SAN FRANCISCO AIRPORT COMMISSION MINUTES

Transcription

1 SAN FRANCISCO AIRPORT COMMISSION MINUTES October 3, :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 Meeting of October 3, 2017 CALENDAR AGENDA RESOLUTION SECTION ITEM TITLE NUMBER PAGE A. CALL TO ORDER: 4 B. ROLL CALL: 4 C. ADOPTION OF MINUTES: Regular meeting of September 19, D. ITEMS INITIATED BY COMMISSIONER: 4 E. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 1. Award Contract Design-Build Services for Terminal 3 West Modernization Project - Turner Construction Company Twenty-First Supplemental Resolution Providing for and Approving Certain Amendments to the 1991 Master Bond Resolution Authorizing Sale of an Additional $360,000,000 Aggregate Principal Amount of the Previously Approved SFIA 2nd Series Revenue Bonds for Capital Plan Purposes, Amending a Prior Sale Resolution Re Issuance of Refunding Bonds Award International Terminal A Food Hall and Café Concession Lease to SSP America, Inc Award International Terminal A Historic Restaurant Concession Lease to Andre-Boudin Bakeries, Inc Award International Terminal A Coffee Kiosk Concession Lease to Black Point Coffee SFO, LLC dba Black Point Café Establish Additional Noise Insulation Program Called The Replacement and Second Chance Acoustic Treatment Initiative F. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 8. Award Contract Construction Services for the BICE Office Relocation Project - Galliera, Inc. dba Trico Construction Award Contract Construction Services for Terminal Upper Level Viaduct Improvements,

3 Phase 1 Project - Pilot Construction Management Modification No. 6 to PSC Contract PMSS for the Long Term Parking Garage No. 2 Project The Allen Group, LLC/Cooper Pugeda Management, Inc., A Joint Venture Award PSC Contract to BridgeNet International for Acoustical Engineering Services Related to Aircraft Noise Abatement Assignment of Terminal 3 Boarding Area F and Terminal 1 Boarding Area C Food and Beverage from High Flying Foods SFO, LLC to HFF-BRH-SFO, LLC Assignment of Cellular Service Equipment Sites Lease No B from Nextel of California, Inc. and Sprint Spectrum Realty Company, LP, Collectively doing business as Sprint Nextel, to Sprint Spectrum Realty Company, LLC G. NEW BUSINESS: International Brotherhood of Electrical Workers 16 H. CORRESPONDENCE: 16 I. CLOSED SESSION: J. ADJOURNMENT: 17

4 AIRPORT COMMISSION MEETING MINUTES October 3, 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: Hon. Larry Mazzola, President Hon. Linda S. Crayton arrived at 9:05 AM Hon. Eleanor Johns Hon. Richard J. Guggenhime Hon. Peter A. Stern * * * C. ADOPTION OF MINUTES: The minutes of the regular meeting of September 19, 2017 were adopted unanimously. No * * * D. ITEMS INITIATED BY COMMISSIONERS There were no items initiated by Commissioners. * * * E. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: Item No. 1 was approved unanimously upon a motion by Commissioner Johns and a second by Commissioner Guggenhime. 1. Award of Contract No Design-Build Services for the Terminal 3 West Modernization Project - Turner Construction Company - $72,500,000 No Resolution awarding Contract No , Design- Build Services for the Terminal 3 West Modernization Project, to Turner Construction Co. with an initial contract amount of $72,500,000 and a contract duration of 1,800 consecutive calendar days, and with a corresponding amount in contingency authorization. The S.F. Planning Department, Environmental Planning Division, has determined that the Terminal 3 West Project is exempt from review under the California Environmental Quality Act as a Class 32 categorical exemption (Planning Department File No ENV). The Commission previously Minutes, October 3, 2017, Page 4

