Addendum No. 3 Request for Proposals No Management and Operations of Public Parking Facilities

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1 March 15, 2018 Addendum No. 3 Request for Proposals No Management and Operations of Public Parking Facilities Prospective Proposers and all concerned are hereby notified of the following changes in the Request for Proposals (RFP) document for the Management and Operation of Public Parking Facilities at T. F. Green Airport, RFP No These changes shall be incorporated in and shall become an integral part of the contract documents. Below are the responses to the raised by potential respondents: 1. Item 3. on page 6 of the RFP indicates Operator will be responsible for operation and all preventive maintenance and/or replacement of any and all components of the existing PARCS system at the commencement of the initial Term of the Agreement and should budget accordingly for these costs. What does replacement of any and all components of the existing PARCS system include/entail? a. For example, the current PRCS Service Agreement expires June 30, The cost to continue the Service Agreement through June 30, 2019 has been proposed by Amano McGann at $163,000 (before adjusting for removal of Garage C equipment). Would this fall under Capital Projects? And as such be reimbursed or paid for by RIAC? Yes. This will be considered a reimbursable expense. The Operator is responsible for day to day maintenance that is not included in the Service Agreement. b. If current system is not replaced for whatever reason by July 2019, will RIAC reimburse or pay for extended maintenance agreement(s)? RIAC sees installing a new PARCS prior to June 30, 2019 as a priority. Operator must understand this as a critical issue, and that RIAC expects that a new PARCS System be installed by June 30, However, in the event that a new PARCS System is not operational by July 1, 2019, the Operator shall be required at Operators expense to procure the appropriate level of continued Service Agreement on the existing PARCS System to ensure reliable continued operation of the system until such time it is replaced. The Operator will continue to be responsible for day to day maintenance that is not included in the Service Agreement. c. Would the cost of upgrades to the existing PRCS necessary to maintain PCI compliance could cost up to $50,000 fall to the Operator? Or be considered Capital Projects and thus be reimbursed or paid for by RIAC?

2 On-going PCI compliance and related costs are the responsibility of the Operator. 2. Item 8. on page 10 of the RFP states Operator shall be responsible for presenting a proposal containing the specifications for..a new state-of-the art PARCS system. Is proposal required to be submitted/included with response to this RFP or provided after the award is made? If included with the proposal, is RIAC seeking a. Recommended features and functionality for the new PRCS; b. Detailed specifications, suitable for a procurement process; c. And/or specific recommendation and pricing for a specific PRCS system? Given the proposal timeline, options b and c might be difficult to complete. Given the timeframe we realize that a complete analysis will not be possible. However, we are looking for information regarding these elements, but with the focus on recommended features and setup of the system, estimated costs for features and functionality of the system and potential providers of the systems. 3. Attachment A Routine and Preventative Maintenance Standards and Schedules on page 16 of the RFP lists numerous tasks. Will Operator be required to complete all of these tasks at its own expense (other than those specified as Excluded Operating Expenses in the Management Agreement page 21)? Yes. The items listed are the minimum routine and preventative maintenance standards for typical parking facilities such as those at T.F. Green Airport. This list is not comprehensive, but rather some of the more common tasks, and there will be other tasks that an operator will typically perform in managing these facilities in a first class manner. 4. In follow up to the discussion at the pre-proposal meeting, please specify in detail which duties and expenses will fall to the Operator (Repair & Maintenance) and which to RIAC (Capital Projects) in accordance with the Annual Capital Plan and Annual Maintenance Plan requirements in Section (page 26). In addition to the Excluded Operating Expenses on page 21, RIAC will be responsible for Capital Expenditures. We define capital expenditures as those items not necessarily replaced, or work performed on a regular or annual basis. These items could include major repairs/replacement of capital items such as generator in Garage A, or major structural repairs to the Garage facilities. Although the capital expenditures are the responsibility of RIAC, we expect the Operator to identify and make recommendations in their Annual Capital Plan. 5. If there are any expenses incurred by the Operator and deemed to be reimbursable, will Operator have the authority to deduct these reimbursable expenses from monthly Concession Fees due RIAC? If not, how/when will Operator be reimbursed? No. Reimbursable expenses will be invoiced to RIAC with prior written approval and proper documentation for reimbursement. 6. Please specify in detail any duties and expenses that will fall to the Operator under Section Maintenance (page 27). Refer to questions 3 and Please describe in detail the difference between routine and non-routine maintenance. Routine maintenance is typically conducted daily (trash removal), weekly (vacuum elevators), monthly (check floor drains), and annually (wash down, winterize pipes). A non-routine maintenance could be remove graffiti that may occur occasionally, or in response to unusual circumstances such as fire or flood

