SAN FRANCISCO AIRPORT COMMISSION MINUTES

Transcription

1 SAN FRANCISCO AIRPORT COMMISSION MINUTES July 25, 2017 Special Meeting 9:00 A.M. Room City Hall #1 Dr. Carlton B. Goodlett Place (400 Van Ness Avenue) City and County of San Francisco EDWIN M. LEE, MAYOR COMMISSIONERS LARRY MAZZOLA President LINDA S. CRAYTON Vice President ELEANOR JOHNS RICHARD J. GUGGENHIME PETER A. STERN IVAR C. SATERO Airport Director SAN FRANCISCO INTERNATIONAL AIRPORT SAN FRANCISCO, CALIFORNIA 94128

2 Minutes of the Airport Commission Special Meeting of July 25, 2017 CALENDAR AGENDA RESOLUTION SECTION ITEM TITLE NUMBER PAGE A. CALL TO ORDER: 4 B. ROLL CALL: 4 C. ADOPTION OF MINUTES: Special meeting of July 11, D. ITEMS INITIATED BY COMMISSIONERS: Naming of Terminal E. ITEMS RELATING TO ADMINISTRATIONS, & MAINTENANCE; 1. Approve Phase C3 of Contract Design- Build Services for the AirTrain Extension and Improvements Program - Skanska Constructors Amendment No. 3 of Project Labor Agreement for SFIA Terminal Refurbishment and Related Support Facilities/ Infrastructure Improvement Program Issue a RFP for Contract , Management Operation of SFO Medical Clinic Approve Cloud of Goods Mobility Gear & Equipment Rental Trial Issue RFP Professional Services Contract 50130, Aircraft Noise Monitoring System with Maintenance and Noise Monitor Replacement F. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS 6. Modification No. 1 to Contract Construction Services for Taxilanes H & M Realignment Project - Golden Gate Constructors, J.V Award Contract Servicing of Airport-Owned Grease Trap Equipment - Darling Ingredients, Inc Bid Call - Contract Construction Services - West Field and Domestic Garages Coating and Repairs Project Modification No. 1 to Professional Services Contract As-Needed Geographic Information System Support Services - Woolpert, Inc Minutes, July 25, 2017, Page 2

3 10. Approve 2011 Lease and Use Agreements with Air India Limited, and Air Pacific Limited dba Fiji Air G. NEW BUSINESS: Virtual Queue H. CORRESPONDENCE: I. CLOSED SESSION: Existing Litigation: CCSF v. H. Young Enterprises, Inc., et al J. ADJOURNMENT: 18 Minutes, July 25, 2017, Page 3

4 AIRPORT COMMISSION SPECIAL MEETING MINUTES July 25, 2017 A. CALL TO ORDER: The regular meeting of the Airport Commission was called to order at 9:00 AM in Room 400, City Hall, San Francisco, CA. * * * B. ROLL CALL: Present: Absent: Hon. Larry Mazzola, President Hon. Linda S. Crayton, Vice President Hon. Eleanor Johns Hon. Richard J. Guggenhime Hon. Peter A. Stern * * * C. ADOPTION OF MINUTES: The minutes of the special meeting of July 11, 2017 were adopted unanimously. No * * * D. ITEMS INITIATED BY COMMISSIONERS: Commissioner Mazzola... in today s paper there is an article about the Board of Supervisors getting ready to consider naming Terminal 1 after Harvey Milk. I also understand there is a request from a member of the Board to the Director to identify the impact(s) that would have on the Airport? Can you respond to that.? Mr. Ivar Satero, Airport Director... there are two things happening, one is we understand that legislation will be introduced today by Supervisor Hillary Ronen which recommends moving forward with approving the Airport Facilities Naming Advisory Committee s recommendation to name Terminal 1 after Harvey Milk. There is also a letter of inquiry from Supervisor Sheehy s office asking that the Airport respond to what impact(s) to the Airport this might have. Supervisor Sheehy s office has asked us for an analysis of the impact(s) to the Airport and we have responded initially, but we are preparing a much more detailed response to that inquiry. Commissioner Mazzola... but as far as we know they re not going to wait for your answer on the impacts? You re going to go forward as of today, but they must have some policy requiring two readings. Can anyone respond to that? Ms. Cathy Widener, Government Affairs... the resolution that Supervisor Ronen will introduce today will simply be referred to Committee for a hearing. The Board goes on recess for all of August and won t be back until the beginning of September at which point the Committee of the Board would have a hearing on the resolution. But since it s a resolution it only requires a hearing of the Committee and one hearing of the Board. Minutes, July 25, 2017, Page 4

