MAC CONTRACTORS FORUM

MAC CONTRACTORS FORUM

INTRODUCTIONS

The MAC

Concessions

Team

• Eric Johnson, Director, Commercial

Management & Airline Affairs

• Liz Grzechowiak, Assistant Director,

Concessions & Business Development

• Kate W ebb, Manager, Contracts &

Proposals

• Matt Grimm, Manager, Concessions &

Business Development

• Isabella Rhawie, Manager, Concession &

Business Development

INTRODUCTIONS

The MAC

Team

• Jake Hoehn, Bradford Airport Logistics

• John Nelson, Project Manager

• Rick Valentino, Manager of Facilities

• Brian W eidemann, Building and Fire Inspector

AGENDA

• Overview of MSP and Metropolitan Airports Commission (MAC)

• Concessions square footage

• Design and construction standards and criteria

• Permits

• Insurance

• Challenges

– Badging – Parking

– Staging and material delivery – Night work

WELCOME TO MSP!

• MSP is one of the nation’s busiest airports with approximately 35 million passengers per year.

• MSP is an international airport, a hub for Delta Air Lines and a gateway to Minnesota and the Upper Midwest region. Additional information about MSP is available at www.mspairport.com

• MSP is owned and operated by the Metropolitan Airports Commission (MAC).

WHAT IS THE MAC?

WHAT IS THE MAC?

• MAC is governed by a board of 15 Commissioners

• Eight metro Commissioners appointed by the Governor

• One appointed by St. Paul Mayor

• One appointed by Minneapolis Mayor

• Four Governor appointed Commissioners from Greater Minnesota

• One Governor appointed Commission Chairperson.

• MAC owns and operates seven airports in the metropolitan area

• Minneapolis-St. Paul International Airport (MSP)

• Six reliever airports:

St. Paul Downtown, Flying Cloud, Crystal, Anoka County-Blaine, Lake Elmo and Airlake

MSP TOTAL CONCESSION AREA

Food & Beverage 121,322 Retail 31,212 Convenience (News) 16,317 Total Concessions 168,851 Sq Ft

CURRENT CONCESSIONS IN PHASES I & II

Food & Beverage 80,201 Retail 29,025 Convenience (News) 16,317 Total Concession Area

2015 & 2017 RFP's 125,543 Sq Ft 46 F&B Units 18 News Units 29 Retail Units

CONCESSIONS OPPORTUNITIES PHASE I

CONCESSIONS PLANNING AND

IMPLEMENTATION TEAM (CPIT)

The CPIT is a group of MAC, Concessionaire, and Consultant

representatives who coordinate the concessions construction projects at MSP Terminal 1 and MSP Terminal 2.

MAC representatives include:

• Commercial Management and Airline Affairs

• Building Official

• Airport Development

• MAC Architectural and M&E Consultants

• Airport Operations / Facilities

CPIT PROCESS

• Assurance that MAC utilities are provided to the site specific shell

space

• Tracking of executed lease agreements

• Review, comment, and approval of site specific Concept Designs

• Review of the Bid Documents received by the Concessionaire

• Construction Document plan review comments

• Review of applicable permits, including Hennepin County Health

Department F&B

• Construction schedule, progress, and store opening dates

DESIGN & CONSTRUCTION STANDARDS

• All tenant designs and construction shall comply

• The CPIT will communicate this with the tenant and Architect

• This requirement includes plumbing, HVAC and electrical work

• The construction documents (plans and specs) need to reflect this

MAC TENANT DESIGN GUIDELINES

• Access to MDCS and Tenant Design Criteria

• W hy?

ESTIMATES / BIDS

Estimates

• The Concessionaires are responsible for preparing estimates for

work covered by their construction contracts Concessions Bids

• The individual Concessionaires are responsible for their Bid

requirements, information to bidders and bid forms

• The Concessionaire presents the lump sum contractor bids, the

schedule of Spec Division values, and the cost of materials and labor provided by Others to the CPIT

• The MAC PM prepares a bid review report to the CPIT

• The CPIT, or its designee, provides its bid review findings to the

BADGING NEW COMPANIES

Paperwork Submission:

– Company Profile

– Sponsorship Letter (customer)

– Two Authorized Signer Agreement Forms

AUTHORIZED SIGNERS

DEFINITION:

• Representative with the company who will serve as the first point of

contact

• Review, Authorize and Sign Badge Applications for other employees

• Respond to badge audits

• Responsible for proper deactivation and return of all badges

AUTHORIZED SIGNERS

Authorized Signer Training:

–

Class offered twice a month 9:00am to 11:00am

•

registration is required

–

Fingerprinting offered after class for signers

AUTHORIZED SIGNERS

• Badge Approval will take an average of seven to ten business days

• Signer returns for the badge and will take SIDA Training

(if required)

• Both signers must be in possession of their badge before sending

employees to start the process

EMPLOYEES

• Start with the fingerprinting process, offered:

Mondays through Thursdays 7:00am to 3:00pm

• Clearance for badges is typically approved within seven to ten

business days

• Employee returns for the badge, takes SIDA Training (if required)

Mondays & W ednesdays 9:00am Tuesdays & Thursdays 12:00pm

COST & BADGING FEES

• Fingerprinting - $60 per applicant, non-refundable

• Badge - $20 per applicant, non-refundable

• Contractor Fee - $200 per applicant, refundable IF the badge is

CERTIFICATE OF INSURANCE

• General contractor is required to provide Certificate of Liability

insurance at the time of permit application.

• The values are $1,000,000.00/$500,000.00.

• MAC is to be named as additional insured on the certificate.

• Plumbing / HVAC contractors must follow state licensing

CERTIFICATE OF INSURANCE (COI)

• The Contractor cannot commence work nor allow any subcontractor

to commence work until all insurance required by MAC has been procured by the Contractor and approved by the MAC.

• Insurance must be kept intact and in force throughout the term of the

contract.

• Certificate of Insurance (COI) Specifics:

– Contractors must provide MAC with 4 copies of a COI using the standard ACORD form as evidence of the required insurance;

– The COI must indicate that at least 15 days prior notice will be given to the insureds in the event of cancellation, nonrenewal or any material change in the policies.

– The COI must be signed and dated by an authorized representative of the insurance company.

REQUIRED INSURANCE

Workers’ Compensation Insurance

• The Contractor must procure and maintain workers’ compensation

insurance for all his or her employees engaged in work on the project as required by statute.

• The Contractor must also require that all subcontractors and

sub-subcontractors provide workers’ compensation insurance for their employees.

• The Contractor must also provide employer’s liability insurance with

REQUIRED INSURANCE

Contractors’ Comprehensive General Liability Insurance (GL)

• The Contractor must procure and maintain throughout the term of

the contract comprehensive GL insurance

– covering personal injury

• including bodily injury, and

• property damage liability;

(NOTE: The property damage liability portion of the policy must not contain any exclusions with reference to damage due to blasting, collapse, or underground facilities.)

– with a combined single limit of $1,000,000 for each occurrence and aggregate;

– naming the Contractor as insured;

– naming the MAC as additional insured;

(NOTE: In lieu of the MAC being named as an additional insured on the Contractor’s comprehensive GL insurance, the insurance may provide liability coverage for the benefit of the MAC by means of an Owner’s protective liability endorsement or policy.)

– providing contingent liability for the operations of subcontractor and sub-subcontractors, and;

REQUIRED INSURANCE

Comprehensive Automobile Liability Insurance

• The Contractor shall provide comprehensive automobile liability

insurance

– covering bodily injury and property damage;

– with a combined single limit of $1,000,000 for each occurrence, and;

– for all automobiles owned by the Contractor and all hired and non-owned vehicles.

• The Contractor must also require that all subcontractors and

sub-subcontractors maintain the same form of insurance.

• The Contractor must also provide contingent automobile liability

insurance for the operations of subcontractors and sub-subcontractors to assure coverage.

REQUIRED INSURANCE

Builders Risk Insurance

• Unless otherwise provided, the Tenant must purchase and

maintain property insurance upon the entire work at the site to the full insurable value.

– This insurance shall include the interests of the MAC as the named insured and provide coverage on an All Risk basis in accordance with the conventional All Risk Builder’s Risk forms currently in use.

• Any loss to the property which would not be covered under the All

Risk Builder’s risk form which is the result of the carelessness or

negligence of the Contractor or Subcontractor shall be borne by the Contractor.

– Any insured loss is to be adjusted with the MAC and made payable to the MAC as trustee for the insured as their interest may appear.

TENANT PERFORMANCE BOND REQUIREMENTS

• W hen any leasehold improvements are constructed, installed or

renovated, the Tenant must procure and furnish to the MAC payment and performance bonds.

• Each bond

– must not be less than the cost of the construction, installation or renovation;

– must be for the use of the MAC and all persons doing work or furnishing skills, tools, machinery, materials, insurance premiums, equipment or supplies of the

construction, installation or renovation;

– must be conditioned for payment of claims as required and in full compliance with Minnesota Statues § 574.26, and;

– must remain in force and effect throughout all construction and until the Tenant

submits -- and MAC approves -- lien waivers from all contractors and subcontractors.