3 8. May Proposers assume that the Parking Facilities will be delivered in good repair and condition to the Operator upon commencement of the proposed Parking Management Agreement? And that any maintenance or repair items outstanding or necessary at the time of contract commencement will fall to RIAC, at its cost? RIAC will document outstanding Capital Projects or necessary repairs that warrant a potential reimbursable expense that exist prior to the commencement of the term. 9. Please confirm that all of the duties, contracting, contract oversight and costs associated with Excluded Operating Expenses listed on page 21 will fall to RIAC. Please specify any duties the Operator will have in regards to these areas of work. Costs associated with those items will be the responsibility of RIAC. However, RIAC reserves the right to require the operator to take responsibility for these expenses as reimbursable expenses. The operators responsibility initially and as designed will be as follows: R&M Elevator The operator will be responsible for checking the elevators on a daily basis to insure they are operating properly. If not, there will be a contact number for the operator to call for R&M to be performed by contractor. Operator will also be responsible for cleaning the elevator floors, wipe down of walls, and replace lighting as necessary. Landscaping, and Generator Inspection, Testing, Fueling, and Maintenance No responsibility by Operator other than to inform RIAC if something appears out of the ordinary. Utilities No responsibility for Operator, other than proper control of utilities to operate efficiently and minimize cost for RIAC. Snow Removal Operations The Operator will be responsible for all snow removal inside and on the top deck of the garage. This will also include applying non-corrosive ice melting products in the garage and on the top deck when there is melting and freezing overnight. In regard to safety concerns, the Operator will also be responsible and will require some hand shoveling where snow has entered the garages, and in and around the entry/exit areas. All snow removal outside of the garages will be coordinated under contract by RIAC will not be the responsibility of the Operator. 10. Please verify that all parking revenues are to be deposited into the Operator s bank account. Yes. 11. Please modify the definition of Gross Revenue (page 22) to provide for deduction of sales/parking taxes. Sales and parking taxes are the responsibility of the Operator. 12. Who will remit sales/parking taxes to the taxing entity (ies)? RIAC or the Operator? The Operator. 13. Will RIAC consider including a provision for modification to the Concession Fee in the event of a significant drop in enplanements of 10% or more? While some operating costs may drop in conjunction with a drop in enplanements, many costs are fixed and will not. No. RIAC does not plan to modify the Concession Fee if there is either a reduction or increase in enplanements. 14. What line items will RIAC require the Operator to include in the operating and capital budgets called for the Operator to submit in accordance with Section Budget of the Management Agreement page 25. RIAC is looking for the typical budget with similar line items in the current operator s monthly revenue and expense statements. Please see Attachment A. RIAC reserves the right to modify the required form and information throughout the term

4 15. Please describe in more detail the Working Capital requirements specified in section Working Capital of the Management Agreement page 26. Is Operator required to maintain a separate bank account for this Operation or just provide evidence it has funds available to perform its obligations? Section is being deleted. Section on page 26 of the contract, and Section VIII 1. on page 14 of the RFP describe the performance bond and working capital requirement. 16. Please provide specifications for vehicles that will be required by the Operator to provide. Is there a minimum number of vehicles required, including shuttle buses? Are shuttle buses required to be CNG or other alternative fuel? There are no specifications including the number of vehicles and shuttle buses other than a logo/design/message that will be required by RIAC. The Operator is responsible to provide outstanding customer service and to provide the vehicles necessary to meet the service levels specified in the RFP. Shuttle buses have no specific requirements as to CNG or other alternative fuel. Please note there is a CNG facility located on the premises. 