5 Commissioner Mazzola... to which Committee will it be referred? Ms. Widener... I assume it would be the Rules Committee, but I m speculating. Commissioner Mazzola... you ll have your answer into them by then? Mr. Satero... we will. * * * E. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: Item No. 1 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Johns. 1. Approve Phase C3 of Contract Design-Build Services for the AirTrain Extension and Improvements Program - Skanska Constructors - $20,283,608 No Resolution approving Phase C3 of Contract , Design-Build Services for the AirTrain Extension and Improvements Program with Skanska Constructors, to increase contract amount by $20,283,608 for a new contract amount of $72,869,785. Mr. Geoff Neumayr, Chief Development Officer... this item seeks approval of Phase C3 Trade Package sets (TPS). It does not include any scope revisions or changes to the Skanska contract. The contract is for design build services for the AirTrain extension and improvement project. This modification increases the contract amount by $20.3 million and establishes a new contract amount of $72.9 million, with a corresponding amount in contingency authorization and no change to the contract duration. This contract provides design build services for design and construction of the AirTrain Extension and Improvement Program which includes design and construction of an elevated guideway to the Airport s long term parking garage at Lot DD and two new AirTrain stations, one at the Hotel and the other at the new parking garage. This Phase C3 approval adds TPS Nos. 2, 3, and 4 to the contract. TPS No. 2 includes surveying, general requirements, project construction, storm water pollution protection, and traffic controls. TPS No. 3 includes potable water, sanitary sewer utilities, storm drainage, and sanitary sewer utilities. TPS No. 4 includes furnishing and installing cast-in-steel shell concrete piling, structural excavation, dewatering, and temporary shoring. The combined variance for all TPSs was $2.2 million under the estimated price. The approved budget is $136.7 million and the current contract forecast remains under this at $136.6 million and remains in budget with appropriate levels of contingency. This project is funded from the approved Five Year Capital Program. Staff will return to the Commission for approval of all remaining TPSs. The City s Contract Monitoring Division has approved a 22% LBE sub-consultant goal for design services, and a 25% LBE sub-contracting goal for construction services and Skanska is committed to meeting both of these requirements. Commissioner Guggenhime... when you first came to us on this matter did you Minutes, July 25, 2017, Page 5

6 indicate the cost would be $135 million, plus or minus? This is another modification to an original contract. Mr. Neumayr... we forecasted the amount at $135 million. Because we re going through the buyout phase now, we completed the design, we re doing the progression of the progressive design bid model and we re buying the trade packages out. As we buy the TPSs out and get bids on those, we continue to add those until we get to the guaranteed maximum price. Commissioner Guggenhime... but the guaranteed maximum price came at the beginning when you first came to us on this matter, correct? Mr. Neumayr...these TPSs actually guarantee the maximum price of each one of these sets. And then we keep adding individual guaranteed maximum price progressively to get to the $135 million. Commissioner Guggenhime... right, but the $135 million? Mr. Neumayr... will be in the final cost. Commissioner Guggenhime... was that mentioned when we first looked at this? Mr. Neumayr... yes. Commissioner Crayton... how many more phases are we going through? Mr. Neumayr... I m not quite sure but they re probably could be upwards of eight more sets still to go. On terminal projects we can bid anywhere from 50 to 80 different trades and we combine those trades into sets. Usually there s somewhere between 6 to 10 sets that come to you through the process. Commissioner Crayton... where is Skanska located? Are they local? Mr. Neumayr... they re a large international company headquartered in Europe. They do have Skanska USA which is headquartered in New York, and they have a local presence in the Bay Area, both on the civil and the general building side. They re involved in a lot of different civil projects throughout the Bay Area.. Commissioner Johns... these design build contracts are monthly or quarterly? Mr. Neumayr... we give you the estimated trade packages that we haven t bid and we add what we have so you can see where the forecast is going so that you re fully aware to make sure we re tracking against our approved budgets. Commissioner Johns... I find that it s helpful having that background when we get these items before us. So thank you. Mr. Neymayr... and we re very appreciative of the fact that you let us walk through this with you and trust us to go through this forecast. But it works out a lot better because we don t put all of our marbles into one basket. We ve got to do this together and get to the right price. Minutes, July 25, 2017, Page 6

