METROPOLITAN AIRPORTS COMMISSION FINANCE & ADMINISTRATION COMMITTEE REGULAR SCHEDULED MEETING

Transcription

1 REPORTS A METROPOLITAN AIRPORTS COMMISSION FINANCE & ADMINISTRATION COMMITTEE REGULAR SCHEDULED MEETING Monday,, 9:30 a.m. Room 3048A, Terminal 1-Lindbergh Minneapolis-St. Paul International Airport "CONSENT ITEMS" Call to Order A regular scheduled meeting of the Finance and Administration Committee, having been duly called, was held Monday,, in Room 3048A, Terminal 1-Lindbergh, Minneapolis- St. Paul International Airport. Chair Monaco called the meeting to order at 9:31 a.m. The following were in attendance: Commissioners: Staff: Others: Ginsberg, Cramer, Gartland, King and Chair Monaco R. Schauer, B. Ryks, D. Probst, P. Rasmussen, R. Fuhrmann, E. Valencia, K. Fisher, K. Webb, B. Johnson, S. Freese, E. Podnieks, B. Rief, A. Saeed, E. Johnson, M. Grimm, C. Leqve, K. Gerads, J. Nawrocki, P. Burke, M. Willis, J. Kedrowski, S. Holes, M. Kilian, N. Hinchley, M. Krogh, N. Kiefer, G. Failor, L. Sorensen H. Moody, Delta Air Lines; P. Rebholz, Wells Fargo Securities; C. Doroff, Nuveen; J. Wyatt, B. Hamm, Advantus, C. Van Leuven, TSA; S. Zaczkowski AI A. OPEN FORUM CF 296 The Open Forum is a portion of the Committee meeting where persons are allowed to address the Committee on subjects which are not a part of the meeting agenda. No public comments were received. AII A. REPORTS - CF Budget Variance Reports a. Preliminary December 2016 b. January Accounts Receivable Summary THESE ITEMS WERE INFORMATIONAL ONLY; NO COMMITTEE ACTION WAS REQUESTED.

2 Page 2 AII B. BID AWARD ANNUAL EQUIPMENT FINANCING LEASE - CF 298 Staff requested authorization to award the bid for the ten-year third party financing as well as authorization to proceed with acquiring the 2017 budget approved equipment. MAC recovers much of the acquisition and financing costs through debt service in the rates and charges for airlines. In January 2017, staff advertised a Request for Bids on the MAC website and the State of Minnesota solicitation page. Thirty-seven vendors reviewed the solicitation and six vendors submitted bids. Awards are based on the lowest overall cost to MAC. MAC will finance this equipment over a ten-year period and will own this equipment at the end of the financing period. COMMISSIONER CRAMER MOVED AND CHAIR MONACO SECONDED TO RECOMMEND TO THE FULL COMMISSION APPROVAL OF THE FOLLOWING: 1. AWARD THE TEN-YEAR FINANCING LEASE TO US BANCORP AT THE PRICE OF $209, FOR 20 SEMI-ANNUAL PAYMENTS; 2. AUTHORIZE STAFF TO ACQUIRE THE EQUIPMENT AS IDENTIFIED ON ATTACHMENT A NOT TO EXCEED $3,779,000 CONSISTENT WITH THE ABOVE FINANCING; AND 3. AUTHORIZE THE EXECUTIVE DIRECTOR/CEO OR DESIGNEE TO EXECUTE THE NECESSARY DOCUMENTS. THE MOTION CARRIED BY UNANIMOUS VOTE. AII C AUDIT PLAN CF 299 In the Committee meeting materials, BKD LLP included a letter (a required communication with the Committee in compliance with auditing standards) which detailed the planned scope and timing for the December 31, 2016 audit of the Commission s financial statements. The field work for the 2016 financial audit will begin in March 2017 with a presentation of the audit results at the May 1, 2017 Finance and Administration Committee meeting. THIS IS AN INFORMATIONAL ITEM ONLY; NO COMMITTEE ACTION REQUIRED. AII D. REQUEST FOR QUALIFICATIONS AIRPORT FINANCIAL FEASIBILITY CONSULTING SERVICES CF 300 The MAC has retained the services of an airport financial feasibility consulting firm since John F. Brown, which subsequently became Jacobs Consultancy, performed these services for MAC through In 2010, staff completed a selection process and recommended Leigh Fisher to be the Airport Financial Feasibility Consulting firm. The term of Leigh Fisher s agreement with MAC expired at the end of The Request for Qualifications is for financial feasibility consulting services for an annual term up to six years.

