Metropolitan Airports Commission

Transcription

1 Metropolitan Airports Commission Management and Operations Committee Agenda Regular Monthly Meeting on Monday, August 05, 2013 at 1:00:00 PM

2 SEE ATTACHED SECURITY CHECKPOINT INFORMATION MANAGEMENT AND OPERATIONS COMMITTEE Mike Landy, Chair Rick King, Vice Chair Daniel Boivin, Commission Chair Timothy Geisler, F&A Chair Mike Madigan Don Monaco Lisa Peilen, Commission Vice Chair Paul Rehkamp, PD&E Chair OPEN FORUM METROPOLITAN AIRPORTS COMMISSION NOTICE OF REGULAR MEETING MANAGEMENT & OPERATIONS COMMITTEE Monday, August 5, 2013 at 1:00 p.m. Room 3048A, Terminal 1-Lindbergh Minneapolis-St. Paul International Airport AGENDA The open forum is a portion of the Commission meeting where persons will be allowed to address the Commission 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 Commission may take action or reply at the time of the statement of may give direction to staff at the end of the meeting regarding investigation of the concerns expressed. INTRODUCTIONS Operations Interns CONSENT 1. PURCHASING/SERVICE CONTRACTS a. Fire Alarm Maintenance b. Terminal Public Address System Equipment Procurement c. Amend ServiceTec Contract Adding Digital Directory Support Phil Burke, Director of MSP Operations Jeff Nawrocki, Assistant Director of MSP Operations/Facilities Dave Ruch, Director Information Systems 2. CONCESSION AWARDS a. Service Station and Convenience Store Concession Award b. On-Airport Rental Auto Award c. Airport Foundation MSP Electronic Pull Tab Update and Extension Request Karen Racek, Assistant Manager Airside Leasing & Tenant Relations Matt Grimm, Manager Concessions & Business Development Jana Vaughn, Executive Director Airport Foundation MSP

3 DISCUSSION - ACTION 3. COMMERCIAL VEHICLE PER TRIP FEE AND TAXICAB ANNUAL PERMIT FEE Arlie Johnson, Assistant Airport Director Landside Operations 4. SOLAR ENERGY FACILITY AND MARKETING PARTNERSHIP PROGRAM AT MSP, RECOMMENDATION TO NEGOTIATE Dennis Probst, Executive Vice President Bruce Rineer, Manager Concessions and Business Development 5. GENERAL LEGAL SERVICES RFQ Thomas W. Anderson, General Counsel Wendy Bartlett, Legal Administrator 6. ENVIRONMENTAL LAW LEGAL SERVICES RFQ Thomas W. Anderson, General Counsel Wendy Bartlett, Legal Administrator DISCUSSION - INFORMATION 7. VENDOR SELECTION - INFORMATION PROVIDED TO THE COMMISSION Pamela J. Rasmussen, Deputy General Counsel 8. LIMITED SERVICE MICRO-HOTEL PROJECT UPDATE Jennifer Prihoda, Assistant Manager Airline Affairs Materials for this meeting are available at the following website: Commission/Public-Meetings/Board-Meetings.aspx 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. 7/30/2013 4:41:33 PM

4 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 in the following areas will be validated; please bring your parking ticket to the meeting. Directions to the Tram Level Information Booth From short-term parking: At the Terminal 1-Lindbergh entrance, take the escalator or elevator down to 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 Terminal 1-Lindbergh 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 Terminal 1-Lindbergh Mezzanine Level. From there, take an elevator or escalator to Tram Level. The information booth is straight ahead, in the center of the room. 7/30/2013 4:41:33 PM

5 MEMORANDUM ITEM 1a TO: Management & Operations Committee FROM: Phil Burke Director of MSP Operations ( ) Jeff Nawrocki Assistant Director of MSP Operations/Facilities ( ) SUBJECT: FIRE ALARM MAINTENANCE DATE: July 22, 2013 Staff is seeking authority to issue a request for proposals for a vendor to maintain the fire alarm system on the MSP campus. BACKGROUND In September 2009 the Commission approved staff s request to negotiate with Honeywell for a revised fire alarm system maintenance agreement. That agreement expires December 31, The MAC s fire alarm system has long been considered proprietary, with equipment (hardware and software) and the tools for its maintenance and support available only from the original equipment manufacturer, Honeywell. In 2009, MAC s fire alarm consulting engineers, Michaud, Cooley, Erickson (MCE), predicted that an open system allowing MAC to bid maintenance competitively would be available in four to eight years. That prediction has proven correct in that the vast majority of the fire alarm system can now be maintained by any qualified, licensed contractor, with only a minor portion still considered proprietary. RECOMMENDATION Staff and MCE recommend issuing a best value request for proposals for fire alarm maintenance services with a three-year initial term and two possible one-year renewals. A three-year term is important to allow familiarization with the entire system that has grown to over 15,000 fire alarm devices. Full, preventative maintenance services will occur for all fire alarm components on an annual basis. As part of the program, MCE, MAC Fire and MAC Electrical staff will ensure all parties have a thorough working knowledge of the systems. Staff and MCE estimate program costs to be similar to the current costs (approximately $300,000 in 2013) but with enhanced coverage of the system to ensure compliance with current fire code requirements. COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION AUTHORIZATION FOR STAFF TO ISSUE A BEST VALUE REQUEST FOR PROPOSALS FOR FIRE ALARM MAINTENANCE SERVICES WITH A THREE YEAR TERM AND AN OPTION FOR TWO ONE-YEAR RENEWALS AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

