Metropolitan Airports Commission · Metropolitan Airports Commission ... 33802 PS EMC: Mechanical ... 33833 PS Metro Transit Bus Maintenance Facility UST/AST Removals $6,150

Metropolitan Airports Commission

Management and Operations Committee

Regular Monthly Meeting Agenda

Wednesday, April 07, 2010

1:00 pm

www.mspairport.com

SEE ATTACHED INFORMATION REGARDING SECURITY CHECKPOINTINFORMATION

MANAGEMENT AND OPERATIONS COMMITTEEMike Landy, ChairAndy Westerberg, Vice ChairPat HarrisJack Lanners, Commission ChairBert McKasy, FD&E ChairDon MonacoPaul RehkampSherry StenersonDaniel Boivin, HR&AA Chair

METROPOLITAN AIRPORTS COMMISSIONNOTICE OF REGULAR MEETING

MANAGEMENT & OPERATIONS COMMITTEE

Wednesday, April 7, 2010 1:00 p.m.Room 3048A, Lindbergh Terminal

Wold-Chamberlain FieldMinneapolis-St. Paul International Airport

AGENDA

OPEN FORUM

The open forum is a portion of the Commission meeting where persons will be allowed to address theCommission on subjects which are not a part of the meeting agenda. Speakers are asked to limit theirremarks to two minutes each. Persons wishing to speak must complete a sign-up card prior to the start ofthe meeting. The sign-up card should be given to any staff person. The Commission may take action orreply at the time of the statement of may give direction to staff at the end of the meeting regardinginvestigation of the concerns expressed.

CONSENT1. PROFESSIONAL SERVICE AUTHORIZATIONS (PSA) QUARTERLY REPORT

Thomas W. Anderson – General CounselDennis Probst – Deputy Executive Director, Planning & EnvironmentSteve Busch – Deputy Executive Director Finance & Administrative Services

2. RECOMMENDATION FOR AWARD OF THE AIRFIELD LOGGING AND INSPECTIONSYSTEM CONTRACTJohn Ostrom - Manager, Airside Operations

3. AIRSIDE COMMERCIAL SERVICES LICENSE FEE REQUEST..………………………………..Brian J. Peters, Manager, Commercial Management & Airline Affairs

DISCUSSION – ACTION

4. REQUEST APPROVAL TO AWARD SECURED ACCESS CONTRACTDave Ruch – Director, Information ServicesSteve Wareham, Director of MSP OperationsCommander Mike Everson – APD Security Division

5. REQUEST APPROVAL TO EXPAND FACILITY MONITORING SYSTEM TO INCLUDEFLIGHT INFORMATION DISPLAYSDave Ruch – Director, Information Services

6. RECOMMENDATION FOR AWARD OF ELEVATOR, ESCALATOR, MOVING WALK ANDTRAM CONSULTANT SERVICES CONTRACTPhil Burke, Assistant Director of MSP Operations/Facilities

7. REQUEST AUTHORIZATION TO NEGOTIATE A THREE YEAR LEASE WITH CLEARCHANNEL FOR OUTDOOR ADVERTISING CONCESSIONBruce Rineer - Assistant Manager Concessions and Business DevelopmentJennifer Prihoda, Properties & Projects Administrator, Commercial Management & Airline Affairs

DISCUSSION – INFORMATION

8. PUBLIC MEETING PROCESS FOR RELIEVER AIRPORTS LEASES AND ORDINANCELANGUAGE CHANGESGary Schmidt - Director of Reliever Airports

9. HANGAR REDEVELOPMENTS AT FLYING CLOUDGary Schmidt - Director of Reliever Airports

10.STATE AND FEDERAL LEGISLATIVE UPDATEMitchell Kilian, Director of Governmental Affairs

Materials for this meeting are available at the following website:http://www.metroairports.org/mac/meetings/default.aspx

http://www.metroairports.org/mac/meetings/default.aspx

SECURITY CHECKPOINT INFORMATION

Stop by the information booth near the tram station on the Tram Level. At the informationbooth, you will be asked to complete a security checkpoint access form and show valid,government-issued photo identification, such as a driver’s license. Take your completed accessform with you up two floors, to the Ticketing Level security checkpoints. Show your approvedaccess form to security checkpoint personnel. You will then be screened just as if you weretraveling. Access forms are only valid for the purpose of attending a public MAC meeting at aparticular date and time.

Commission Chambers are located on the Mezzanine Level overlooking the airport’s centralshopping area (above Chili’s Restaurant), past the main security checkpoints.

Allow yourself at least 30 minutes to park, complete the access form and get through thesecurity checkpoint prior to the meeting.

Parking in the following areas will be validated; please bring your parking ticket to themeeting.

Directions to the Tram Level Information Booth

From short-term parking: At the Lindbergh Terminal entrance, take the escalator or elevatordown to Tram Level. The information booth is straight ahead, in the center of the room.

From general parking: If you park in the Blue or Red ramps, take the elevator down to thetram, which will transport you directly to the Lindbergh Terminal’s Tram Level. When you exitthe tram, the information booth is straight ahead, in the center of the room. If you park in theGreen or Gold ramps, take the skyway to the Lindbergh Terminal’s Mezzanine Level. Fromthere, take an elevator or escalator to Tram Level. The information booth is straight ahead, inthe center of the room.

MEMORANDUM ITEM 1

TO: Management & Operations Committee

FROM: Thomas W. Anderson, General Counsel (726.8178)Dennis Probst, Deputy Executive Director – Planning & Environment(726.8187)Steve Busch, Deputy Executive Director/Finance & AdministrativeServices (726.8148)

SUBJECT: PROFESSIONAL SERVICE AUTHORIZATIONS (PSA) QUARTERLYREPORT

DATE: March 26, 2010

In February 2003 the Commission adopted a two-part updated version of the Commission’sConsultant Use and Selection Policy. In the Use, Monitoring and Payment of ProfessionalConsultants section of the updated policy, it states that on a quarterly basis, reports will beprovided to the Commission on all new, adjusted or closed Professional ServiceAuthorizations (PSAs). For the first quarter (January, February, March) of 2010, thefollowing are provided:

Attachment 1 Operating Budget issued PSAsAttachment 2 Capital Improvement Program (CIP) issued PSAsAttachment 3 Adjustments to existing Operating Budget & CIP PSAs

The reports will be updated on a regular basis and submitted to the Commission on aquarterly basis. The next reports are to be presented in July 2010 for any PSAs issued,adjusted or closed in the next quarter.

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

Metropolitan Airports Commission (MAC)Professional Services Authorization (PSA) Report

PSAs issued in the 1st Quarter of 2010 - Operating Budget:

MAC Professional Service PSA Project Description AmountDivision Firm/Consultant Number Authorized

Admin. Tom Dooley 33748 PS 2010 CSAC Survey Assistance $1,200

Services - Karen Gress 33749 PS 2010 CSAC Survey Assistance $1,700

Finance Don Hassentab 33750 PS 2010 CSAC Survey Assistance $1,200

Marion Sauber 33751 PS 2010 CSAC Survey Assistance $600

Ron Tadsen 33752 PS 2010 CSAC Survey Assistance $1,600

Sandaley Group, LLC 33753 PS 2010 Energy Advisory Services $30,000

Faith Group, LLC 33759 PS IS Department: On-Site Staff Support Services $65,000

O'Connor & Walter 33826 PS 2009 CAFR Cover Design Services $3,450

Technology Management Corporation 33827 PS Strategic Technology Study $49,375

Aon Consulting, Inc. 33828 PS 2010 Insurance/Medical Consulting Services $48,000

FishNet Security 33835 PS IS Network Security Services $13,500

CMAA InterVISTAS-ga2 Consulting, Inc. 33804 PS Materials Presentation Preparation - Targeted Airlines $140,000

Jacobs Consultancy 33839 PS Rental Car Concessions Assistance $30,000

Human Health Activation Services/Airport Clinic 33778 PS Physicals/Emergency Services $18,000

Resources

Labor Faegre & Benson 33829 PS 2010 Legislative Assistance $39,000

Relations & McGrann Shea Anderson Carnival 33830 PS 2010 Legislative Assistance $48,000

Govt. Affairs Spiegel & McDiarmid 33831 PS 2010 Civil Aviation Issues/Legislative Assistance $165,000

Legal Bloomberg & Podpeskar, LLP 33723 PS 2010 Legal Services - Environmental Issues $40,000

Affairs Briggs & Morgan 33724 PS Legal Services $75,000

The Environmental Law Group 33725 PS Legal Services - Environmental & Interstate Cos. v MAC $175,000

Faegre & Benson 33726 PS Legal Services - General Lit., Real Estate, Leasing, etc. $75,000

Fafinski Mark & Johnson 33731 PS Legal Services - Bankruptcy, etc. $25,000

Greene & Espel 33732 PS Legal Services - Litigation, Personnel, Data Practices, etc. $225,000

Jardine, Logan & O'Brien 33733 PS Legal Services - General $20,000

Littler & Mendelson. PC 33734 PS Legal Services - EEO, Human Rights, Taxi Cab Lit., etc. $100,000

McGrann Shea 33735 PS Legal Services - General $50,000

Oppenheimer Wolff & Donnelly, LLP 33736 PS Legal Services - General Litigation Issues $150,000

Schnader Harrison Segal & Lewis 33737 PS Legal Services - General, Bankruptcy, etc. $20,000

James Sellmer & Associates 33738 PS Legal Services - General $20,000

Spiegel & McDiarmid 33739 PS Legal Services - Federal & State Regulatory Issues $50,000

Thomsen & Nybeck 33740 PS Legal Services - Non-Felony Cases $100,000

33741 PS Legal Services - DWI Cases $10,000

PSAs issued in the 1st Quarter of 2010 - Operating Budget (continued):

