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SAN FRANCISCO AIRPORT COMMISSION
MINUTES Tuesday September 4 2018
900 AM
Room 400 ‐ City Hall 1 Dr Carlton B Goodlett Place
(400 Van Ness Avenue) City and County of San Francisco
LONDON N BREED MAYOR
COMMISSIONERS LARRY MAZZOLA
President LINDA S CRAYTON
Vice President ELEANOR JOHNS
RICHARD J GUGGENHIME PETER A STERN
IVAR C SATERO Airport Director
C CORINA MONZOacuteN Commission Secretary
SAN FRANCISCO INTERNATIONAL AIRPORT SAN FRANCISCO CALIFORNIA 94128
Minutes of the Airport Commission Meeting of Tuesday September 4 2018
CALENDAR SECTION
AGENDA ITEM
TITLE RESOLUTION NUMBER
PAGE
A CALL TO ORDER 4
B ROLL CALL 4
C ADOPTION OF MINUTES 4
No 18‐0283 Regular meeting of August 21 2018 4
D DIRECTORrsquoS REPORT 4
1 Analysis of Airline Traffic for Fiscal Year 201718 4
E ITEMS INITIATED BY COMMISSIONERS 8
2 Following upon Resolution No 18‐0200 establishing a special advisory Committee to consider and recommend action on the nomination of Edwin M Lee for naming or dedication at the San Francisco International Airport the Commission Presidentrsquos proposed appointments to the Committee DISCUSSION ONLY 8
F ACTION ITEMS RELATED TO ADMINISTRATION OPERATIONS amp MAINTENANCE 9
3 Award of the Terminal 3 Boarding Area E Candy Kiosk Lease to Canonica 9
No 18‐0284 9
4 Authorization to Accept Proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail 10
No 18‐0285 10
5 Authorization to Accept Proposals for the Terminal 1 Boarding Area C Retail Concession Leases 12
No 18‐0286 12
6 Reject All Proposals for Professional Services Contract No 50130 and Re‐Issue Request for Proposals for Professional Services Contract No 5013001 for Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement13
No 18‐0287 13
7 Approval of Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project Turner Construction
Minutes September 4 2018 Page 2
Company $12073574 16
No 18‐0288 16
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS17
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $185252717
No 18‐0289 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project 18
No 18‐0290 18
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services 18
No 18‐0291 Loza Upholstery Inc 18
No 18‐0292 Kay Chesterfield Inc 18
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project 18
No 18‐0293 18
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000 19
No 18‐0294 19
H NEW BUSINESS 19
I CORRESPONDENCE 19
J CLOSED SESSION 19
K ADJOURNMENT 20
Minutes September 4 2018 Page 3
Minutes of the Airport Commission Meeting of Tuesday September 4 2018
A CALL TO ORDER The regular meeting of the Airport Commission was called to order at 900 AM in Room 400 City Hall San Francisco CA
B ROLL CALL Present
Absent
C ADOPTION OF MINUTES
Hon Larry Mazzola President Hon Linda S Crayton Vice President Hon Eleanor Johns Hon Richard J Guggenhime
Hon Peter A Stern
The minutes of the regular meeting of August 21 2018 were adopted unanimously upon a motion by Commissioner Crayton and a second by Commissioner Johns
No 18‐0283 Regular meeting of August 21 2018
D DIRECTORrsquoS REPORT Item No 1 is for discussion only
1 Analysis of Airline Traffic for Fiscal Year 201718
Analysis of Airline Traffic for Fiscal Year 201718
Mr Mike Nakornkhet Financial Planning amp Analysis Director said good morning Commissioners I will be walking you through the analysis of airline traffic that you have in front of you slide by slide And I will call out of each slide before talking about them
If you could turn to Slide 2 please San Francisco International Airport concluded Fiscal Year 2018 with 578 million total passengers This represents a 7 increase from the prior fiscal year and establishes a record for SFO for the seventh consecutive year
Minutes September 4 2018 Page 4
Now if you could turn to Slide 3 That compares our passenger growth to ten other major international gateway airports in the United States SFO had the highest growth rate among this comparison set in Fiscal Year 2018
If you turn to Slide 4 That compares SFOrsquos passenger growth to other airports in the Bay Area region Oakland International and Mineta San Jose International airports All three airports experienced strong growth with San Jose experiencing very strong growth Bay Area total percentage increase was 85 in Fiscal Year 2018 In terms of passenger volume however SFO because of its relatively large base of passengers continues to be responsible for a majority of the passenger volume increase with 19 million (out of the 33 million) passenger additions to the Bay Area region
If you turn to Slide 5 SFOrsquos strong growth has been sustained for a long period of time Four out of the past seven years experienced strong growth rates of 5 or higher This has resulted in a Compound Average Growth Rate over the past eight years of 52 which has increased our total passenger count by nearly 18 million passengers from 40 million in Fiscal Year 2011 to 578 million in Fiscal Year 2018
On Slide 6 If you were to take this 52 average growth rate and trend it forward SFO would reach 71 million total annual passengers by Fiscal Year 2022 However we are more conservative with our forecasts and a more realistic scenario is shown on the next slide Slide 7 which reflects a more moderate 2 Average Growth Rate going forward SFO would reach 71 million total annual passengers under this scenario by Fiscal Year 2029 This slower rate of growth takes into account potential softening of the economy and 71 million total annual passengers matches what we expect to be the maximum capacity of the Airport in the Airportrsquos Development Plan
On Slide 8 Our short term outlook of scheduled airline seats confirms that this 2 moderate growth rate going forward is realistic The data indicates that domestic capacity will moderate we donrsquot expect it to be negative as shown in certain months of the table because airline schedules have not been finalized yet However we do expect domestic growth to be moderate by the end of the year in approximately in the 1 range while international growth will continue to be strong at 6 or above This would result in an increase by the end of Fiscal Year 2019 of 22
In to the next Slide 9 Shows the regions that comprise our strong international growth The majority of the added services in Fiscal Year 2018 was to Asia which had a combined 164000 seats added The South Pacific region Europe Latin America and Canada also experienced strong growth as well
Lastly if you turn to the last Slide 10 SFOrsquos passenger growth has also led to strong performance in Concessions Revenue Most business categories experienced an increase in revenue to the Airport 15 of this revenue becomes the Annual Service Payment to the City and County of San Francisco which totaled $464 million in Fiscal Year 2018
Minutes September 4 2018 Page 5
Thank you and Irsquod be happy to answer any questions
Commissioner Guggenhime commented the amount of traffic therefore the number of airplanes going in and out of here with the runway issues and the weather issues that we seem to have I mean at some point being on time to me is more important than the number of passengers Thatrsquos just a comment not a question
Mr Nakornkhet said we have experienced a trend of what we call airline up gauging in our data which means aircraft size are getting larger So the airlines are doing their part to bring in more passengers without increasing operations by the same amount by increasing the aircraft size And the average aircraft size ten years ago for example was approximately 130 seats and now itrsquos 158 seats So they are getting larger
Commissioner Guggenhime thanked Mr Nakornkhet
Commissioner Crayton said great thank you so much First of all thank you for this report When you read it itrsquos self‐explanatory It gives you a lot of information The question that I have though and actually itrsquos helpful to get it before the meeting so it can really really make sure that you can talk about it But when I look at Page 4 and it tells me that that the growth the 2018 growth etc was for San Francisco which is great too and certainly itrsquos an improvement I look at San Jose itrsquos 172 Now is the San Jose Airport smaller than we are What are they doing that or what are the factors that land to its 172 thatrsquos a high amount
Mr Nakornkhet replied yes so San Jose is much smaller than we are They are only in the 12 million total passenger range wherersquos wersquore at 58 million and theyrsquove been getting a lot of domestic growth from a number of domestic carriers such as Delta American and Southwest I think itrsquos just a factor of how small they are and when you grow a relatively large amount on that small base of passengers you get that large percentage But in terms of volume growth we still exceed at San Josersquos volume growth If you look in the furthest right column of that table Even though they grew by 17 they only grew by 1 million total passengers where as we grew 19 million total passengers
Mr Nakornkhet said they are experiencing of strong growth from a number of airlines I mentioned earlier
Commissioner Crayton asked and we have those same airlines here
Mr Nakornkhet replied and we have the same airlines as well Yes
Commissioner Crayton said I was wondering if there was a factor there that was having people choosing them over us
Minutes September 4 2018 Page 6
Commissioner Johns said I actually think itrsquos good for us that theyrsquore growing I think we need this regional plan I know that our previous Director John Martin had indicated to us several years ago that we really need to look to a regional plan I do know that weather is better in San Jose and in Oakland And I think some people are trying to find ways to get on time flights especially if itrsquos crucial And I personally know if you have done that in the last 10 days So I donrsquot find this a problem I think itrsquos important for us to all work together all the airports regionally and perhaps something in the North Bay also as we look towards the future I just wanted to make that comment
Commissioner Crayton said and I want to be clear I donrsquot see this as a problem Irsquom talking about as I look at this wondering if there are factors that were in San Jose that would make them have more enplanements because I know what our Airport is like Irsquove been here Irsquove been in San Jose too and I said never do that again So after you experience SFO you know yoursquove had about the best And so having said that I just was wondering why it just looks skewed for some reason