6 MEMORANDUM ITEM 1b TO: Management & Operations Committee FROM: Phil Burke, Director of MSP Operations ( ) SUBJECT: TERMINAL PUBLIC ADDRESS SYSTEM EQUIPMENT PROCUREMENT DATE: July 25, 2013 Staff is seeking authority to purchase and install equipment associated with the public address (PA) system to replace equipment that is being phased out by the manufacturer. In December 2012, the Commission approved the 2013 capital equipment list, which included budget approval to continue the upgrade program for the existing terminal PA system that was originally installed in The Minneapolis - Saint Paul International Airport is required for life safety and emergency communication purposes to have a PA system in public spaces throughout both terminals. The existing PA system provides travelers with over 12,000 messages daily, including important security announcements, as well as simple warnings for safety on moving walkways. The terminal systems are interfaced with the fire alarm system and used as an ancillary method for fire warning. Announcements on the system are not only made via the speakers that make up the system, but also are available to the hearing disabled community via visual messages displayed on the Flight Information Displays. The system also keeps complete audit trails on all announcement activity and is the primary method for mass notification. At the time of the Terminal 1-Lindbergh PA System procurement in 1996, Electronic Design Company (EDC) was chosen as the system integrator/vendor as well as for the Terminal 2 - Humphrey build out in Innovative Electronic Design (IED) equipment was provided as the specified PA system equipment provided by EDC. EDC is the current MAC PA system integrator and is the only IED-certified service provider in Minnesota. Staff is requesting authorization to proceed with procurement from EDC integration services of IED equipment through the contract obtained through the Joint Powers Agreement with the University of Minnesota. The contract guarantees MAC a discount on all equipment and labor purchased from EDC. EDC has supplied a proposal in the amount of $241, for integration services and the required equipment. The approved program amount in the 2013 capital equipment list is $250,000. COMMITTEE ACTION REQUESTED RECOMMEND TO THE FULL COMMISSION AUTHORIZATION TO ISSUE A PURCHASE ORDER TO ELECTRONIC DESIGN COMPANY INC., FOR PROCUREMENT OF EQUIPMENT AND INTEGRATION SERVICES IN THE AMOUNT OF $241,842.00; AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

7 MEMORANDUM ITEM 1c TO: Management & Operations Committee FROM: Dave Ruch, Director Information System ( ) SUBJECT: AMEND SERVICETEC CONTRACT ADDING DIGITAL DIRECTORY SUPPORT DATE: July 20, 2013 MAC staff is requesting approval to amend the current Common Use and Multi-User Flight Display System (MUFIDS) support agreement with ServiceTec International Inc. to add support for the dynamic, interactive digital directories located throughout Terminal 1 Lindbergh. The original Common Use / MUFIDS support agreement was approved by the Commission at its February 2012 meeting. Given that approval process, this proposed amendment is also being brought forward for Commission approval. In an effort to improve customer service, the MAC has added a number of dynamic, interactive digital directories that provide electronic information to travelers ranging from touch screen search capability for restaurants and shops to wayfinding and weather information. The directories include a number of devices, computers and video monitors, which need maintenance and support. Currently there are two four-sided directories and four double-sided directories totaling sixteen devices located in Terminal 1 Lindbergh with plans to add more. The fixed costs for these services are as follows: Existing directories support and maintenance annual cost $7, Additional single sided directory support and maintenance annual cost $ Additional double-sided directory support and maintenance annual cost $ Additional quad-sided display support and maintenance annual cost $1, The total cost over the remaining five years of the agreement ( ) for supporting the existing directories is $38, The annual cost of $7,680 is included in the draft 2014 operating budget. Staff is also asking for authority to add additional directories as they become operational to this service contract at the annual support and maintenance rates listed above. COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION AUTHORIZATION TO 1) AMEND THE EXISTING CONTRACT WITH SERVICETEC INTERNATIONAL BY INCORPORATING SUPPORT SERVICES FOR THE EXISTING MAC DYNAMIC DIGITAL DISPLAY DIRECTORIES AT A COST NOT TO EXCEED $7, ANNUALLY; 2) AUTHORIZE THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE TO AMEND THIS CONTRACT IN THE FUTURE TO ADD SUPPORT AND MAINTENANCE FOR ADDITIONAL DIRECTORIES AS THEY ARE INSTSTALLED AT THE RATES LISTED ABOVE; AND 3) THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

8 MEMORANDUM ITEM 2a TO: FROM: SUBJECT: Management & Operations Committee Karen Racek, Assistant Manager Airside Leasing & Tenant Relations ( ) SERVICE STATION AND CONVENIENCE STORE CONCESSION AWARD DATE: July 25, 2013 I. BACKGROUND At its April 15th meeting, the Commission authorized staff to issue a Request For Proposals ( RFP ) for the development and operation of a Service Station and Convenience Store Concession at MSP (the Concession ). The MAC issued the RFP on April 23 rd, advertising the opportunity in the State Register, Twin Cities Business Journal, Airports (a weekly electronic publication), American Association of Airport Executives (AAAE) and Airports Council International North America (ACI-NA) web sites, and on MAC s web site. The RFP was also mailed directly to the existing gas/convenience service station concessionaire and any other companies having expressed an interest in the concession. On May 2 nd, three (3) companies attended a mandatory pre-proposal conference to learn more about the Concession and network with potential business partners. On June 13 th proposals were received in response to the RFP from the following two entities: Northern Tier Retail, LLC, d/b/a SUPERAMERICA and Holiday Station Stores, Inc. On June 19th the MAC Review Team met to discuss and score the proposals. II. SUMMARY OF RECOMMENDATON This public memorandum addresses (a) the Minnesota Data Practices Act, (b) the RFP Information, (c) the Summary of Key Business Terms, (d) Minimum Requirements, (e) the Review Team Evaluation Criteria, (f) the Review Team, (g) the Proposal Review and Process/Results, and (h) the Review Team Recommendation of award to Holiday Station Stores, Inc. III. MINNESOTA 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 proposers, however, are public once the proposals are opened. Information contained in the proposals 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 contained in the proposal(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 contained in this memorandum is public data.