Operations Sim-Vis, Inc. 33743 PS Driver Training Simulator Upgrade Assistance $7,000

Computer Access, LLC 33760 PS Data Base Assistance $4,000

Hantho Farms LLC 33762 PS 2010 Landscape Consulting Services $20,000

USDA-APHIS Wildlife Services 33763 PS 2010 Wildlife Management Services - All Airports $125,000

Greg Dyrhaug 33779 PS Preventive Maintenance Procedures $45,000

Field Environmental Consulting, Inc. 33780 PS Asbestos Surveys - MSP Campus $10,000

Inspec, Inc. 33781 PS Roof Management Engineering Services $15,000

Michaud Cooley Erickson 33782 PS 2010 Electrical Engineering Consulting Services $40,000

33802 PS EMC: Mechanical Engineering Services $42,163

VDA (formerly Van Deusen & Assoc.) 33783 PS Tram Consulting Services $50,000

33784 PS Elevator-Escalator-Moving Walk Consulting Services $77,500

Janet Ballard/Caliber Kennels 33785 PS APD - 2010 EOD Canine Training Services $49,900

Inver Grove Animal Hospital 33761 PS Canine Health Services $16,000

Third Wave Partnership LLC 33832 PS Police/Fire Technology Services $35,000

Planning & HNTB 33794 PS 2010: MAC Airports Misc. (Small) Planning Assignments $30,000

Environment 33840 PS 2009 Legislative Report Assistance: MSP & Relievers $6,970

Liesch Associates 33757 PS 30R Groundwater Investigation $33,900

33805 PS 2009 Annual Soil Management Report (SMR) $13,100

33814 PS 2009 Naval Air Reserve Center (NARC) 2010 ERP Mon. $12,500

33815 PS 2010 Air Emissions Inventory - Misc. Air Quality Issues $6,500

33816 PS 2010 Groundwater Issues $5,000

33817 PS 2010 USTs/Fuel Spills & Impacted Soils $20,000

33818 PS 2010 General Environmental Issues & Investigations $20,000

33819 PS 2010 Comprehensive Grdwtr Mon./Well Network Mon. $54,200

33820 PS 2010 NPDES Permit Compliance $484,000

33821 PS 2010 MSP Glycol Operations $283,000

33833 PS Metro Transit Bus Maintenance Facility UST/AST Removals $6,150

MIdwave Corporation 33834 PS Environment:NetApp Health Check-NDU Data OnTap Upgrade $2,100

SEH/Short Elliott Hendrickson 33813 PS 2010 General Engineering Services - Reliever Airports $20,000

TKDA 33796 PS 2010 Glycol Recovery Program $100,000

33806 PS 2010 General Engineering Services - MSP $55,000

33807 PS 2010 Airport Layout Plan (ALP) Revisions - MSP $20,000

33808 PS 2010 Operational and Instructional Manuals $12,000

33809 PS 2010 Future Construction Program $35,000

33810 PS 2010 Record Drawings Revisions $25,000

Wenck 33754 PS MSP Mandatory Greenhouse Gas (GHG) Reporting Support $9,753

33755 PS MSP 2010 Air Emissions Inventory & Reporting $9,355

33756 PS MSP Voluntary Greenhouse Gas (GHG) Reporting Support $7,553

33786 PS MSP & Relievers: 2010 General Consulting Services $20,000

33787 PS Relievers: Detailed Surface Water Management Maps $9,201

PSAs issued in the 1st Quarter of 2010 - Operating Budget (continued):

Public Alive Promo, Inc. 33764 PS Project Management Services: Programming $25,000

Information Sonja Anderson 33765 PS Graphic Design Services $7,500

Terry Anderson Photography 33766 PS Marketing Photography Services $25,000

August Ash, Inc. 33767 PS MSP Airport Website - Consulting Services $5,000

BestMark, Inc. 33768 PS Mystery Shopping Services $49,000

Capps Companies 33769 PS Marketing Services $49,900

Maureen Cuthbert Design 33770 PS Graphic Design Services: Website, Brochures, Etc. $5,000

deZinnia, Inc. 33771 PS Project Management Tracking: Phase I - Assessment $6,000

Genevieve Haudricourt 33772 PS Video Editing Services $2,000

Suzanne Moriarity 33773 PS Copy Writing Services $10,000

Padilla Speer Beardsley 33774 PS 2010 Public Relations Support Services $505,000

Pit Productions 33775 PS Marketing Materials Design $25,000

Leah Rolley Marketing Services 33776 PS Coordinate Marketing Publication Development $10,000

Schuna Group 33777 PS Campus & Facility Mapping Services for Website & Guides $25,000

Reliever SEH/Short Elliott Hendrickson 33811 PS ANE: Threatened & Endangered (T&E) Site Monitoring $9,800

Airports 33812 PS ANE: Ham Lake Wetland Bank/Mitigation Site Monitoring $11,900

The Valuation Group 33836 PS ANE: Market Rental Rate Appraisal - Athletic Fields $4,250

Total: $4,402,820

PSAs issued in the 1st Quarter of 2010 - Capital Improvement Program:

MAC Professional Service PSA Project Description AmountDivision Firm/Consultant Number Authorized

Legal Faegre & Benson 33727 PS Legal Services - Admin. & Planning: Land Use & Acquisition $7,500

Affairs 33728 PS Legal Services - Acquisition: Kelly-Lounsbury Property $10,000

33729 PS Legal Services - MOAC Land Holdings LLC v. MAC $20,000

33730 PS Legal Services - Reuse of Metro Office Park $10,000

Planning & Architectural Alliance 33822 PS Design: Tug Drive Floor Waterproofing Replace - Ph. 4 $262,000

Environment 33788 PS Construction: Open Arch. Bldg. Auto. (OABA) - Ph. 2 $138,000

CEE/Center for Energy and Environment 33803 PS Noise Construction: Phase 2A (AC + $4K) $1,747,805

Noise Construction: Phase 2B (No AC & $14K) $1,819,260

Noise Reimbursements: Phase 3 $72,745

Kimley-Horn and Associates, Inc. 33758 PS Preliminary: 2010 Parking Structure Rehabilitation $70,000

33838 PS Design: 2010 Parking Structure Rehabilitation $160,000

Kraus-Anderson 33747 PS Construction: Humphrey Terminal Skyway Expansion $745,596

Liesch Associates 33789 PS Environmental: Humphrey Terminal Skyway Expansion $10,200

33793 PS Environmental: Miscellaneous Mods - BP #1 - Valet Lot $4,150

Miller Dunwiddie 33791 PS Preliminary: Humphrey/T-2 Term. Gates 6 & 7 Jet Bridges $20,000

33795 PS Preliminary: FAA Building Upgrades $30,000

33746 PS Design: 2010 Humphrey Miscellaneous Projects - PO Work $30,000

33744 PS Construction: Humphrey Terminal MUFIDS Improve: Phase II $25,000

33745 PS Construction: Terminal 2 Ramp Entrance Canopy Rainleaders $22,500

33790 PS Construction: Humphrey Terminal Skyway Expansion $990,000

33837 PS Construction: Humphrey Terminal Concessions Misc. Mods $7,400

SEH/Short Elliott Hendrickson 33799 PS Design: ANE 2010 Pavement Rehab- Taxiway A $29,000

33800 PS Design: ANE Security Gate Replacement $35,500

33824 PS Design: St. Paul Airport: 2010 Airfield Joint & Crack Repair $8,100

TKDA 33797 PS Preliminary: 2010 Pavement Joint Sealing $25,000

33798 PS Preliminary: 2010 Miscellaneous Airfield Construction $25,000

33801 PS Preliminary: 2010 Airside Bituminous Construction $25,000

33823 PS Preliminary: LT Upper Level Rdwy Guardrail Support Repl. $40,000

33825 PS Preliminary: 2010 Bridge and Tunnel Safety Inspections $50,000

Total: $6,439,756

Adjustments to existing PSAs - 1st Quarter 2010 - Operating Budget:

MAC Professional Service PSA Project Description Amount Adjusted TotalDivision Firm/Consultant Number Authorized Amount Amount

Admin. The Data Recovery Guy, KKC 33721 PS Personal Computer Forensic Investigation $4,000 $2,000 $6,000

Services -

Finance

Operations Jacobs Consultancy 33479 PS Ordinance 93 Fee Evaluation $39,500 $6,000 $45,500

VDA 33485 PS Escalator-Elevator-Moving Walk Consulting Services $69,500 $10,000 $79,500

Total: $113,000 $18,000 $131,000

Adjustments to existing PSAs - 1st Quarter 2010 - Capital Improvement Program:

Planning & Architectural Alliance 33500 PS Design: LT Fire Protection System - Phase 4, Conc. C & D $890,000 $388,000 $1,278,000

Environment Kraus-Anderson 13420 PS Construction: LT Carpet Replacement Installation $76,171 $130,234 $206,405

Michaud Cooley Erickson 33670 PS Design: MAC IS Data Center Consolidation Study $125,000 $40,250 $165,250

Miller Dunwiddie Architecture 33642 PS Design: Humphrey Terminal Skyway Expansion $950,000 $280,000 $1,230,000

Total: $2,041,171 $838,484 $2,879,655

MEMORANDUM ITEM 2


FROM: John E. Ostrom – Manager – Airside Operations (726-5780)

SUBJECT: RECOMMENDATION FOR AWARD OF THE AIRFIELD LOGGINGAND INSPECTION SYSTEM CONTRACT


Minnesota Data Practices ActUnder state law, information submitted by proposers to MAC and information created ormaintained by MAC as part of the evaluation process remains not public until MAC hascompleted negotiating the contract with the selected proposer(s). The names of theproposers, however, are public once the proposals are opened. Information contained in theproposals and the Not Public Memorandum is not public and should not be disclosed toanyone other than MAC Commissioners and staff. Notwithstanding the foregoing,Commissioners may discuss the information contained in the proposal(s) or the Not PublicMemorandum at the Committee and Commission meetings to the extent reasonablynecessary to conduct the business at hand. The information contained in thismemorandum is public data.