17. Will Operator be responsible for managing the Frequent Parker and Corporate Parker programs at its cost? Yes. 18. Will Operator be responsible for maintaining PCI Compliance at its cost, for the existing PRCS? for the new PRCS? Keeping in mind that: a. PCI costs are generally dictated by the standards and requirements set out by the Payment Card Industry, not the PRCS provider or the Operator, making the impacts, requirements and costs of ongoing PCI compliance highly difficult to ascertain in advance. b. RIAC will have a role in the selection of the new PRCS. Might it make sense to have PCI compliance fall under Capital Projects and therefor fall to RIAC? Refer to question 1.c 19. Gross Revenue Definition : All parking fees and other charges due or collected in cash, or check or credit, or otherwise, of every kind, without deduction for credit card discounts or thefts, whether the same shall be paid or unpaid, for parking or storing of vehicles, and any other revenues generated from Airport parking or from any other business performed by Concessionaire in the Assigned Areas. Does without deduction for credit card fees mean that the operator must pay for credit card fees out of their % portion of the revenue or are credit card fees and taxes deducted first then the revenue is split between the airport and operator? The Operator is responsible for credit card fees and taxes out of their percentage portion of the Gross Revenue. 20. Per the RFP the operator will purchase a new PRCS system. Can you provide payment details of how the cost will be reimbursed to the operator for this new equipment, i.e., a lump sum payment, monthly, over what term, etc? Also, what protection does the operator have to be paid in full if cancelled before the end of the contract term? RIAC will work these details out with the selected Operator; however, RIAC will ensure that payment will be reimbursed in a timely manner and that there will be protection for the Operator to be paid in full prior to the end of the contract term. 21. Please clarify that you are you requesting PRCS bids to be included in the expense budget, the proposal submittal and the % rent calculation for this bid? The PARCS bids and information to be submitted as part of the RFP is a Capital Expense and will be paid by RIAC and therefore not part of the expense budget

5 22. What protection will the operator have in unforeseen or uncontrollable expense increases, i.e. minimum wage increases, etc? The Operator needs to assess this independently as part of its proposal. 23. Please provide shuttle bus specs and inventory details for the current shuttle fleet in use (make, model, fuel type, passenger seat count, length, etc ), as well as this detail for any other vehicles in use at the parking operation. The 6 shuttle buses are 2015 Ford F450 s and run on CNG which is on-site at a reduced price. Each shuttle accommodates between passengers. 24. Will the signage in the garages / lots stay with the new operator? Yes, although the signage is the property of RIAC, the Operator will be responsible for maintaining the signage and making changes when appropriate. 25. How many unaccounted for tickets have there been for the past 2 years broken out by year and how much is that worth? There have been virtually no unaccounted for tickets. Utilizing the LPI and other means, lost tickets have been accounted for and properly collected from customers. 26. Who is responsible for bulbs and ballasts, electrical, plumbing, elevator maintenance and structural repair costs, the airport or the operator? Replacing and maintaining bulbs and ballasts, electrical, and plumbing are ordinary maintenance items and are the responsibility of the Operator. Elevator maintenance and structural repair cost are Excluded Operating Expenses. Refer to questions 4 and Please provide copies of all Union contracts for represented employees under this contract. RIAC does not have information related to this request. The current vendor has informed RIAC that certain employees have voted to unionize but to RIAC s knowledge we do not believe a contract has been agreed upon at this time. 28. Please confirm there isn t a ACDBE/ MBE/WBE requirement to this contract? The Operator will be required to comply with RIAC s ACBDE plan. There is currently a limited number of certified ACDBE s in the State of Rhode Island. As such, RIAC is requiring Proposers to demonstrate a Good Faith Effort in identifying those potential ACDBE. Proposers should demonstrate, as part of their submission, that they reviewed the certified ACDBE s and made a determination of which, if any, ACDBE s would be applicable as part of your contract. Please see attached ACDBE Demonstration of Good Faith Efforts Exhibit that need to be included as part of your submission (not counted towards the stated page count) 29. Please provide claims history for self-park and shuttle, GTA and worker comp for the past 2 years, including number of claims and amounts paid for each category. RIAC does not have information related to this request. 30. Please provide specifications on rubbish removal including number and size of receptacles and number of pickups by the rubbish removal company per week if this is the cost of the operator. The current Operator has secured a 20-yard roll off and is emptied two to three times per month. This expense was budgeted at $9, Can you provide the Cost proposal in a format we can type our info into (i.e., word or excel document)? Please see Attachment B. 32. If we are to budget for phone lines and data lines please provide how many of each we are to budget for. Phone and data are the responsibility of the operator and the operator should budget for these items based on their discretion