5 determined to proceed with this Project by Resolution No , dated April 7, Ms. Judi Mosqueda, Director, Project Management... this item seeks award of a contract for design-build services to Turner Construction Company (TCCO) for the Terminal 3 West Modernization Project. Turner has teamed with Gensler and TEF Design for design services. The project will renovate the western half of Terminal 3 by constructing a building expansion that will upgrade seismic performance, replace building systems, improve passenger flow, provide a new concessions program, and allow flexibility to accommodate both international and domestic flights by reconstructing necessary aircraft systems and apron pavement, and a new sterile connector to the International Terminal. The project will also improve the interior of Terminal 3 to be in alignment with the principles of REACH by enhancing the guest experience and creating revenue generating opportunities. The project will also provide a consolidated baggage handling system and replace the building facade. This project is planned to be LEED Gold Certified by the U.S. Green Building Council and incorporates sustainability strategies in accordance with SFO s Net Zero Initiative. Two proposals were received in response to the RFP. Both proposals were joint ventures with LBE design firms based upon the selection panel s evaluations and negotiations. The highest ranked proposer, TCCO, was selected for award. The initial contract amount for Turner is $72.5 million with a contract duration of 1,800 consecutive calendar days. Staff estimates the total forecasted contract value to be $710.5 million with a total contract duration of 60 months. During construction phase of the contract, Staff will return to the Commission for approval of trade package sets. The Contract Monitoring Division has set a 15% LBE sub contracting requirement for design services and 13% for construction services. Turner is committed to meeting these requirements. Item Nos. 2 and 3 were called together and approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Stern. 2. Adoption of the Twenty-First Supplemental Resolution Providing for and Approving Certain Amendments to the 1991 Master Bond Resolution No Resolution adopting the Twenty-First Supplemental Resolution providing for and approving certain Amendments to the 1991 Master Bond Resolution. Mr. Kevin Kone, Managing Director, Finance... these two items are related to the ongoing administration of our debt program and authorize an upcoming bond sale to support the ongoing construction of the Capital Plan Program. The first item approves certain amendments to the 1991 Master Bond Resolution which generally sets out the terms under which the Airport may issue bonds. The amendments are designed to provide future flexibility in the Airport s bond program and to modernize the 1991 Master Bond Resolution. Going forward investors who purchase the bonds will essentially be consenting to the new amendments and these amendments will not be in effect until half of our portfolio is issued under these new amendments. An example of the change is to lay the Minutes, October 3, 2017, Page 5

6 groundwork for Federally subsidized infrastructure bonds should Congress authorize a program similar to the Build America Bonds that were issued in the past. This allows the Commission to net out any Federal subsidies that we may receive from the Federal government from our annual calculation of debt service. These bonds in the past were issued to stimulate the economy, again called Build America Bonds and the program produced cost savings for local and state agencies. Another change in the amendments would be to accommodate a potential rental car customer facility charge to finance any improvements in refurbishments to our existing 18-year old Rental Car Center. The Master Bond Resolution is currently silent on this point so this amendment simply recognizes our ability to impose a customer facility charge and to net those costs from the calculation of debt service for the Airport as well. Another amendment that we re making to the resolution updates the permitted investments that the Bond Trustee can invest proceeds which would align the investments with the City Treasurer and that are held with Airport funds. The changes would allow us to invest into local agencies in California, asset back securities, mortgage back securities, as a list of permitted investments in our pool. Today the Airport is only able to invest into U S treasuries and Federal agencies as investments. The investment categories comply with State law and the City s investment policy and the limitations allowable under City guidelines. These changes will allow the Airport to have additional flexibility in structuring investment strategies and it does not lower the category of investments that we currently invest in. It just simply broadens the categories. The next item provides authorization to sell bonds for a transaction that we re planning in October The first proposed resolution authorizes the sale of an you previously approved of $309 million, for $669 million of new money bonds. The second item under this approval will refund $126 million in bonds at a lower interest which will produce about $3.3 million in savings for the Airport out to Lastly, there s an opportunity at this time for us to convert a $151 million in variable rate bonds to fixed rate bonds, to terminate an interest rate swap and then to again convert variable rate to fixed rate. Converting variable rate to fixed rate is seen as a credit positive by Wall Street Credit Rating agencies because you re taking risk out of the Airport s debt portfolio so we have an opportune time to do that. We have done that three times in the past... in 2008, 2009 and We will be reducing our variable rate portfolio from a current 11% down to 6%. All of these changes have been reviewed by the Airport s Financial Advisory Committee for 1991 Master Bond Resolution amendments and approval of the bond sale in October Commissioner Guggenhime... I think it s a great idea switching from variable to fixed because if we all remember interest rates had been historically low. They were low in the early 2000's and went up over 14%, so with the variable rate bond you ve got a major issue. I think that s a great idea and the Finance Committee approved it so I think it s a very good idea. Commissioner Johns...when you said that we could pass on these new rates to the Rental Car Center, would that come before us? Minutes, October 3, 2017, Page 6

