SAN FRANCISCO AIRPORT COMMISSION MINUTES

Transcription

1 SAN FRANCISCO AIRPORT COMMISSION MINUTES April 18, :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 April 18, 2017 CALENDAR AGENDA RESOLUTION SECTION ITEM TITLE NUMBER PAGE A. CALL TO ORDER: 3 B. ROLL CALL: 3 C. ADOPTION OF MINUTES: Regular meeting of April 4, D. ITEMS INITIATED BY COMMISSIONERS: E. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 1. Modification No. 2 to Contract 9350A.66 - Design- Build Services for the REACH - Customer Hospitality, Boarding Areas A & G Project - Webcor Builders Modification No. 1 to Contract 8427C.66 - Design- Build Services for the Mel Leong Treatment Plant, Industrial Wastewater and Recycled Water Upgrades Project - Walsh Construction Company, LLC Award Professional Services Contract Activation Planning Services - SFO Partners, a JV of Abadjis Systems, Ltd. and AGS, Inc RFQ/P for Contract Design-Build Services for International Terminal Building Refresh Project Reject all Bids - Contract Construction Services for the BICE Office Relocation Project F. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 6. Amend Letter of Credit and Reimbursement Agreement with Royal Bank of Canada Authorize RFQ/P for Professional Services Contract Project Management Support Services for the Energy Management Control System Project G. NEW BUSINESS: 10 H. CORRESPONDENCE: 10 I. CLOSED SESSION: 10 J. ADJOURNMENT: 10 Minutes, April 18, 2017, Page 2

3 AIRPORT COMMISSION MEETING MINUTES April 18, 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 regular meeting of April 4, 2017 were adopted unanimously. No D. ITEMS INITIATED BY COMMISSIONERS: There were no items initiated by Commissioners. E. ACTION ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: Item No. 1 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Guggenhime. 1. Modification No. 2 to Contract 9350A.66 - Design-Build Services for the REACH Customer Hospitality, Boarding Areas A & G Project - Webcor Builders - $6,319,857 No Resolution approving Modification No. 2 to Contract 9350A.66, Design-Build Services for the REACH Customer Hospitality, Boarding Areas A & G Project, with Webcor Builders, in an amount not to exceed $6,319,857 for a new Contract amount not to exceed $26,162,427. Ms. Judi Mosqueda, Design and Construction...this approves Modification No. 2 for Design Build Services for the REACH Customer Hospitality Boarding Areas A & G Project with Webcor Construction in the amount of $6.3 million, for a new contract amount of $26.2 million. The REACH project includes passenger experience improvements in the International Terminal, including pre-security food courts, tenant construction of 18 food and beverage locations, concourse improvements Minutes, April 18, 2017, Page 3

4 adjacent to those concessions, and an outdoor terrace at the end of Boarding Area G. Renovations also include hold rooms within Boarding Areas A and G and replacement of aging LED monitors. This modification awards trade bid package set 1 consisting of a combination of packages that were directly negotiated and a competitively bid. All processes were in keeping with the Administrative Code. Modification No. 2 increases the contract amount by $6.3 million for a new contract amount of $26.2 million and authorizes a new contingency amount of approximately $2 million, which remains at 7-1/2% of the contract amount. The forecasted total contract value for the REACH project was $39 million, however, a new project from the 2016/17 Capital Plan was incorporated into the scope to take advantage of implementation efficiencies. The new scope includes hold room improvements at 24 gates within Boarding Areas A and G which leads to a new forecasted contract total value of $79.1 million. The City s Contract Monitoring Division (CMD) approved a 20% LBE sub-consultant participation goal for construction services and 25% sub-contracting goal for design services. Webcor committed to meet these goals. Commissioner Crayton...it s a big increase. Has Design Review (DRC) decided that these should be included in this process, and why wasn t it bid for someone else to do this work? Why wasn t this work included in the contract s original scope? Ms. Mosqueda...Primarily, it wasn t included when the contract was originally bid because the hold room furniture project was approved in the 2016/17 Capital Plan, which meant that it was funded after the REACH project was underway. Secondly, the large dollar value is primarily attributed t the cost of furniture. There s not much construction involved. The third factor, which made sense to us, is that Webcor was already doing work in all of these areas, so it made sense to have the same contractor do the work and avoid two contractors working on top of each other. Commissioner Crayton... I m concerned that it gives a preference to Webcor rather than giving someone else an opportunity to do that work. We re saying it s okay because they re already in place so they just happened to get that work. Ms. Mosqueda... It does seem that way, however, I think that because trade packages are competitively bid, the contractors who will come in to do the work for the hold rooms will be subcontractors to Webcor. So Webcor does have an advantage in administering the contract overall, but the work will be done by subcontractors who will be competitively procured. Commissioner Crayton... help me understand competitively procured. Ms. Mosqueda... we bring in a design builder to help us facilitate and administer work on major capital projects. All work performed through the contract is done through competitively bid trade subcontracts. So, when we pull in a mechanical contractor for heating and ventilation, it s competitively bid. When we pull in electricians or plumbers, or tilers, they re competitively bid packages. Commissioner Crayton... I understand that. Who s going to supervise Webcor s bidding of these contracts to do work that they did not originally have. Minutes, April 18, 2017, Page 4