7 Item No. 2 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Guggenhime. 2. Amendment No. 3 of the Project Labor Agreement for the San Francisco International Airport Terminal Refurbishment and Related Support Facilities/ Infrastructure Improvement Program No Resolution approving Amendment No. 3 of the Project Labor Agreement for the San Francisco International Airport Terminal Refurbishment and Related Support Facilities/Infrastructure Improvement Program, increasing the amount of covered projects from $3.8 Billion to $4.4 Billion, to provide for budget increases in current PLA projects and to include additional projects recently incorporated into the Program. Mr. Neumayr... this proposed resolution approves Amendment No. 3 to the Project Labor Agreement (PLA)adopted in January 2012 with the Building Trades Council of San Mateo County that originally included nine projects. This agreement was intended to be amended from time to time as additional projects were further defined and committed to. The purpose of the PLA is to ensure the safe, timely and economical completion of our Ten Year Capital Program through the promotion of efficient operations in the implementation of the Program and to provide labor harmony. The PLA does provide procedures for participation by non-union contractors and their core employees and promotes a local hiring policy and the hiring of apprentices and veterans. The Airport has continued to experience significant passenger growth and continues to forecast growth into the near future. This growth has required the Airport to accelerate the Yen Year Capital Program to meet the future demands as a result of this passenger growth. This PLA was amended in February, 2016 to include the AirTrain extension to Lot DD, the Gate Capacity Enhancement Program, the Terminal 3 West Renovation Program, and the South McDonnell Road relocation. The Airport s staff is now proposing to include an additional inter-related project, the International Terminal Refresh Project with an estimated construction cost of $250 million. We ve also previously included a project budget which has been updated to match the current approved budgets. With this proposed amendment the total covered project amount will increase to $4.77 billion. Item No. 3 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Guggenhime. 3. Authorization to Issue a Request for Proposals for Contract No , Management and Operation of the SFO Medical Clinic No Resolution authorizing: 1) Issuance of Request for Proposals to select a medical organization to operate the SFO Medical Clinic beginning on July 1, 2018, Minutes, July 25, 2017, Page 7

8 when the term of the agreement with the current operator expires; and, 2) Negotiation of the agreement with the highest ranked proposer. Mr. Leo Fermin, Chief, Business & Finance Officer... the management contract for the Medical Clinic expires on June 30, 2018 and we are starting the selection process for a new contract. The pre-proposal conference will be held the week of August 21, 2017 with a submission deadline at the end of October. The Medical Clinic is a very popular service at the Airport. Over the last year there were over 16,000 patient visits, of which 10,200 were from Airport employees. The Clinic has 217 active corporate accounts of which 83 are Airport tenants. There are other medical clinics at other airports but our clinic is the largest on-airport clinic and offers the largest range of medical services. It provides urgent care, occupational medicine, travel medicine, pre-employment exams, drug testing, immigration exams, and even exams for school athletic programs outside of the Airport. The Clinic has six examination rooms, one trauma room, one surgery room, physical therapy room, and a radiology room. Commissioner Johns... this has already been before us, correct, but we only received one application. I thought you were going back with new RFP terms. Mr. Fermin... yes, we previously did an RFP but only one proposal was submitted and we could not reach an agreement on a management fee with that proposer. We returned to you to exercise the last one year option to give us time to do another RFP. This is that second RFP process. Commissioner Johns... I recall that the cost that we were putting in was insufficient and you were going to take a look at it and try to be more realistic. Mr. Fermin... no, Commissioner. The proposer submitted what we considered a very high and unreasonable management fee so we tried to negotiate it down to what we thought was reasonable, but we were unsuccessful. Commissioner Johns... but my understanding was because there was such a discrepancy that we were going to look at how unrealistic their response was and how realistic our proposal was. Mr. Fermin... we met with the proposer and looked at how they calculated what they thought their management fee should be, but their explanation was still not satisfactory to us. We were not able to come to a conclusion on what the true costs were. We are making a few minor changes in the RFP, but the proposer is still free to submit what they think their management fee should be. Commissioner Johns... are we going to reach out to get others to respond? Mr. Fermin... we have reached out to 12 different medical organizations and three industry trade groups that are comprised of hospitals and physician groups. We received expressions of interest, phone calls from three of the 12 that we ve reached out to. I had a fairly long conference call with a CEO of a major Bay Area hospital, who is not the incumbent, and I explained what was happening. Once Minutes, July 25, 2017, Page 8