7 Mr. Kone... yes. The Customer Facility Charge is the mechanism by which we would be able to charge a fee to Rental Car customers and that fee could be used on a pay-as-you-go basis for improvements to the Rental Car Center, or we could leverage those bonds and use the Customer Facility Charge to make debt service payments on the bonds. We would come to you for approval of the application to impose the Customer Facility Charge as well as any improvements or bond sales on that. Commissioner Crayton... based on the training we received at the last Commission meeting, what are the red flags or areas you recommend that we need to look at closer and be conversant and understand. Mr. Kone... Dan Deaton, the trainer from Nixon Peabody who presented at the last Commission meeting...said, I think, the red flag is making sure that you take the time to review the Preliminary Official Statement (POS) that was presented. Look at the general indicators in the POS. If you re seeing downward trends, ask why. In general, we ve been in a good position and all of our trends have been upwards recently, but in general, look at the financial story in the POS to see if there s anything that catches your eye that s peculiar or of concern, and those issues can be raised with the executive management team. Commissioner Crayton... I understand that and it s a good thing, but I d like something more specific that I can look at and, for the most part, say that it sounds okay but I want to do a deep dive at some point so that I can make sure that I correctly understand everything and make the right decisions. Mr. Ivar Satero, Airport Director... we ll prepare a package in a briefing and give you those potential red flags that you should keep a close scrutiny on. Commissioner Johns... what do you mean by that... what we re voting on today or in the future? Mr. Satero... the future. We ll give you that more in depth, what are the risks, what is the Airport s risk profile as we see it so you know where to ask questions. I would suggest that we do that for future issues. Commissioner Stern... to monitor the ongoing progress of this... Commissioner Johns... yes. Mr. Kone... we can also offer it in a Commission briefing. We ll be happy to do a very high level overview of the debt portfolio, how it s comprised and what it s made of, and we ll have presentations to explain those things to you. 3. Authorizing the Sale of an Additional $360,000,000 Aggregate Principal Amount of the Previously Approved San Francisco International Airport Second Series Revenue Bonds for Capital Plan Purposes, Amending a Prior Sale Resolution Regarding the Issuance of Refunding Bonds, and Authorizing Certain Related Amendments and Actions Minutes, October 3, 2017, Page 7

8 No Resolution authorizing the sale of an additional $360,000,000 aggregate principal amount of previously approved Capital Plan bonds and amending a prior sale resolution to facilitate issuance of refunding bonds for debt restructuring purposes. Item Nos. 4, 5 and 6 were called together, but voted on separately. Item No. 4 was unanimously approved upon a motion by Commissioner Guggenhime and a second by Commissioner Stern. 4. Award of the International Terminal A Food Hall and Café Concession Lease to SSP America, Inc. No Resolution (1) Awarding the International Terminal A Food Hall and Café Concession Lease to SSP America, Inc.; and (2) Directing the Commission Secretary to request approval of the Lease from the Board of Supervisors. Ms. Nashir, Director, Revenue Development and Management... in February you authorized issuance of three RFPs for locations in International Terminal Boarding Area A. The leases in those RFPs consisted of a coffee kiosk, a historic restaurant, and a food hall. Each category was a brand new endeavor for us. They re all very good locations and like the previous domestic and international terminal leasing that we ve done in the last 18 months, we had a great response. Fifteen proposals were received for these three RFPs and14 were scored. One did not meet the minimum qualifications. A three-member panel was seated to review, score, and develop recommendations for award. The panel consisted of a customer service executive from a local technology firm who had also been a guest host on PBS Check Please, an Assistant Director from the PUC, and a retired Airport Commission employee who has family in the food and beverage business. This independent panel deliberated and scored the proposals based on the published evaluation criteria. Among the three firms scored highest by the panel, 1) is a Bay Area business; 2) one is a Virginia based business that has a 10% local partner and two 10% partners from Chicago, and 3) is a Virginia based business with a 30% local partner. We re here today seeking award of the following leases: The Coffee Kiosk lease to Black Point Coffee as SFO, LLC. Black Point Coffee has operated in Ghirardelli Square for the last 35 years. It has licensed its concept to two of our existing tenants, one who operates the Dogpatch Bakehouse locations at the Airport, and the other who operates Marina s Café. The two existing tenants got together and licensed this concept for their proposal. The menu features Equator coffee, smoothies, bakery items, avocado toast, sandwiches, and something called salad in a jar. There were nine competitors for this particular lease. The second lease is for the Historic Restaurant. We recommend award to Andre-Boudin Bakeries, Inc. to operate what they ll call Boudins SF. Boudins is of course a San Francisco icon and when we designated this for historic restaurant only we asked that the operator have operated in the City for 28 of the last 30 years and have contributed to the identity of their neighborhood and have Minutes, October 3, 2017, Page 8