5 Ms. Mosqueda... That s something that is actively overseen by both the Airport project management staff as well as our project management support services. It s a very interactive process. We also have the CMD involved to make sure the LBE component is appropriately administered. It s an interactive process between the City, consultant, and contractor to make sure the work is administered properly. Commissioner Crayton... I want to be clear in my mind about that because it s such a large increase over what they originally received. How we re just going along with that contractor concerns me. I have some additional questions but I will hold off. Ms. Mosqueda... Okay thank you. Commissioner Johns... Just to follow up so I m clear, we re adding $6.319 million and some of it is furniture, not work. It s more products than labor. Ms. Mosqueda... Yes. And let me mention that the $6.3 million is for some early work done on the project that was supporting the concessionaires that were in progress and opened around the turn of the holiday season this past year. The hold room furniture procurement we have not started on yet. So the scope addition, the design, the procurement is something that would of happened throughout Commissioner Johns... Okay but how much are we adding to the existing contract? Are we adding and are we voting on the $6 million? Ms. Mosqueda... That s correct. Yes. Commissioner Johns... And then there will be more after that? Ms. Mosqueda... Yes. With the design build project and the Commission s request that we return for award of trade packages, it s a progressive process. We build up to our eventual total contract amount for design build. So, we come back to you with groups of trade packages for award. Commissioner Johns... Is this in addition to what we have already authorized? Ms. Mosqueda... The action today is for work that s within the original scope, however, when I was discussing the contract value forecast, I was saying that we anticipate it to grow because of this new project that we would like to administer through this contract. Commissioner Johns... Those would be bid. Ms. Mosqueda... Yes, they will. Commissioner Johns... I agree with Commissioner Crayton. Commissioner Guggenhime... a design build contract is in stages. The contract is awarded and then added to over time. For example, after award, you might return six or seven times to add to it. Correct? Minutes, April 18, 2017, Page 5

6 Ms. Mosqueda... Yes. Commissioner Guggenhime... I think Commissioners become concerned if they see a particular contractor getting a lot of bids and then the contract keeps growing. In my mind that s expected because it s design build. But that ought to be looked at going forward. Have we ever changed design build contractors in mid stream? Mr. Ivar Satero, Airport Director... it s our practice to identify the forecast in packages. It s in here to have these kinds of discussions. We ll see if it makes sense to bid this potential scope separately. It s furniture procurement so it s not an opportunity for small business, and we get economies out of a bigger furniture procurement package. Commissioner Mazzola... Do you want to put this over? Mr. Satero... We need approval. It s still within the previously approved scope. Item No. 2 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Guggenhime. 2. Modification No. 1 to Contract No. 8427C.66 - Design-Build Services for the Mel Leong Treatment Plant, Industrial Wastewater and Recycled Water Upgrades Project - Walsh Construction Company, LLC - $2,274,042 No Resolution approving Modification No. 1 to Contract 8427C.66, Design-Build Services for the Mel Leong Treatment Plant, Industrial Wastewater and Recycled Water Upgrades Project with Walsh Construction C., LLC in an amount of $2,274,042 for a new contract amount of $11,761,042 and extending the contract by 8 months for a new contract duration of 16 months, and authorizing a corresponding contingency amount. Ms. Mosqueda... Item 2 approves Modification No. 1 for Design-Build Services for the Treatment Plant, Industrial Wastewater and Recycled Water Upgrades Project with Walsh Construction in the amount of $2.3 million for a new contract amount of $11.8 million, and extends the contract by eight months for a new contract duration of 16 months. The Project replaces industrial waste processes at the Treatment Plant to ensure that no partially or untreated wastewater flows into the Bay, and will upgrade the existing recycled water treatment system to a more efficient system. The modification provides $1.5 million for design fees for the primary treatment process, additional programming for the secondary treatment process, and $775,000 for trade bid package Set 1 which includes directly negotiated work within the 7.5% allowed by the Administrative Code. Modification No. 1 increases the contract amount by $2.3 million for a new total contract amount of $11.8 million and authorizes a new contingency amount of approximately $882,000, which remains at 7½% of the contract amount. The forecasted total contract value for the Mel Leong Treatment Plant Project is $61.3 million which is within the budget for the overall project. The City s CMD approved a 20% LBE sub-consultant goal for construction Minutes, April 18, 2017, Page 6