Commissioner Mazzola said so picking up on Commissioner Guggenhimersquos question do we have an on‐going runway study Do we study runways as planning to get bigger And as passengers keep coming do we ever decide wersquore going to reconfigure those runways again
Mr Ivar Satero Airport Director replied you know what we do is wersquore preparing for it like more a regional approach to things and so that starts with the Regional Airport Planning Commission And really thatrsquos where the update to the Regional Airport System Plan has to happen Their plan is almost seven years old now And so itrsquos outdated from the assumptions that were made back then in terms of growth for the region You can see wersquore far out pacing that So our efforts are around reconvening the Regional Airport Planning Commission That is the lead agencies in that are MTC ABAG and BCDC and so wersquore starting a process to get them engaged in this broader review of airport capacity in a regional
Commissioner Mazzola said as we review a regional plan our local plan is stifled We stay where we are and we decide that wersquore going to do a regional plan and you know and land planes in other areas
Mr Satero said it needs to be a regional approach just because the investment thatrsquos required and all of the politics that go into this kind of review We donrsquot wersquore not we also what wersquore looking at is how does technology continued to advance the capacity of SFO Wersquove been successful in the past with technology and wersquore investing a new technology particularly the Ground Based Augmentation System that this Commission authorized that will add capacity particularly when we see the delays during the poor weather conditions And really thatrsquos where our problem exists Thatrsquos where we see the delays We will continue to see industry respond as we have seen that over the last ten years as Mike said larger aircraft spreading out flights across a broader schedule and increased load factors
Minutes September 4 2018 Page 7
So thatrsquos why our forecast project about another ten years of capacity before we get to that point
Commissioner Mazzola asked alright other questions of Mike Thank you very much for your report
E ITEMS INITIATED BY COMMISSIONERS Item No 2 is for discussion only
2 Following upon Resolution No 18‐0200 establishing a special advisory Committee to consider and recommend action on the nomination of Edwin M Lee for naming or dedication at the San Francisco International Airport the Commission Presidentrsquos proposed appointments to the Committee DISCUSSION ONLY
Commissioner Mazzola said to bring you up to date on that with that is we had a group of San Franciscans approach us to name something after Ed Lee and that started our process of naming We have to start to name a committee and then after we name the committee and then the people have to accept to be on the committee and we wersquoll have meetings talk about what we should do And meetings will be public meetings It will be held probably at the end of these meetings At the end of an Airport meeting then wersquoll adjourn this and go into a committee meeting We donrsquot anticipate many meetings Three something like thathellipwe have six months to do that That will be January 19th to come up with a recommendation So Corina if you want to read the Nominees to the Committee
Ms Corina Monzoacuten stated proposed appointments to the committee by President Mazzola The first five appointments are members of the San Francisco Airport Commission Larry Mazzola President Linda S Crayton Vice President Eleanor Johns Commissioner Richard J Guggenhime Commissioner Peter Stern Commissioner Followed by John Martin Former Airport Director San Francisco International Airport Anni Chung President and CEO Self Help for the Elderly San Francisco Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Commissioner Mazzola said alright Commissioners any questions you anything you want to add Okay and thatrsquos for information
Commissioner Johns asked have all these members other than ourselves been asked
Commissioner Mazzola replied yes Theyrsquove all agreed theyrsquove all agreed And so I know I talked to all of you but itrsquos not mandatory to be on this So if you decide you donrsquot want to be on let me know so we can appoint somebody else We donrsquot need a motion just discussion
Minutes September 4 2018 Page 8
F ACTION ITEMS RELATED TO ADMINISTRATION OPERATIONS amp MAINTENANCE Item No 3 was approved unanimously by a motion by Commissioner Johns and a second by Commissioner Mazzola
3 Award of the Terminal 3 Boarding Area E Candy Kiosk Lease to Canonica
No 18‐0284 Resolution awarding the Terminal 3 Boarding Area E Candy Kiosk to Canonica New York LLC
Ms Cheryl Nashir Director Revenue Development and Management said good morning Commissioners
I am here this morning seeking your approval to award the Boarding Area E Candy Kiosk Lease to Canonica New York LLC This lease was to be awarded a few weeks ago with some others that were awarded in the same Boarding Area but it was pulled off of your agenda because there was protest
The location is a 104 square foot kiosk in Terminal 3 Boarding Area E Presently the kiosk is operating as Seersquos Candies but that lease is expiring in January There were three proposers for this lease and one of them Gary Rulli Operator of Emporio Rulli issued a protest alleging that Canonica did not meet the minimum qualifications In his protest he pointed out that Canonica New York LLC is a fairly new entity and therefore could not meet the requirement of having operated a candy business in 3 of the last 5 years and also could not have met the sales requirement attached to the MQs We studied his protest and found it lacking in merit Canonica New York LLC is a subsidiary of Swisscanonica who very easily meets the minimum qualifications
The term for this lease is 7‐years The rent is the greater of percentage or $100000 per year which is the minimum annual guarantee They will 0perate as The Chocolate Market and they operate today in our International Terminal as The Chocolate Market in what I think is one of our most beautiful build outs at the Airport Theyrsquore also coming to Terminal 2 this Fall
I expect that theyrsquore going to pay MAG rent in the early years Currently the minimum annual guarantee on this space is $226000 so this is a very unusual situation where Irsquom coming to you in awarding a lease that will bring us more money or less money however the present lease is paying almost 45 rent and thatrsquos not anything we expected would continue when we release this
I would be happy to take any questions
Commissioner Crayton asked do we have any vendors that are now presently paying 45 scale rent here at the Airport
Minutes September 4 2018 Page 9
Ms Nashir said no stores or restaurants our advertising concession pays in that range but know that thatrsquos our average rent is between 11 and 16
Commissioner Johns asked so therersquos no one here today protesting
Ms Nashir replied no
Commissioner Johns said thank you
Commissioner Mazzola asked so you said Rullirsquos protest is without merit right Okay alright
There were no further questions
Item No 4 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
4 Authorization to Accept Proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
No 18‐0285 Resolution approving the revised lease specifications and authorizing Staff to accept proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
Good morning I am Cheryl Nashir from Revenue Development and Management And before we start on this item I would just like to point out that I have given you all a replacement page to this Commission memo this morning There was an error on the attachment in your Commission memo I had said that the construction period was 120 days Itrsquos actually 90 days so that is the correction that I made this morning in that new attachment Irsquom here to gain your approval this morning to make one change in this RFP and also to be allowed to accept proposals
On June 19th you authorized the issuance of this Request for Proposals for the Terminal 1 Specialty Retail Lease No 3 You may recall that we had previously tried to lease this space as a small business set aside specialty store and we did not receive any proposals So this is a redo of this particular lease and we dropped the SBE requirement
Commissioner Johns asked what requirement
Ms Nashir replied the Small Business Enterprise We conducted an informational conference and received no substantive questions on this business proposal thatrsquos in the RFP We do however want to recommend one change In the RFP we said that this would be a specialty retail store but there were four concepts that would be excluded And that
Minutes September 4 2018 Page 10
was News Sunglasses Bath and Body and Electronics We would like to drop those exclusions to just two It canrsquot be a newsstand or sunglass store but we would like to allow bath and body stores and electronic stores to enter this competition We think it will lead to more proposals and it will not adversely affect the rest of the program It could increase the competition thatrsquos the whole point We will be back in October for award And I would be happy to take any questions
Commissioner Johns said so I see that you had an informational conference and it wasnrsquot all that well attended So whatrsquos the issue here
Ms Nashir said well this is a very small store and its specialty retail which wersquore starting to find a challenge to lease We do well on our pop‐up retail which are small specialty stores but wersquove built those stores Wersquove just wersquore in the middle of an RFP right now where we got six proposals and at least three of them are very good on a pop‐up location But these small specialty stores that someone comes in and has to build themselves are starting to just be a challenge for us to lease And thatrsquos one reason I want to get rid of two of those exclusions
Commissioner Johns asked so are we seeing a trend here that maybe in the future we need to start looking in different directions
Ms Nashir replied yes I think wersquore seeing a trend in retail dropping off probably due to on‐line shopping And also some of our biggest tenants are the ones that are able to bring us specialty retail like the national beauty brands etc and they donrsquot want to bid on these locations because of the limit of eight They want to hold out for the larger stores and the newsstands So we are studying right now our limit of eight policy and wersquoll be sending an off‐calendar to you shortly on some recommended changes
