecasting a cost at completion of the construction portion of this contract at $321 Million. It is approximately $2.2 million less than the budget. Overall, forecasted project total at cost of completion is just under the $383 Million budget. We continue to maintain appropriate cost contingencies for this stage of the project. We are currently negotiating a time extension with the contractor for the added scope of work that was approved in the previous modification before the Commission and we anticipate that it will result in about a three and a half month time extension to January of 2011 for the contract. The costs associated with that time extension is included in the forecast before the Commission. There is a mistake in the HRC LBE participation... it should have been 9% instead of 41%. The 41% was left over from the last package and we meant to update that. Commissioner Johns asked if the 7.5% contract contingency was a percentage. Minutes, January 20, 2009, Page 6
She asked if that was the normal amount because it seems to vary. Mr. Satero responded that it is the normal amount. Every time we award additional scope we are asking the Commission to increase that, but that is the typical Airport policy standard for a construction contingency. Item No. 4 was moved by Commissioner Guggenhime and seconded by Commissioner Johns. The vote to approve was unanimous. 4. Award of Contract No. 3560D - Terminal Upper Level Viaduct Improvement, Phase II - PROVEN Management, Inc., Contractors, Inc. - $13,899,942 No. 09-0005 Resolution awarding Contract No. 3560D, Terminal Upper Level Viaduct Improvement, Phase II to the lowest responsive, responsible bidder, PROVEN Management, Inc., Contractors, Inc., in the amount of $13,899,942. Mr. Ernie Eavis, Deputy Director, Facilities said that this contract is the second phase of the seismic upgrade of the upper level viaduct in front of the domestic terminals. The upper level viaduct is the bridge that brings passengers to the departure level in front of the domestic terminals. The first phase of this project completed the seismic upgrade of the viaduct in front of Terminals 1 and 2. This finishes the viaduct project in front of Terminal 3. Nine bids were received for this project ranging from approximately $14 Million to $19 Million. The engineer s estimate was $15 Million. The project is funded through a combination of Federal, State and Highway funds. Approximately 90% of the cost is going to be reimbursed through the Federal Highway Administration and Caltrans. The Project will last for approximately 600 days and we will work with Operations to minimize the disruptions of both passengers and traffic. The modification amount is 10%. We did that because the project came in so far under budget and since the Federal government and the State are paying 90% of the cost we upped the modification in the event that something comes up we wouldn t have to return to the Commission for more money. They have set aside $29 Million for this project when we originally intended to go out for so there is money there in the state and federal budgets to pay for it. Mr. Eavis explained that the State funding comes from Proposition 1B and that money is still there. We received notification from the two funding agencies that that they had put that money aside for this project. Commissioner Ito appreciated that Proven was attempting to use DBEs at the 9% voluntary level because there is no mandate for it. Item No. 5 was moved by Commissioner Guggenhime and seconded by Commissioner Ito. The vote to approve was unanimous. Minutes, January 20, 2009, Page 7
5. Modification No. 1 to Contract 8757.9 - Construction Management Services for Terminal 2/Boarding Area D Renovations - T2 Partners, A Joint Venture of Parsons Transportation Group, EPC Consultants, Inc., and The Allen Group, LLC $5,920,000 No. 09-0006 Resolution approving Modification No. 1 to Contract No. 8757.9, Construction Management Services for Terminal 2/Boarding Area D Renovations with T2 Partners, A Joint Venture of Parsons Transportation Group, EPC Consultants, Inc., and The Allen Group, LLC, in the amount of $5,920,000 for services through December 31, 2009. Mr. Satero explained that this item requests Commission authorization to renew this contract with T2 Partners to support the Terminal 2 renovations project through 2009. The proposed modification will result in a revised total project amount of $9,420,000. The Terminal 2 Renovations Design Build project is proceeding on a fast track basis with the design effort currently in the construction documents phase. The subcontracted scope currently has been awarded in the amount of about $51 Million and we are estimating that over the next 3 months recommending award of another $90 Million. T2 Partners is providing a high level of service to the Airport and is maintaining the appropriate focus on cost and schedule. They are also working hard to mitigate impacts to the Airport s operation with the ongoing construction within the terminal building. The integration of the Airport s construction management staff with the construction management team and T2 Partners is serving the project very well. T2 Partners is providing project construction manager, construction manager, project controls personnel, and the specialized expertise that we need for baggage handling system, special systems, and MEP work. The Airport is providing project management staff, the resident engineer and the inspection staff. The project management/construction management team has worked successfully with Turner to substantially reduce project costs and we have achieved an under budget forecast. T2 Partners is currently achieving a 12% LBE subcontractor participation level in comparison to the approved goal of 10%. G. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: The Consent Calendar, Item Nos. 6 through 22, was moved by Commissioner Ito and seconded by Commissioner Johns. The vote to approve was unanimous. 6. Bid Call - Contract No. 8908 - Domestic Terminal Pre-Conditioned Air (PCA) No. 09-0007 Resolution approving the scope, budget and schedule for Contract No. 8908, Domestic Terminal Pre-Conditioned Air (PCA), and authorizing the Director to call for bids when ready. Minutes, January 20, 2009, Page 8