9 a brand that was recognized in the Bay Area and beyond. Boudin s brand is over 100 years old. Their venue will include breakfast items, sandwiches, salads, sourdough tacos, sourdough bread for sale, pizzas, and soups. There were two competitors for this space. The third lease is for the Food Hall and Café Concession to SSP America, Inc. who will operate the space as The Manufactory Food Hall featuring three distinct concepts, Tartine Bakery, Cala Taqueria, and Kin Khao Thai Eatery. Tartine is nationally acclaimed local brand. The owners have published cookbooks. They re very well known here and around the country and they serve the most amazing food. The menu will consist of coffee, teas, pastries, salads, soups, sandwiches, cocktails and packaged goods as well. Cala Taqueria serves Mexican food in Hayes Valley and with its owner has been the recipient of a number of awards, including Restaurant of the Year, Best New Restaurant, Women Who Rule SF, Best Kitchens. We re thrilled to have this concept coming to SFO. The third concept is Kin Khao Thai Eatery, again a multiple award winner. They operate presently in the Park 55 Hotel in Union Square and they ve been awarded a Michelin star. There were three competitors for this lease and we re very pleased with these restaurants coming to SFO. All three proposals featured really beautiful designs. First year sales for these three locations are conservatively forecast at $14.4 million combined. Forty-eight percent of those sales will be earned by the local owners, 30% of those sales will be earned by ACDBEs. Both above our goals in those categories. Rent to the Airport will total approximately $1.4 million. The lease terms are 10 years for the food hall and historic restaurant and eight years for the kiosk location. They each have two one-year options and, of course, rent is as always the greater of a MAG or percentage. More broadly, I thought you would be interested to know today that after these locations are built, our entire food program on Boarding Area B will be refreshed and finished and sales from the last year of the old program to the first year of the new program will grow from 20.8 conservatively to 26.4, for a 27% increase in spending on that pier. Commissioner Crayton... they currently do business with the Airport? Ms. Nashir... yes. They operate Wendys, 1300 on Fillmore, Union Street Gastro Pub and they will be operating Mum Fresh which is currently under construction. Commissioner Crayton... would it be correct to say that in terms of what they re doing at the Airport they re doing the majority of the concessions? Ms. Nashir... no. Their total sales is 5% of all food and beverage sales at the Airport, but they are one of the biggest food and beverage tenants. Commissioner Crayton... how much money is that? Ms. Nashir... they re probably doing $15 million perhaps. I m sorry, I don t know the exact number. Commissioner Mazzola... do have a speaker on Item 6, Joe Alioto Veronese. Minutes, October 3, 2017, Page 9

10 Mr. Joe Alioto Veronese... First of all, these three items should not be taken together. They should be taken separately and the public should be given two minutes per item. That s the way they should be done but this speaks to exactly the problem that I ve written about. I ve written this Commission two letters in the last two weeks. I hope that you all have received them and have had the opportunity to review them prior to voting on this item. One letter was 3-pages long another letter was 10-pages long or 7-pages long for a total of 10. I asked the Secretary to make sure that you have received them. I m a little surprised to see that you have not received them because the details a disease that exists at the Airport that needs to be addressed by this Commission that you re currently voting on today. I suggest that the reason that I m here today is by the way, first of all I appreciate your service. I know what it s like to be a Commissioner, but I really hope that you would read these letters. It details exactly what s going on at the Airport and in response to my first letter, and I ll just say this briefly. I ll bring up this one point, it details the way the concessions are granted and that s where the disease exists. The City Attorney responded to my letter a request for a bunch of information of which I received three pages of documents that weren t public. I can only receive the information after the award which, which is part of the problem only after when you award these multimillion dollar contracts can I receive the information pertaining to these contracts. That is a huge problem. The secret three-panel personnel thing is a huge problem. It s a symptom of a disease. The City Attorney says that they protect the identity and they prevent the information from coming out to prevent corruption. I would argue that the exact opposite here is happening. I urge you to take a look at my letters and read the letters. This is a problem that existed way before this current Director was here. And I really hope that you take a look it because I spent a lot of time getting into it, I ve studied this for over two years. And there s a disease at the Concessions department. After today when you vote on this, that disease will have your name on it. I urge you to read my letter before you vote. Specifically, I m concerned about the Coffee Kiosk Concession. It was treated differently in the RFP process, different than the others. It was not granted the interviews. I suggest that you, I hope that you read my letter because there s a lot of information in there, surprised you haven t. Thank you, Commissioners. Commissioner Johns... was there an official response? Ms. Bregman... we have responded to the letters in substance and they ve been deemed to have no merit. Commissioner Mazzola... were these letters of protest? Is there a protest to this award? Mr. Veronese... yes. Commissioner Johns... an official protest. Mr. Veronese... well, here s the deal. The rules require that an official protest happen within five days of the issuance of the letter from the Airport Director. That five days doesn t give anybody the ability to receive any information. I sent a request in and received a letter back, I want to say it was about 10 days later Minutes, October 3, 2017, Page 10