9 you authorize the start of this process, we will not have any individual discussions with any proposer but we will have a pre-proposal conference and a tour of the Medical Clinic the week of August 21, I anticipate we may have as many as three or four proposals in this go-around. Item No. 4 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Guggenhime. 4. Approval of the Cloud of Goods Mobility Gear and Equipment Rental Trial No Resolution authorizing a trial on a month-to-month basis, up to twelve months, with the Cloud of Goods Mobility Gear and Equipment Rental. Mr. Fermin... we are seeking approval to do a trial of a concept which rents mobility equipment such as wheelchairs, walkers, baby and toddler gear such as strollers and car seats, and camping and sports gear such as bicycles, tents, and volleyball sets. For example, a standard wheelchair would rent for $11/per day and a powered wheelchair for $21/per day. A baby stroller would rent for $11/day and so does a toddler car seat. Through this service, passengers can travel to San Francisco without having to bring these bulky items with them and either pick up these items upon arrival at SFO or have these items delivered to their hotel or wherever they are staying. This company also operates in Orlando and Anaheim, so Bay Area residents going to those destinations can rent these items there. This company is located on Grant Avenue in Chinatown. If the trial proves successful, we will seek your approval to do a competitive selection process. Item No. 5 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Guggenhime. 5. Authorization to Issue a Request for Proposals for Professional Services Contract No , Aircraft Noise Monitoring System with Maintenance and Noise Monitor Replacement No Resolution authorizing Staff to issue a Request for Proposals for Professional Services for Aircraft Noise Monitoring System with Maintenance and Noise Monitor Replacement, and to conduct negotiations with the highest-ranked proposer. Mr. John Bergener, Planning Director... this item seeks approval to issue an RFP to provide an Aircraft Noise Monitoring System (ANMS) with Maintenance Support and Noise Monitor Replacement. ANMS has been a function of the Airport since the late 1970's when SFO became the first U.S. airport to implement an FAAapproved noise compatibility program. The ANMS consists of noise monitors with microphones and software that collect data from the monitors and other sources. This data is used by Airport staff to conduct analysis, draft reports to meet various Federal and State reporting requirements and provide information to stakeholders and decision makers. The Airport currently operates a total of 38 noise monitors located on-airport and in San Francisco and San Mateo counties. The existing Minutes, July 25, 2017, Page 9

10 noise monitors and microphones are over ten years old and staff conducts regular site visits to maintain the integrity of the system, especially during inclement weather. This RFP would enable the Airport to select a team with the expertise and knowledge to provide an ANMS, replace end of life noise monitoring hardware, purchase four additional noise monitors, and provide the software that collects and transmits the data collected in the field. The selected proposer would also train Airport staff on the selected noise monitoring system and assist with maintenance to assure that the equipment and software are operating properly. A panel of subject matter experts will be convened to evaluate and score each proposal meeting the minimum qualifications and staff will return to the Commission to award a contract to the highest ranked firm following successful negotiations. The contract would have a term of five years with two two-year options to renew, exercisable at the sole discretion of the Commission. Commissioner Crayton... who were we using for noise monitoring previously? Mr. Bergener... the incumbent is a Danish firm with North American headquarters in Georgia and local offices in Sacramento. They are installed in SFO and O Hare. * * * F. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: The Consent Calendar, Item Nos. 6 through 10, was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Guggenhime. 6. Modification No. 1 to Contract Construction Services for Taxilanes H & M Realignment Project - Golden Gate Constructors, J.V. - $1,570,000 No Resolution approving Modification No. 1 to Contract , Construction Services for Taxilanes H & M Realignment Project with Golden Gate Constructors, Joint Venture, to increase Airport contingency budget by $1,570,000, from $2,265,426 to $3,835,426 and extend the contract duration by 100 consecutive calendar days to November 19, Award Contract Servicing of Airport-Owned Grease Trap Equipment - Darling Ingredients, Inc. - $650,000 No Resolution awarding Contract for servicing of Airport-owned grease trap equipment to Darling Ingredients, Inc. in an amount not to exceed $650,000 for an initial term of three years, with two two-year options at the sole discretion of the Airport Commission. 8. Authorization to Call for Bids for Contract No Construction Services for the West Field and Domestic Garages Coating and Repairs Project Minutes, July 25, 2017, Page 10