The Federal Aviation Administration requires certificated airports to report airfield conditionsand maintain records as defined under Code of Federal Regulations FAR Part 139. Thosetasks are currently accomplished through the use of multiple hardware, software andcommunications systems. An integrated system was desired in order to improve accuracy, toexpedite condition reporting, to address record retention mandates and to utilize technology inlieu of headcount. An Airfield Logging and Inspection System was originally included in the2007 capital equipment program, however, procurement has been deferred for the past threeyears. A logging and inspection tool provides an integrated system that will retain records perFAA requirements and will automate processes, including dissemination of airfield conditionsthrough the Notices to Airmen (NOTAM) system. The system includes GIS-based airportmapping to expedite identification and correction of FAR Part 139 discrepancies. The systemalso includes coordinated electronic communication tools, with the capability to interface withthe FAA’s proposed digital NOTAM system. Funding for the system is included in the 2010capital program.

RFP PROCESS

The Metropolitan Airports Commission (MAC) issued an RFP on December 8, 2009.Proposals were due January 5, 2010. The primary goal for the RFP was to meet the followingkey goals:

1. Provide an Airfield Event Log (including, Landside, Terminal areas)2. Provide NOTAM Dissemination3. Generate Field Condition Reports4. Generate FAR Part 139 Discrepancy Reports and Airfield Work Order Lists5. Integrate internal wildlife reporting with USDA GIS report data

6. Improve data accuracy by use of detailed forms7. Point in space selection of geo-referenced objects8. Provide multiple dissemination portals for reports and data

The Review Team consisted of:Dave Ruch, Director – Information ServicesJohn Ostrom, Manager – Airside OperationsKyle Scapple, Systems Administrator – Airside OperationsCharlie Beuning, Assistant Manager – Field MaintenanceAndrea Bolstad – Facilities Administrator – Purchasing

Proposals were received from the following vendors:Landrum & BrownEagle Integrated Solutions

The Proposals were first reviewed to verify that they met the minimum functionalrequirements. The Review Team reviewed the proposals individually and then met tocollectively evaluate the proposals based on criteria established in the RFP. The criteriaconsisted of licensing, desirable integrations, warranty, maintenance and support, training andpricing. Vendor demonstrations were conducted on February 17, 2010. Following thedemonstrations the Review Team arrived at the below recommendation.

COMMITTEE ACTION REQUESTED:

THAT THE MANAGEMENT AND OPERATIONS COMMITTEE RECOMMEND TO THE FULLCOMMISSION THAT MAC STAFF BE AUTHORIZED TO NEGOTIATE A CONTRACT WITHLANDRUM & BROWN FOR THE PURCHASE OF AN AIRFIELD LOGGING ANDINSPECTION SYSTEM AND THAT THE EXECUTIVE DIRECTOR OR HIS DESIGNEE BEAUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

MEMORANDUM ITEM 3


FROM: Brian J. Peters, Manager, Commercial Management & Airline Affairs(612-726-8137)

SUBJECT: AIRSIDE COMMERCIAL SERVICES LICENSE FEE REQUEST


There are seventeen companies that provide various airside/commercial services (groundhandling, catering, aircraft maintenance, deicing, etc.) to airlines at MSP. MAC and eachcompany providing service complete a Limited Airside or Commercial Services LicenseAgreement that establishes the requirement to pay fees to operate at MSP in addition toestablishing minimum insurance, indemnification, environmental and other miscellaneousstandards for each company.

All License Agreements in this category require the operator to pay a Privilege Fee range of4.25% - 6.00% of its Gross Sales to MAC based upon the following definition:

“Gross Sales" shall mean the gross amount of payments derived from thebusiness conducted at or from or to all Airports under the operation,maintenance, direction and control of MAC, whether conducted by Licensee orany subsidiary or assignee of Licensee or other person or corporation doingbusiness with or for customers in the name of Licensee. Gross Sales shallinclude all payments for products, services, or any other item whether by cashor credit, or by way of rentals or fees, less normal allowances, discounts orcredits.

It has been recently discovered that a number of the companies pass along the Privilege Feeto the airline they are providing services to without adding that amount to the gross salesreported to MAC each month. This results in an underpayment to MAC as identified in theexample below:

Because of inconsistent enforcement of the requirement for these companies to add thePrivilege Fee collected onto their Gross Sales, staff proposes the establishment of a firm datein the future to actively enforce this provision and provide appropriate notice to each companyregarding the planned enforcement. This is considered a reasonable solution as opposed toestablishing a date in the past and requiring retroactive payments. Staff believes a fair date tobegin consistently enforcing this provision is July 1, 2010 with each company receiving noticeof the planned enforcement in late April/early May.

Reported Gross Sales Privilege Fee Rate Amount Due MAC$10,000 4.25% $425.00

Total Gross Sales, including Fee$10,425 4.25% $443.06

Difference ($18.06)

COMMITTEE ACTION REQUESTED

THAT THE MANAGEMENT AND OPERATIONS COMMITTEE RECOMMEND TO THEFULL COMMISSION AUTHORIZATION TO ESTABLISH JULY 1, 2010 AS THE EFFECTIVEDATE FOR ENFORCEMENT OF THE GROSS SALES AND PRIVILEGE FEEREQUIREMENTS OF LIMITED AIRSIDE AND COMMERCIAL SERVICES LICENSEAGREEMENTS AS OUTLINED BY THIS MEMORANDUM AND THAT THE EXECUTIVEDIRECTOR OR HIS DESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARYDOCUMENTS.

MEMORANDUM ITEM 4


FROM: Dave Ruch – IS Director (612-726-8168)Steve Wareham – Director of MSP Operations (612-726-5519)Commander Mike Everson – APD Security Division (612 726-5007)

SUBJECT: REQUEST APPROVAL TO AWARD SECURED ACCESS CONTRACT


For 19 years Premier Electrical Corporation has provided 24/7 service, maintenance,planning and coordination necessary to maintain the Secured Area Access Control System(SAACS) at MSP. Secured card access, including its related security components at MSP isa huge program involving many MAC departments, tenants and agencies, including theTransportation Security Administration (TSA). The purpose of this memorandum is torecommend single source approval for Premier Electrical Corporation to continue providingthese support services.

MAC staff recommends single source approval due to the knowledge and experiencerequired, the uniqueness of the services provided and the importance of maintaininguninterrupted secured access at MSP.

The specific work scope requires that the provider:� Work closely with the Airport Badging Department to configure, maintain and

support the SAACS components related to the badging process.� Work closely with MAC Emergency Communications Center (ECC) to identify

and repair problems, including modifications of Honeywell ProWatch Softwareconfiguration. (The MAC’s Secured Access Control System.)

� Work closely with MAC Police Department (Aviation Security Division) to identifyand resolve problems and issues, and, specifically, to assist the PoliceDepartment in modifications, additions and changes to the Secured AccessControl System to comply with TSA regulatory requirements.

� Work closely with the MAC Electrical Department to keep the power supply andsystems operational, including planning for emergency and scheduled poweroutages.

� Work closely with MAC Airport Development and MAC Information Services (IS)and their construction managers, general contractors, sub-contractors,architects, engineers and designers to plan and coordinate current and futureconstruction projects. The Secured Area Access Control System (SAACS),Closed Circuit Television (CCTV), Call For Assistance (CFA) and Fire AlarmSystem are among the systems typically impacted by the modifications of MACprojects.

� Identify problems, review specifications and drawings, inspect and testinstallations, and track warranty and spare parts.

� Work with Customs and Border Protection (CBP), TSA, MAC IS, Trades,Facilities, Fire Department, Maintenance, MAC GO, Airside Operations, and

Landside Operations to provide assistance on security and other systems asauthorized by the Police Department Aviation Security Division.

Knowledge and Experience required:� Master electrician trained and certified by security system vendor(s) (currently

Honeywell Prowatch).� Experience maintaining complex security systems at large campus secure

facilities.� Training and experience with fiber optic cable planning, troubleshooting,

installation and repair.� Detailed knowledge of MAC security system as it is currently installed at MSP.� Detailed knowledge of current wiring, conduit, electrical and physical

infrastructure and how all MAC systems interface and co-exist with the cardaccess system including HVAC, Fire alarms and monitoring of MAC data andtelecommunications.

� Ability to be trusted with proprietary and protected information regarding airportsecurity equipment including its operation, functionality, locations of data andsystem storage.

� Experience installing, troubleshooting and repairing security deviceswhichcontrol doors, field gates, and other means of entry/egress for people andvehicles.

� Experience troubleshooting and repairing related security components whichinterface with the card access system such as CCTV, badging equipment, CFAphone systems, duress alarms and physical door hardware.

� Experience with B&B Electromatic and Hy Security gate operator programmingconfiguration and operation.

� Experience in Aaid® automatic vehicle identification tamper detectible radiofrequency tagging system and Police, Fire, and Maintenance vehicles.

� Ability to provide recommendations to MAC staff in the development of biddocuments and Request for Proposals (RFP) criteria for the evaluation of newsystems and system components.

� Commitment to the security of MSP and the safety of the traveling public.

Pricing:The current, hourly rates are shown below and are adjusted each May according to theInternational Brotherhood of Electrical Workers (IBEW) contract.