7. Award of Contract No. 8581 - Terminal Garage Expansion Joints Repair Schembri Construction Company, Inc. - $1,478,000 No. 09-0008 Resolution awarding Contract No. 8581, Terminal Garage Expansion Joints Repair, to the lowest, responsive, responsible bidder, Schembri Construction Co., Inc., in the amount of $1,478,000. 8. Rejection of Proposals for the Distributed Antenna System No. 09-0009 Resolution rejecting all five proposals received in response to the Request for Proposals to design, fabricate, install, operate and maintain a Distributed Antenna System for Cellular and other Wireless Services. Commissioner Johns vaguely remembered that when we were renewing contracts with the cellular phone companies and folks came before us to testify, with several of them opposed to this DAS System. Now we are rejecting all of the proposals. She asked for an update as to where this antenna system is going and what we are going to do or not do, etc. Ms. Theresa Lee, Deputy Director, Administration responded that we are in the process of revisiting our business model. As part of the RFP process we solicited the carriers participation early on in developing the requirements. There were varying degrees of response from the four or five carriers but. We took whatever they provided us and we also contracted out with an outside consultant... an expert on this distributed antenna systems to develop the requirements. Staff is planning to reassess the business model that we have and continue our dialog with the carriers to ensure that they are kept up to date with what we are planning. Commissioner Johns asked if we were planning to continue to move forward with the idea of the DAS System as opposed to the individual antennas. Ms. Lee responded that we will be assessing both of those again... going back to the drawing board... to determine what makes the best sense for the Airport. Mr. Martin added that it will probably make sense that we have the companies 100% on board with DAS if that is the direction we go. The technology has evolved so that it is possible for companies to offer a reasonable level of service from antennas off-airport, which they could not do three years ago. If they are not on board with our program there is a risk that they can move their antennas offairport and just bypass us altogether. That is a critical risk and one that can only be addressed by bringing the companies on board. Commissioner Johns recollected that there were a few airports that had this DAS System. Minutes, January 20, 2009, Page 9
Ms. Lee responded that there are over a dozen US Airports that have this system. Mr. Martin said that none are in our particular situation where cell companies could have antennas very close to airport property. At DFW, with 18,000 acres the companies have to be on airport property. It s unclear if they would have to be on airport property in San Francisco now. We would rather see another airport work it out in a situation similar to ours, or else work it out with all of the cell phone companies. 9. Modification No. 9 - Closeout to Contract 5703A, Phase II - AirTrain Operations & Maintenance - Bombardier Transportation (Holdings) USA, Inc. - $2,917,543 No. 09-0010 Resolution approving Modification No. 9, closeout to Contract 5703A, Phase II, AirTrain Operations and Maintenance with Bombardier Transportation (Holdings) USA, Inc., in the amount of $2,917,543, for a new not-to-exceed contract amount of $41,360,042 as specified in Section 4.1 - of the Phase II Operations and Maintenance Provisions, General Requirements - Economic Price Adjustment, changes for unanticipated operating conditions and Airport requested changes. Funds will be provided from Airport s Operating budget. Commissioner Johns wondered if this was part of the settlement of the lawsuit. She thought that part of the settlement negotiations had to do with the new contract for operations and maintenance. Mr. Tryg McCoy, Deputy Director, Operations and Security responded that the settlement does have to do with the new contract. This is the final payment for the old contract. It s always retroactive because there were price increases that escalate over the years so we pay the base fee and then follow up at the end of the year paying for those price escalations as well as additional authorized work. Commissioner Johns asked if this was something we knew was going to happen. Mr. McCoy responded that we did. This actually extends it to five more days to March 1 when the new contract then takes over. We won t be returning to the Commission to talk about Phase 2 of this contract. It will just be the new contract from this point forward. 10. Award Contract 8751R - Facility Renovations - Rubecon General Contracting, Inc. - $340,322.50 No. 09-0011 Resolution awarding Contract No. 8751R, Facility Renovations, to the lowerst responsive, responsible bidder, Rubecon General Contracting, Inc., in the amount of $340,322.50. Minutes, January 20, 2009, Page 10
