Metropolitan Airports Commission

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Metropolitan Airports Commission

Management and Operations Committee

Regular Monthly Meeting Minutes

Monday, April 01, 2013

1:00 pm

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REGULAR MEETING

Monday, April 1, 2013, 1:00 p.m. Room 3048A, Terminal 1-Lindbergh Minneapolis-St. Paul International Airport

"CONSENT ITEMS"

Call to Order

A regular meeting of the Management and Operations Committee, having been duly called, was held April 1, 2013, in Room 3048A, Terminal 1-Lindbergh, Minneapolis-St. Paul International Airport. Commissioner King called the meeting to order at 1:00 p.m. The following were in attendance:

Commissioners: King, Boivin, Geisler, Madigan, Monaco, Peilen

Staff: S. Busch, T.W. Anderson, J. Hamiel, D. Probst, R. Fuhrmann, G. Warren, D. Ruch, G. Schmidt, J. Laurent, E. Johnson, B. Rief, B. Peters, S. Karels, P. Burke, P. Rasmussen, C. Boyd, J. Kedrowski, W. Bartlett, M. Everson, K. Racek, M. Krogh, M. Kilian, M. Willis, B. Hoyt, J. Harris, P. Hogan, J. Lutgens, A. Irish

Others: Vivian Starr, Anoka County Aviation Association (ACAA); Jim Branda, Ricondo & Associates; O. Smith, STL; Chris Knowles, Erin Meads, Jessica Nielson, TSA; Andrew Brody, Sun Country Airlines; Reggie Swenson, Best Jets International; Lee Hintz, Andy Train; Dost Niaz, Minneapolis Airport Taxi; Frank Lorenz, Hulke & Gheer; Pady Regnier, St. Croix Promotions & Retail; David Budge, Delta Airlines

OPEN FORUM

The Open Forum is a portion of the Committee meeting where persons are allowed to address the Committee on subjects which are not a part of the meeting agenda. Public comments were received from Frank Lorenz, Hulke & Gheer, regarding air traffic control tower closures. The Committee Chair identified item 9 on the agenda as a discussion item concerning the same topic and asked Mr. Lorenz to raise his comments during this part of the agenda.

AGENDA ITEMS

C1. PUBLIC HEARING TO REVISE ORDINANCE NO. 91 – AIRPORT SECURITY REGULATIONS – CF 2396

Commissioner King opened the Public Hearing regarding proposed changes to MAC Ordinance 91. Mr. John Kedrowski, MAC Attorney, and Mr. Mike Everson, Commander

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Management & Operations Committee April 1, 2013 Page 2

Airport Police, gave a brief presentation regarding the proposed changes to Ordinance 91.

Two members from the public who made comments during the public hearing were David Budge, Delta Airlines; and Pady Regnier, St. Croix Promotions & Retail. The public hearing record will remain open until 4:00 p.m. on Friday April 5, 2013 for written comments which should be submitted to the Metropolitan Airports Commission, Attention: Tammy Rader.

Commissioner King declared the hearing closed at 1:29 p.m.

C2. PROFESSIONAL SERVICE AUTHORIZATIONS QUARTERLY REPORT – CF 2397

The Professional Service Authorizations (PSA) report for the first quarter (January, February, March) of 2013 was approved.

THIS IS AN INFORMATIONAL ITEM ONLY; NO COMMITTEE ACTION IS REQUESTED.

C3. PORTER SERVICE CONTRACT AWARD – CF 2398

The MAC issued a Request for Proposals (RFP) for porter service at MSP, and received responses from Commercial Industrial Services, ETS Services, G2 Secure Staff, Metzger Building Materials, Primeflight Aviation Services, Royal Maintenance Services, and Selam Hospitality Services.

The RFP evaluation process involved a focused review by Review Team members. Some of the major elements evaluated and scored were: Company Qualifications and Experience, Management and Operations Plan, Financial Submission, and Employment of Individuals with Disabilities.

After scoring the proposals, staff interviewed the top two companies. Based on the analysis, the Review Team unanimously recommended that G2 Secure Staff Services be awarded the porter service contract at MSP for a term of three years.