Straight Time Rate $92.81Overtime Rate $127.49Double-time Rate $162.16


THAT THE MANAGEMENT AND OPERATIONS COMMITTEE RECOMMEND TO THEFULL COMMISSION APPROVAL OF A SINGLE SOURCE THREE YEAR CONTRACTWITH ONE, TWO YEAR RENEWAL OPTION, AT THE DISCRETION OF THE AIRPORTEXECUTIVE DIRECTOR, WITH PREMIER ELECTRICAL CORPORATION TO PROVIDESECURITY SYSTEM SERVICES AND THAT THE EXECUTIVE DIRECTOR OR HISDESIGNEE BE AUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

MEMORANDUM ITEM 5


FROM: Dave Ruch, Director, Information Systems (726-8168)

SUBJECT: REQUEST APPROVAL TO EXPAND FACILITY MONITORING SYSTEMTO INCLUDE FLIGHT INFORMATION DISPLAYS

DATE: February 17, 2010

The Commission approved the MUFIDS Phase 2 project, which will install four hundred newLCD monitors through-out the entire airport. As a part of the Multi-User Flight InformationSystem Project (MUFIDS) project, MAC staff has negotiated a Service Level Memorandum ofUnderstanding with Delta Airlines laying out support and service response expectations inresponding to issues and problems with the system.

The MUFIDS system (made up of 400 LCDs, 300 PCs and 50 network switches) will have apresence in over 125 locations in both terminals, in parking ramps, and at the tops of the LRTstations. To assist with the management and monitoring of this system, and to help meet ourservice response expectations, we plan to use MAC’s existing Facility Monitoring (FM) System.This system monitors the operational status of our elevators, escalators, moving walkways,doors, generators, bag carousels, as well as many other pieces of equipment.

The MAC went through an RFP process for vendor support of the Facility Monitoring system in2009, and the Commission awarded a multi-year contract to Industrial Automation Engineering(IAE). This contract included supporting the system on a daily basis as well as adding newcapabilities to the FM system, such as MUFIDS. The agreement stated that the cost of newcapabilities to the extent of a MUFIDS effort would be determined separate from the cost ofdaily support.

MAC staff, working with IAE staff, put together a plan and proposal for building into the FMsystem the features necessary to manage and monitor the MUFIDS system. This plan includesthe programming and licenses necessary to do the work. The costs include:

IAE Custom Design, Programming, Testing and Implementation $120,000WonderWare Midwest Software Licenses $ 33,000Total $153.000

Funding for this project will come from the approved budget for the MUFIDS Phase II CapitalImprovement Project.

COMMISSION ACTION REQUESTED:

THAT THE MANAGEMENT AND OPERATIONS COMMITTEE RECOMMEND TO THE FULLCOMMISSION:

1. THAT THE INFORMATION SERVICES DEPARTMENT BE AUTHORIZED TO ENTERINTO AN AGREEMENT WITH INDUSTRIAL AUTOMATION ENGINEERING TOPROVIDE THE CUSTOM DESIGN, PROGRAMMING, TESTING, ANDIMPLEMENTATION OF BUILDING INTO THE FM SYSTEM MUFIDS MANAGEMENTAND MONITORING CAPABILITIES FOR A COST NOT TO EXCEED $120,000, AND

2. THAT THE INFORMATION SERVICES DEPARTMENT BE AUTHORIZED TOPURCHASE THE NECESSARY SOFTWARE LICENSES FROM WONDERWAREMIDWEST NECESSARY TO SUPPORT MUFIDS WITH THE FM SYSTEM FOR ACOST NOT TO EXCEED $33,000, AND

3. THAT THE EXECUTIVE DIRECTOR OR HIS DESIGNEE BE AUTHORIZED TOEXECUTE THE NECESSARY DOCUMENTS.

MEMORANDUM ITEM 6


FROM: Phil Burke, Assistant Director of MSP Operations/Facilities (612-726-5525)

SUBJECT: RECOMMENDATION FOR AWARD OF ELEVATOR, ESCALATOR,MOVING WALK AND TRAM CONSULTANT SERVICES CONTRACT


On January 19, 2010, the Commission authorized staff to issue a Request for Proposals (RFP)for elevator, escalator, moving walk and tram consultant services at MSP. On February 4,2010, a pre-proposal conference was conducted for interested parties. Six (6) companiesattended. On March 9, 2010, proposals were received from Logplan, Lerch Bates and VanDeusen & Associates.

Summary of Recommendation

This public memo will address (a) the Minnesota Data Practices Act, (b) the RFP requirements,(c) the Review Team evaluation process, and (d) the award recommendation.

Minnesota Data Practices Act

Under state law, information submitted by Proposers to the MAC remains private (non-public)until MAC has completed negotiating the contract with the selected Proposer. The names ofthe Proposers are public once the proposals are opened. Commissioners may discuss theinformation submitted in the proposals at the Committee and Commission meetings to theextent reasonably necessary to conduct the business at hand. However, discussions outsidethese public meetings may not include any of the information submitted in the proposals. Theinformation contained in this memo is public data.

I. BACKGROUND

The Metropolitan Airports Commission (MAC) oversees all aspects of maintenance, repair andday-to-day operation of 187 elevators, escalators and moving walks and two automated peoplemover (APM) systems on the MSP campus. This includes all systems at both terminals exceptfor those on the “G” Concourse. Given the volume of traffic traveling through the terminals,layout of MSP facilities, the airport’s high visibility as a transportation center, and the risk ofequipment failures contributing to missed flights, proper operation of all vertical and horizontaltransportation equipment is critical to MSP’s overall operation.

To facilitate the required level of service, the MAC incorporates performance-basedmaintenance and operating agreements with contractors from the vertical and horizontaltransportation industry (currently Schindler for elevators, escalators and moving walks, andSchwager-Davis for APMs). Verifying contractor compliance with the MAC maintenanceagreement is essential to meeting expectations for a high level of service.

Specialized training, experience, licensing and certification is required to conduct the equipmentevaluations, inspections and testing necessary to verify compliance with the contract terms.Because the specialized skills cannot be attained outside of the operational field of expertise,MAC has contracted these inspection services and other oversight tasks since 1998.

II. MINIMUM REQUIREMENTS

To submit a proposal, proposers must have met the following MinimumRequirements, as set forth in the RFP:

A. Proposer must have a minimum of five years experience providing consultingservices on elevators, escalators and moving walk systems.

B. Proposer must have a minimum of three years experience providing consultingservices on APM systems.

C. Proposer’s staff must meet American Society of Mechanical Engineer (ASME)requirements for Qualified Elevator Inspector (QEI) certified elevator inspectors.(Note that MSP’s tram system is permitted under Minnesota’s elevator code as“inclined elevators.”)

D. Proposer must guarantee to have a person on the job site within one hour fromthe time of first call for an emergency.

III. KEY BUSINESS TERMS

A. The term of the agreement is for three years, with one, three-year renewal optionupon agreement of both parties.

B. Proposers must provide an estimated annual cost to provide the requestedservices. Proposers were also required to provide hourly labor rates.

C. Liquidated damages – Proposers must have a person on the job site within onehour of a call for emergency service or face a penalty of $250 per hour for eachhour or fraction thereof for which emergency response is delayed.

IV. EVALUATION CRITERIA

The RFP evaluation process involved a focused review by Review Team members.The following information illustrates the major elements evaluated and scored by eachReview Team member for each proposal submitted:

A. Service Approach - Proposers must describe their service plan, list anysubcontractors, demonstrate the ability to provide around-the-clock service, andany innovative methods or concepts that would be particularly beneficial to theMAC.

B. Personnel - Proposers must describe the number, tenure and titles of personnelthat would have contact with MAC. Also, proposers must indicate the number ofemployees trained and available to provide the required services along with their

years of experience in the field and their experience and training on elevators,escalators, moving walks and APM systems.

C. Related Work Experience – Proposers must include a list of clients for whom thecompany has provided services similar to those being requested.

D. Fee Structure – Proposers must provide estimated annual fees based on thescope of work listed in the RFP. Proposers must also provide fixed labor ratesfor the term of the contract.

V. REVIEW TEAM

The Review Team consisted of:

Phil Burke - Assistant Director of MSP Operations/Facilities; Rick Valentino - Facilities;Dennis Kowalke – Airport Development; Ed Podnieks – Finance. JoAnn Brown fromMAC Purchasing acted as the point of contact for the proposers.

VI. PROPOSAL REVIEW PROCESS/RESULTS

Each Review Team member reviewed the proposals individually and a meeting washeld to discuss them collectively. Based on the analysis, it is the Review Team’sunanimous recommendation that Van Dusen & Associates provide elevator, escalator,moving walk and APM consulting services at MSP for the next three years.


THAT THE MANAGEMENT AND OPERATIONS COMMITTEE RECOMMEND THAT THEFULL COMMISSION AWARD ELEVATOR, ESCALATOR, MOVING WALK AND APMCONSULTING CONTRACT TO VAN DUSEN & ASSOCIATES AND AUTHORIZE THEEXECUTIVE DIRECTOR OR A DESIGNATED REPRESENTATIVE TO EXECUTE THENECESSARY DOCUMENTS.