Commissioner Johns said I mean maybe wersquore beginning an era we need a little less retail a little more food because I noticed in Terminal 2 at the is it Peetrsquos Coffee I mean the line is so long that itrsquos impossible if yoursquore catching a plane which is why most people are there to get what you want in the appropriate time So just a thought
Ms Nashir said very good Thank you
Commissioner Crayton said and my question is the outreach in terms of this particular proposal Did we do anything with the Chamber I mean what did we do
Ms Nashir replied we contacted all of the previous pop‐up tenants we had worked with We had hoped we had graduate to become you know permanent tenants with us and so wersquore hoping that wersquoll see some of those in the competition And again we just go out into neighborhoods in the City and put out press releases
Commissioner Crayton said well we tried twice so
Minutes September 4 2018 Page 11
Ms Nashir replied yes
There were no further questions
Item No 5 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Mazzola
5 Authorization to Accept Proposals for the Terminal 1 Boarding Area C Retail Concession Leases
No 18‐0286 Resolution approving the lease specifications and proposal requirements and authorizing Staff to accept proposals for two leases for two locations in Terminal 1 Boarding Area C
Good morning I am Cheryl Nashir from Revenue Development and Management I am here this morning as well requesting authorization to accept proposals for the Boarding Area C Retail Concession Leases
On June 5th the Airport Commission authorized the issuance of an RFP for two retail leases both are in Terminal 1 on Boarding Area C Boarding Area C is primarily served by Delta Airlines These two stores represent the only retail on this boarding area They are currently combined under a single lease
In this RFP we pulled them apart and created two leases We held an informational conference and collected comments They were very few comments The most substantive question however asked was could we combine these two spaces once again under a single lease And we recommend against this We believe that theyrsquore both viable on a stand‐alone basis One is a newsstand and the other one is a retail market place which is really a big newsstand with quite a bit of specialty retail in it Currently one location is doing about $7 million a year and the other is doing over $3 million a year So these are not small or challenged spaces So we would like to be able to accept proposals and without making changes to our RFP
And I would be happy to take any questions
There were no questions
Item No 6 was approved unanimously by a motion by Commissioner Guggenhime and a second by Commissioner Mazzola
Minutes September 4 2018 Page 12
6 Reject All Proposals for Professional Services Contract No 50130 and Re‐Issue Request for Proposals for Professional Services Contract No 5013001 for Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement
No 18‐0287 Resolution rejecting all proposals for Professional Services Contract No 50130 and re‐issue a Request for Proposals for Professional Services Contract No 5013001 Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement and enter into negotiations with the top ranked proposer
Good morning Commissioners My name is John Bergener and Irsquom the Airport Planning Director This item seeks your approval to reject all proposals and re‐issue this RFP 5013001 for Aircraft Noise Monitoring System with support maintenance and noise monitor replacement and negotiate with the top ranked firm
An aircraft noise monitoring system (or ldquoANMSrdquo) has been an integral function of the Airport since the late 1970s when SFO became the first US airport to implement an FAA‐approved noise compatibility program The ANMS consists of noise monitors with microphones and software that collects the data from the monitors and other sources This data is then used by Staff to conduct analysis draft reports to meet various federal and state reporting requirements and provide information to stakeholders and decision makers
The Airport currently operates a total of 37 noise monitors including 29 permanent and 8 portable monitors located on Airport and in San Francisco and San Mateo counties The existing noise monitors and microphones are over 10 years old and require regular site visits for maintenance especially during inclement weather
On July 25 2017 the Commission authorize Staff to issue an RFP 50130 for Aircraft Noise Monitoring System and Maintenance and Noise Monitor Replacement On November 1 2017 Staff issued the RFP and three proposals were received by the submission deadline on December 1 2017 The written proposals were scored by a panel of subject matter of experts All proposers were invited to an oral interview with a product demonstration
Staff successfully negotiated a contract with the top ranking firm and on April 13 2018 notified all proposers of the intent to seek Airport Commission approval to award a contract Upon notification the 2nd and 3rd ranked proposers submitted protests contesting that the top ranked firm did not meet the minimum qualifications among other items After careful review Staff determined it would be best to reject all proposals and reissue the RFP with refined minimum qualifications including clarification that submission of project experiences gained at non‐US airports is permissible
If the Commission approves of this item Staff will re‐issue the RFP with refined minimum
Minutes September 4 2018 Page 13
qualifications and submission requirements The purpose of the RFP remains the same ndash the resulting contract would enable the Airport to select a team with the expertise and knowledge to provide an ANMS replace and purchase additional noise monitors and provide the software that collects and transmits the data collected in the field The selected proposer would also train Staff on the selected noise monitoring system and assist with maintenance to ensure the equipment and software are operating properly
A panel of subject matter experts would be convened to evaluate and score each qualified proposer Staff would return to the Commission to request approval to award a contract with the top ranked firm following successful negotiations There is a 15 LBE requirement for this contract and the anticipated contract would have a term of 5 years with two 2‐year options to renew to be exercised at the discretion of the Commission
I recommend your approval and can answer any questions you have on this item
Commissioner Johns said so I really donrsquot even know where to begin with this except to say that in all the years Irsquove been here at the Commission Irsquove never had an issue like this It does relate to noise and we know wersquore growing so we know the noise is going to get worse I was approached by a member of the Board of Supervisors who told me that he is going to have a hearing on noise issues And wersquove had two protests on this Wersquove had itrsquos been going on a year you said since July rsquo17 Wersquove had it postponed twice I personally requested a briefing and was given a briefing I requested a lot of information I was given the information At the briefing I stated that I was concerned about some of the issues in the prior RFP that I thought it was important that we had somebody who could do both the hardware and the software and who have the appropriate experience to do this assuming there is such a person entity available I see nothing in this new RFP that has added anything that was not there in what you guys gave us the last time Irsquom stymied I donrsquot understand it Instead of four years of experience I think the one this time has three years of experience so wersquore looking for less experience We talked about Title 21 and having some experience in California I donrsquot see that except yoursquore saying after the fact once you choose someone then they can write a letter saying that theyrsquove been authorized by is it Caltrans that does this or the PUC
Mr Bergener responded that the system acceptance requirements requires a letter from Caltrans verifying that the system complies with Title 21 requirements
Commissioner Johns stated that she doesnrsquot understand it We are in Airport that tries to seek number 1 Why do we not want a firm who has experiencehellip Irsquoll go along with your RFP but when you bring somebody back to us for approval I sure hope they meet the qualifications I have never had to speak on an issue like I am today so I donrsquot understand it I think I made clear that we need somebody who has experience in both hardware and software Irsquom kind of repeating this so I donrsquot forget what I wanted to say Secondly they should have experience in California so that they understand Title 21 whether itrsquos the prime or the sub‐contractor They should be able to show that they have experience for a certain
Minutes September 4 2018 Page 14
amount of years consistently with large airports You have given us today how we are growing Wersquore getting larger and larger and yet wersquore not looking for somebody who has serviced this size Airport So those are my comments I donrsquot know what else to say I think I made my point clear
Commissioner Mazzola said alright okay did you want to respond to that or leave her statement be
Mr Bergener said I will just note that the minimum qualifications do include a requirement for experience in an Airport with more than 7 million enplanements or 14 million total passengers which is consistent with the US large hub definition of airports in 2017
Commissioner Johns said alright How long do they have to have that Is it one year and is it combined with the sub and the prime
Mr Bergener replied it was at least one airport in each of the subject areas for three years Commissioner Johns said say that again
Commissioner Johns stated I had it in front of me I mean itrsquos the same as before but what about the California requirement
Mr Bergener replied no we did not add the California requirement because itrsquos part of the systemsrsquo acceptance requirements
Commissioner Johns said I stand with my comments I donrsquot have anything further