COMMISSIONER GEISLER MOVED AND COMMISSIONER MONACO SECONDED TO RECOMMEND TO THE FULL COMMISSION TO AWARD THE CONTRACT FOR PORTER SERVICE AT MSP TO G2 SECURE STAFF SERVICES FOR THREE YEARS WITH ONE THREE YEAR RENEWAL OPTION AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

THE MOTION CARRIED BY UNANIMOUS VOTE.

C4. AIR SERVICE BUSINESS DEVELOPMENT CONTINUING CONSULTANT RECOMMENDATION – CF 2399

MAC’s current agreement with Intervistas for air service business development consulting services expires in 2013. Historically, the consultant has assisted staff with developing marketing strategies, data analysis, and advising staff regarding airline business trends and attracting additional air service to MSP.

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After issuing a request for qualifications (RFQ) for air service business development continuing consultant services, staff received statements from ASM, Boyd Group, Campbell-Hill, ICF-SH&E, Intervistas, Seabury-APG, and Trillion Aviation.

Each qualifications statement was reviewed by a review team which scored the qualifications statements based on established criteria. Based on interviewing and scoring qualifying firms, the review team recommends that Intervistas be designated to provide continuing consultant services for air service business development matters.

COMMISSIONER GEISLER MOVED AND COMMISSIONER MONACO SECONDED TO RECOMMEND TO THE FULL COMMISSION THE RATIFICATION OF THE REVIEW TEAM’S SELECTION OF INTERVISTAS TO PROVIDE CONTINUING CONSULTANT SERVICES FOR AIR SERVICE BUSINESS DEVELOPMENT AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS. THE MOTION CARRIED BY UNANIMOUS VOTE.

C5. ANNUAL SUPPORT RENEWAL FOR COMPUTER AIDED DISPATCH SYSTEM – CF 2400

The CAD system is used by the MAC Emergency Communications Center, a Public Safety Answering Point (PSAP), that receives all 911 calls from the MSP campus and some of the surrounding area.

The TriTech Software Systems is part of a package that includes the CAD system and the Police Records Management system. The CAD system requires ongoing maintenance and support, which is only available from the manufacturer, TriTech Software Systems.

Staff is requesting approval to renew the software maintenance agreement for the Computer Aided Dispatch (CAD) system used by the Emergency Communications Center for handling emergency calls.

COMMISSIONER GEISLER MOVED AND COMMISSIONER MONACO SECONDED TO RECOMMEND TO THE FULL COMMISSION THAT STAFF BE AUTHORIZED TO EXPEND $115,804.19 FOR THE ANNUAL SUPPORT AND MAINTENANCE AGREEMENT FOR THE CAD SYSTEM FROM TRITECH SOFTWARE SOLUTIONS, AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

C6. ANNUAL HENNEPIN COUNTY ARMER COMMUNICATIONS SYSTEM SUBSCRIBER FEES – CF 2401

MAC uses the statewide Allied Radio Matrix for Emergency Response (ARMER) 800 MHz digital trunked radio system for both emergency and day to day operations. The system not only allows seamless radio communication among MAC departments, it also connects MAC to other metro and state public safety and emergency resources.

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The agreement for this service with Hennepin County calls for MAC to pay prorated administration rates per radio per year at a cost that is included in the approved operating budget.

This is a request to approve payment of the annual maintenance and support costs provided by agreement with Hennepin County for the MAC’s 800 MHz digital trunked radio system.

COMMISSIONER GEISLER MOVED AND COMMISSIONER MONACO SECONDED TO RECOMMEND TO THE FULL COMMISSION THAT STAFF BE AUTHORIZED TO EXPEND $122,684.40 FOR THE ANNUAL HENNEPIN COUNTY ARMER RADIO SUBSCRIBER FEES, AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

C7. ON-AIRPORT RENTAL AUTO CONCESSION REQUEST FOR BIDS – CF 2402

Karen Racek, Assistant Manager Airside Leasing & Tenant Relations, provided an overview of this item. Staff is requesting authority to issue a Request for Bids (“RFB”) to operate an on-airport rental auto concession at Terminal 1-Lindbergh and Terminal 2-Humphrey.

Presently MSP has nine on-airport rental auto company brands: Hertz, Dollar, Thrifty, Advantage, Avis, Budget, Enterprise, National, and Alamo. MSP is also served by three off-airport company brands: Ace, Payless, and Economy. Staff believes that four concessions are most advantageous to MAC to maximize operational and layout efficiencies.