11 No Resolution approving the scope, budget, and schedule for Contract No , Construction Services for the West Field and Domestic Garages Coating and Repairs Project, and authorizing the Director to Call for Bids. 9. Modification No. 1 to Professional Services Contract No As-Needed Geographic Information System Support Services - Woolpert, Inc. - $400,000 No Resolution approving Modification No. 1 to Professional Services Contract No , As- Needed Geographic Information System Support Services, in an amount not to exceed $400,000 for a new contract amount not to exceed $1,200,000 with no change to the contract duration. 10. Approval of 2011 Lease and Use Agreements with Air India Limited and Air Pacific Limited dba Fiji Air No Two resolutions approving 2011 Lease and Use No Agreements with Air India Limited and Air Pacific Limited dba Fiji Air at San Francisco Airport, and directing the Commission Secretary to forward the leases to the Board of Supervisors for approval. * * * G. NEW BUSINESS: Discussion only. This is the Public Comment section of the calendar. Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes. Please fill out a Request to Speak form located on the table next to the speaker s microphone and submit it to the Commission Secretary. Commissioner Mazzola... we have 9 or 10 speakers and you all have the same subject matter. It s going to be 2-minutes each. Mr. Emil Lawrence... I ve spoken before this Commission on many occasions and on all kinds of topics, including the taxi business. I ve also applied for up to 30 positions at the Airport and have been blocked on everyone of them, even though they have exam scores on the academic credential CRS of 1035 or higher. You can t get any higher than Today, there are no taxi drivers with an academic and business background at the SFO Commission, or any back office positions when you need them badly. We have a crisis in the City of San Francisco. I don t think any of the airlines know that your average taxi driver makes less than $24,000 per year and the Mayor got a $24,000 raise. Taxi drivers can t pay their rent in San Francisco. At present at SFO you have a Minutes, July 25, 2017, Page 11

12 congestion problem. It s growing by probably by 10-15% a quarter. You let TNCs in, limousines in, and shuttles in that compete with us. I took a man in San Francisco that got out on the freeway last week because he said Uber was charging at 1:00a.m. $6.00 from SFO to San Francisco. I have submitted a six page letter (see attachment) to you... you all received it. If you didn t get a copy, I have more. I have my own plan and put it in terms of increasing the income for taxi drivers at SFO and at the same time reducing congestion at SFO on all the vehicles entering by maybe upwards of 15,000-20,000 per day. I leave you with that letter and I leave with that plan. Mr. Kima Ralkhani... I was here before Christmas and New Year s. I was trying to explain that the situation as a taxi driver is a disaster. We are not able to survive anymore. I remember years before they asked for the medallion. The way I see it is that we have to reduce the number of medallions because there are too many of them on the road. Fifteen years ago they were $125,000, 30 years ago they were $250,000. This is not right. We need a good option. The option is me giving like the CNG... if you remember right now we give it two free without vacating the Airport for the people buy the medallion. And this is to make the to the people at the new arriving to this business, get the excited, they sells the medallion, keep going because you help them to the payment of the bank. Some of these guys having no $2,800. I have the payment $1,451/month. This is helping us to stay in the business or not, believe it or not it. Is the best things to do paying almost off the people like me. Paying off a $250, I want to be retired. I cannot do it anymore. Please imagine your father, your son, your brother, your family, we are suffering. This business is not worth it for me to stay anymore and I want to be retired. I settle in this country for 50 years. I asking for help, please do something. We don t want to come in here to talk to the wall. I talking to the person who s in here responsible. I asking you please helping us. Do something to change. Go look at the record, what they are doing for us. What they are good for us. You taxpayer my money or the people work for them. Please be more action, be no more you know careful for the situation right now we go through. We need help. Thank you very much. I appreciate it. Mr. Ming See... I am a taxi driver. SFO created a new app for taxi drivers... the virtual queue. That mean you queue the taxi industry, but you don t create the app for the Uber internet car, right? They do what they want and then the taxi driver are very poor because in city we have no fare. So, they have no choice to go to the Airport and then the Airport now gives them a hard time to create a new app to make them worst life wage. I have almost 50 days below $5 per hour. So when you create a new app, I hope everybody is thinking about the everybody make a life wages for the taxi driver. No new app. Thank you. Yeah I want to change my career but the City is killing the industry of the taxi. No more, thank you. Mr. Win Min Thein... I buy a medallion. Now we got too many problem. I don t want to say nothing. I want the money back. Everybody lie to all cab driver that s why I don t like it. I need money back. That s my last check you know. I have a family, I don t take care of my family. So I m driving everyday 19 hour, no break but I want to go home. In my pocket I got $75 so what can I do man? So I need money back. Thank you. Mr. James Williams... I m Medallion I m also here to speak on the new app, the taxi queue. I just feel that it s not fair that we re suppose to make a certain amount to pay for these medallions. And now we re limited to how much we can make, where we Minutes, July 25, 2017, Page 12