9 IV. RFP OVERVIEW A. Goals The goal of the RFP is to select a highly qualified company who will finance, develop, construct, operate and manage a first-class service station and convenience store ( Station ) that will benefit the Airport and surrounding communities on the MAC site located at th Avenue South. The selected operator will meet the following guidelines as outlined in the RFP: 1. Incorporate modern design principles and sustainable practices. 2. Offer exceptional price/value and convenience to the public while meeting or exceeding the public s needs. 3. Provide exceptional customer service and innovative products and related services throughout the term of the Agreement. 4. Recruit, hire, train, and motivate only the best management and staff members. In doing so, create a workforce that will result in both repeat business and positive customer service ratings. 5. Maximize revenue to MAC. B. SUMMARY OF KEY BUSINESS TERMS The following key business terms were approved by the Commission for this RFP: 1. The term of this Agreement shall not exceed fifteen (15) years with one 5- year option at MAC s sole discretion. 2. Ground rent will be set in accordance with Ordinance 103 (currently $1.20 psf) in the annual amount of $51, (43,000 sf x $1.20 psf). 3. Proposer shall bid a concession fee as a percent of gross sales, excluding fuel sales. The minimum concession fee bid for any service shall be 3%. 4. Proposer shall pay a fuel flowage fee. The fuel flowage fee shall be $0.005 per gallon. C. MINIMUM REQUIREMENTS Proposers must meet the following minimum requirements, as set forth in the RFP: 1. Provide a Proposal deposit of $5, Must have two (2) years continuous experience, within the last five (5) years, in the ownership, maintenance, management or operation of a Service Station and Convenience Store Concession.

10 3. Must be qualified to do business in the State of Minnesota at the time of concession agreement execution. 4. Provide a minimum of (1) financial reference and three (3) business references (complete Exhibit E). 5. Must submit financial background information for the last two (2) fiscal years which includes an independently audited balance sheet, statement of cash flows and income statements; or equivalent documentation, sufficient in MAC s view, to determine the financial health of the proposer. 6. Have no pending, active or previous legal action that could, in MAC s sole judgment, prevent the Proposer from fulfilling the terms of an agreement. 7. Provide a Proposal that contains the properly executed proposal documents. D. EVALUATION CRITERIA Each proposal was evaluated and scored by the Review Team based on the following criteria: Category Maximum Points Minimum Requirements Pass/Fail Information demonstrating that proposer meets minimum requirements, including proposal deposit, bank references, operating experience, completeness, format and content. Financial Offer and Projections 800 Points Information provided in a Proposed Rent Summary Form and a Proforma Operating Statement - for the concession which indicates the Proposer s understanding of the proposed concept, viability of the proposed operation and financial offer. Company Qualifications, Experience, and Financial Ability 400 Points Information provided in sufficient detail to allow an evaluation of the company operations, project funding, and how their operational abilities and experience have been successfully used to increase revenue and customer satisfaction in other facilities. Management and Operations Plan 300 Points Information provided in sufficient detail to allow an evaluation of the proposer s management structure, operations plan, and ability to carry out the plan. Design and Implementation Plan 200 Points Information provided insufficient detail to allow an evaluation of the proposed concept design and implementation plan, including multi-fuel options, any alternative fuel related products offered, related services, landscaping, parking areas, fencing, lighting, signage, etc., the construction team, and the management and an operational plan for the construction process.

11 ACDBE Participation 100 Points Information provided that clearly identifies how the company plans to involve Airport Concessionaire Disadvantaged Business Enterprise ( ACDBE ) firms in the operations or business organization related to operating the Station. E. REVIEW TEAM The Review Team consisted of the following members: James Deal, Commissioner Karen Racek, Assistant Manager, Airside Leasing & Tenant Relations (CMAA) Eric Johnson, Director, Commercial Management and Airline Affairs (CMAA) Alan Dye, Airside Project Manager (Airport Development) Mike Willis, Director, Internal Audit Toni Howell, Manager, Environmental Affairs Additionally, as non-scoring advisors, the Review Team was supported by: Cameron Boyd, Staff Attorney Ed Podnieks, Manager, Financial Analysis & Business Planning Mike Batt, Financial Analyst Eric Hudak, Assistant Manager, Commercial Vehicle Operations Deb Johnson, Contract and EEO Specialist, Diversity and Business Development Anita Bellant, Manager, Diversity and EEO V. PROPOSAL REVIEW PROCESS/RESULTS The Review Team members independently reviewed the two (2) proposals received, then met collectively on June 19th to discuss and evaluate the proposals. Based on the complete analysis, the Review Team scored the proposals as follows: Company Name Score Holiday Station Stores, Inc. 1,652 Northern Tier Retail, LLC, d/b/a SUPERAMERICA 1,143 VI. REVIEW TEAM RECOMMENDATION Based upon the proposals received and reviewed, and using the scoring criteria established, it is the Review Team s unanimous recommendation that Holiday Station Stores, Inc. be selected to operate the Service Station and Convenience Store Concession at MSP. COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION 1) AWARD OF THE SERVICE STATION AND CONVENIENCE STORE CONCESSION TO HOLIDAY STATION STORES, INC.; 2) AUTHORIZE STAFF TO NEGOTIATE FINAL AGREEMENTS AND RELATED DOCUMENTS WITH THE WINNING PROPOSER; 3) AUTHORIZE STAFF TO NEGOTIATE FINAL AGREEMENTS WITH THE NEXT BEST PROPOSER SHOULD THE WINNER FAIL TO EXECUTE AND DELIVER THE AGREEMENT TO MAC WITHIN THE TIME PERIOD OUTLINED IN THE RFP; AND 4) THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