By opening a bid process, MAC can provide any company wishing to serve the on-airport rental auto market the opportunity to bid for one of four on-on-airport concessions. Bidders will need to meet the requirements set forth in the RFB.

In response to questions from Commissioners, Ms. Racek explained that at MSP there are currently three parent companies operating nine brands. Those companies are paying the 10% concession fee since they are all performing above their current minimum annual guarantee (MAG). The $4M MAG amounts for three of the available positions in the RFB is based on the lowest amount the three companies paid in 2012; the $300K MAG for the new entrant company is based off of estimated rents from the current off-airport company. Facilities provided by MAC are comparable but space allocation will be sized according to each operator’s bid share and may be adjusted by MAC to ensure operational efficiencies of the facility.

When asked if travelers are renting from off-airport car rental operators for reduced rates more than from on-airport operators, Ms. Racek indicated that staff has not tracked this information.

COMMISSIONER BOIVIN MOVED AND COMMISSIONER MONACO SECONDED TO RECOMMEND TO THE FULL COMMISSION THAT STAFF BE AUTHORIZED TO ISSUE THE REQUEST FOR BIDS CONSISTENT WITH THIS MEMORANDUM FOR THE OPERATION OF AN ON-AIRPORT RENTAL AUTO CONCESSION, AND THAT THE EXECUTIVE

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DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

C8. DEVELOPMENT AND OPERATION OF A GAS/CONVENIENCE SERVICE STATION CONCESSION AT MSP REQUEST FOR PROPOSALS – CF 2403

Karen Racek, Assistant Manager Airside Leasing & Tenant Relations, outlined staff’s request to issue a Request for Proposals (RFP) for the development and operation of a gas/convenience service station concession at MSP.

Approximately one year ago, staff was approached by representatives from Holiday Stations who expressed interest in developing and operating a gas/convenience service station at MSP located at the corner of 34thAvenue South and Airport Lane.

Based upon the traffic volumes in the area and given the lack of similar facilities in a two mile radius of the Airport, staff believes a gas/convenience service station of this size and nature will generate additional revenue for MAC and will provide new services that will benefit the Airport and surrounding communities.

To accomplish this goal, MAC is seeking a qualified company that will finance, develop, construct and operate a first-class gas/convenience service station (“Station”). This Station will be built to meet or exceed MAC construction standards. MAC will not bear any costs in the site preparation or development of the Station.

Proposals will need to meet requirements set forth in the RFP, and will be evaluated according to criteria identified in the memorandum.

In response to questions from Commissioners, Ms. Racek described the proposed location for this concession.

COMMISSIONER GEISLER MOVED AND COMMISSIONER PEILEN SECONDED TO RECOMMEND TO THE FULL COMMISSION THAT STAFF BE AUTHORIZED TO ISSUE A REQUEST FOR PROPOSALS CONSISTENT WITH THIS MEMORANDUM FOR THE DEVELOPMENT, CONSTRUCTION AND OPERATION OF A GAS/CONVENIENCE SERVICE FACILITY AND THAT THE EXECUTIVE DIRECTOR/CEO OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

C9. UPDATE ON SEQUESTRATION IMPACTS TO AIR TRAFFIC CONTROL TOWERS – CF - 2404

Gary Schmidt, Director of Reliever Airports, briefed the Committee on the latest developments on the FAA proposed ANE air traffic control tower closure. The closure date has been confirmed for May 5th and staff is making preparations. Equipment is being checked and set up; coordination with the FAA and local jurisdictions is taking place; and information is being disseminated to pilots through safety seminars or direct mailings. There are continued efforts across the country to get Congressional support for continued funding of the Federal Contract Tower program. Some airports have

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petitioned the courts to get an order to stay the FAA’s closure of the contract towers. The U.S. Contract Tower Association, of which MAC is a member, has hired a legal firm and is evaluating whether they will become a petitioner or an intervenor on another petition. Local funding for the continued operation of the tower has been reviewed but is cost prohibitive. Standard FAA operating and safety procedures will be in place consistent with other non-towered airports across the country.

Mr. Frank Lorenz, Hulke & Gheer, addressed the Commission with his questions regarding funding for Reliever airports operated by the MAC. Mr. Schmidt responded by describing MAC’s safety procedures to handle contract towers.

C10. ANNUAL I.S. DEPARTMENT UPDATE - 2405

The Committee deferred this item to an upcoming meeting.