13 can be, and we re trying to force this into the City when there s no business in the City. Everybody is on their phones taking Uber. There s no business and I feel that SFO employees is incompetent to be able to do this system. That s all I have to say. Mr. Khin Maung Htwe... I bought a medallion two years ago and paid the full $250,000 to hopefully operate freely at the Airport and the City, so as TNC grow SFO trying to limit us even at the Airport. So talking about the congestion, it s largely caused by the TNC because the Airport took away some of these space from the taxi last year and that created taxi congestion. If you giving back to us that space, there s no congestion. But TNC causing the congestion big time. You come in the morning, at night you come see yourself and determine. We are suffering too much. I felt that when they introduce the new app, they try to kill us at the same time. Their intention is not honest. There s something fishy going here. Somebody, I don t want to accuse them but it s so funny to freely operate without any regulation at the Airport. They are not suppose to come to the downstair, they come to pick up anyway. But there s nobody stopping them. They freely operate and there s no medallion system and they don t even pay for it. I m paying for it, $250,000 plus interest, but they re trying to limit us. It s not fair. I want all Commissioners to take a look at it. And I say no to the new app. This will be killing us. That s our life, we will be miserable. Thank you very much. Mr. Tommy Hlaing... I bought a medallion, $250,000, six or seven years ago. I feel very hard to make the money so if you create a new app we cannot survive anymore. There s no country that accept TNC business, only this country, in San Francisco, in California. Can you sue me? Which country accept the TNC business? It s only in your country, San Francisco, California. So, this is fair for us? Thank you. Mr. Teklzghi Akezxa... I m a taxi driver. We don t need the new app. I never seen of one city without taxi so give me space in Airport. Don t let this illegal work of Lyft and Uber. Thank you very much. Mr. Christian Lewis... I m a cab driver. I can t stress how much I dislike speaking before the Commission but I m here in favor of the app. I ve been driving a cab for 13 years and it is absolutely harder out there. You have to be smarter and work longer hours to make money. TNCs are absolutely having an effect on our bottom line but I think that this app is about managing the number of cabs are at the Airport. I split half of my shift between the City and the Airport. There is money in the City. It s there if you want to work for it. I go to the Airport to rest and to make money and it s an important part of my shift. The most frustrating part of that is spinning around in circles. That s what we do when the lot is full. We sit there and we drive around in circles. And this app is to address that so to me it s more efficient. I d like to know more specifics about the app but I m absolutely in favor of the concept and the idea of getting a virtual queue because driving around in circles, is idiotic. If that s going to address this then I m all for it. It s nice to see a lot of cab drivers here. We re not all on the same page. I wish that we can get together and have a discussion about this. There s people that have an agenda and they all don t speak for the whole industry. And you actually have drivers here that are handing out speeches for people to say when they come up here. They have their own agenda. I just want to say I m in favor of the app, I m in favor of the concept. I would like to know more about the specifics. Mr. Mesghina Okbamichael... I m a taxi driver. I m against the new app. Who controls Minutes, July 25, 2017, Page 13

14 the Uber system? Why we are regulated by so many rules. We have Ids, they don t. We have medallion, they don t. Would you control them, please. Mr. Andrews Green... I m a taxi driver in San Francisco and I m here to speak about the taxi queue app. I know there s a problem you re trying to solve and San Francisco taxis are licensed, registered, and regulated entities of the City and County of San Francisco. Please take all concerns into consideration and make a fair decision. Mr. Tariq Mehmood... All the people who have come to talk to you, let me explain why they are here. The people for the taxis please put your hands up. All these people are saying we don t want the virtual queue app. It s pushed down our throats. Mr. Mazzola, you saved 7,000 drivers in 2010 when you rejected the stupid SFO proposal about the short fares to Broadway in Burlingame. We appreciate that, you saved us that time. Mr. Mehmood... this time the virtual queue app is nothing but a nightmare for drivers. It will take four to five hours to complete one ride compared to three hours we are doing now. Under virtual queue app you can book it from San Francisco then they said oh it s wrong because it will create 80 mile speed for the driver to rush there in a given time. Then they change it to four to five mile area. Are we going to put 200 cabs in Millbrae and Grand Avenue? That s wrong. The bottom line is that there are 300 spots sitting empty in Sections B and C, Level 1, 2, 3, 4 at the Airport they are not giving us. Why they are not giving us? They are all day empty, every time empty. All we need is 100 spot inside this virtual queue app. Virtual queue app is a wrong thing. I m going to leave you with all the numbers, details and you will see it. Please read it, but the message is SFO, please don t do it. You re destroying their lives. That s why they came, to send you the message don t do it, talk to us. We ll try to find a way but no virtual queue app. Thank you very much and here are the papers. (Submittal) Ms. Fong Lam... My family comes from taxi drivers. My husband drives, my father drives, my brother drives and I believe we re all here because all the people who purchased the medallions for $250,000 are in a very dire situation. They are taking the time out of their work to be here and they can t afford it, but they re coming here to speak to let you know how dire the situation is. Me, as an outsider, I see how hard it is for my father. He s working non-stop. We hardly ever see him not making anything. With the new taxi queue app they re trying to implement we feel that the Airport does not have the taxi drivers in their best interest. They re constantly getting kicked out. They have rules that they re supposed to follow but we ve asked around to the cab companies, we ve asked all the drivers. There is no rule book. There is no rules posted anywhere within the Airport. Everything is at the Airport s discretion. I think the major fear is that once it s implemented there s nothing they can do about it. Once they have to follow this taxi queue, it s at the Airport s discretion. So, if let s say one day they say the app is down, what are they to do, this is their livelihood. This is how they re making money and at least if they re circling around they still have a chance to get in. But if it s all based on the Airport and at their discretion and their control of the app, everything is out of their hands and there s nothing they can do. I think, as a whole, we re just asking for a chance. They re trying to make a living, trying to make money. Everyone here is very emotional because they don t know what else to do. It s all in your hands and in the Airport s hands and they re just pleading for your help. Mr. Hussein Bakir... We re talking about app and everything is being explained, but Minutes, July 25, 2017, Page 14