11 with three documents. One containing an , one containing a summary of the scores of how this was scored, and then there were, I think, four separate documents that were appointments, there were records of appointments that this secret panel had with the Airport. Other than that everything else I received was public information. I requested all of the summaries, I requested the RFPs, I requested all of this information so that I can come to you and give you a detailed explanation of exactly what went on with this Coffee Kiosk RFP, but I ve been denied that information. The second request was a 24-hour request subject to the Sunshine Ordinance. I still haven t received that information. I sent that letter last Thursday. Commissioner Crayton... I won t speak to the speaker. I believe I need to speak to you and to Ivar. When you re requesting information like that to the Board, Clerk of the Board is it, or does he request it directly from us? Because I was assuming that they can get whatever information that you need and so I m not sure if that s what you did in order to get that information because I ve been able to ascertain information. I asked for that information through the Board of Supervisors. It s the Clerk of the Board of Supervisors office that can give out that, and I think you re an attorney, are you not? Mr. Veronese... I am an attorney Commissioner. I was hoping to get that information before the Board. I d like this problem to be solved at this level not the Board level or even for that matter any other level. Commissioner Crayton... okay well any information requested, I m able to get it that way, however I would need to ask some questions of our Counsel, which would not be appropriate at this point in time. And you said that it s not okay that we take these three items together and that bothered me, and I don t have that kind of declaration so you know you re stating something that I don t see and so to that point I m gonna have to defer to our legal counsel. Commissioner Mazzola... I agree, we ll vote separately on each item. So we re going to vote 4, 5, 6 whatever 5, 6 separately each item but, she can report them all at once. But we re going to take the votes separately. Commissioner Guggenhime... so you re objection is to number 6, correct? Mr. Veronese... that s correct. The Coffee Kiosk was treated differently and even if it wasn t treated differently, this entire process is ripe for corruption, if you look into it. And my letter details a lot of it. Commissioner Mazzola... did the Commissioners get his letters? Did anybody get his letters? Ms. Jean Caramatti, Commission Secretary... I ll double check, I ll make sure that went through but I know I ed it. Commissioner Mazzola... thank you. Let s start with Item No. 4, is there a motion to approve Item No. 4? A motion for Item 5. Now Item 6... I think we should Minutes, October 3, 2017, Page 11

12 continue this until the Commissioners get the letters that Mr. Veronese sent and then we can see where we are before we vote. Commissioner Crayton... perhaps we can have a special meeting. I don t know if there are guidelines. Commissioner Mazzola... put it on the next calendar, it s not going to change the award, right? Mr. Satero... we can put this over. Item Nos. 4, 5 and 6 were called together, but voted on separately. Item No. 5 was unanimously approved upon a motion by Commissioner Johns and a second by Commissioner Guggenhime. 5. Award of the International Terminal A Historic Restaurant Concession Lease to Andre-Boudin Bakeries, Inc. No Resolution (1) Awarding the International A Historic Restaurant Concession Lease to Andre-Boudin Bakeries, Inc.; and (2) Directing the Commission Secretary to request approval of the Lease from the Board of Supervisors. Item Nos. 4, 5 and 6 were called together, but voted on separately. Item No. 6 was put over. 6. Award of the International Terminal A Coffee Kiosk Concession Lease to Black Point Coffee SFO, LLC dba Black Point Café Resolution (1) Awarding the International Terminal A Coffee Kiosk Concession Lease to Black Point Coffee SFO, LLC dba Black Point Café; and (2) Directing the Commission Secretary to request approval of the Lease from the Board of Supervisors. Item No. 7 was unanimously approved upon a motion by Commissioner Crayton and a second by Commissioner Stern. 7. Authorization to Establish an Additional Noise Insulation Program called The Replacement and Second Chance Acoustic Treatment Initiative No Resolution authorizing establishment of an additional noise insulation program called the Replacement and Second Chance Acoustic Treatment Initiative. This initiative will cover two categories of noise insulation treatment which are not covered under the Airport s current Noise Insulation Program. Minutes, October 3, 2017, Page 12