Commissioner Crayton said I want to say and I know you guys briefed us and when I left the meeting I felt somewhat comfortable with the responses that I had received Going through this again I yet became concern because it seems that itrsquos watered down from the previous contract that we had when I went back and had my assistant do a comparison in terms of that and I agree with all of the things Commissioner Johns had said And so itrsquos problematic for me because it sounds as if noise has taken a lesser seat here than it had before This is a huge Airport I think itrsquos a premier Airport and in that regard we have to have that concern because lots of people that are very vocal out there have had five or six people call me regarding this and having an issue And I Irsquom not sure whatrsquos spearheading all of this except for the fact that I myself see it at a lesser than the qualifications are somewhat construed from the previous contract And Irsquom a little concern about that Irsquom also concerned in that noise as she said with the number of enplanements that we have the large Airport that we have and where we stand in the scheme of things in terms of an International Airport I think we need to give more value to it So I am yet concerned about this also and Irsquom not clear how to what the fix is It for some reason to me and maybe itrsquos because you know this is not my area It almost looks like the importance of this was sort of weighed down in this particular contract as to the previous ones that wersquove had the and Irsquove only had been present for one prior contract and so therefore this does concern me
Minutes September 4 2018 Page 15
that a lot of proponents out there as I said earlier I received at least five calls And so I donrsquot know what else to say regarding this I thought I was okay with it read it through again and it does concern me
Commissioner Mazzola asked Ivar you want to weigh‐in
Mr Satero replied yeah sure I will Commissioners my apologies We thought we had made the necessary tweaks We certainly want you to be comfortable with this We are we know therersquos three firms that do this kind of work that are very well qualified We want a competitive process and so we believe wersquove crafted something that gives us the excellence that we always strive for in terms of all of our work and noise monitoring is an important point of what we do especially in todayrsquos community issues wersquore having around noise But you need to be confident that we can deliver excellence as we intend to do So if wersquore still not satisfied I will remove this once again if it is the desire of the Commission to be continued to be briefed on how to make sure we achieve our goals
Commissioner Mazzola said so as far as Irsquom concern let me speak up here I think we ought to let the RFP go out and when they come back then we ought to really hone in on what we really want But I think we need to get on with it and not hold it up longer
Commissioner Johns said Irsquom fine with that I just think itrsquos important that we get some entity that is qualified
Commissioner Mazzola said so I think that will be the report Thank you for that
Item No 7 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
7 Approval of Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project Turner Construction Company $12073574
No 18‐0288 Resolution approving Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project with Turner Construction Company to increase the contract capacity by $12073574 for a new total contract capacity amount of $69930727 and with no change to the contract duration
Ms Judi Mosqueda Director of Project Management said good morning Commissioners
This item is for your approval of Phase C6 adding Trade Package Set No 4 into our contract with Turner Construction for the Demolition of Terminal 2 Air Traffic Control Tower
Minutes September 4 2018 Page 16
Project The Phase C6 approval will increase the contract capacity by $121 million for a new contract capacity amount of $699 million with a corresponding amount of contingency and with no change to the contract duration
The Project includes demolition of the existing air traffic control tower and design and construction of a new office block on top of T2 The new floors may be used for a new airline lounge office space a new employee cafe and a public observation deck As you know demolition of the old tower has been completed already Steel erection for the new floors is beginning this month
This approval will provide for Trade Package Set No 4 to be added to the contract The trade package set includes SeismicMain Building Concrete Glazing Storefront and Metal Panels Exterior Framing and Plaster Plumbing and Air Handling Units
The forecast for this contract is $831 million which falls within the budget of $841 million and includes appropriate levels of contingency The Project is on‐schedule to be substantially complete in August of 2019
The LBE goals for this contract are 24 for design services and 20 for construction services and Turner Construction is committed to meeting these goals
We recommend your approval and I would be happy to answer questions
There were no questions from the Commissioners
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS The Consent Calendar Item Nos 8 through 12 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Mazzola
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $1852527
No 18‐0289 Resolution approving Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project with PMANBA Joint Venture in an amount of $1852527 for a new contract amount not to exceed $6348283 for services through March 31 2020
Minutes September 4 2018 Page 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project Faith Group LLC $1736000
No 18‐0290 Resolution approving Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project with Faith Group LLC in an amount of $1736000 for a new contract amount not to exceed $3266000 for services through October 18 2019
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services to Loza Upholstery Inc for $800000 Kay Chesterfield Inc for $800000
No 18‐0291 Resolutions awarding Professional Services Contract No 5014501 As‐No 18‐0292 Needed Furniture Repair and Re‐upholstery services to Loza Upholstery
Inc and Contract No 5014502 to Kay Chesterfield Inc each with a contract amount not‐to‐exceed $800000 with a contract duration of five years
Commissioner Johns said I donrsquot have a question I have a comment Item 10 I was very happy to see that item because I was in Terminal 2 in the baggage area and we have some seating there that really needs to be reupholstered or perhaps replaced But I was happy to see this item and I do hope that we review all furniture and either reupholster or replace and specifically I would like to point out that there is therersquos sort of curve seating that theyrsquore in white leather They werenrsquot good from the beginning and they need attention
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project CAGE Professional Services Inc dba CAGE Inc $750000
No 18‐0293 Resolution approving Modification No 11 (Annual Renewal) to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project with CAGE
Minutes September 4 2018 Page 18
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Minutes of the Airport Commission Meeting of Tuesday September 4 2018
CALENDAR SECTION
AGENDA ITEM
TITLE RESOLUTION NUMBER
PAGE
A CALL TO ORDER 4
B ROLL CALL 4
C ADOPTION OF MINUTES 4
No 18‐0283 Regular meeting of August 21 2018 4
D DIRECTORrsquoS REPORT 4
1 Analysis of Airline Traffic for Fiscal Year 201718 4
E ITEMS INITIATED BY COMMISSIONERS 8
2 Following upon Resolution No 18‐0200 establishing a special advisory Committee to consider and recommend action on the nomination of Edwin M Lee for naming or dedication at the San Francisco International Airport the Commission Presidentrsquos proposed appointments to the Committee DISCUSSION ONLY 8
F ACTION ITEMS RELATED TO ADMINISTRATION OPERATIONS amp MAINTENANCE 9
3 Award of the Terminal 3 Boarding Area E Candy Kiosk Lease to Canonica 9
No 18‐0284 9
4 Authorization to Accept Proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail 10
No 18‐0285 10
5 Authorization to Accept Proposals for the Terminal 1 Boarding Area C Retail Concession Leases 12
No 18‐0286 12
6 Reject All Proposals for Professional Services Contract No 50130 and Re‐Issue Request for Proposals for Professional Services Contract No 5013001 for Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement13
No 18‐0287 13
7 Approval of Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project Turner Construction
Minutes September 4 2018 Page 2
Company $12073574 16
No 18‐0288 16
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS17
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $185252717
No 18‐0289 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project 18
No 18‐0290 18
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services 18
No 18‐0291 Loza Upholstery Inc 18
No 18‐0292 Kay Chesterfield Inc 18
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project 18
No 18‐0293 18
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000 19
No 18‐0294 19
H NEW BUSINESS 19
I CORRESPONDENCE 19
J CLOSED SESSION 19
K ADJOURNMENT 20
Minutes September 4 2018 Page 3
Minutes of the Airport Commission Meeting of Tuesday September 4 2018
A CALL TO ORDER The regular meeting of the Airport Commission was called to order at 900 AM in Room 400 City Hall San Francisco CA
B ROLL CALL Present
Absent
C ADOPTION OF MINUTES
Hon Larry Mazzola President Hon Linda S Crayton Vice President Hon Eleanor Johns Hon Richard J Guggenhime
Hon Peter A Stern
The minutes of the regular meeting of August 21 2018 were adopted unanimously upon a motion by Commissioner Crayton and a second by Commissioner Johns
No 18‐0283 Regular meeting of August 21 2018
D DIRECTORrsquoS REPORT Item No 1 is for discussion only
1 Analysis of Airline Traffic for Fiscal Year 201718
Analysis of Airline Traffic for Fiscal Year 201718
Mr Mike Nakornkhet Financial Planning amp Analysis Director said good morning Commissioners I will be walking you through the analysis of airline traffic that you have in front of you slide by slide And I will call out of each slide before talking about them
If you could turn to Slide 2 please San Francisco International Airport concluded Fiscal Year 2018 with 578 million total passengers This represents a 7 increase from the prior fiscal year and establishes a record for SFO for the seventh consecutive year