MAC PERMITS

MAC PERMITS

• Permit fees shall be paid at the time of permit issuance. Checks

only.

• Permit fees are based on valuation of total work being done.

• The fee also includes a plan review fee for the building permit only.

• The permit fee is based on the ‘97 Uniform Building Code fee

schedule and can be made available to you upon request.

• The permit fee for plumbing and HVAC work is 2% of the value of

that work for each trade discipline. No plan review fee for these.

• As of today, sign permits are “no fee”.

• If a demo permit is issued to you as part of the specific tenant work

you have been awarded, this is a no fee permit.

• Hennepin County is the permitting authority for all food related

tenant work that takes place on our campus. They require up to a thirty day review period.

MAC PERMITS PROCESS

• MAC is the permitting authority for all work that takes place on the

campus.

• The exception is electrical permits. This is handled by the State

board of Electricity/MN DOLI.

• Permits that MAC will issue: Building, Plumbing, HVAC, demo, Sign,

Fire Marshal

• Documents required at the time of application for permit; permit

application, two sets of plans (which may include structural and

calcs), all plans are required to be signed by the appropriate design professional.

• Certificate of Insurance from the contractor

• Some projects may require review for SAC (Sewer Availability

FIRE MARSHAL

• The Airport Fire Department (AFD) will review individual projects for

impacts to building fire protection and life safety features for MN State Fire Code and MAC Design and Construction Standard compliance.

• W e will also give guidance and approval for impacts or disruptions to

existing building fire alarm and sprinkler systems that your project may have. This also includes impacts caused by demolition or normal construction activities.

Prior to Construction:

FIRE MARSHAL

• ANY work that includes modifications or installation of any fire protection system requires a Fire Marshal Permit.

• Required permits shall include the following for submittal:

1. A fully completed permit application.

2. Two sets of all appropriate submittal documents; including working plans, technical calculations, product cut-sheets, etc. 3. A check for fee payment, if applicable.

• All fire alarm and sprinkler system designs and installations must be

made by qualified individuals, as indicated by appropriate NFPA standards.

FIRE MARSHAL

• Each tenant space must have one sprinkler control valve that is

reviewed and approved by AFD during the design phase.

• Fire alarm and sprinkler system design work must be performed by

someone with knowledge of the existing building systems. Engineering firms and/or designers that fail to provide

documentation that clearly accounts for the entire system and their design qualifications will be rejected.

FIRE MARSHAL

During Construction:

• Contact AFD PRIOR to any work to conduct a site-visit; the purpose

of the site visit is to review your demo work and impacts to the existing fire alarm, sprinkler system, commercial hood fire

extinguishing systems, portable fire extinguishers, Knox boxes, AED and fire department emergency access. W e will also review if you will need any hot work permits for your project.

• For permitted work of fire protection and fire alarm systems, you will

need to schedule rough-in and final inspections, witness testing (ex. - sprinkler hydro tests) and final acceptance tests. Remember to have your inspection card available on-site for signature.

• Unauthorized disruptions or negative impacts to fire protection and

FIRE MARSHAL

Contact Information:

AFD Fire Marshal – Assistant Fire Chief Nathan Kreye Phone: 612-476-0675

Email: [email protected]

Building and Fire Inspector – Brian Weidemann

Phone: 612-467-0425 & 612-725-4641

PRE-CONSTRUCTION MEETING

Attendees

• MAC staff, concessionaires, general and sub-contractors

Topics (Partial List)

• Scope of W ork: restricted work and special requirements

• Contract Status: bonds, insurance, notice to proceed

• Airport Security and Site Security

• MAC Permits and Testing

• Site Use and MAC Coordination

• Construction Schedules and Meetings

• Project Documents

CHALLENGES

There will be certain challenges, costs, and considerations that are unique to operating within an airport environment:

• Extended Schedules

– MSP operates 365 days per year

– Project schedules must accommodate passenger schedules by completing most work during non-traditional hours

• Additional Costs Associated with Employees

– Badging Fees

– Parking Fees

• Logistical Considerations

– Demo and Dumpster Placement

– Material Deliveries

– Staging and Storage

– Security

CONTRACTOR AND SUPPLIER PARKING

• Parking is provided in either Short Term or General Parking areas at

regular rates.