3 Page 3 This work will involve completing a Report of the Airport Consultant as required by the financial markets for the issuance of any new debt. This report includes traffic, financial analysis and forecasting. MAC staff is proposing a selection process to be conducted and finalized by June, The criteria to evaluate the qualifications statements will include: 1. Firm background information 2. Personnel and Staffing 3. Relevant experience in preparing airport financial feasibility studies 4. Responsiveness to Client s needs 5. Fees and Expenses 6. Actual or Potential Conflict of Interest 7. Other Requirements: Insurance, Certificate of Compliance, References, Equal Opportunity Statements, Equal Pay Certificate COMMISSIONER CRAMER MOVED AND CHAIR MONACO SECONDED TO RECOMMEND TO THE FULL COMMISSION AUTHORITY TO ISSUE A REQUEST FOR QUALIFICATIONS (RFQ) FOR CONTINUING CONSULTANT - AIRPORT FINANCIAL FEASIBILITY CONSULTING SERVICES OUTLINED ABOVE AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS. THE MOTION CARRIED BY UNANIMOUS VOTE. AIII A. APPROVAL OF DIRECTOR-INTERNAL AUDIT APPOINTMENT CF 301 Nicole Kiefer, Assistant Manager Employee Relations, introduced Scott Zaczkowski, the candidate selected through the hiring process for the position of Director Internal Audit. Approval of this management position requires approval by the Commission in accordance with MAC Human Resources Policy She noted that Mike Willis, MAC s Director-Internal Audit, is retiring from the MAC on March 31, Given the unique nature of the internal audit function and the fact that it is subject to Commission review and approval, Human Resources worked with Commission Chair Dan Boivin and Finance and Administration Committee Chair Don Monaco to design the hiring process for his replacement. Twenty three applications were received and twelve individuals were reviewed by the hiring team which then selected eight individuals to be interviewed. The initial panel interview was conducted by Commissioner Don Monaco; Steve Busch, Vice President-Finance and Administration; Pam Rasmussen, Deputy General Counsel; and Jim Laurent, Director of Human Resources. Mike Willis also participated as a technical advisor. Three candidates were selected for a second round of interviews with Chair Dan Boivin and Executive Director/CEO Brian Ryks. Mr. Zaczkowski has extensive experience as an auditor with much of that experience being gained in the public sector. He has held audit positions at Hennepin County and with the Office of the State Auditor. He also has experience in managing a team of auditors and numerous desirable professional certifications and awards. Ms. Kiefer stated that based on the hiring team s recommendation and Mr. Zaczkowski s experience, staff recommended approval of the appointment of Scott Zaczkowski to the Director-Internal Audit position.