Minutes September 4 2018 Page 4
Now if you could turn to Slide 3 That compares our passenger growth to ten other major international gateway airports in the United States SFO had the highest growth rate among this comparison set in Fiscal Year 2018
If you turn to Slide 4 That compares SFOrsquos passenger growth to other airports in the Bay Area region Oakland International and Mineta San Jose International airports All three airports experienced strong growth with San Jose experiencing very strong growth Bay Area total percentage increase was 85 in Fiscal Year 2018 In terms of passenger volume however SFO because of its relatively large base of passengers continues to be responsible for a majority of the passenger volume increase with 19 million (out of the 33 million) passenger additions to the Bay Area region
If you turn to Slide 5 SFOrsquos strong growth has been sustained for a long period of time Four out of the past seven years experienced strong growth rates of 5 or higher This has resulted in a Compound Average Growth Rate over the past eight years of 52 which has increased our total passenger count by nearly 18 million passengers from 40 million in Fiscal Year 2011 to 578 million in Fiscal Year 2018
On Slide 6 If you were to take this 52 average growth rate and trend it forward SFO would reach 71 million total annual passengers by Fiscal Year 2022 However we are more conservative with our forecasts and a more realistic scenario is shown on the next slide Slide 7 which reflects a more moderate 2 Average Growth Rate going forward SFO would reach 71 million total annual passengers under this scenario by Fiscal Year 2029 This slower rate of growth takes into account potential softening of the economy and 71 million total annual passengers matches what we expect to be the maximum capacity of the Airport in the Airportrsquos Development Plan
On Slide 8 Our short term outlook of scheduled airline seats confirms that this 2 moderate growth rate going forward is realistic The data indicates that domestic capacity will moderate we donrsquot expect it to be negative as shown in certain months of the table because airline schedules have not been finalized yet However we do expect domestic growth to be moderate by the end of the year in approximately in the 1 range while international growth will continue to be strong at 6 or above This would result in an increase by the end of Fiscal Year 2019 of 22
In to the next Slide 9 Shows the regions that comprise our strong international growth The majority of the added services in Fiscal Year 2018 was to Asia which had a combined 164000 seats added The South Pacific region Europe Latin America and Canada also experienced strong growth as well
Lastly if you turn to the last Slide 10 SFOrsquos passenger growth has also led to strong performance in Concessions Revenue Most business categories experienced an increase in revenue to the Airport 15 of this revenue becomes the Annual Service Payment to the City and County of San Francisco which totaled $464 million in Fiscal Year 2018
Minutes September 4 2018 Page 5
Thank you and Irsquod be happy to answer any questions
Commissioner Guggenhime commented the amount of traffic therefore the number of airplanes going in and out of here with the runway issues and the weather issues that we seem to have I mean at some point being on time to me is more important than the number of passengers Thatrsquos just a comment not a question
Mr Nakornkhet said we have experienced a trend of what we call airline up gauging in our data which means aircraft size are getting larger So the airlines are doing their part to bring in more passengers without increasing operations by the same amount by increasing the aircraft size And the average aircraft size ten years ago for example was approximately 130 seats and now itrsquos 158 seats So they are getting larger
Commissioner Guggenhime thanked Mr Nakornkhet
Commissioner Crayton said great thank you so much First of all thank you for this report When you read it itrsquos self‐explanatory It gives you a lot of information The question that I have though and actually itrsquos helpful to get it before the meeting so it can really really make sure that you can talk about it But when I look at Page 4 and it tells me that that the growth the 2018 growth etc was for San Francisco which is great too and certainly itrsquos an improvement I look at San Jose itrsquos 172 Now is the San Jose Airport smaller than we are What are they doing that or what are the factors that land to its 172 thatrsquos a high amount
Mr Nakornkhet replied yes so San Jose is much smaller than we are They are only in the 12 million total passenger range wherersquos wersquore at 58 million and theyrsquove been getting a lot of domestic growth from a number of domestic carriers such as Delta American and Southwest I think itrsquos just a factor of how small they are and when you grow a relatively large amount on that small base of passengers you get that large percentage But in terms of volume growth we still exceed at San Josersquos volume growth If you look in the furthest right column of that table Even though they grew by 17 they only grew by 1 million total passengers where as we grew 19 million total passengers
Mr Nakornkhet said they are experiencing of strong growth from a number of airlines I mentioned earlier
Commissioner Crayton asked and we have those same airlines here
Mr Nakornkhet replied and we have the same airlines as well Yes
Commissioner Crayton said I was wondering if there was a factor there that was having people choosing them over us
Minutes September 4 2018 Page 6
Commissioner Johns said I actually think itrsquos good for us that theyrsquore growing I think we need this regional plan I know that our previous Director John Martin had indicated to us several years ago that we really need to look to a regional plan I do know that weather is better in San Jose and in Oakland And I think some people are trying to find ways to get on time flights especially if itrsquos crucial And I personally know if you have done that in the last 10 days So I donrsquot find this a problem I think itrsquos important for us to all work together all the airports regionally and perhaps something in the North Bay also as we look towards the future I just wanted to make that comment
Commissioner Crayton said and I want to be clear I donrsquot see this as a problem Irsquom talking about as I look at this wondering if there are factors that were in San Jose that would make them have more enplanements because I know what our Airport is like Irsquove been here Irsquove been in San Jose too and I said never do that again So after you experience SFO you know yoursquove had about the best And so having said that I just was wondering why it just looks skewed for some reason
Commissioner Mazzola said so picking up on Commissioner Guggenhimersquos question do we have an on‐going runway study Do we study runways as planning to get bigger And as passengers keep coming do we ever decide wersquore going to reconfigure those runways again
Mr Ivar Satero Airport Director replied you know what we do is wersquore preparing for it like more a regional approach to things and so that starts with the Regional Airport Planning Commission And really thatrsquos where the update to the Regional Airport System Plan has to happen Their plan is almost seven years old now And so itrsquos outdated from the assumptions that were made back then in terms of growth for the region You can see wersquore far out pacing that So our efforts are around reconvening the Regional Airport Planning Commission That is the lead agencies in that are MTC ABAG and BCDC and so wersquore starting a process to get them engaged in this broader review of airport capacity in a regional
Commissioner Mazzola said as we review a regional plan our local plan is stifled We stay where we are and we decide that wersquore going to do a regional plan and you know and land planes in other areas
Mr Satero said it needs to be a regional approach just because the investment thatrsquos required and all of the politics that go into this kind of review We donrsquot wersquore not we also what wersquore looking at is how does technology continued to advance the capacity of SFO Wersquove been successful in the past with technology and wersquore investing a new technology particularly the Ground Based Augmentation System that this Commission authorized that will add capacity particularly when we see the delays during the poor weather conditions And really thatrsquos where our problem exists Thatrsquos where we see the delays We will continue to see industry respond as we have seen that over the last ten years as Mike said larger aircraft spreading out flights across a broader schedule and increased load factors
Minutes September 4 2018 Page 7
So thatrsquos why our forecast project about another ten years of capacity before we get to that point
Commissioner Mazzola asked alright other questions of Mike Thank you very much for your report
E ITEMS INITIATED BY COMMISSIONERS Item No 2 is for discussion only
2 Following upon Resolution No 18‐0200 establishing a special advisory Committee to consider and recommend action on the nomination of Edwin M Lee for naming or dedication at the San Francisco International Airport the Commission Presidentrsquos proposed appointments to the Committee DISCUSSION ONLY
Commissioner Mazzola said to bring you up to date on that with that is we had a group of San Franciscans approach us to name something after Ed Lee and that started our process of naming We have to start to name a committee and then after we name the committee and then the people have to accept to be on the committee and we wersquoll have meetings talk about what we should do And meetings will be public meetings It will be held probably at the end of these meetings At the end of an Airport meeting then wersquoll adjourn this and go into a committee meeting We donrsquot anticipate many meetings Three something like thathellipwe have six months to do that That will be January 19th to come up with a recommendation So Corina if you want to read the Nominees to the Committee