12 MEMORANDUM ITEM 2b TO: FROM: SUBJECT: Management & Operations Committee Karen Racek, Assistant Manager Airside Leasing & Tenant Relations ( ) ON-AIRPORT RENTAL AUTO AWARD DATE: July 25, 2013 BACKGROUND At its April 15 th meeting, the Commission authorized staff to issue a Request For Bids ( RFB ) for the operation of four on-airport rental auto concessions at MSP. The MAC issued the RFB April 17 th, advertising the opportunity in the State Register, Twin Cities Business Journal, Airports (a weekly electronic publication), American Association of Airport Executives (AAAE) and Airports Council International North America (ACI-NA) web sites, and on MAC s web site. The RFB was also mailed directly to the existing on-airport and off-airport rental auto operators and any other companies having expressed an interest in the concession. On May 7 th, six companies, representing 13 brands, attended a pre-bid conference to learn more about the four on-airport rental auto concession opportunities. The deadline for bids was July 2 nd at 2:00 p.m. SUMMARY OF KEY BUSINESS TERMS The following key business terms were approved by the Commission for this RFB: A. Effective Date January 1, B. Term Five (5) years with two one-year extensions at MAC s option. C. Bids Four concessions will be awarded to the highest four qualifying bidders, each with counter space, ready/return areas, and quick turnaround areas (QTA) at both terminals (see RFB Appendices). The three highest bids must each equal or exceed a minimum annual guarantee (MAG) of $4M and the remaining bid must equal or exceed a minimum annual guarantee of $300,000. Due to the fourth place bidder not receiving ready/return or QTA space at Terminal 2-Humphrey until the Terminal 2- Humphrey rental auto expansion is completed, the first year MAG for the fourth place bidder will be reduced 40% until space at Terminal 2-Humphrey becomes available (prorated). D. Allocation of Space Counter, ready/return and QTA space at both Terminals will be allocated by bid share, with the exception of counter space at Terminal 2-Humphrey. No bidder may occupy space in both the north and south halves of either floor at Terminal 1-Lindbergh. Terminal 2-Humphrey counter space is currently under construction with four pre-determined positions established. Bidders will select among the established positions with priority established by bid ranking.

13 Space allocations may be adjusted after bids are received based on operational efficiency of the facilities, disruption to operations during transition periods and existing market share. E. Minimum Annual Guarantee (MAG) Bidders shall bid the 2014 MAG covering both Terminal 1-Lindbergh and Terminal 2-Humphrey operations. In subsequent years, the MAG shall equal the greater of: (1) the 2014 MAG or (2) 85% of the previous year s concession fee. F. Concession Fee In each agreement year, the concession fee shall be equal to the greater of: (1) the MAG for that year or (2) 10% of gross revenue. G. Additional Rent In addition to the concession fee, concessionaires shall pay as rent to MAC the following (2013 rates are provided merely for reference): Auto Rental Terminal Rental Rates Terminal 1- Rates Per Square Foot Ground Rent Ordinance #103 $1.20 QTA Ground Rent Ordinance #103 $0.60 Non-Janitored Terminal Rent $62.33 Janitored Terminal Rent $69.14 Terminal 2 Rates Per Square Foot Ground Rent Ordinance #103 $1.20 QTA Ground Rent Ordinance #103 $0.60 Non-Janitored Terminal Rent $19.17 Janitored Terminal Rent $49.90 MINIMUM REQUIREMENTS The minimum bidder requirements are as follows: A. Bidder must submit a deposit in the amount of five thousand dollars ($5,000.00). B. Bidder must present evidence that it is qualified and has the necessary facilities, experience and financial resources to fulfill the conditions of the General Terms and Conditions Lease Agreement, and the Supplemental Lease Agreements at Terminal 1- Lindbergh and Terminal 2-Humphrey. C. Bidder must submit with its bid proposal an affidavit of non-collusion. D. Bidder must submit the properly executed proposal documents. E. Bidder is required to achieve 10% Airport Concessions Disadvantaged Business Enterprise (ACDBE) participation or provide a good faith effort to identify and seek out ACDBE participation.