15 there is a few issues. Everything you bring is against us. I don t know why. We are human being, we are families, we have children. I m one of those guys. My son is going to university this year and he s asking me for dorm fees, for a lot of money I do not have, why? It s not because lack of work. There s work but there is no work for me because of the City. I don t know why. I attend meetings but everything against us. I don t know what happened. We are here and under the law. I m not trying to jeopardize myself or my colleagues. Very soon we are going to become homeless. You tell me app, you tell me some other restrictions. Everything is against us. Show us work in the City. Give us customers. Our customers take Lyft. The Airport is too much hassle. If you want to bring the app and make it work for us, it s going to be against us. We re going to fill up all the gas stations and San Mateo Police will give us tickets, and there is another stress, plus the bottom line, Do some research about the drivers. Every once in a while somebody discover diseases. There is because of the lots of stress we ve been dealing with so many years. Since Everything was going worse and worse and worse. Please ladies and gentlemen help us. We need to do something. You need to do something. We are part of the community. Thank you. Mr. Kenney Hui... I m a taxi driver and I purchased a medallion for $250,000. I m strongly against the new virtual app. I just want to let you guys know that because we re all struggling in this area in the Airport, try to circle around to make money. They re doing things that are actually affecting us so much that we may not be getting any money in the future. There s nothing in the City. We go around an hour, 1½ hour for one customer for $6 or $7. We have nowhere to go. The only way to go you go to the Airport. At least we can wait for something to happen. Please help us yeah. Mr. Orville Largo... I purchased a medallion years ago with a $50,000 down payment. The major issue here is for the people who work the medallion. Some people want to sell the medallion, like me. We don t know if you re going to sell it or not. SFMTA, I put my name two years ago and my number is going up instead of going down. They say they cannot sell it. My advise is that first they have to solve the issue about the people who purchase the medallions. We are the ones who are most unfairly treated and once you solve that issue, then you can think about the other issues. But we are the ones who bought the medallions who are very in bad position. If we want to sell, we cannot sell it. Second thing is about the business in the City. My friend, taxi driver, said there s a lot of business in the City if you want to work. He s the only one. A lot of taxi drivers say there s no business in the City and I agree with that. So, we go to the Airport to make money. All day I go to the Airport I make four trips. That s $200 a day in hours. I have to work hours everyday to make it. The people who purchase the medallion, you guys have to do something about them, then we go from there. For the app, we don t know how it s going to work and we don t know it s going to help. If you log-in and you don t know you re going to make it, and if they cancel and you cannot make it, and you lose your position and that s it. Thank you. Mr. Joseph Wu... I m one of the taxi driver. I just want to point out when I came to United States it s could be balance. Everyone should be equal. Now it s taxi business and then the Uber business. Different balance. So I try to point out is it should be like a religious which mean everybody should be same page. They have to pay whatever they need to pay to the City. And then another point is taxi queue. They try to make an increase for the better. I don t know it going to be a better app or not. As of now it s not good for us. Hopefully they could do the better way for us. Minutes, July 25, 2017, Page 15