4 Page 4 COMMISSIONER CRAMER MOVED AND COMMISSIONER GINSBERG SECONDED TO RECOMMEND TO THE FULL COMMISSION APPROVAL OF THE APPOINTMENT OF SCOTT ZACKOWSKI TO DIRECTOR-INTERNAL AUDIT. THE MOTION CARRIED BY UNANIMOUS VOTE. AIII B. INVESTMENT MANAGEMENT SERVICES RECOMMENDATION CF 302 Bob Schauer, Director Finance, presented staff s recommendation with regard to the selection of the Continuing Consultant for Investment Management Services. This consultant service requires investment manager(s) to invest a portion of the Commission s post-retirement healthcare funds. Mr. Schauer briefly discussed the benefits and value of retaining the services of an investment adviser firm. The Review Team independently reviewed the qualifications statements received and then met to finalize the top rated firms for interviews. Eleven firms submitted proposals and four firms were interviewed by the Review Team. Commissioner Harris served as an adviser to the Team. The Review Team recommended selection of the following firms: Advantus Capital Management and Nuveen Asset Management. Mr. Schauer noted the advantages of retaining two firms include: Creates performance comparisons and competition among the firms. Mr. Schauer stated that as a result of changes in State Statutes, MAC staff will conduct an Investment Policy review for Finance and Administration Committee approval in May or June of The investment firms will present investment results to the Finance and Administration Committee on an annual basis. In response to a question with regard to fees, Mr. Schauer noted that the fee structures were similar among the firms interviewed. Commissioner Harris stated that most public entities similar in size to the Commission retain these services to manage their investments. In addition, these consulting services provide an extension of staff to manage MAC s investment portfolio. Chair Monaco thanked Commissioner Harris for his leadership and participation in this Process. COMMISSIONER GINSBERG MOVED AND COMMISSIONER CRAMER SECONDED TO RECOMMEND TO THE FULL COMMISSION THAT ADVANTUS CAPITAL MANAGEMENT AND NUVEEN ASSET MANAGEMENT BE DESIGNATED AS CONTINUING CONSULTANTS TO PROVIDE INVESTMENT MANAGEMENT SERVICES TO MAC AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS. THE MOTION CARRIED BY UNANIMOUS VOTE. AIII C. RATIFICATION OF LABOR AGREEMENT WITH LAW INTERNATIONAL UNION OF OPERATING ENGEINEERS, LOCAL #70 CF 303 Greg Failor, Labor Relations Manager, presented for Committee review and approval staff s recommendation for ratification of the labor agreement with the International Union of Operating Engineers, Local 70. He reviewed the terms of the 3-year agreement (January 1, 2017 to December 31, 2019) including wages, benefits, clothing allowance, shift and certification

5 Page 5 differentials, parental leave benefit, and Health Care Savings Plan employer contribution. Newly hired employees in both bargaining units will be able to utilize accrued vacation and sick leave during their probationary period. Mr. Failor responded to questions concerning Cost of Living Adjustment projections and recruiting and staffing requirements for this position. COMMISSIONER GINSBERG MOVED AND COMMISSIONER CRAMER SECONDED TO RECOMMEND TO THE FULL COMMISSION APPROVAL OF THE COLLECTIVE BARGAINING AGREEMENT BETWEEN THE METROPOLITAN AIRPORTS COMMISSION AND THE INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 70. THE MOTION CARRIED BY UNANIMOUS VOTE. AIII D. LANDSIDE STAFFING REQUEST - CF 304 Atif Saeed, Assistant Director of MSP Operations/Landside, presented staff s request for two additional positions within the Landside Department. He provided background on Ordinance 124 which went into effect on January 1, 2017 to govern the Transportation Network Companies (TNC) activity at MSP. Based on the preliminary TNC data and the requirements introduced by the Ordinance, it was understood that Landside would require increased operational and administrative staffing levels to effectively manage the TNC activity and associated regulations. However, during the 2017 budgeting process, staff made the decision to withhold any requests for additional staff until the first quarter of 2017 in order to better understand the impact of the TNC activity. Landside is requesting two additional Landside Agent positions in order to meet the increase in operational demand and to offer additional coverage during evenings and weekends. Provisional employees will meet administrative needs during the initial TNC driver and vehicle credentialing process. It was noted that the workload in subsequent years may not warrant permanent administrative positions. Conversely, Landside will go through the normal annual budgeting process to request any additional administrative staff in the future as operations warrant. The estimated 2017 budgetary impact of the two requested positions including benefits is $130,000. The additional expense will be offset in the budget by increased revenue associated with TNC activity. COMMISSIONER CRAMER MOVED AND COMMISSIONER GINSBERG SECONDED TO RECOMMEND TO THE FULL COMMISSION APPROVAL OF THE TWO ADDITIONAL FULL TIME POSITIONS FOR THE LANDSIDE DEPARTMENT. THE MOTION CARRIED BY UNANIMOUS VOTE. ANNOUNCEMENTS Brian Ryks, Executive Director/CEO, announced that Minneapolis-St. Paul International Airport was named Best Airport in North America for its size category by Airports Council International (ACI). Mr. Ryks recognized Denny Probst for his Customer Service Action Council (CSAC)

6 Page 6 leadership and Steve Gentry and Katlyn Kaiser for their contribution in terms of customer service. He emphasized the importance of collaboration with MAC s stakeholders to achieve the high level of customer service at MSP. The meeting was adjourned at 10:05 a.m.