14 SUMMARY OF AWARD Five bids for an on-airport rental auto concession were received in response to the RFB from the following entities (with the brands they operate in parentheses): The Hertz Corporation (Hertz, Dollar and Thrifty), Enterprise Leasing Company of Minnesota, LLC (Enterprise, National and Alamo), Avis Budget Car Rental, LLC (Avis, Budget, and Zip Car), Advantage Rent A Car (Advantage), and Ace Rent A Car (Ace and Payless). The bidders shall be required to pay, as the annual concession fee, the greater of the minimum annual guarantee ( MAG ) or 10% of gross receipts. The bids were received as indicated on Attachment 1. As can be seen on the bid tabulation, the four highest qualifying bids are listed with their designated bid share. Staff has reviewed these bids and recommends acceptance of the top four bids. Each bid proposal was evaluated on a pass/fail basis for the Minimum Requirements outlined above. The results are as follows: Minimum Requirements Company Pass/Fail A,B,C,D,E Enterprise Leasing Company of Minnesota, LLC Pass A,B,C,D,E The Hertz Corporation Pass A,B,C,D,E Avis Budget Car Rental, LLC Pass A,B,C,D,E Advantage Rent A Car Pass A,B,C,D,E Ace Rent A Car Pass COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION ACCEPTANCE OF THE TOP FOUR BIDS FOR ON-AIRPORT RENTAL AUTO CONCESSIONS BE AWARDED TO THE HERTZ CORPORATION, ENTERPRISE LEASING COMPANY OF MINNESOTA, LLC, AVIS BUDGET CAR RENTAL, LLC, AND ADVANTAGE RENT A CAR; AUTHORIZE STAFF TO NEGOTIATE FINAL AGREEMENTS AND RELATED DOCUMENTS WITH THE FOUR WINNING BIDDERS. FURTHER AUTHORIZE THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE TO EXECUTE THE NECESSARY DOCUMENTS.

15 ATTACHMENT 1 - ITEM 2b BID TABULATION Project Title: On-Airport Rental Auto Concession Bid Company Bid Amount (2014 MAG) Bid Share Enterprise Leasing Company of Minnesota, LLC $6,445, % The Hertz Corporation $5,619, % Avis Budget Car Rental, LLC $4,624, % Advantage Rent A Car $ 901, % Ace Rent A Car $ 811,000 0%

16 MEMORANDUM ITEM 2c TO: FROM: SUBJECT: Management & Operations Committee Matt Grimm, Manager, Concessions and Business Development ( ) Jana Vaughn, Executive Director, Airport Foundation MSP ( ) AIRPORT FOUNDATION MSP ELECTRONIC PULL TAB UPDATE AND EXTENSION REQUEST DATE: 7/25/13 BACKGROUND In December 2012, the Commission granted authority to the Airport Foundation MSP to expand its charitable gambling efforts to include a six (6) month test of electronic pull tab games at Terminal 1-Lindbergh and Terminal 2-Humphrey. At the request of the Commission, staff agreed to give an update at the August 2013 Management and Operations ( M&O ) Committee meeting, which would have corresponded with the six (6) month anniversary of the launch of the program. Unfortunately, corporate approval processes allowing the participation of airport concessionaires and other technical difficulties delayed the implementation of the program. As of early May 2013, the games were fully operational in six (6) restaurants at MSP (Surdyk s, O Gara s, Ike s on Summit, Rock Bottom Brewery, Itasca Grill and Fletcher s Wharf). UPDATE At this time, on-going training and education is necessary to encourage the full participation of the restaurant s employees, and because the roll-out occurred in stages, the sales data is inconsistent and difficult to analyze at this point. Because of these factors, and the fact that this endeavor has only been in place and fully operational for a little more than two (2) months, staff is requesting that the test be extended for an additional six (6) months. At that time, staff will provide an update at the M&O Committee in December 2013 which will allow for a more comprehensive review of the program s performance. COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION THAT THE AIRPORT FOUNDATION MSP ELECTRONIC GAMBLING TEST AT MSP AIRPORT BE EXTENDED BY AN ADDITIONAL SIX (6) MONTHS THROUGH DECEMBER 2013 AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARRY DOCUMENTS.

17 MEMORANDUM ITEM 3 TO: Management & Operations Committee FROM: Arlie Johnson Assistant Director of MSP Operations, Landside ( ) RE: COMMERCIAL VEHICLE PER-TRIP FEE AND TAXICAB ANNUAL PERMIT FEE DATE: July 25, 2013 MAC Ordinances 102 and 106 govern the operation of taxicabs at Minneapolis-St. Paul International Airport (MSP). MAC Ordinance 111 governs the operation of commercial vehicles at MSP. These ordinances require the Commission to recover associated costs to the MAC by annually adjusting fees for taxi and commercial vehicle operators picking up passengers at the airport. Fees are determined by applying the cost recovery formula for commercial roadway and automated system use against budgeted costs for operations, administration, depreciation and interest, and historical roadway usage data. Because there are differences between the ordinances and fee formulas, this memorandum addresses commercial vehicle and taxicab permit fee adjustments separately. COMMERCIAL VEHICLE PER TRIP FEE ADJUSTMENT Based on the established cost recovery formula, staff recommends the current commercial vehicle per trip fee of $2.65 be increased 3.0% to $2.73 for the period November 11, 2013 through November 10, This per trip fee recovers the budgeted cost associated with the operation of commercial vehicles other than taxicabs as required by Ordinance 111. The commercial vehicle per trip fee is determined by dividing the associated budgeted cost to be recovered, by the number of trips taken during the most recently completed annual permit period. A 2.8% increase in cost combined with a decrease (0.16%) in the number of trips taken produced the recommended increase to the commercial vehicle per trip fee. See Attachment for calculation details. TRANSIT CENTER PER TRIP FEE Most commercial vehicle operators are assigned two areas of operation: one for passenger pick-up, where a per trip fee is charged, and another for passenger drop-off, where no fee is charged. Bus operations at Terminal 1-Lindbergh are unique in that operators are assigned one area of operation, the Transit Center, where they perform both pick-up and drop-off. The Transit Center entrance is equipped with automated revenue control equipment that charges for each access and cannot distinguish whether an operator is performing a pick-up or a dropoff. Due to this arrangement a transit center per trip fee was established equal to one-half the amount of the commercial vehicle per-trip fee. Accordingly, staff recommends the current transit center per trip fee be increased from $1.33 to $1.37. This fee ensures the equitable distribution and recovery of budgeted cost associated with the operation of commercial vehicles at the Terminal 1-Lindbergh Transit Center as required by Ordinance 111. TAXICAB ANNUAL PERMIT FEE ADJUSTMENT The annual taxicab permit fee is determined by dividing the associated budgeted cost to be recovered by the number of permits issued during the most recent annual permit period. Based upon that cost recovery formula, staff recommends the current annual taxicab permit fee of $3,325 be increased 4.5% to $3,475 for the period November 11, 2013 through