Ms Corina Monzoacuten stated proposed appointments to the committee by President Mazzola The first five appointments are members of the San Francisco Airport Commission Larry Mazzola President Linda S Crayton Vice President Eleanor Johns Commissioner Richard J Guggenhime Commissioner Peter Stern Commissioner Followed by John Martin Former Airport Director San Francisco International Airport Anni Chung President and CEO Self Help for the Elderly San Francisco Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Commissioner Mazzola said alright Commissioners any questions you anything you want to add Okay and thatrsquos for information
Commissioner Johns asked have all these members other than ourselves been asked
Commissioner Mazzola replied yes Theyrsquove all agreed theyrsquove all agreed And so I know I talked to all of you but itrsquos not mandatory to be on this So if you decide you donrsquot want to be on let me know so we can appoint somebody else We donrsquot need a motion just discussion
Minutes September 4 2018 Page 8
F ACTION ITEMS RELATED TO ADMINISTRATION OPERATIONS amp MAINTENANCE Item No 3 was approved unanimously by a motion by Commissioner Johns and a second by Commissioner Mazzola
3 Award of the Terminal 3 Boarding Area E Candy Kiosk Lease to Canonica
No 18‐0284 Resolution awarding the Terminal 3 Boarding Area E Candy Kiosk to Canonica New York LLC
Ms Cheryl Nashir Director Revenue Development and Management said good morning Commissioners
I am here this morning seeking your approval to award the Boarding Area E Candy Kiosk Lease to Canonica New York LLC This lease was to be awarded a few weeks ago with some others that were awarded in the same Boarding Area but it was pulled off of your agenda because there was protest
The location is a 104 square foot kiosk in Terminal 3 Boarding Area E Presently the kiosk is operating as Seersquos Candies but that lease is expiring in January There were three proposers for this lease and one of them Gary Rulli Operator of Emporio Rulli issued a protest alleging that Canonica did not meet the minimum qualifications In his protest he pointed out that Canonica New York LLC is a fairly new entity and therefore could not meet the requirement of having operated a candy business in 3 of the last 5 years and also could not have met the sales requirement attached to the MQs We studied his protest and found it lacking in merit Canonica New York LLC is a subsidiary of Swisscanonica who very easily meets the minimum qualifications
The term for this lease is 7‐years The rent is the greater of percentage or $100000 per year which is the minimum annual guarantee They will 0perate as The Chocolate Market and they operate today in our International Terminal as The Chocolate Market in what I think is one of our most beautiful build outs at the Airport Theyrsquore also coming to Terminal 2 this Fall
I expect that theyrsquore going to pay MAG rent in the early years Currently the minimum annual guarantee on this space is $226000 so this is a very unusual situation where Irsquom coming to you in awarding a lease that will bring us more money or less money however the present lease is paying almost 45 rent and thatrsquos not anything we expected would continue when we release this
I would be happy to take any questions
Commissioner Crayton asked do we have any vendors that are now presently paying 45 scale rent here at the Airport
Minutes September 4 2018 Page 9
Ms Nashir said no stores or restaurants our advertising concession pays in that range but know that thatrsquos our average rent is between 11 and 16
Commissioner Johns asked so therersquos no one here today protesting
Ms Nashir replied no
Commissioner Johns said thank you
Commissioner Mazzola asked so you said Rullirsquos protest is without merit right Okay alright
There were no further questions
Item No 4 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
4 Authorization to Accept Proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
No 18‐0285 Resolution approving the revised lease specifications and authorizing Staff to accept proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
Good morning I am Cheryl Nashir from Revenue Development and Management And before we start on this item I would just like to point out that I have given you all a replacement page to this Commission memo this morning There was an error on the attachment in your Commission memo I had said that the construction period was 120 days Itrsquos actually 90 days so that is the correction that I made this morning in that new attachment Irsquom here to gain your approval this morning to make one change in this RFP and also to be allowed to accept proposals
On June 19th you authorized the issuance of this Request for Proposals for the Terminal 1 Specialty Retail Lease No 3 You may recall that we had previously tried to lease this space as a small business set aside specialty store and we did not receive any proposals So this is a redo of this particular lease and we dropped the SBE requirement
Commissioner Johns asked what requirement
Ms Nashir replied the Small Business Enterprise We conducted an informational conference and received no substantive questions on this business proposal thatrsquos in the RFP We do however want to recommend one change In the RFP we said that this would be a specialty retail store but there were four concepts that would be excluded And that
Minutes September 4 2018 Page 10
was News Sunglasses Bath and Body and Electronics We would like to drop those exclusions to just two It canrsquot be a newsstand or sunglass store but we would like to allow bath and body stores and electronic stores to enter this competition We think it will lead to more proposals and it will not adversely affect the rest of the program It could increase the competition thatrsquos the whole point We will be back in October for award And I would be happy to take any questions
Commissioner Johns said so I see that you had an informational conference and it wasnrsquot all that well attended So whatrsquos the issue here
Ms Nashir said well this is a very small store and its specialty retail which wersquore starting to find a challenge to lease We do well on our pop‐up retail which are small specialty stores but wersquove built those stores Wersquove just wersquore in the middle of an RFP right now where we got six proposals and at least three of them are very good on a pop‐up location But these small specialty stores that someone comes in and has to build themselves are starting to just be a challenge for us to lease And thatrsquos one reason I want to get rid of two of those exclusions
Commissioner Johns asked so are we seeing a trend here that maybe in the future we need to start looking in different directions
Ms Nashir replied yes I think wersquore seeing a trend in retail dropping off probably due to on‐line shopping And also some of our biggest tenants are the ones that are able to bring us specialty retail like the national beauty brands etc and they donrsquot want to bid on these locations because of the limit of eight They want to hold out for the larger stores and the newsstands So we are studying right now our limit of eight policy and wersquoll be sending an off‐calendar to you shortly on some recommended changes
Commissioner Johns said I mean maybe wersquore beginning an era we need a little less retail a little more food because I noticed in Terminal 2 at the is it Peetrsquos Coffee I mean the line is so long that itrsquos impossible if yoursquore catching a plane which is why most people are there to get what you want in the appropriate time So just a thought
Ms Nashir said very good Thank you
Commissioner Crayton said and my question is the outreach in terms of this particular proposal Did we do anything with the Chamber I mean what did we do
Ms Nashir replied we contacted all of the previous pop‐up tenants we had worked with We had hoped we had graduate to become you know permanent tenants with us and so wersquore hoping that wersquoll see some of those in the competition And again we just go out into neighborhoods in the City and put out press releases
Commissioner Crayton said well we tried twice so
Minutes September 4 2018 Page 11
Ms Nashir replied yes
There were no further questions
Item No 5 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Mazzola
5 Authorization to Accept Proposals for the Terminal 1 Boarding Area C Retail Concession Leases
No 18‐0286 Resolution approving the lease specifications and proposal requirements and authorizing Staff to accept proposals for two leases for two locations in Terminal 1 Boarding Area C
Good morning I am Cheryl Nashir from Revenue Development and Management I am here this morning as well requesting authorization to accept proposals for the Boarding Area C Retail Concession Leases
On June 5th the Airport Commission authorized the issuance of an RFP for two retail leases both are in Terminal 1 on Boarding Area C Boarding Area C is primarily served by Delta Airlines These two stores represent the only retail on this boarding area They are currently combined under a single lease
In this RFP we pulled them apart and created two leases We held an informational conference and collected comments They were very few comments The most substantive question however asked was could we combine these two spaces once again under a single lease And we recommend against this We believe that theyrsquore both viable on a stand‐alone basis One is a newsstand and the other one is a retail market place which is really a big newsstand with quite a bit of specialty retail in it Currently one location is doing about $7 million a year and the other is doing over $3 million a year So these are not small or challenged spaces So we would like to be able to accept proposals and without making changes to our RFP
And I would be happy to take any questions
There were no questions
Item No 6 was approved unanimously by a motion by Commissioner Guggenhime and a second by Commissioner Mazzola
Minutes September 4 2018 Page 12
6 Reject All Proposals for Professional Services Contract No 50130 and Re‐Issue Request for Proposals for Professional Services Contract No 5013001 for Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement
No 18‐0287 Resolution rejecting all proposals for Professional Services Contract No 50130 and re‐issue a Request for Proposals for Professional Services Contract No 5013001 Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement and enter into negotiations with the top ranked proposer
Good morning Commissioners My name is John Bergener and Irsquom the Airport Planning Director This item seeks your approval to reject all proposals and re‐issue this RFP 5013001 for Aircraft Noise Monitoring System with support maintenance and noise monitor replacement and negotiate with the top ranked firm