MEMORANDUM ITEM 7


FROM: Jennifer Prihoda, Properties and Projects Administrator, CommercialManagement and Airline Affairs (612-726-8138)Bruce Rineer, Assistant Manager, Concessions and Business Development(612-467-0511)

SUBJECT: REQUEST AUTHORIZATION TO NEGOTIATE A THREE YEAR LEASEWITH CLEAR CHANNEL FOR OUTDOOR ADVERTISING CONCESSION


I. BACKGROUND INFORMATION

At the March Management & Operations Committee meeting, staff requested severalchanges to key business terms in the Outdoor Advertising Concession Request for Bid(RFB) process that was authorized in December. At the March meeting, Clear ChannelOutdoor, Inc. (“Clear Channel”), the lease holder for the billboard locations that arecurrently out for bid, expressed interest in delaying the bid process due to the currenteconomy. Clear Channel offered to negotiate with the MAC an extension of its existingcontract until June 30, 2013. An expiration on this date would sync the expirationdates for both of MAC’s outdoor advertising contracts. CBS Outdoor currently operatesthe other concession, with six (6) billboards along 494 and Hwy 5. The M&OCommittee tabled staff’s March request and directed staff to analyze the advantagesand disadvantages of negotiating a new three (3) year contract with Clear Channel untilthe other six (6) billboards are ready to be re-bid in 2013.

II. SUMMARY OF THE REQUEST TO RENEW CLEAR CHANNEL’S OUTDOORADVERTISING AGREEMENT

The purpose of this RFB process is to raise revenue to MAC and to ensure that MAC’sconcession contracts have the most current language. Clear Channel’s offer to MAC torenew its contract included an increase to the Minimum Annual Guarantee (MAG) from$56,275 per year to $76,000 per year and an increase in the concession feepercentage from 40% to 50%.

In addition to the monetary increases offered by Clear Channel, Clear Channel hasoffered the use of three (3) billboards located within the Twin Cities area for the displayof public service messages. MAC would be responsible for designing and printing thead while Clear Channel would supply the billboard and installation. The currentAgreement with Clear Channel allows MAC to use one (1) billboard within a six (6) mileradius of the airport. The use of these three signs has an estimated value ofapproximately $158,400. The use of these additional billboards would allow MAC toreach more of the population in the Twin Cities to advertise such items as parking,terminal name changes, concessions and other items as MAC deems appropriate. Asa result of this advertising, additional revenue could be realized through increased useof parking and other concessions at the airport.

III. ANALYSIS OF REVENUE TO MAC

By re-negotiating Clear Channel’s Agreement for a term to coincide with the expirationof CBS Outdoor Agreement in June 2013, the revenue increase for combining all eight(8) existing billboard locations, plus the two (2) new locations on Highway 77, could besubstantial. Prior to 2003 there were only four (4) billboard locations along 494 andHighway 5, and they operated under three (3) separate leases. The following tableshows the revenue these four (4) billboards generated prior to 2003. In 2003, when two(2) additional billboards were added, and the six (6) boards were consolidated underone agreement, revenues increased significantly:

2000 2001 2002 2003

Number of billboards 4 4 4 6

Number of contracts 3 3 3 1

Gross revenue $514,084 $717,948 $679,582 $865,431

Rent paid to MAC $378,362 $362,142 $356,956 $1,030,000(MAG)

History indicates that the value of grouping billboards into one agreement for anoperator is more valuable than having numerous contracts with fewer billboards in eachgroup. With the anticipated re-bid of the billboards in 2013, MAC staff would be able topackage the eight (8) existing billboard locations together with two (2) new locationsalong Highway 77, thus creating a more valuable package to potential bidders. (SeeExhibit A, attached, for a map showing the billboard locations.) With improvementforecasted for the economy, the bids in 2013 could be hundreds of thousands of dollarsgreater than what MAC would receive under the current RFB. Therefore, staff isrequesting authorization to enter into a three year lease with Clear Channel to continueoperation of the two (2) existing signs adjacent to Highway 62 and 34th Avenue basedon the business terms defined in this memo.

IV. SUMMARY OF EXPENSES AND DEPRECIATION OF BILLBOARD STRUCTURE

Mr. Tom McCarver of Clear Channel estimates that construction and installation of anew billboard structure would cost roughly $200,000, varying greatly depending on thedesign, materials, etc. Clear Channel would depreciate any new boards over anindustry-standard 20 years. In addition, annual maintenance costs are estimated at$1,000-2,000 per board. The tenant would be required to pay all associated utilities.There are currently no expenses to MAC for maintenance of the billboard structures.

V. TIMING

If approved, MAC will enter into a lease renewal with Clear Channel addressing thesechanges following Commission Approval on April 19, 2010. The changes will go intoeffect July 1, 2010 and the contract will expire co-terminous with the CBS OutdoorAgreement on June 30, 2013. As the end of the Agreements approaches, MAC plans toissue a new Request for Bids which would include all eight (8) existing billboardlocations with two (2) additional locations along Highway 77 to be constructed by the Bidwinner.


THAT THE MANAGEMENT AND OPERATIONS COMMITTEE RECOMMEND TO THE FULLCOMMISSION AUTHORIZATION TO NEGOTIATE AND ENTER INTO AN OUTDOORADVERTISING CONCESSION AGREEMENT WITH CLEAR CHANNEL BASED ON TERMSAS OUTLINED ABOVE; AND THAT THE EXECUTIVE DIRECTOR OR HIS DESIGNEE BEAUTHORIZED TO EXECUTE THE NECESSARY DOCUMENTS.

EXHIBIT A – BILLBOARD LOCATIONS

MEMORANDUM ITEM 8


FROM: Gary E. Schmidt, Director of Reliever Airports (612 726-8135)

SUBJECT: PUBLIC MEETING PROCESS FOR RELIEVER AIRPORTS LEASESAND ORDINANCE LANGUAGE CHANGES


In our continuing effort to implement the recommendations of the Reliever Airports TaskForce Report we have been working on two significant projects. The first project is what werefer to as the “Aesthetics Ordinance” which is intended to stipulate the exterior maintenancerequirements and appearance of hangars and other structures on the Reliever airports.Adoption of the ordinance requires MAC conduct a public hearing. The ordinance is in draftform and has been shared with the Reliever Airports Advisory Commission (RAAC) to gettheir feedback. Once we evaluate their recommendations we will put the ordinance in a finaldraft form and introduce it to all tenants in one or more public meetings prior to the publichearing. We anticipate the ordinance will be ready for a public hearing in July.

The second project is a rewrite of the Reliever Airports Lease Policies Rules & Regulationsand the corresponding lease forms. Both documents are currently in a draft form awaitingreview and comment by the Reliever Airports Advisory Commission. The draft policies andforms will also be presented to all tenants at a future public meeting. Following the publicmeeting MAC staff will evaluate the comments received and make the appropriate changes.The documents will then be forwarded to the M&O Committee seeking the committee’sendorsement to the full Commission for approval of the policies and forms. We expect tocomplete this project in August.

THIS IS AN INFORMATIONAL ITEM ONLY. NO COMMITTEE ACTION IS REQUIRED.

MEMORANDUM ITEM 9


FROM: Gary E. Schmidt, Director of Reliever Airports (612 726-8135)

SUBJECT: HANGAR REDEVELOPMENTS AT FLYING CLOUD


Each of the Reliever Airports, excluding the Airlake Airport, is in excess of sixty years old. Insome areas of these airports the remaining hangars are nearly as old as the airport itself.Many of these hangars were constructed as cheaply as possible with no heat, no electricity,and more often than not with dirt floors. Many have received minimal maintenance over theyears and are the prime target of the upcoming aesthetics ordinance.

Three of the oldest multi unit hangars on the north side of the Flying Cloud Airport wererecently sold. Each was a hangar that was considered structurally sound, but appeareddilapidated. The new tenants were allowed to raze the old structure and subdivide the spaceinto individual leaseholds. The tenants were then issued a new ten year lease for the lotsupon which they were constructing a hangar for their own use. The tenants were also issuedfive year, non-transferrable, non-renewable leases on the remaining parcels within theiroriginal lease, which they could market to other prospective tenants. Upon the sale of theseparcels, the buyer pays MAC a “Facility Acquisition Fee” of $1.09 per square foot of leasedarea. In return the buyer is issued a new ten year standard lease directly with MAC. If theexcess lots were not sold by the original tenant, the lease terminates and the property revertsto the MAC. So far all of the lots have sold within the first year. There are now nine newhangars where three unsightly ones recently stood.

THIS IS AN INFORMATIONAL ITEM ONLY. NO COMMITTEE ACTION IS REQUIRED.

MEMORANDUM ITEM 10A


FROM: Mitchell P. Kilian, Director of Governmental Affairs (612-794-9176)

SUBJECT: STATE LEGISLATIVE UPDATE


Attached is the March 26, 2010, state legislative tracking list.

Please note that we have only carried forward bills from 2009 which have had activity thisyear.


METROPOLITAN AIRPORTS COMMISSION

2009-2010 SESSIONTRACKING LIST

BILL INTRODUCTIONS AND STATUS REPORT

Current as of 3/26/2010For Legislation and Bill Status: http://www.leg.state.mn.usor simply press CTRL + CLICK on Bill Number for automatic link

2009 REGULAR SESSION BILLS

BILL SUMMARY-TITLE DESCRIPTION SF NUMBER/AUTHORCOMMITTEE/STATUS

HF NUMBER/AUTHORCOMMITTEE/STATUS

1.STATE LOTTERY DIRECTOR AUTHORIZED TO OPERATESLOT MACHINES AT THE MINNEAPOLIS-ST. PAULINTERNATIONAL AIRPORTRequires the State Lottery to lease a facility in a terminal at theMinneapolis-St. Paul International Airport to operate slot machines.Limits admission to persons with current airline tickets (landed ordeparting within 12 hours).

Note: The language of this bill was included in the original versionof the 2009 Omnibus State Government Finance bill. However,this provision was deleted from the 2009 bill in the StateGovernment Finance Division of the House Finance Committeebefore the bill was formally introduced as a committee bill.