18 November 10, A 3.4% increase in cost combined with a decrease (0.7%) in the number of permits issued produced the recommended increase to the taxicab annual permit fee. This recommended annual permit fee recovers the budgeted costs associated with operation of taxicabs as required by Ordinance 102. See Attachment for calculation details. TAXICAB AIRPORT USE FEE Taxicab operators are the only commercial vehicle operator allowed by ordinance to recover the cost of their permits. Taxicab customers ultimately bear the cost of each MAC-issued taxicab permit through payment of an airport use fee added to each final metered fare. The airport use fee is adjusted using a calculation that divides the associated budgeted cost by the annual average number of trips taken over the last three (3) years. Based upon this formula, staff recommends the current airport use fee of $4.00 remain unchanged for the period November 11, 2013 through November 10, See Attachment for calculation details. TAXICAB ANNUAL PERMIT FEE HYBRID PAYMENT ADJUSTMENT In 2007 the Commission approved per trip fees as an optional payment method to requiring annual permit payment in full. This hybrid option allows pre-existing permit holders to pay one-half the annual fee up front and the remainder throughout the permit period via per trip fees. Taxicab operators opting to pay using the hybrid method will be charged one-half the annual fee rounded to the nearest $25.00 ($1,750) and the remainder in per-trip fees ($2.05). COMMITTEE ACTION REQUESTED RECOMMEND TO THE FULL COMMISSION APPROVAL OF THE FOLLOWING RATES FOR THE PERIOD NOVEMBER 11, 2013 THROUGH NOVEMBER 10, 2014: 1) A COMMERCIAL VEHICLE PER TRIP FEE ADJUSTMENT FROM THE CURRENT RATE OF $2.65 TO A RATE OF $2.73; 2) A COMMERCIAL VEHICLE TRANSIT CENTER PER TRIP FEE ADJUSTMENT FROM $1.33 TO $1.37; 3) AN ANNUAL TAXICAB PERMIT FEE OF $3,475 AND THE OPTIONAL HYBRID PAYMENT METHOD OF $1,750 PLUS $2.05; 4) AN AIRPORT USE FEE CHARGED TO TAXICAB CUSTOMERS TO REMAIN AT $4.00 PER TRIP; AND AUTHORIZE THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE TO EXECUTE THE NECESSARY DOCUMENTS.

19 PROPOSED 2014 TAXICAB & COMMERCIAL VEHICLE FEES Commercial Vehicle Per Trip Fee Calculation O&M Expense $ 1,027,875 Depreciation & Interest $ 200,962 Landside Staff Cost $ 186,567 Total Recoverable $ 1,415,404 Annual Commercial Vehicle Trips 519,245 Calculated Per Trip Cost $ Current Per Trip Cost $ 2.65 Per Trip Increase $ 0.08 Actual Cost per Commercial Vehicle Trip $ % Increase (Rounded to nearest $0.01) Taxicab Annual Permit Fee Calculation O&M Expense $ 1,587,751 Depreciation & Interest $ 310,424 MAC Staff Cost $ 596,686 Total Recoverable $ 2,494,861 Number of Taxicab Permits 719 Calculated Permit Cost $ 3,470 Current Permit Cost $ 3,325 Permit Cost Increase $ 150 Actual Annual Taxicab Permit Fee $ 3, % Increase (Rounded to the nearest $25) Taxicab Airport Use Fee Calculation Total Adjusted Recoverable Cost $ 2,494,861 Total Taxicab Trips 605,080 (Annual average over last three (3) years) Cost per Taxicab Trip $ 4.12 Actual Airport Use Fee $ 4.00 (Rounded to the nearest $0.25)

20 MEMORANDUM ITEM 4 TO: Management & Operations Committee FROM: Dennis Probst Executive Vice President ( ) Bruce Rineer Manager Concessions and Business Development ( ) SUBJECT: SOLAR ENERGY FACILITY AND MARKETING PARTNERSHIP PROGRAM AT MSP, RECOMMENDATION TO NEGOTIATE DATE: July 26, 2013 I. RFP BACKGROUND At its November 19, 2012 meeting, the Commission authorized staff to issue a Request For Proposals ( RFP ) for a Solar Energy Facility and Marketing Sponsorship at MSP. Through this RFP process, MAC sought a company to finance, design, construct, install, operate, maintain, repair and manage a minimum of a three megawatt solar energy generation facility. The selected company would also be responsible for implementation of a marketing partnership program that would generate revenue through the use of displays within the airport and other creative solutions. Due to the diverse nature of the skills and experience necessary to perform all of the functions on the scale MAC seeks, MAC hired a consultant, GreenMark Enterprises LLC ( GreenMark ), to work with MAC staff and MAC s energy consultants to pre-qualify Prime proposers who would be eligible to submit proposals in response to the RFP. GreenMark reviewed the solar industry landscape world-wide and screened companies based primarily on their ability to design, finance, install and maintain a three megawatt photovoltaic energy generation facility. GreenMark initially studied sales figures, technical capabilities and companies compatibility with the airport s mix of industrial and commercial products. The search was narrowed using a broad array of sources: industry association newsletters and blogs, corporate database searches, conversations with industry experts, referrals from renewable energy leaders, government policymakers and consultants, major news outlets, news digests and industry seminars. This review identified 43 global, national, regional and local prospective firms which were then further reduced through analysis of MAC s Qualities and Characteristics Desired : Ability to deliver a significant energy project in 2013 Motivated to fast-track project Business focus on sustainability Commitment to a partnership marketing model to collaborate on the marketing elements and quantify benefits for each side of the transaction Willingness and ability to finance entire project through a Power Purchase Agreement or other finance mechanism