7 services and 20% for design services. Walsh is committed to meeting both. Item No. 3 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Guggenhime. 3. Award Professional Services Contract Activation Planning Services SFO Partners, a JV of Abadjis Systems, Ltd. and AGS, Inc. Consulting Engineers $1,500,000 No Resolution awarding Professional Services Contract No , Activation Planning Services to SFO Partners a JV of Abadjis Systems, Ltd. and AGS, Inc. Consulting Engineers in an amount not-to-exceed $1,500,000 for the first year of services. Ms. Mosqueda... this item awards a Professional Services Contract for Activation Planning Services to SFO Partners, a JV of ASL and AGS, Inc. for $1.5 million for the first year of services. Activation, planning, and commissioning services are required for successful startup operation of projects within the five-year capital plan. The scope of services includes the planning of activation and simulation activities, scheduling in preparation of reports, and providing building system commissioning to ensure that the building systems are built and operating to design specifications. Four proposals were received in response to the RFQ/P. A four-member selection panel was convened consisting of two Commission employees, one industry employee, and an employee from another City department. The three highest ranked proposers were interviewed. Based upon the results of the proposals and interviews, SFO Partners was the highest ranked proposer. Staff negotiated the scope of services, terms and conditions, and fee for the first year of services. The agreed upon amount for the first year of services is $1.5 million. The total contract duration is anticipated to be eight years with a total contract budget of up to $9 million. The City s CMD approved a 21% sub-consultant participation goal for the contract, and SFO Partners committed to meet this goal. Item No. 4 was approved unanimously upon a motion by Commissioner Guggenhime and a second by Commissioner Crayton. 4. Issue Request for Qualifications/Proposals for Contract Design-Build Services for the International Terminal Building Refresh Project No Resolution authorizing the Director to issue a RFQ/P for Contract No , Design-Build Services for the International Terminal Building Refresh Project. Ms. Mosqueda... This item approves an RFQ/P for Design Build Services for the International Terminal Building Refresh Project which will renovate the arrivals and departures levels in the International Terminal to provide flexibility to meet changes in security standards, new technology development, and passenger growth. The proposed contract duration is 36 months at an estimated cost of $245 million. This project is funded from the Five-Year Capital Program. The RFQ will contain Minutes, April 18, 2017, Page 7