2010 Note: This bill was given an informational hearing inHouse Commerce and Labor Committee on 2/25/10.

HF 2354 - Kahn4/29/09 – Introduction and first reading,referred to Commerce and Labor2/25/10 - Informational hearing in HouseCommerce and Labor

2.REPEAL TRANSFER OF $15,000,000 FROM STATE AIRPORTSFUNDRelating to the financing of state government; requiring thecommissioner of finance to transfer money from the general fundto the state airports fund; repealing a prior airports fundappropriation reduction.

Note: Although this bill did not pass, language was included in the2009 Omnibus Transportation Finance Bill that would restore thesefunds if possible after a number of other priorities.

2010 Note: This bill was heard in House TransportationFinance and Policy Division on 2/25/10. Amendment HO123A1was adopted and the bill, as amended, was laid over forpossible inclusion in a Transportation Omnibus bill.

SF 179 – Jungbauer1/22/09 – Introduction and first reading, referred toFinance

HF 123 - Dill1/15/09 – Introduction and first reading,referred to Finance1/15/09 – Referred by Chair to TransportationFinance and Policy Division1/22/09 – Author added – Reinert

http://www.leg.state.mn.us/



3.ADMINISTRATION DEPARTMENT – AGENCY SERVICESPRIVATIZATION REVIEWSRequiring Commissioner of Administration to review and determineprivatization potential of government programs and activities andinappropriate competition with private enterprise and requiring theCommissioner to prepare a comprehensive statewide database ofall state-owned assets, requiring a legislative report onprivatization potential and evaluation criteria development,requiring the report to apply evaluation criteria to a privatizationreview of the Metropolitan Airports Commission and the statelottery.

Note: See item #16 below in the 2010 regular session billsSF 3223 / HF 1671.

SF 1291 – Michel3/9/09 – Introduction and first reading, referred to Stateand Local Government Operations and Oversight

HF 1486 - Brod3/9/09 – Introduction and first reading, referredto State and Local Government OperationsReform, Technology and Elections

4.EMINENT DOMAIN – REMOVE PUBLIC SERVICE CORP.EXEMPTIONSRemoves eminent domain exceptions for public servicecorporations, allowing discharge of easements acquired bycondemnation that are not being used, and applying provisionsrelating to appraisal and negotiation requirements, attorney fees,notice, compensation for loss of going concern, minimumcompensation, etc.

Note: This bill was amended to apply many of the provisions onlyto electric transmission lines, not organizations like MAC.However, the maximum appraisal fee provision did apply to MAC.The amended provision is included in the House 2009 version ofthe Energy Conservation and Improvements Bill HF 863 / SF 550.(See item #5 below)

Note: The final version of this bill was included in the 2009 EnergyConservation and Improvements bill that was passed by theLegislature and signed by the Governor. The language in that billmakes a change regarding eminent domain law for public servicecorporations which include MAC. Under the bill, as it applies toMAC, for purposes of an award of appraisal fees, the fees awardedmay not exceed $1,500. The law had previously provided that feesawarded may not exceed $500. (See item #5 below)

Note: The language of the 2009 version of the bill is now law.(See item #5 below)

2010 Note: The original bill was resurrected in the 2010session. The bill was amended in both the House and SenateEnergy Committees to make it applicable only to pipeline andlarge electrical transmission projects.

SF 1112 - Dahle3/2/09 – Introduction and first reading, referred toJudiciary3/19/09 – Referred to the Committee on Energy, Utilities,Technology and Communications withoutrecommendation………………………………………………….

2010:3/18/10 - Comm report: To pass as amended and re-refer to State and Local Government Operations andOversight3/22/10 – Comm rpt: To pass. Second reading.

SENATE ACTIONS:3/24/10 – Received from House. Introduction and firstreading. Referred to Rules and Administration3/25/10 – Comm report: Rule 45-amend, subst. GeneralOrders. Second reading.

HF 1182 - Bly3/2/09 – Introduction and first reading, referredto State and Local Government OperationsReform, Technology and Elections3/3/09 – Referred by Chair to LocalGovernment Division3/13/09 – Division action, to pass and return toState and Local Government OperationsReform, Technology and Elections3/25/09 – Committee report, without furtherrecommendation re-refer to Finance3/25/09 – Referred by Chair to Energy Financeand Policy Division

………………………………………………

2010:2/8/10 - Motion to recall and re-refer, motionprevailed Energy Finance and Policy Division.2/18/10 - Committee report, to pass asamended and re-refer to Civil Justice3/8/10 - Committee report, to pass asamended. Second reading.3/18/10 - House rule 1.21, placed on Calendarfor the Day3/23/10 – Amendments offered. Third reading.Bill was passed.



5.ENERGY CONSERVATION AND IMPROVEMENTS BILLRelating to energy; modifying energy-savings goals for energyconservation improvement expenditures by power companies;allowing carry forward of excess energy savings by a utility orassociation under certain conditions; requiring the legislativeenergy commission to study by a certain date the conservationimprovement program.

Note: The final version of this bill passed by the legislatureand signed by the Governor provides a change regardingeminent domain law for public service corporations whichinclude MAC. Under the bill, as it applies to MAC, forpurposes of an award of appraisal fees, the fees awarded maynot exceed $1,500 for all types of property. The law hadpreviously provided that fees awarded may not exceed $500.(See item #4 above)

Note: THIS BILL IS NOW LAW – CHAPTER 110

SF 550 – Prettner Solon2/9/09 – Introduction and first reading, referred toEnergy, Utilities, Technology and Communications3/24/09 – Laid over for inclusion in the omnibus bill3/26/09 – Amended and recommended to pass4/2/09 – General Orders: To pass as amended4/6/09 – Calendar: Third reading – passed5/4/09 – Returned from House with amendment5/4/09 – Senate not concur, CC of 5 requested

Senate Conferees:Prettner Solon; Doll; Dibble; Senjem; Sparks5/13/09 – CC rpt – delete everything5/13/09 – Motion did not prevail – reject CC rpt5/13/09 – S adopted CC rpt and re-passed bill5/13/09 – Third reading5/15/09 – H adopted SCC report and re-passed bill5/15/09 – Presentment date5/19/09 – Governor’s action Approval5/19/09 – Secretary of State – Chapter 110

HF 863 - Hilty2/16/09 - Introduction and first reading, referredto Finance2/16/09 – Referred by Chair to Energy Financeand Policy Division3/9/09 – Energy Finance and Policy Division –Laid over as amended by H0863A14/6/09 – Comm rpt: To pass as amended andre-refer to Ways and Means4/21/09 – Author added – Falk

House Actions:4/6/09 Received from Senate – first reading,referred to Finance4/7/09 – Motion to recall and re-refer, motionprevailed – Ways and Means4/16/09 – Comm repor:t to pass as amended.Second reading.4/28/09 – House rule 1.21, placed on Calendarfor the Day4/30/09 – Amended4/30/09 – Third reading as amended. Bill waspassed as amended.5/6/09 – Senate not concur, CC of 5 requested5/6/09 – House accedes, CC of 5 beappointed.

House Conferees:Hilty; Falk; Johnson; Kalin; Beard5/14/09 – Senate adopted CC rpt, bill re-passed5/14/09 – CC rpt – delete everything5/14/09 – House adopted CC rpt5/14/09 – Third reading as amended byConference. Bill was re-passed as amendedby Conference.5/15/09 – Presented to Governor

2010 REGULAR SESSION BILLS



6.THIEF RIVER FALLS REGIONAL AIRPORT HANGARAppropriates money in the amount of $825,000 for a hangar at the Thief River FallsRegional Airport; authorizes the sale and issuance of state bonds.

Note: See item #9 below for SF 2360 / HF 2700

SF 2222 - Stumpf2/4/10 – Introduction and first reading,referred to Finance

HF2474 Olin2/4/10 – Introduction and first reading,referred to Finance2/4/10 – Referred by Chair toTransportation Finance and PolicyDivision

7.DULUTH AIRPORT FUNDING NEW TERMINAL FACILITIESAppropriates money in the amount of $11,700,000 for new terminal facilities at theDuluth airport; authorizes the sale and issuance of state bonds.


SF 2174 – Bakk2/4/10 – Introduction and first reading,referred to Finance

HF 2495 Huntley2/4/10 – Introduction and first reading,referred to Finance2/4/10 – Referred by Chair toTransportation Finance and PolicyDivision

8.ST. CLOUD REGIONAL AIRPORTAppropriates money in the amount of $2,000,000 to acquire land for the St. CloudRegional Airport; authorizes the sale and issuance of state bonds.


HF 2504 Haws2/4/10 – Introduction and first reading,referred to Finance2/4/10 – Referred by Chair toTransportation Finance and PolicyDivision

9.STATE CAPITAL INVESTMENTS (OMNIBUS BONDING BILL)This is the biennial Omnibus State Bonding bill. It appropriates money for state andregional capital projects.

Note: Duluth Airport: $11,700,000 and Thief River Falls Airport: $2,097,000are in both the House and Senate Bill.

The Chisholm Hibbing Airport also receives money for design and construction ofhangers and additions $2 million in the Senate bill and $3.7 million in the House bill.

Note: Both the first and second Conference Committee reports on theOmnibus Bonding Bill included the following projects:

Duluth Airport: $11,700,000 – See item #7 aboveThief River Falls Airport: $2,097,000 – See item #6 aboveRange Regional Airport: $3,700,000

Note: THIS BILL IS NOW LAW WITH THE EXCEPTION OF LINE-ITEM VETOES:CHAPTER 189

Note: The Governor exercised his line-item veto authority and deleted the$3,700,000 for the Range Regional Airport from the bill.