21 Integrated product potential such as LED lighting, green cleaning products and green technology Willingness to collaborate with local vendors, if possible Respected brand, or desire for brand building in conjunction with project elements. Other airport or public entity experience Eligibility to be a state Renewable Energy-qualified vendor Financial participation in a high visibility branding, business development and marketing platform at the MSP International Airport After this review, 16 firms remained eligible for Prime Proposer status. The final screening considered the degree to which firms positioned themselves as public leaders in the industry, based, in part, on the ability of these types of firms ability and interest in succeeding with the marketing component of the project. Ultimately, four firms were identified as Primes: 1. Abengoa Solar, Inc. 2. Ameresco, Inc. 3. NRG Solar LLC 4. Panasonic Eco Solutions North America In February 2013, MAC published the RFP by sending it electronically to 68 addresses at 46 unique domain names. Even though only four firms were identified as Primes, MAC wanted to assure all the companies that were part of the initial process the opportunity to partner with one or more of the Primes. In addition to private companies, MAC sent the RFP to the Minnesota Solar Energy Industries Association and the Minnesota Renewable Energy Society. On May 13, 2013, proposals were received in response to the RFP from the following entities: Panasonic Eco Solutions North America ( Panasonic ), and Ameresco, Inc ( Ameresco ). Abengoa Solar, Inc. had prepared a response for submittal and withdrew from the process before the submittal. II. SUMMARY OF RECOMMENDATION This public memorandum will address (a) the Minnesota Data Practices Act, (b) the RFP requirements, (c) the Review Team evaluation process, (d) scoring of Proposals, and (e) recommendation to negotiate with Ameresco Inc. III. MINNESOTA 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 proposers, however, are public once the proposals are opened. Information contained in the proposals 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 contained in the proposal(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 contained in this memorandum is public data.

22 IV. RFP GOALS AND OBJECTIVES MAC seeks proposals from those Primes that can substantially enhance the energy efficiencies of MSP and engage in an effective marketing and sponsorship program. MAC has established the following goals and objectives for this RFP: A. Proposer shall finance, design, install, construct, operate, maintain, repair and replace (as necessary) a full service three megawatt PV solar energy facility; and. B. Participate in a marketing and sponsorship program (business development, public education, branding, etc.); and C. Provide innovative alternative sustainable solutions for the project; and D. Propose and provide financing solutions. V. SUMMARY OF KEY BUSINESS TERMS The following key business terms were approved by the Commission for this RFP: All terms will be set forth in the agreements entered into between MAC and the successful proposer. A summary of key business terms is provided here for reference. The terms of the agreements will govern if any discrepancies exist between this summary and the agreements. A. Term of Agreement The Lease Agreement shall be for a term of twenty (20) years. MAC shall have the option to extend the Agreement by five (5) years at MAC s sole discretion. The Marketing and Sponsorship Agreement shall be for a term yet to be determined. B. Revenue to MAC Proposer shall propose a marketing partnership program which will provide revenue to MAC. C. Security Deposit MAC shall require a security deposit of five hundred thousand dollars ($500,000) throughout the Term of the Agreement. D. Condition of Premises All areas designated for the solar energy facility will be delivered as is. Upon termination of the Agreement, if requested by MAC, the successful proposer must remove all equipment and other improvements and restore the premises within sixty (60) days unless otherwise notified by MAC. E. Layout The selected proposer will be responsible for completing a thorough review of the physical layout and operating conditions at the locations identified for the solar energy facility.

23 F. Advertising/sponsorships Advertising and sponsorships may be proposed as part of this concession. Note: MAC may deny approval for the placement of any advertising copy or content which, in MAC s sole discretion, may be inappropriate for display in an airport setting used by the general public of all ages. Advertising/sponsorship messages shall be in good taste, professionally developed, and presented in a manner that enhances the image of the Airport. Under no circumstances shall displays embody controversial, social, moral, political or ethical issues. G. Office/Storage Space No office or storage space is offered as part of this concession. Proposer may lease office or storage space from MAC. The unjanitored terminal rental rate for 2012 is $60.46 per square foot per annum payable in monthly installments. Terminal rent is based on a cost recovery model and may be increased or decreased each January 1 st. Terminal rent will commence on the Rent Start Date (Agreement start date or other services commence). VI. MINIMUM REQUIREMENTS Proposer must meet the following Minimum Requirements: A. Proposers must provide a proposal deposit in the amount of ten thousand dollars ($10,000.00) in the form of a certified check, a cashier s check or bond in a form and substance acceptable to MAC. Instruments should be made payable to the Metropolitan Airports Commission B. Proposer (and or its partners or subcontractors) must have experience, within the last 5 years, in the design, installation, maintenance, management and operation of a commercial solar energy facility C. Proposer must be certified as a Prime Proposer D. Proposer must be qualified to do business in the State of Minnesota at the time of agreement execution E. Proposer must provide a minimum of one (1) financial reference and three (3) business references F. Proposer must submit company financial background information per Section IV.D of the RFP G. Proposer must have no pending, active or previous legal action that could, in MAC s sole judgment, prevent the proposer from fulfilling the terms of an agreement H. Proposer must submit the properly executed proposal documents