13 Mr. Jon Ballesteros, Chief External Affairs Officer... the item before you establishes this new program. In the 1980s the Airport initiated a Noise Insulation Program and under this program dwellings that were within the 65 decimal Noise Exposure map were provided acoustical treatments that included doors, windows, and other noise insulation. In exchange for these treatments, the homeowner was required to provide avigation easements. During that period the Airport insulated more than 15,200 dwellings and obtained 12,600 avigation easements. Under the program we did experience some non-participation by folks that failed to respond or declined to participate. Through our work with the Noise Roundtable, we ve learned that according to some of the homeowners, the acoustical treatments have been failing and there are instances in which the owners that declined participation have had a change of heart and would like to join the program. We see the value in working with our neighbors to mitigate noise issues as much as possible by creating this initiative that accomplishes two goals. The first is to create an acoustical treatment replacement program in which the treatments will be replaced due to normal wear and tear, and the dwellings are confirmed to be within the 65 decimal noise exposure map, and experience an average interior noise level of greater than 45 decimals. The second goal is to establish the second chance portion of the initiative in which homeowners who originally failed to respond or declined, are invited to enter the program. We are recommending that $1 million per year be set aside from the operating budget in order to establish this program. So, in order to continue the Airport s proactive efforts to mitigate noise impacts on our neighboring communities, we are requesting that the Commission authorize the establishment of the Replacement and Second Chance of Acoustical Treatment Initiative. Commissioner Crayton... in approving this does it mean that you will set aside a million dollars out of the current budget, or will it be the 2018/2019 budget? Mr. Ballesteros... I think it would be in the year coming. * * * F. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: The Consent Calendar, Item Nos. 8 through 13, was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Stern. 8. Award of Contract No Construction Services for the BICE Office Relocation Project - Galliera, Inc. dba Trico Construction - $1,695,203 No Resolution awarding Contract No , Construction Services for the BICE Office Relocation Project, to Galliera, Inc. dba Trico Construction in the amount of $1,695,203 with a contract duration of 300 calendar days, and a corresponding amount in contingency authorization. 9. Award of Contract No Construction Services for the Terminal Upper Level Viaduct Improvements, Phase 1 Project - Pilot Construction Management, Inc. - $1,880,000 Minutes, October 3, 2017, Page 13

14 No Resolution awarding Contract No , Construction Services for the Terminal Upper Level Viaduct Improvements, Phase 1 Project, to Pilot Construction Management, Inc. in the amount of $1,880,000, with a contract duration of 441 consecutive calendar days, and a corresponding amount in contingency authorization. 10. Modification No. 6 to Professional Services Contract No Project Management Support Services for the Long Term Parking Garage No. 2 Project The Allen Group, LLC/Cooper Pugeda Management, Inc., A Joint Venture - $1,295,000 No Resolution approving Modification No. 6 to Professional Services Contract No , Project Management Support Services for the Long Term Parking Garage No. 2 Project, with The Allen Group, LLC/Cooper Pugeda Management, Inc., A J.V., in the amount of $1,295,000 for a new contract amount not to exceed $6,095,000 with no change to the contract duration. 11. Award of Professional Services Contract No to BridgeNet International for Acoustical Engineering Services Related to Aircraft Noise Abatement - $625,000 No Resolution awarding Professional Services Contract No to BridgeNet International for Acoustical Engineering Services related to Aircraft Noise Abatement in an amount not to exceed $625,000, for a period of five years with the option for three oneyear options to extend exercisable at the sole discretion of the Commission. 12. Assignment of the Terminal 3 Boarding Area F and Terminal 1 Boarding Area C Food and Beverage Concession Lease No. 8 - Lease No from High Flying Foods SFO, LLC to HFF-BRH-SFO, LLC No Resolution consenting to the assignment of the Terminal 3 Boarding Area F and Terminal 1 Boarding Area C Food and Beverage Concession Lease No. 8, Lease from High Flying Foods, SFO, LLC to HFF-BRH-SFO, LLC. Commissioner Johns... can you give me some background? Ms. Nashir... honestly, this was a mistake that my office made. We received a proposal from a tenant that we were doing business with in a couple of locations Minutes, October 3, 2017, Page 14