6 33. Please provide the name and contact info of the sub-contractors for snow removal, security, janitorial, engineering, maintenance and any other sub used by the current operator. This information is not being provided as part of the RFP. Proposers should include their recommended solutions for these services. 34. There is a considerable amount of information we need to provide in order to properly answer the RFP and a very low number of pages allowed in our proposal response to answer these requests. We would ask that the pages be increased to a total of 100, as well as be allowed to attach exhibits if necessary. The narrative portion of the RFP will remain at 30 double-sided pages. However, the additional information for the financial statements, PARCS specifications and recommendations, and parking operations plan/manual will be excluded from the 30 page limit. 35. How much has the current operator been assessed liquidated damages, fines penalties and violations for the past 3 years? Zero 36. Do the employees have to be rebadged with a new Airport issued ID if a new operator is brought on and if so what is the cost per employee for that? Employees who work for the parking Operator are not required to be badged as they do not access the post security screening area. 37. Do employees pay for parking when at work under this contract? No. If so how much and do the employees or the operator pay for it? 38. Who is the Merchant of Record for the credit card processing, the airport or the operator? The Operator. 39. If operator is the Merchant of Record please provide the following data separating out American Express data from all other credit card data; therefore there would be two sets of data provided American Express data and all other credit cards combined data: a. What percentage of the revenue is credit card versus cash 89% of revenue is credit card, and American Express comprises 23% of total credit card revenue. b. Total annual credit card revenue processed for the past 12 months Total credit card revenue is $21,118,994. c. Number of credit card transactions for the past 12 months Transactions are not available for credit vs cash. However, 328,000 tickets were processed in Garages A and B, and Lot E which are primarily credit card. d. Average ticket price for credit card transactions for the past 12 months Average ticket price for overnight parking is $65 which does not distinguish between cash and credit. 40. What is the full-time versus part-time hourly employee headcount divided by union and non-union? Total Employees 67; Full Time 51; Part Time 16. Union vs. Non-Union information is unavailable. 41. Are the CCTVs to be maintained by the operator in our budget? Yes. If so, please provide historical costs for the past 2 years broken down by year. There were no maintenance costs the past 2 years. 42. Are there any computers, equipment, vehicles, furniture or supplies owned by airport that a new operator will be allowed to use? If so please provide an inventory list of what the airport will provide? All office furnishings including desks, tables, chairs, office supplies, etc. will remain and can be used by the Operator. The operator will be responsible for providing desktop - 5 -

7 computers and copier machine. Any vehicles or heavy equipment will need to be purchased by the Operator. 43. Please provide a copy of the current Operator s contract with the airport and any addendums. Please procurement@pvdairport.com to request a copy. 44. Please provide a current schedule of all hourly and salaried personnel broken out by shift and by location (lots, garages, shuttles, maintenance, management, administrative, supervisory, etc ). Office Staff & Managers 8 FT; Maintenance 3 FT; LPI 1 FT; Drivers 15 FT & 5 PT; Cashiers 24 FT & 11 PT. Further breakdown is not being provided as part of this RFP. 45. Please provide detail of how many union personnel have health insurance and what levels of insurance programs they have chosen. RIAC does not have information related to this request. 46. Please provide the last 2 years revenue and operating expenses broken out line item by line item for all services in this contract. RIAC will provide budgeted revenue by lot for 2018, and a summary of budget for the items that are expected to be included as Operator s cost for Please note that this information is being provided for informational purposes only and that Proposers are encouraged to build their own financial projections. Please see Attachment A. 47. Please provide the 2018 revenue and expense Budget broken out line item by line item. The O&M Budget for 2018 as provided by the current Operator is being attached. Please see Attachment A. 48. What are the minimum staffing requirements by lot, garage shuttle, etc.? There are no minimum staffing requirements under this RFP. 49. How is the License Plate Inventory being completed? LPI is conducted nightly with hand held devices. 