• Parking ramps and Valet have a 7 foot clearance. One area of Short

Term has a clearance of 8’ 2”.

• If needed, contact us to arrange a time and alternative location to

drop off or pick up supplies and materials as they are not permitted at the Ticketing and Baggage Claim curbs. No storage is provided.

• Contractor ZipPass. Charged to a credit card on file. $20/month plus

$2/hour (max. $48/day). Can be traded between vehicles.

• Questions: contact Landside Operations during business hours at:

OFFSITE PARKING

• The contractor is responsible for arranging their own parking of

vehicles. In some cases you may request a parking pass from the MAC Landside office to park on the secured side of the airport. If a parking pass is granted the staff will assist you where a vehicle can be parked. You must adhere to all rules and regulations required by the TSA and MAC Police.

DUMPSTERS / ROLL-OFFS

• Locations must be pre-approved by MAC Facilities Management

Office

• W e will do our best to find a suitable location as close to the

construction area or material haul route as operationally possible (Reminder - Airline and Airport operations will have priority)

• You are responsible! All materials must be contained within the unit.

• Units must be covered as to prevent any material from flying around.

(high winds, thunderstorms, jet blast)

• FOD (Foreign Object Debris) prevention

• Pick-up / hauling coordination depending on location

STAGING AND MATERIAL DELIVERY

• Coordinate dock time for receiving of materials and delivery to

tenant site.

• There is very little opportunity to allow for storage of material outside

of the tenant space you will be working on. Scheduling for deliveries as well as the amount of material being delivered is very important.

• No staging or storage of material will be allowed in corridors or

loading dock areas – NO EXCEPTIONS.

• MAC staff is currently reviewing potential sites around the campus

for possible temporary (one or two day) storage of larger or unusual items.

RECEIVING AND DISTRIBUTING

• MAC Facilities manages this contract with assistance from the

Concessions Department.

• The process allows for greater efficiency and consistency of

deliveries to Concessionaires from outside vendors.

• Bradford receives, visually inspects and ships materials to MSP

concessionaires from a centralized location. A unique barcode

system tracks deliveries and keeps a record of all invoices from the vendors.

• Receipt of goods begins at 2:30 AM and deliveries are made until

roughly 3:30 PM to approved storage locations within the terminals.

• Tenants submit a list of suppliers to Bradford initially and a

distribution schedule is arranged. Delivery drivers are badged and cleared by APD and TSA to commence deliveries to the Bradford

NIGHT WORK

• In some cases night work will be required to be less disruptive to

other MAC tenants and the traveling public.

• Areas that may include this type of work include; construction of the

temporary barrier wall facing the mall/concourse, significant demolition work, loud noise producing tools, major utility shut downs.

• If night work is anticipated, we ask that you contact the MAC

Facilities, the MAC Construction Coordinator and Bradford in case of off hours material deliveries.

• MAC Construction Coordinator will meet you on site to go over

location of the construction barrier wall.

• Normal night work begins no earlier than10 pm and is completed by

INFRASTRUCTURE SHUT DOWNS

• MAC and its continuing consultants will coordinate water, sewer,

electrical, HVAC, fire-protection, and other shut-downs required to support the construction of the new tenant spaces.

• MCE will provide coordinate and provide this coordination through

MAC’s Airport Development Department, and the notices will be distributed throughout the MAC and to the tenant.

• Notices usually require one week for coordination, and a two week

period for notification for the work.

• Most shut downs of infrastructure is required to be night-work due to

the impact on airport operations.

• National holidays and weekends usually are not available for shut

INSPECTIONS

• Prior to start of construction the MAC Trades (electric, plumbing and

EMC) want to be notified, which may include a site inspection.

• All other inspections follow state code requirements: rough in (which

includes framing) prior to covering and all final inspections before occupancy. This also includes Fire Marshal and

Telecommunications.

• Some projects may also require special inspections depending on

the scope and type of work.

• Green inspection record is required to be on site at all times. Each

inspection is required to be signed on the card. This is for all trade disciplines, including the state. NO EXCEPTIONS!

• State Board of Health also has rough in and finals. You’re

CONSTRUCTION PUNCHLIST

Attendees

• MAC staff, consultants, concessionaires, general and contractors

Purpose

• Inspection of fixtures, furnishes, finishes and equipment for quality of

work, completeness, and missing items

• Listing of items needing correction

PRESENTATION & ATTENDEE LIST

https://www.metroairports.org/ Airport-Authority/Business- Opportunities/2017-RFP-Information.aspx

We’ll post today’s presentation and attendee list on our online Resource Page.