15 but they had formed a new entity for this proposal. When we filled out the paperwork and we send the Commission item forward for award, instead of using the new legal name that was on the latest proposal, we made a mistake and picked up the legal name of the business that we had been using in our other leases. This item is just correcting that. Commissioner Johns... that s not what I think I read. That s why I didn t understand it. Did we know who we were awarding the lease to when we awarded it? Ms. Nashir... we did. We just made a clerical error when we wrote the name of the company. So High Flying Foods SFO, LLC was awarded the lease. But the proposal read HFF-BRH-SFO, LLC. Commissioner Johns... I didn t understand that and that s why I was confused because it s relatively recent, correct? Commissioner Crayton... what I m reading under the proposal, if I m understand this correctly, it says the tenant has requested the Airport s consent to an assignment of the lease from the tenant to HFF-BRH-SFO, LLC California, Ltd. a liability company. I m assuming that s the entity. The tenant owns an interest. I don t know if that s the part that has your concern as to whether it s a right thing. But I can see the BRH, so I m assuming that is the correct entity. Is that not so? Ms. Nashir... it is. And that was the proposer. Commissioner Crayton... got it. Commissioner Johns... we haven t had that in the past. That s what raised the flag for me. I did not understand it. Commissioner Crayton... legally it doesn t present a problem. Ms. Nashir... we ll do that going forward. 13. Assignment of the Cellular Service Equipment Sites Lease No B from Nextel of California, Inc. and Sprint Spectrum Realty Company, LP, Collectively doing business as Sprint Nextel, to Sprint Spectrum Realty Company, LLC No Resolution consenting to the assignment of cellular service equipment sites Lease No B from Nextel of California, Inc. and Sprint Spectrum Realty Company, LP, collectively doing business as Sprint Nextel, to Sprint Spectrum Realty Company, LLC. * * * G. NEW BUSINESS: Minutes, October 3, 2017, Page 15

16 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. Mr. Steven Booker, Registrar for the International Brotherhood of Electrical Workers, Local 6, San Mateo County... thank you for your time. I m here today to talk to you about electrical certification and I encourage you to adopt and enforce qualified electrical workers language on your project specifications. I see there s an abundance of work at the Airport. New construction is coming up and anyone who is performing work covered by the National Electrical Code must be a certified Electrician, a Registered Electrical Apprentice or Registered Electrical Trainee. I have some handouts if I may pass them out to you guys, and it just states what the law is, what the Journeyman requirements are, what you can do, and there are some examples what happens in non-compliance. This is a personnel and a personal safety issue so I have cards as well. And if you guys want to reach out to me at anytime, I would be more than happy to talk to you about it in the future. And that s pretty much all I have. Commissioner Johns... are you just presenting this to us as new information or do you have some reason to believe that some of our electricians are not certified? Mr. Booker... I do have some reason to believe that some electrical work that s being performed at the Airport is being performed by non-qualified electricians, yes. Commissioner Johns... have you made that knowledge available to those who can double check on that? Mr. Booker... absolutely. * * * H. CORRESPONDENCE: There was no discussion by the Commission. * * * I. CLOSED SESSION: There are no planned agenda items for a Closed Session for the current meeting. 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 Brown Act (California Government Code Sections (b)(2) and ) and Sunshine Ordinance (San Francisco Administrative Code Section 67.11). If the Airport Commission enters Closed Session under such circumstances, the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section ) and Sunshine Ordinance (San Francisco Administrative Code Section 67.12). Minutes, October 3, 2017, Page 16

17 * * * J. ADJOURNMENT: Commissioner Mazzola... let s adjourn on a moment of silence for the Las Vegas victims. There being no further calendared business before the Commission the meeting adjourned at 9:41 AM. (Original signed by: Jean Caramatti) Jean Caramatti Commission Secretary Minutes, October 3, 2017, Page 17

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