An aircraft noise monitoring system (or ldquoANMSrdquo) has been an integral function of the Airport since the late 1970s when SFO became the first US airport to implement an FAA‐approved noise compatibility program The ANMS consists of noise monitors with microphones and software that collects the data from the monitors and other sources This data is then used by Staff to conduct analysis draft reports to meet various federal and state reporting requirements and provide information to stakeholders and decision makers
The Airport currently operates a total of 37 noise monitors including 29 permanent and 8 portable monitors located on Airport and in San Francisco and San Mateo counties The existing noise monitors and microphones are over 10 years old and require regular site visits for maintenance especially during inclement weather
On July 25 2017 the Commission authorize Staff to issue an RFP 50130 for Aircraft Noise Monitoring System and Maintenance and Noise Monitor Replacement On November 1 2017 Staff issued the RFP and three proposals were received by the submission deadline on December 1 2017 The written proposals were scored by a panel of subject matter of experts All proposers were invited to an oral interview with a product demonstration
Staff successfully negotiated a contract with the top ranking firm and on April 13 2018 notified all proposers of the intent to seek Airport Commission approval to award a contract Upon notification the 2nd and 3rd ranked proposers submitted protests contesting that the top ranked firm did not meet the minimum qualifications among other items After careful review Staff determined it would be best to reject all proposals and reissue the RFP with refined minimum qualifications including clarification that submission of project experiences gained at non‐US airports is permissible
If the Commission approves of this item Staff will re‐issue the RFP with refined minimum
Minutes September 4 2018 Page 13
qualifications and submission requirements The purpose of the RFP remains the same ndash the resulting contract would enable the Airport to select a team with the expertise and knowledge to provide an ANMS replace and purchase additional noise monitors and provide the software that collects and transmits the data collected in the field The selected proposer would also train Staff on the selected noise monitoring system and assist with maintenance to ensure the equipment and software are operating properly
A panel of subject matter experts would be convened to evaluate and score each qualified proposer Staff would return to the Commission to request approval to award a contract with the top ranked firm following successful negotiations There is a 15 LBE requirement for this contract and the anticipated contract would have a term of 5 years with two 2‐year options to renew to be exercised at the discretion of the Commission
I recommend your approval and can answer any questions you have on this item
Commissioner Johns said so I really donrsquot even know where to begin with this except to say that in all the years Irsquove been here at the Commission Irsquove never had an issue like this It does relate to noise and we know wersquore growing so we know the noise is going to get worse I was approached by a member of the Board of Supervisors who told me that he is going to have a hearing on noise issues And wersquove had two protests on this Wersquove had itrsquos been going on a year you said since July rsquo17 Wersquove had it postponed twice I personally requested a briefing and was given a briefing I requested a lot of information I was given the information At the briefing I stated that I was concerned about some of the issues in the prior RFP that I thought it was important that we had somebody who could do both the hardware and the software and who have the appropriate experience to do this assuming there is such a person entity available I see nothing in this new RFP that has added anything that was not there in what you guys gave us the last time Irsquom stymied I donrsquot understand it Instead of four years of experience I think the one this time has three years of experience so wersquore looking for less experience We talked about Title 21 and having some experience in California I donrsquot see that except yoursquore saying after the fact once you choose someone then they can write a letter saying that theyrsquove been authorized by is it Caltrans that does this or the PUC
Mr Bergener responded that the system acceptance requirements requires a letter from Caltrans verifying that the system complies with Title 21 requirements
Commissioner Johns stated that she doesnrsquot understand it We are in Airport that tries to seek number 1 Why do we not want a firm who has experiencehellip Irsquoll go along with your RFP but when you bring somebody back to us for approval I sure hope they meet the qualifications I have never had to speak on an issue like I am today so I donrsquot understand it I think I made clear that we need somebody who has experience in both hardware and software Irsquom kind of repeating this so I donrsquot forget what I wanted to say Secondly they should have experience in California so that they understand Title 21 whether itrsquos the prime or the sub‐contractor They should be able to show that they have experience for a certain
Minutes September 4 2018 Page 14
amount of years consistently with large airports You have given us today how we are growing Wersquore getting larger and larger and yet wersquore not looking for somebody who has serviced this size Airport So those are my comments I donrsquot know what else to say I think I made my point clear
Commissioner Mazzola said alright okay did you want to respond to that or leave her statement be
Mr Bergener said I will just note that the minimum qualifications do include a requirement for experience in an Airport with more than 7 million enplanements or 14 million total passengers which is consistent with the US large hub definition of airports in 2017
Commissioner Johns said alright How long do they have to have that Is it one year and is it combined with the sub and the prime
Mr Bergener replied it was at least one airport in each of the subject areas for three years Commissioner Johns said say that again
Commissioner Johns stated I had it in front of me I mean itrsquos the same as before but what about the California requirement
Mr Bergener replied no we did not add the California requirement because itrsquos part of the systemsrsquo acceptance requirements
Commissioner Johns said I stand with my comments I donrsquot have anything further
Commissioner Crayton said I want to say and I know you guys briefed us and when I left the meeting I felt somewhat comfortable with the responses that I had received Going through this again I yet became concern because it seems that itrsquos watered down from the previous contract that we had when I went back and had my assistant do a comparison in terms of that and I agree with all of the things Commissioner Johns had said And so itrsquos problematic for me because it sounds as if noise has taken a lesser seat here than it had before This is a huge Airport I think itrsquos a premier Airport and in that regard we have to have that concern because lots of people that are very vocal out there have had five or six people call me regarding this and having an issue And I Irsquom not sure whatrsquos spearheading all of this except for the fact that I myself see it at a lesser than the qualifications are somewhat construed from the previous contract And Irsquom a little concern about that Irsquom also concerned in that noise as she said with the number of enplanements that we have the large Airport that we have and where we stand in the scheme of things in terms of an International Airport I think we need to give more value to it So I am yet concerned about this also and Irsquom not clear how to what the fix is It for some reason to me and maybe itrsquos because you know this is not my area It almost looks like the importance of this was sort of weighed down in this particular contract as to the previous ones that wersquove had the and Irsquove only had been present for one prior contract and so therefore this does concern me
Minutes September 4 2018 Page 15
that a lot of proponents out there as I said earlier I received at least five calls And so I donrsquot know what else to say regarding this I thought I was okay with it read it through again and it does concern me
Commissioner Mazzola asked Ivar you want to weigh‐in
Mr Satero replied yeah sure I will Commissioners my apologies We thought we had made the necessary tweaks We certainly want you to be comfortable with this We are we know therersquos three firms that do this kind of work that are very well qualified We want a competitive process and so we believe wersquove crafted something that gives us the excellence that we always strive for in terms of all of our work and noise monitoring is an important point of what we do especially in todayrsquos community issues wersquore having around noise But you need to be confident that we can deliver excellence as we intend to do So if wersquore still not satisfied I will remove this once again if it is the desire of the Commission to be continued to be briefed on how to make sure we achieve our goals
Commissioner Mazzola said so as far as Irsquom concern let me speak up here I think we ought to let the RFP go out and when they come back then we ought to really hone in on what we really want But I think we need to get on with it and not hold it up longer
Commissioner Johns said Irsquom fine with that I just think itrsquos important that we get some entity that is qualified
Commissioner Mazzola said so I think that will be the report Thank you for that
Item No 7 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
7 Approval of Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project Turner Construction Company $12073574
No 18‐0288 Resolution approving Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project with Turner Construction Company to increase the contract capacity by $12073574 for a new total contract capacity amount of $69930727 and with no change to the contract duration
Ms Judi Mosqueda Director of Project Management said good morning Commissioners