SF 2360 – Langseth2/4/10 – Introduction and first reading,referred to Finance2/8/10 – Comm rpt: To pass as amended2/8/10 – Second reading2/9/10 – Special Order: Amended. Motiondid not prevail – to re-refer to committee2/9/10 – Third reading Passed2/9/10 – Laid on table2/16/10 – HF substituted by motion –HF 2700

SENATE ACTIONS:2/16/10 – Received from House.Introduction and first reading.2/16/10 – Laid on table. Taken from table.Urgency declared rules suspended.2/16/10 – Second reading. Amended.2/16/10 – Third reading Passed.2/16/10 – House not concur, conferencecommittee requested. Senate accedes,CC of 5 to be appointed.

HF 2700 – Hausman2/4/10 – Introduction and first reading,referred to Finance2/4/10 – Referred by Chair to CapitalInvestment Finance Division2/9/10 – Scheduled to be heard in CapitalInvestment Finance Division2/11/10 – Comm rpt, to pass as amendedand re-refer to Ways and Means2/12/10 – Comm rpt, to pass as amended.Second reading. House rule 1.22, noticeof intent to place on Fiscal Calendar2/15/10 – Amended. Motion to re-refer toFinance. Motion did not prevail.2/15/10 – Amended. Point of order raised,ruled well taken. Previous questionmoved. Motion prevailed.2/15/10 – Third reading as amended.Bill was passed as amended.2/16/10 – Returned from Senate withamendment.2/16/10 – House refuses to concur,conference committee of 5 requested.

http://www.thefreedictionary.com/defrayed



Senate Conferees:Langseth, Tomassoni, Pappas, Koering,Lynch2/22/10 – House adopted HCC report andrepassed bill. Conference Committeereport, delete everything.2/22/10 – Motion did not prevail – To rejectConference Committee report.2/22/10 – Senate adopted CC report andrepassed bill. Third reading.2/25/10 – Reconsidered – Third reading2/25/10 – Reconsidered – Adoption of CCreport2/25/10 – Laid on table3/9/10 – Taken from table3/9/10 - Conference committee reportrejected3/11/10 - Bill returned to conferencecommittee – By House3/11/10 - House adopted HCC report andrepassed bill. Conference committeereport, delete everything. Motion did notprevail - To reject conference committeereport.3/11/10 - Senate adopted CC report andrepassed bill. Third reading. Motion didnot prevail – To reconsider3/11/10 – Presentment date3/14/10 – Governor’s action Approval3/15/10 – Line item veto – multiple lineitem vetoes. Secretary of State –Chapter 189

House Conferees:Hausman, Wagenius, Solberg, Scalze,Howes2/22/10 – Conference Committee report,delete everything2/22/10 – Motion to adopt ConferenceCommittee report. Point of order raised,ruled not well taken.2/22/10 – Motion to return to ConferenceCommittee. Motion to adopt ConferenceCommittee report – question recurred.Motion prevailed.2/22/10 – Third reading as amended byConference. Bill was repassed asamended by Conference.3/9/10 - Senate refuses to adoptconference report, requests return toconference3/9/10 - Motion for reconsideration -repassage as amended by conference3/9/10 - Motion for reconsideration -adoption of conference committee report3/9/10 - Motion to return bill to conferencecommittee – Motions prevailed3/11/10 – Third reading as amended byConference. Bill was repassed asamended by Conference.3/11/10 – Presented to Governor3/14/10 – Governor approval3/15/10 – Line item veto – multiple lineitem vetoes. Chapter 189

10.MERF TRANSFER TO PERATransfers administrative functions of the Minneapolis Employees Retirement Fund(MERF) to the Public Employees Retirement Association (PERA) and creates aMERF consolidation account within PERA.

The bill proposes an additional $27 million annual appropriation from the State intothe MERF fund and an estimated $1.4 million annual contribution from the MAC intothe fund.

Note: The provisions of this bill are included in both the House and Senateversions of the Omnibus Pensions Bill. (See item #15 below SF 2918 / HF 3281)

SF 2644 - Betzold2/16/10 – Introduction and first reading,referred to State and Local GovernmentOperations and Oversight3/4/10 – Comm rpt: To pass as amendedand re-refer to Finance3/24/10 – Heard in State GovernmentFinance and moved on to full Financewithout recommendation.

HF 2922 – Thissen2/4/10 – Introduction and first reading,referred to State and Local GovernmentOperations Reform, Technology andElections3/8/10 - Committee report, to pass asamended and re-refer to Finance.Referred by Chair to State GovernmentFinance Division



11.OPEN MEETING LAW CHANGESThis bill makes several changes to the open meeting law to reflect case law that hasbeen decided over the years as well as several updates to reflect currenttechnology.

� Defines "meeting" as a quorum of the members of a"public body" transacting public business and clarifieswhat “public body” means.

� Requires the public body closing a meeting to state onthe record the legal basis for closing the meeting.

� Provides that the public must be able to view at least onepaper copy of any printed or electronic materialsprovided to members.

� Provides that open meetings may be recorded andphotographed by the general public if it is done in amanner that is not disruptive or interferes with themeeting as reasonably determined by public body.

� Strikes reference to “regular” meeting locationso that alternate locations can be used for meetings heldduring pandemics or other emergencies.

� Requires the public body to post the notice in an areaavailable for public viewing if posting on the bulletinboard or door of the public body's usual meeting room isnot generally accessible to the public. Specifies that thethree days notice requirement means calendar days.

SF 2518 - Rest2/11/10 – Introduction and first reading,referred to State and Local GovernmentOperations and Oversight3/4/10 - Comm report: To pass asamended. Second reading.

HF 2958 - Pelowski2/15/10 – Introduction and first reading,State and Local Government OperationsReform, Technology and Elections3/23/10 – Comm report: To pass asamended. Second reading.3/24/10 – House rule 1.21, placed onCalendar for the Day.

12.AIRPORT FUND APPROPRIATION AIRFLIGHT PROPERTY TAX PORTIONCERTIFICATION REQUIREMENTSMakes the following changes to the airflight property tax levy in 2011 and thereafter:

“The certification by the commissioner of transportation to the commissioner [ofrevenue] shall state the total [airport] fund appropriation and shall list individually theestimated fund revenues. The difference of these amounts shall be shown as theproperty tax portion of the state airport fund appropriation.”

SF 3132 - Bakk3/9/10 – Introduction and first reading,referred to Taxes3/25/10 – Heard in Taxes – Property TaxDivision. Laid over for possible inclusionin the Omnibus bill

HF 3548 – Beard3/9/10 – Introduction and first reading,referred to Taxes3/10/10 – Referred by Chair to Propertyand Local Sales Tax Division



13.AVIATION-RELATED TAXES MODIFIEDModifies certain aviation-related taxes:

� Raises the aviation gasoline excise tax rate from 5 cents to6 cents per gallon

� Changes the refunds for gasoline excise tax as follows:(1) on each gallon of such aviation gasoline or special fuel up to50,000 200,000 gallons, all but five six cents per gallon;(2) on each gallon of such aviation gasoline or special fuel above50,000 200,000 gallons and not more than 150,000 500,000 gallons,all but two three cents per gallon;

(3) on each gallon of such aviation gasoline or special fuel above150,000 500,000 gallons and not more than 200,000 1,000,000gallons, all but one cent per gallon;(4) on each gallon of such aviation gasoline or special fuel above200,000 1,000,000 gallons, all but one-half cent per gallon.

� Changes the payment in lieu of all other taxes due onaircraft as follows:Subd. 2. Rate. (a) The tax shall be at the rate is the lesser ofeither:(1) one percent of value; provided that or(2) 50 cents per pound of maximum gross takeoff weight of theaircraft.(b) Notwithstanding paragraph (a), the minimum tax on anaircraft subject to the provisions of sections 360.511 to 360.67shall not be less than 25 percent of the tax on said aircraftcomputed on its base price or $50 whichever is thehigher.

� Effective date – July 1, 2010

SF 3295 – Rest3/22/10 – Introduction and first reading,referred to Transportation

HF 3656 - Beard3/15/10 – Introduction and first reading,referred to Finance. Referred by Chair toTransportation Finance and PolicyDivision3/25/10 – Heard in TransportationFinance and Policy Division. Motion toreturn the bill to full FinanceCommittee. Motion did not prevail.

14.DATA PRACTICES ACT REVISION AND ADMINISTRATIVE REMEDIESThis bill establishes an administrative remedy for certain types of complaints relatedto the Data Practices Act.

The bill:

� Specifies that the Office of Administrative Hearings isresponsible for handling complaints filed under the DataPractices Act.

� Specifies the types of complaints that may be filed withthe Office of Administrative Hearings, and establishesthe requirements for the formal submission of acomplaint. A $1,000 filing fee or bond must accompany acomplaint.

SF 2354 - Betzold2/4/10 – Introduction and first reading,referred to State and Local GovernmentOperations and Oversight3/1/10 - Comm report: To pass asamended and re-refer to Judiciary3/23/10 - Comm report: To pass asamended and re-refer to Finance

HF 2899 - Pelowski2/11/10 – Introduction and first reading,referred to State and Local GovernmentOperations Reform, Technology andElections3/4/10 - Committee report, to pass asamended and re-refer to Civil Justice3/15/10 - Committee report, to pass asamended. Second reading. Motion to re-refer to Finance. Motion prevailed.Referred by Chair to State GovernmentFinance Division.3/16/10 - Division action, to pass asamended and return to Finance.



� Specifies the procedure for initial review of a complaint.An administrative law judge must determine, based onthe complaint and response of the respondent, whetherthere are sufficient facts to believe that a violation of thelaw has occurred.

� Establishes hearing procedures.� Requires the administrative law judge to make at least

one of the decisions specified in the bill, within ten daysafter the hearing record closes. A party aggrieved by afinal decision is entitled to judicial review.

� Provides for allocation of costs and attorney’s fees uponfinal disposition of a complaint. A complainant thatsubstantially prevails is presumed to be entitled to anaward of reasonable attorney’s fees, up to $5,000, and isentitled to a full refund of the filing fee, less $50 (a $950refund).