24 VII. EVALUATION CRITERIA Each proposal was evaluated and scored by a MAC Review Team based on the following criteria: Category Maximum Points Minimum Requirements Pass/Fail Information demonstrating that proposer meets minimum requirements, including proposal deposit, bank references, operating experience, completeness, format and content. Financial Offer and Projections 500 points Proposers must demonstrate the financial viability of proposals to provide assurance that the proposer, and any other party involved in the proposal, has adequate financial capability to execute the project Marketing Partnership Plan 300 Points The Marketing Partnership Program is the innovative core element of the project. The overall objectives are to support an iconic and unique industry-leading final program and also serve as an awareness-building platform highlighting the positive progression of environmental leadership at MSP. Company Qualifications and Experience 500 points Proposer shall submit sufficient information to allow MAC to evaluate the proposer s qualifications and experience. Design/Implementation/Technical Plan 500 points Information provided in sufficient detail showing the quality and design of the proposed improvements and technical information for each type of equipment. Management and Operations Plan 250 points Information provided in sufficient detail to allow MAC to evaluate the Proposer s management structure, operations plan, and ability to operate at the airport. Other Innovative Sustainable Solutions 150 points Information provided that clearly identifies innovative products, sustainable solutions, marketing strategies and concepts, business processes or other technologies the proposer has expertise in that could be applicable to this project and that benefit MAC. These additional recommendations should show how these products or solutions could save MAC time, provide efficiencies in complex operations, or provide financial benefits to the overall project or operation. Total: 2,200 points

25 VIII. REVIEW TEAM The Review Team consisted of the following: Mike Landy, Commissioner Dennis Probst, Executive Vice President Eric Johnson, Director Commercial Management and Airline Affairs Bruce Rineer, Manager, Concessions and Business Development Dennis Kowalke, Manager Airport Development Dale Thielen, Consultant, US Energy Services Additionally, as non-scoring advisors, the Review Team was supported by: Cameron Boyd, Staff Attorney Ed Podnieks, Manager Finance Mark Andrew, Consultant, GreenMark Don Fairbanks, Consultant, Michaud Cooley Erickson IX. PROPOSAL REVIEW PROCESS/RESULTS The Review Team members independently reviewed the two (2) proposals received, then met collectively to discuss and evaluate the proposals. Based on the complete analysis, the Review Team scored the Proposals as follows: Company Name Score Ameresco Inc 1934 Panasonic Eco Solutions 1597 X. REVIEW TEAM RECOMMENDATION It is the Review Team s unanimous recommendation that Ameresco Inc. be selected to finance, design, construct, install, operate, maintain, repair and manage a minimum three megawatt solar energy generation facility and to enter into a Marketing Partnership Agreement at MSP. Staff will bring the results of the negotiation back to the Commission for approval. COMMITTEE ACTION REQUESTED: RECOMMEND TO THE FULL COMMISSION THE SELECTION OF AMERESCO INC AND THAT STAFF BE AUTHORIZED TO NEGOTIATE WITH AMERESCO TO FINANCE, DESIGN, CONSTRUCT, INSTALL, OPERATE, MAINTAIN, REPAIR AND MANAGE A SOLAR ENERGY FACILITY AND TO NEGOTIATE WITH AMERESCO A MARKETING PARTNERSHIP AGREEMENT AT MSP; IF AGREEMENT CANNOT BE REACHED WITH AMERESCO INC, THAT STAFF BE AUTHORIZED TO NEGOTIATE WITH THE SECOND RANKED PROPOSER; AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

26 MEMORANDUM ITEM 5 TO: Management & Operations Committee FROM: Thomas W. Anderson, General Counsel ( ) Wendy Bartlett, Legal Administrator ( ) SUBJECT: GENERAL LEGAL SERVICES RFQ DATE: July 25, 2013 The purpose of this memorandum is to request authority to issue a Request for Qualifications (RFQ) for General Legal Services. INTRODUCTION The MAC s policy for the Use, Selection, Monitoring and Payment of Consultants (Policy 2801) requires that a competitive selection process for continuing consultant services be initiated every six years. A continuing consultant is a consultant selected for potential use, which may exceed $50,000 a year, in generally defined areas of work. The alternatives are for the Commission to select a project consultant for a specific project or task or for staff to operate under the $50,000 per year staff authorization. In the case where a selection process results in a change of consulting firms, the new firm is assigned new projects going forward while the displaced firm is required to complete projects that they have been involved in to date at the discretion of the MAC. Policy 2801 requires a review team to consist of MAC staff and either a Commissioner, an outside expert, or a member of the Internal Audit Dept. It is anticipated that the scope of work for the general legal services contracts could exceed $300,000 in any given year; therefore, Policy 2801 requires a review team to identify the firms to be interviewed before the appropriate Committee of the Commission, unless the Committee directs the interviews to be conducted by staff. BACKGROUND GENERAL LEGAL SERVICES MAC uses legal services to perform a wide range of functions covering many substantive areas of law. These activities include: 1. Providing legal advice to all MAC management employees and MAC Commissioners. 2. Drafting, negotiating, and reviewing documents (e.g. leases, ordinances, concession agreements). 3. Representing MAC in actual or potential litigation, administrative hearings, legislative or regulatory matters. 4. Coordinating responses to data practices requests. These activities cover a wide range of legal matters including: 1. Real Estate, Leasing and Redevelopment, 2. Commercial Transactions, 3. Construction Law,