50. Please provide the last 2 years of fuel history for the shuttles. The total cost of fuel for each of the last 2 years is $94,007 and $100,356. An automobile and pick-up truck are also included in this total. 51. We base our liability insurance calculation on revenue. Please provide a breakdown of revenue for each parking location for the last two year by year. Please see Attachment A. 52. Please provide the number of miles per year each shuttle is driven, broken down by shuttle. The annual mileage for shuttles is between 30,000 and 35,000 miles each. 53. Please provide a list of any furniture, vehicles and equipment that is owned by the current operator that will need to be replaced by a new operator if one is chosen and are these reimbursable expenses. Refer to question 42. Any replacements will not be reimbursed. 54. Please provide employee listing including seniority dates and wage rates for all hourly personnel. This information is not being provided as part of this RFP. 55. We respectfully request an extension of the proposal due date. The proposal due date has been extended to March 29, Can you provide revenue for Garage C and all other off airports? Gross revenue for CYE 2017 for Garage C was approximately $3.06M, and for all off airports was approximately $2.17M. 57. Are we required to provide new shuttles or are slightly used shuttles acceptable? It is at the Operator s discretion, as long as they are clean, - 6 -

8 safe, operable and without defects, and also no advertising other than RIAC s logo/design/message. 58. Can you provide occupancy for each garage including Garage C for the last two years? Approximate Occupancy for CYE 2016 and CYE 2017 were: Garage A 144,000, 150,000 Garage B 49,000, 54,000 Garage C 48,000, 42, Can you provide the historical airplane arrivals/departures by hour? No. However, we have attached an Entry/Exit Time Report for the last 6 months which indicates the peaks and valleys of parking customers. Please see Attachment C. 60. Will the airport accept alternative financial proposals for incremental revenue in excess of what is being generated now? We understand that you want a concession fee on current Gross Revenue of no less than 80% however to drive new revenue will require expenditure on additional costs not currently being spent. The current financial structure would therefore not incentivize improving the financial performance or growing the revenue for RIAC given the additional expenditure required to achieve revenue growth. No. Please use the revenue format provided. RIAC expects the Operator to operate the facilities in a manner that provides high levels of customer service and maximizes revenues under the parameters of the proposed fee structure. 61. Please detail any rate changes in the last year by date, amount and lot. Please see Attachment D. 62. What is the process to increase parking rates in the future? RIAC will usually ask the Operator to assess the parking capacity and current rates, as well as the frequent parking plan discounts. It is at RIAC s sole discretion to modify rates. 63. Are there any plans to increase or decrease the parking capacity or make any adjustments to the current parking products throughout the maximum possible contract period? While there are no specific plans to increase parking capacity in the immediate future, as enplanements increase and as a result, parking needs, RIAC will continue to consider additional capacity in the future. RIAC is also updating its Master Plan that will evaluate future needs. 64. Is there a city parking tax or sales tax included in the parking total charged to parkers? Please confirm that the concession will be applied after the deduction of these taxes. There is tax of 5% on Gross Revenue, which is reduced slightly as the current posted parking rates include the tax. The tax is the responsibility of the Operator. 65. Who owns and manages the airport website? RIAC. Will the successful party be allowed to place a booking portal on the PVD website home page and develop and support current park PVD parking web pages and frequent parker website? Yes, with the prior approval of RIAC. 66. Is the 149 space nested lot a component of the total 1500 spaces in Garage A or does Garage A have 1649 total spaces? Garage A has 1,500 total spaces, which includes the Per Clauses , , and , the required primary limits of coverage is $3,000,000 combined single limit each occurrence or accident. Is it acceptable to provide $1,000,000 primary limits for these lines of coverage and increase the umbrella liability limit in Clause to $12,000,000 per - 7 -