16 Commissioner Mazzola... there are no more speakers. Thank you for your testimony. Ivar we ve heard a lot. I think the medallion problem is not our problem, am I correct? Director Satero...correct. Commissioner Mazzola... the medallion problem is the City s problem and MTAs now. I feel for you buying those medallions and now they re not worth as much as they were. We listened to your plea but we can t really help you in that. That s not under our deal. We wish you luck with that. There s no question that Uber, Lyft and all these things is a problem. It s a problem everywhere, not just here. It s a problem at LAX, it s a problem everywhere. To try to get the State PUC to address this, and everyone is trying to do something about it, but it s struggling times. If you want to address the app here, about parking or whatever it is, maybe that might help. I don t know. Director Satero... of course. Our first app, which was targeted to specifically help taxi drivers, identified the number of available spaces in the garage to help taxi drivers understand whether it was worth coming to the Airport. This next app we felt was a benefit. We did this thinking why would you want to sit in the Airport if you could make money downtown? We designed it under the presumption that you would have that opportunity not to sit at the Airport and make money elsewhere. We ve certainly heard you loud and clear that it s not an opportunity that you all feel exists. We aren t doing this to harm taxi drivers; we re doing whatever we can to help you. We will look at this app in the vein of does this cause additional harm and make a decision going forward. In fact, we have a presentation to the Commission at an upcoming meeting on how the app would work, but we re certainly not going to implement the app until we have a thorough understanding that it doesn t do additional harm. Commissioner Guggenhime... if this benefits the Airport as well as the taxis, let s look at allocating who pays for what. I understand if the taxi drivers had to pay for the app. Director Satero... no, no. They pay a fee. Every year we review and set rates and charges and we allocate costs related to the cost of ground transportation management essentially, but there is no cost for the app. Commissioner Johns... but the TNCs pay fees also, do they not? Director Satero... they do. They pay almost double what the taxis pay. Commissioner Crayton... a lot of this is outside our purview and we can t act on it. We want to be very clear about what it is that we can and cannot do. You must understand where you need to go and try to make an impact on legislation that s already been introduced that s holding you down. I m appalled at some of the testimony we ve heard today regarding the cost of medallions and other things that are not within our preview. I want to be clear in terms of you getting together to focus on the particular body that can make the particular changes. The Director said he s going to look at the app to see if there are changes that could be made that are better. However, I do believe that a lot of the angst is better placed at the agency that can address this. If there is an opportunity that the Airport can write to a particular agency to bring more clarification to some of the angst that all of you are feeling, then hopefully we ll do so. We heard you loud and clear and we know there is an issue, but I want to be clear that we Minutes, July 25, 2017, Page 16

17 understand our responsibility and what we can do as a body. This doesn t fall within our jurisdiction, and that s important. Thank you. * * * H. CORRESPONDENCE: There was no discussion by the Commission. * * * I. CLOSED SESSION: The Closed Session was unanimously approved upon a motion by Commissioner Crayton and a second by Commissioner Guggenhime. The Closed Session began at 10:00 AM. CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL (a) Public comment on all matters pertaining to this agenda item. (b) Discussion and vote in open session pursuant to the Brown Act (California Government Code ) and the Sunshine Ordinance (San Francisco Administrative Code 67.10(d)) on whether to invoke the attorney-client privilege and conduct a closed session to confer with legal counsel. ACTION ITEM. (c) [PROSPECTIVE CLOSED SESSION] CONFERENCE WITH LEGAL COUNSEL regarding existing litigation (Government Code (a), San Francisco Administrative Code 67.10(d)(1)): City and County of San Francisco v. H. Young Enterprises, Inc., et al., San Francisco Superior Court Case No. CGC Review and consider a proposed settlement for approval. Proposed material terms of the settlement: Defendant Howard N. Young would pay the City and County of San Francisco $50,000, with an initial payment of $20,000 due on July 31, 2017, and with subsequent monthly payments of $2,500 due on the first of each month for a 12-month period, with the first monthly payment due September 1, Should Mr. Young fail to make a settlement payment, the City would have the right to a stipulated judgment against him in the amount of $72,264, less any payments received. ACTION ITEM. There are no other planned agenda items for the closed session. In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in closed session, the Airport Commission may discuss and vote whether to conduct a closed session under the Brown Act (Government Code (b)(2) and ) and the Sunshine Ordinance (Administrative Code 67.11).) (d) [RECONVENE IN OPEN SESSION] (i) Report on action taken in closed session as required by the Brown Act (Government Code (a)) and the Sunshine Ordinance (San Francisco Administrative Code 67.12(b)). (ii) Discussion and vote whether to disclose any or all discussions held in closed session (San Francisco Administrative Code 67.12(a)). ACTION ITEM. The Commission Meeting reconvened a 10:05 AM. The Commission voted Minutes, July 25, 2017, Page 17

18 unanimously not to disclose the nature of the discussion upon a motion by Commissioner Crayton and a second by Commissioner Johns. No * * * J. ADJOURNMENT: There being no further calendared business before the Commission the meeting adjourned at AM. Original signed by Jean Caramatti Commission Secretary Minutes, July 25, 2017, Page 18

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