11. Award of Contract No. 8533R - Facilities Carpet Repair - Peacock Interiors & Gallery, Inc. - $175,570 No. 09-0012 Resolution awarding Contract No. 8533R, Facilities Carpet Repair, to the lowest, responsive, responsible bidder, Peacock Interiors & Gallery, Inc., in the amount of $175,570. 12. Authorization to Issue a Request for Qualifications to Establish a Pool of Consultants to Provide Airport Management Consulting Services No. 09-0013 Resolution authorizing the issuance of a Request for Qualifications to establish a pool of consultants to provide Airport Management Consulting Services. 13. Authorization to Commence the Competitive Selection Process for the Terminal 3 Concourse Speciality Store Lease No. 09-0014 Resolution (1) approving the proposed minimum qualification requirements and lease specifications, and (2) authorizing the staff to issue a Request for Proposals and conduct an informational conference for the Terminal 3 Concourse Speciality Store Lease. 14. Bid Call - Contract No. 8547 - Central Plant High Temperature Water System Improvements No. 09-0015 Resolution approving the scope, budget, and schedule for Contract No. 8547, Central Plant High Temperature Water System Improvements, and authorizing the Director to call for bids when ready. The budget for this contract is $3,000,000. 15. Rescind Award of Contract No. 8110 - Runway Rubber Removal - Ackerman and Sons Company, Inc. No. 09-0016 Resolution rescinding award of Contract No. 8110, Runway Rubber Removal, to Ackerman and Sons Company, Inc., dba Runway Services International, and authorizing the Director to re-bid when ready. Commissioner Ito asked if the bidder was unaware of the bond requirement. Minutes, January 20, 2009, Page 11
Mr. Eavis responded that they were aware that a bond would be required as part of the bid package, they just couldn t come up with it. We are rescinding the bid because we can t just neglect that requirement of the specification. 16. Bid Call - Contract No. 8590 - Telecommunications Infrastructure - Airport Wide No. 09-0017 Resolution approving the scope, budget, and schedule for Contract 8590, Telecommunications Infrastructure - Airport wide, and authorizing the Director to call for bids when ready. The budget for this contract is $1,500,000. 17. Request for Proposal for Professional Services - Contract 8136D - 100% In-line Explosives Detection Baggage Inspection Systems - High Tech Maintenance - $500,000 No. 09-0018 Resolution authorizing issuance of a Request for Proposal for Professional Services for Contract No. 8136D, 100% In-line Explosives Detection Baggage Inspection Systems High Tech Maintenance for Airport-Owned Baggage Conveyor Equipment in the amount of $500,00 for the first year of services, with two (2) one-year options. 18. Authorization to Exercise the Second of Five One-Year Options to Extend Contract with SFO Shuttle Bus Company, Inc. - $8,684,376 No. 09-0019 Resolution to exercise the second of five one-year options to extend contract with SFO Shuttle Bus Company, Inc., for employee and long-term passenger services at San Francisco International Airport effective January 1, 2009 through December 31, 2009 in the amount of $8,684,376. 19. Ratification of Emergency Declaration for Replacement of Central Plant Boilers No. 09-0020 Resolution ratifying the action of the President of the Airport Commission to declare an emergency for the replacement of Central Plant Boilers. Commissioner Ito asked how we got into such an emergency situation. Mr. Eavis responded we were pursuing a different way of procuring the boilers but because of legal requirements we couldn t follow that path. If we were to put out a bid to purchase and install the boilers, not only would we miss this winter we would miss next winter as well because we wouldn t have them until August. We Minutes, January 20, 2009, Page 12
asked the President of the Commission to sign the emergency so we can begin the purchase process and have them on hand for installation late summer, early fall of this year. A normal purchase process wouldn t meet that time line. We had fully intended to replace the boilers as part of the Capital Plan. 20. Authorize Staff to Seek, Accept and Expend Funds from the California Air Resources Board for an Advanced On-Airport Hydrogen Vehicle Fueling Station - $3,000,000 No. 09-0021 Resolution authorizing Airport staff to seek, accept, and expend up to $3 Million from the California Air Resources Board to fund an advanced hydrogen vehicle fueling station at SFO. 21. Design Approval for Artwork in Terminal 2 No. 09-0022 Resolution approving artists selected for Artwork in Terminal 2. 22. Approval of Lease at 837 Malcolm Road, Burlingame, CA No. 09-0023 Resolution approving and authorizing the Director to execute a lease of approximately 6,000 sq. ft. of office/light industrial space located at 837 Malcolm Road for Airport Reprographics at an initial Annual Rent of $84,960. 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 to speak from the public. I. CORRESPONDENCE: There was no discussion by the Commission. J. CLOSED SESSION: Minutes, January 20, 2009, Page 13
The Airport Commission did not go into closed session. Discussion and vote pursuant to Brown Act Section 54957.1 and Sunshine Ordinance Section 67.11 on whether to conduct a Closed Session. The Airport Commission will go into closed session in accordance with Government Code Section 54956.9(b)(1) to confer with legal counsel regarding potential litigation. Discussion and vote pursuant to Brown Act Section 54957.1 and Sunshine Ordinance Section 67.12 on whether to disclose action taken or discussions held in Closed Session. K. ADJOURNMENT: There being no further calendared business before the Commission the meeting adjourned at 2:22 PM. Original Signed by Jean Caramatti Jean Caramatti Commission Secretary Minutes, January 20, 2009, Page 14