9 occurrence? The operator can meet the insurance requirements utilizing primary and umbrella policies as long as the per occurrence or accident limits are met as specified. 68. What is a trust-agent as identified in Lot D description on page 3. Within Lot D there is a separate lot with 84 spaces which RIAC employees and some tenants are able to park using an ID badge which is managed by Airport Police. 69. Is the 500 space overflow lot a component of the 4358 spaces in Lot E or is it in addition to Lot E? There are 500 additional spaces for which the gate is unlocked and used for parking when necessary. 70. How many days was the 500 space overflow lot opened and used during the previous and current year? None, although we have been near capacity during some holidays. 71. Is there a requirement to provide shuttle services from the Interlink Facility to the terminal? There is no shuttle service between these two facilities. The Interlink is used for daily parking customers using the train service. 72. Is Lot E the only lot that requires shuttle services? Yes. 73. Please provide a copy of the current PARCS service agreement with all costs included. Please procurment@pvdairport.com to request a copy. 74. Section IV, page 7B conflicts whether pre-bid conference is mandatory or nonmandatory. The RFP was corrected and reposted accordingly. 75. Airport is requesting a lot of information in the proposal, will it consider expanding the number of pages from 30 to 50? Refer to question Can proposers add addendums to the proposal that do not count toward the page maximum? For example, financial statements requested on page 9, 6a. Refer to question Please provide a copy of the Union agreement from the Teamsters Local 251. RIAC does not have information related to this request. We do not believe a contract has been agreed upon at this time. 78. In section IV, C, #8 on page 10, the RFP indicates the PARCS will be reimbursable expense. Does the Airport plan on reimbursing the Operator immediately for the full cost, on a straight-line basis over the remainder of the term, or some other time frame for reimbursement? Refer to question Does the current operator currently have an ACDBE percentage component and if so, how much in terms of dollars and percentage of Operator s total compensation? Refer to question Does the Airport want proposers to include an ACDBE component in their proposals? Refer to question Will the airport evaluate the proposals based upon a percentage of ACDBE participation? If so, how will it be weighted? No. Refer to Section VII of the RFP. 82. Please provide previous three years of parking revenue and delineate by lot. Please see Attachment A. 83. Does current operator provide the same shuttle services described in the RFP? Yes. 84. Is there a minimum number of shuttle buses the Airport is expecting operator to provide? Refer to question Does the Airport have a requirement on the size, age, or maximum mileage of the shuttle buses provided by the operator? Refer to question

10 86. Does the Airport currently provide valet parking service? No. If so, who is the provider? 87. Please provide enplanements for the past three years. Please see Attachment E. 88. Please provide the previous and current year s Management Plan, Annual Capital Plan, and Annual Maintenance Plan as detailed in section 5.2.3, page 26 of the parking management agreement (attachment D). This information is not being provided as part this RFP. Proposers are encouraged to develop their own plans. 89. Please provide a copy of the previous and current year s operating budget as described in section 5.1.5, page 25 of the agreement (attachment D). Please see Attachment A for Revenues by lot and Expenses that are anticipated to be an Operator s responsibility. This is being provided for informational purposes only. 90. Please provide the amount of payment current operator has had to make to RIAC in each of the past two years for the for unaccounted tickets as described in section 17.2, page 37. Zero. 91. Is the cost of the new PARCS and reimbursement thereof to be separated from the Concession fee as described in section 17.1, page 37 of the agreement. Refer to question Is the cost of the shuttle buses and reimbursement thereof to be separated from the Concession fee as described in section 17.1, page 37 of the agreement. No. The cost of leasing shuttle buses is an operating cost and is the responsibility of the Operator, and not reimbursable by RIAC. 93. Are there any performance or fidelity bonds required by operator during the performance of operations or defined in the agreement? Yes. Refer to question 15 and Section 6.5 of the Contract. 94. Who will be responsible for maintaining PCI compliance on the revenue-control equipment? Section says the airport will own the equipment and Operator will be responsible for proper operation and maintenance. We need to clarify whose merchant number will be on there. If it will be ours, we should probably add the expenses for PCI compliance that into the proposal. Refer to question 1. c. 95. Section requires Operator to provide security services to safeguard and protect the facility. Please identify what company is currently providing these services and are they paid under the current parking operator s agreement or directly through RIAC? The current Operator does not contract out for security services. 96. Section requires that we have cash on hand dedicated to the management of this facility equal to 1/3 of the operating budget for each fiscal year and be able to give them proof of such amount, and they want our financial institution to notify them within 48 hours if the account balance drops below the set amount and specifically says we WILL NOT operate on a credit basis. Refer to question There are conflicting amounts on the required Bonds. The first document states need $100,000 bid bond and a Performance bond in the amount of 6 months operating expenses. The second document indicates 5% bid bond and 100% Performance bond. Please have them clarify. Refer to questions 15 and