3/23/10 - Committee report, to pass asamended and re-refer to Ways and Means3/25/10 – Comm report: To pass. Secondreading.

15.OMNIBUS PENSIONS BILLMakes numerous changes to Minnesota’s pension law including MERF.

The bill proposes an additional $27 million annual appropriation from the Stateinto the MERF fund and an estimated $1.4 million annual contribution from theMAC into the fund.

Note: This bill contains the provisions of SF 2644 / HF 2922 which transfersadministrative functions of MERF to PERA and creates a MERF consolidationaccount within PERA. (See item #10 above SF 2644 / HF 2922)

SF 2918 - Betzold3/1/10 – Introduction and first reading,referred to State and Local GovernmentOperations and Oversight3/22/10 - Comm report: To pass asamended and re-refer to Finance3/24/10 – Heard in State GovernmentFinance and moved on to full FinanceCommittee without recommendation.

HF 3281 – Murphy, M.3/1/10 – Introduction and first reading,referred to State and Local GovernmentOperations Reform, Technology andElections3/23/10 – Comm report: To pass asamended and re-refer to Finance3/24/10 – Referred by Chair to StateGovernment Finance Division

16.OMNIBUS STATE BUDGET BALANCING BILL (PART 1)Reduces state spending and changes provisions of the tax code to bring FY2010-2011 state general fund into balance.

Note: Representative Laura Brod (R-New Prague) offered an amendment tothis bill on the House floor requiring the Department of Administration toprepare a report to the legislature reviewing the activities of the MAC as wellas the MN State Lottery and applying evaluation criteria (which it shalldevelop) for the purpose of considering privatization of these entities. THEAMENDMENT WAS DEFEATED AND THEREFORE NOT ADOPTED.

Note: The Brod amendment contained much of the language of the bill sheintroduced in the 2009 session to consider privatization of MAC and otherentities. (See item #3 above in the 2009 bills SF 1291 / HF 1486)

SF 3223 – Cohen3/11/10 - Introduction and first reading;Referred to Taxes. Non-revisorcompanion HF 16713/18/10 – Comm report: To pass asamended. Second reading.3/22/10 – Special order: Amended. Laidon table.HF substituted by motion.HF 1671 (2009 bill)

SENATE ACTIONS:3/22/10 – Received from House.Introduction and first reading.3/22/10 – Urgency declared rulessuspended. Second reading.3/22/10 – Amended – SF 3223. Thirdreading Passed.

HF 1671 - Carlson ; Pelowski ; Kahn3/12/09 - Introduction and first reading,referred to Commerce and Labor3/16/09 - Referred by Chair to Labor andConsumer Protection Division3/20/09 - Division action, to pass asamended and return to Commerce andLabor3/26/09 - Committee report, to pass asamended and re-refer to Finance4/1/09 - Referred by Chair to HigherEducation and Workforce DevelopmentFinance and Policy Division4/2/09 - Recalled by Chair Finance4/2/09 - Referred by Chair to StateGovernment Finance Division

……………………………………….



3/22/10 - House not concur, conferencecommittee of 5 requested: Carlson,Lenczewski, Paymar, Solberg, Garafalo3/22/10 - Senate accedes, CC of 5 beappointedSenate Conferees:Cohen, Bakk, Higgins, Vickerman, Murphy

2010:3/8/10 - Recalled by Chair Finance3/9/10 – Author stricken - Rukavina3/11/10 - Author stricken – Abeler3/15/10 - Committee report, to pass asamended and re-refer to Ways and Means3/18/10 – Comm. Report: To pass asamended. Second reading.3/18/10 – House rule 1.22, notice of intentto place on Fiscal Calendar3/22/10 – Reported to the House.Amended. Amendments offered.3/22/10 – Point of order raised - multiplepoints of order; pages 9180, 9180, 9182,9195, 9197, 9203, 9204, 9205, 9206, 92083/22/10 – Motion to re-refer – Ways andMeans. Motion did not prevail. Thirdreading as amended.3/22/10 – Bill was passed as amended3/22/10 – Returned from Senate withamendment3/22/10 - House refuses to concur,conference committee of 5 requested.3/22/10 – Author added – Murphy, M.3/22/10 – House conferees appointed.House Conferees:Carlson, Lenczewski, Paymar, Solberg,Garofalo3/23/10 – Senate accedes, conferencecommittee of 5 be appointed.Senate Conferees:Cohen, Bakk, Higgins, Vickerman, Murphy

MEMORANDUM ITEM 10B


FROM: Mitchell P. Kilian, Director of Governmental Affairs (612-794-9176)Jack Corbett, MAC Legal CounselSpiegel & McDiarmid – Washington, D.C. (202-879-4023)

SUBJECT: FEDERAL LEGISLATIVE UPDATE


Full Senate Approves FAA Reauthorization Bill; Congress Enacts 12th TemporaryExtension Through April 30, 2010

On March 22, the United States Senate passed, 93-0, its version of the FAA ReauthorizationBill and plans on conferencing with the U.S. House of Representatives on the differencesbetween the two versions of the legislation after the Congressional Easter Recess (March 26- April 12). The House version was passed on July 9, 2009.

The Senate-passed legislation is fairly similar to the House-passed version with respect tocontinuing the Airport Improvement Program (AIP) of airport grants to airport sponsorsprimarily for airside projects and environmental mitigation. Both bills would authorize FAA’ssigning commitments for AIP projects totaling $4 billion in FY2010 and $4.1 billion in FY2011.The House-passed bill would add a third year, authorizing $4.2 billion for FY2012.

Because the House-Senate Conference to resolve the differences between the two bills willnot be completed by March 31, when the current (11th) temporary extension of FAA programsexpires, Congress is currently completing action on a 12th temporary extension of FAAprograms, through April 30, 2010. The last long-term FAA Reauthorization expired onSeptember 30, 2007.

The Senate legislation, like its House counterpart, authorizes multi-year funding for airwaysmodernization efforts (called “NextGen”), civil aviation research and development, FAAstaffing, maintenance and operating costs, as well as airport grants. In this legislation,Congressional leaders added many “regional airline safety provisions” in response to thefindings of the National Transportation Safety Board concerning the Colgan Airlines fatalaccident last year in New York. In addition, both House and Senate bills include“Passengers Bill of Rights” provisions, to assure that airlines and airports adopt contingencyplans to assist passengers stranded on airport tarmacs for many hours because of badweather or congested airspace.

-- A PFC Increase is the Main Airport Issue in Dispute in the Upcoming House-Senate Conference

One major difference between the two bills involves their treatment of the Passenger FacilityCharge Program. The House-passed bill would allow airport sponsors such as MAC toincrease the current $4.50 per-passenger Passenger Facility Charge (PFC) up to $7, for PFC

eligible projects (airside, environmental, and the non-revenue generating portions of terminalbuildings). The Senate bill has no increase in the current PFC level.

MAC Commissioners indicated to members of the Minnesota Congressional Delegationduring visits in Washington, D.C., earlier this month that MAC hopes Congress willcompromise on a PFC ceiling not less than $6 to meet future airport developmental needs.As a tradeoff, under the House bill large hubs would give up their right to receive formula AIPentitlement funds if they impose a PFC in the future higher than the current $4.50. ThoseAIP entitlement funds will be shifted to smaller airports whose access to PFC funding is lessand whose dependence on AIP grants is greater.

-- Many Thorny Issues Other Than the PFC Level Separate House and SenateConferees

The leaders of the Senate Commerce Committee, which spearheaded the effort to guide theFAAReauthorization Bill through the Senate floor over five days, indicated that the conferencewith the House will likely be difficult. Among the issues that could delay conferenceagreement are House provisions to require FAA to inspect foreign aircraft repair stations,pressure on the U.S. DOT to limit the antitrust immunity of worldwide code-sharing airlinepartners sharing revenues from coordinated operations, and requiring Federal Express tofollow the same labor laws as applied to its competitor UPS.

Closer to airport interests, many Western state Senators hope in Conference to obtain directair service to the slot-controlled Washington Reagan National Airport from beyond thecurrent 1,500 mile perimeter. For the first time, there’s an effort to let airlines substitute long-distance flights to close-in National Airport in lieu of existing shorter-haul flights (such asMSP to DCA). In years past, Western state Senators pressed for additional flights into DCA,which were successfully resisted because of local noise abatement concerns.

-- Some Floor Amendments Were Added to Senate FAA Reauthorization Bill

Sen. Barrasso (R-WY) added a provision to the Senate bill similar to Senator Klobuchar’s“Northern Tier” provision already in the version of the legislation developed by the SenateCommerce Committee, on which she serves. Both provisions press FAA to make AIP grantfunds available to airports in northern states with short airport construction seasons. Theseprovisions will have to be later meshed with a parallel provision, authored by ChairmanOberstar, in the House-passed version of the FAA Reauthorization Bill.

Some Senators added airport-specific provisions to make airport projects in their stateseligible for Federal AIP funding, by modifying traditional eligibility rules. The Senate FinanceCommittee added provisions extending Federal aviation user taxes through September 2013,and increasing the Federal tax on jet fuel used by general aviation aircraft by 14 cents to 36cents/gallon.

-- Staff Works Continuously During Congressional Recess

During the upcoming Congressional Easter Recess, Congressional staffers will attempt tonegotiate resolution to most of the issues in House disagreement, reserving the remainingmajor issues for the legislators to negotiate after their return to Washington in April.


Documents

Metropolitan Airports Commission · Metropolitan Airports Commission ... 33802 PS EMC: Mechanical ... 33833 PS Metro Transit Bus Maintenance Facility UST/AST Removals $6,150