8 minimum qualification requirements to assure appropriate technical skills given the projects size and complexity. A selection panel will be convened to evaluate and score technical proposals and develop a shortlist of up to four of the highest ranked proposers who will be invited to an oral interview. Based upon the results of the written proposals, oral interviews and cost evaluation, the proposals will be ranked and staff will negotiate with the highest ranked proposer. If unsuccessful, staff will negotiate with the next ranked proposer. Staff will return for award to the proposer offering the best value to the Airport. The City s CMD approved a 15% LBE subconsultant participation goal for design services, and 16% for construction services. Commissioner Crayton... this is for design, I m assuming a contract. Ms. Mosqueda... Design and construction. Commissioner Crayton... Since we have a DRC, do they decide in advance what it should look like before it goes out to bid? Ms. Mosqueda... They do. Our project managers take projects through the Airport s DRC for review. We also involve Airport Senior Management and others to ensure that the projects are designed to meet the Airport s standards and satisfaction. Commissioner Crayton... Who are the members of the DRC? Ms. Mosqueda...Robin Chang, Amir Koleini, Blake Summers, and Melissa Mizell. Two are consultants and two are Airport Staff. Commissioner Crayton... do any of the DRC members ever apply for contracts, or are they with firms that participate in bidding with the Airport? Ms. Mosqueda... They do. Consultants, in particular, are participants on Airport contracts. When they are presenting their own or their firms design work to the DRC, that member abstains from commenting and voting on the project. Commissioner Crayton... you ll let us know in advance when that happens? Mr. Satero...designers present their projects to the DRC in phases. We have two long standing members who are consultants.. Robin Chiang has his own consulting firm and he is sometimes a member of a larger design company. Melissa Mizell is a Gensler designer. We ve relied on them to deliver the unique exceptional SFO standard of design, particularly interior design for Terminal 2 for instance, and Terminal 3 East. That s their role... it s not to design, but to give guidance that allows us to maintain an esthetic that has been so popular and unique to SFO. Commissioner Crayton... I understand. I m concerned that if they work with other design firms they have an advantage, particularly with regard to esthetics. Certainly they d share that knowledge with firms who hire them. How long can they stay on the DRC? Mr. Satero... We ll prepare a follow up report. Minutes, April 18, 2017, Page 8

9 Item No. 5 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Mazzola. 5. Reject all Bids - Contract Construction Services for the BICE Office Relocation Project No Resolution rejecting all bids received for Contract No , Construction Services for BICE Office Relocation Project. Ms. Mosqueda... This item authorizes the Director to reject all bids received for construction services for the BICE office relocation. The project will relocate the Building Inspection and Code Enforcement offices to an undeveloped space on Level 2 of Building 648. Work was to include construction of new walls, ceiling and floor finishes, furnishings and equipment, new mechanical systems, and electrical improvements, and information technology infrastructure. The Engineer s estimate at the time of bid call was $1.2 million and the contract duration was 300 calendar days. Two bids were received, both of which were from LBE firms, with a 10% discount applied to each for the purposes of evaluation. Both bids exceeded the current project budget and Engineer s estimate. Staff analyzed the bids against the Engineer s estimate and found that the proposals were in line with the current Bay Area bidding climate which continues to see significant cost escalation. Staff is reviewing the scope of work to identify how it can be modified to align with the project budget. Prior to issuing a new bid call, Staff will return to the Commission. Commissioner Johns... approved in August but no bids until February. Seems like a long time. Now we re throwing out the bids and starting over. Ms. Mosqueda... I must admit that I don t know much of the history of this project. I know the current situation and what Staff intends to do. This is architectural, which resides with Geoff Neumayr, and I don t know enough of the history. I apologize. Commissioner Johns... I understand. I wondered why the long delay, and that could explain the price discrepancy. Ms. Mosqueda... It could contribute to that. D. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: The Consent Calendar, Item Nos. 6 and 7, was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Guggenhime. 6. Amend the Letter of Credit and Reimbursement Agreement with Royal Bank of Canada to Extend the Expiration Date of the Existing Letter of Credit Securing up to $200 Million Principal Amount of Airport Subordinate Commercial Paper Notes No Resolution authorizing an amendment of the Letter of Credit and Reimbursement Agreement with Royal Bank of Canada to extend the expiration date of the existing Letter of Credit securing up to $200 million principal amount of Airport Subordinate Commercial Minutes, April 18, 2017, Page 9

10 Paper Notes for three additional years and approving certain related actions. 7. Authorize RFQ/P for Professional Services Contract Project Management Support Services for the Energy Management Control System Project No Resolution authorizing the Director to issue a RFQ/P for Professional Services Contract No , Project Management Support Services for the Energy Management Control System Project. E. 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. There were no requests to speak. F. CORRESPONDENCE: There was no discussion by the Commission. G. 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). J. ADJOURNMENT: There being no further calendared business before the Commission the meeting adjourned at 9:26 AM. (Original signed by: Jean Caramatti) Jean Caramatti Commission Secretary Minutes, April 18, 2017, Page 10