This item is for your approval of Phase C6 adding Trade Package Set No 4 into our contract with Turner Construction for the Demolition of Terminal 2 Air Traffic Control Tower
Minutes September 4 2018 Page 16
Project The Phase C6 approval will increase the contract capacity by $121 million for a new contract capacity amount of $699 million with a corresponding amount of contingency and with no change to the contract duration
The Project includes demolition of the existing air traffic control tower and design and construction of a new office block on top of T2 The new floors may be used for a new airline lounge office space a new employee cafe and a public observation deck As you know demolition of the old tower has been completed already Steel erection for the new floors is beginning this month
This approval will provide for Trade Package Set No 4 to be added to the contract The trade package set includes SeismicMain Building Concrete Glazing Storefront and Metal Panels Exterior Framing and Plaster Plumbing and Air Handling Units
The forecast for this contract is $831 million which falls within the budget of $841 million and includes appropriate levels of contingency The Project is on‐schedule to be substantially complete in August of 2019
The LBE goals for this contract are 24 for design services and 20 for construction services and Turner Construction is committed to meeting these goals
We recommend your approval and I would be happy to answer questions
There were no questions from the Commissioners
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS The Consent Calendar Item Nos 8 through 12 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Mazzola
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $1852527
No 18‐0289 Resolution approving Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project with PMANBA Joint Venture in an amount of $1852527 for a new contract amount not to exceed $6348283 for services through March 31 2020
Minutes September 4 2018 Page 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project Faith Group LLC $1736000
No 18‐0290 Resolution approving Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project with Faith Group LLC in an amount of $1736000 for a new contract amount not to exceed $3266000 for services through October 18 2019
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services to Loza Upholstery Inc for $800000 Kay Chesterfield Inc for $800000
No 18‐0291 Resolutions awarding Professional Services Contract No 5014501 As‐No 18‐0292 Needed Furniture Repair and Re‐upholstery services to Loza Upholstery
Inc and Contract No 5014502 to Kay Chesterfield Inc each with a contract amount not‐to‐exceed $800000 with a contract duration of five years
Commissioner Johns said I donrsquot have a question I have a comment Item 10 I was very happy to see that item because I was in Terminal 2 in the baggage area and we have some seating there that really needs to be reupholstered or perhaps replaced But I was happy to see this item and I do hope that we review all furniture and either reupholster or replace and specifically I would like to point out that there is therersquos sort of curve seating that theyrsquore in white leather They werenrsquot good from the beginning and they need attention
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project CAGE Professional Services Inc dba CAGE Inc $750000
No 18‐0293 Resolution approving Modification No 11 (Annual Renewal) to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project with CAGE
Minutes September 4 2018 Page 18
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Company $12073574 16
No 18‐0288 16
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS17
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $185252717
No 18‐0289 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project 18
No 18‐0290 18
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services 18
No 18‐0291 Loza Upholstery Inc 18
No 18‐0292 Kay Chesterfield Inc 18
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project 18
No 18‐0293 18
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000 19
No 18‐0294 19
H NEW BUSINESS 19
I CORRESPONDENCE 19
J CLOSED SESSION 19
K ADJOURNMENT 20
Minutes September 4 2018 Page 3
Minutes of the Airport Commission Meeting of Tuesday September 4 2018
A CALL TO ORDER The regular meeting of the Airport Commission was called to order at 900 AM in Room 400 City Hall San Francisco CA
B ROLL CALL Present
Absent
C ADOPTION OF MINUTES
Hon Larry Mazzola President Hon Linda S Crayton Vice President Hon Eleanor Johns Hon Richard J Guggenhime
Hon Peter A Stern
The minutes of the regular meeting of August 21 2018 were adopted unanimously upon a motion by Commissioner Crayton and a second by Commissioner Johns
No 18‐0283 Regular meeting of August 21 2018
D DIRECTORrsquoS REPORT Item No 1 is for discussion only
1 Analysis of Airline Traffic for Fiscal Year 201718
Analysis of Airline Traffic for Fiscal Year 201718
Mr Mike Nakornkhet Financial Planning amp Analysis Director said good morning Commissioners I will be walking you through the analysis of airline traffic that you have in front of you slide by slide And I will call out of each slide before talking about them
If you could turn to Slide 2 please San Francisco International Airport concluded Fiscal Year 2018 with 578 million total passengers This represents a 7 increase from the prior fiscal year and establishes a record for SFO for the seventh consecutive year
Minutes September 4 2018 Page 4
Now if you could turn to Slide 3 That compares our passenger growth to ten other major international gateway airports in the United States SFO had the highest growth rate among this comparison set in Fiscal Year 2018
If you turn to Slide 4 That compares SFOrsquos passenger growth to other airports in the Bay Area region Oakland International and Mineta San Jose International airports All three airports experienced strong growth with San Jose experiencing very strong growth Bay Area total percentage increase was 85 in Fiscal Year 2018 In terms of passenger volume however SFO because of its relatively large base of passengers continues to be responsible for a majority of the passenger volume increase with 19 million (out of the 33 million) passenger additions to the Bay Area region
If you turn to Slide 5 SFOrsquos strong growth has been sustained for a long period of time Four out of the past seven years experienced strong growth rates of 5 or higher This has resulted in a Compound Average Growth Rate over the past eight years of 52 which has increased our total passenger count by nearly 18 million passengers from 40 million in Fiscal Year 2011 to 578 million in Fiscal Year 2018
On Slide 6 If you were to take this 52 average growth rate and trend it forward SFO would reach 71 million total annual passengers by Fiscal Year 2022 However we are more conservative with our forecasts and a more realistic scenario is shown on the next slide Slide 7 which reflects a more moderate 2 Average Growth Rate going forward SFO would reach 71 million total annual passengers under this scenario by Fiscal Year 2029 This slower rate of growth takes into account potential softening of the economy and 71 million total annual passengers matches what we expect to be the maximum capacity of the Airport in the Airportrsquos Development Plan
On Slide 8 Our short term outlook of scheduled airline seats confirms that this 2 moderate growth rate going forward is realistic The data indicates that domestic capacity will moderate we donrsquot expect it to be negative as shown in certain months of the table because airline schedules have not been finalized yet However we do expect domestic growth to be moderate by the end of the year in approximately in the 1 range while international growth will continue to be strong at 6 or above This would result in an increase by the end of Fiscal Year 2019 of 22
In to the next Slide 9 Shows the regions that comprise our strong international growth The majority of the added services in Fiscal Year 2018 was to Asia which had a combined 164000 seats added The South Pacific region Europe Latin America and Canada also experienced strong growth as well
Lastly if you turn to the last Slide 10 SFOrsquos passenger growth has also led to strong performance in Concessions Revenue Most business categories experienced an increase in revenue to the Airport 15 of this revenue becomes the Annual Service Payment to the City and County of San Francisco which totaled $464 million in Fiscal Year 2018
Minutes September 4 2018 Page 5
Thank you and Irsquod be happy to answer any questions
Commissioner Guggenhime commented the amount of traffic therefore the number of airplanes going in and out of here with the runway issues and the weather issues that we seem to have I mean at some point being on time to me is more important than the number of passengers Thatrsquos just a comment not a question
Mr Nakornkhet said we have experienced a trend of what we call airline up gauging in our data which means aircraft size are getting larger So the airlines are doing their part to bring in more passengers without increasing operations by the same amount by increasing the aircraft size And the average aircraft size ten years ago for example was approximately 130 seats and now itrsquos 158 seats So they are getting larger
Commissioner Guggenhime thanked Mr Nakornkhet
Commissioner Crayton said great thank you so much First of all thank you for this report When you read it itrsquos self‐explanatory It gives you a lot of information The question that I have though and actually itrsquos helpful to get it before the meeting so it can really really make sure that you can talk about it But when I look at Page 4 and it tells me that that the growth the 2018 growth etc was for San Francisco which is great too and certainly itrsquos an improvement I look at San Jose itrsquos 172 Now is the San Jose Airport smaller than we are What are they doing that or what are the factors that land to its 172 thatrsquos a high amount
Mr Nakornkhet replied yes so San Jose is much smaller than we are They are only in the 12 million total passenger range wherersquos wersquore at 58 million and theyrsquove been getting a lot of domestic growth from a number of domestic carriers such as Delta American and Southwest I think itrsquos just a factor of how small they are and when you grow a relatively large amount on that small base of passengers you get that large percentage But in terms of volume growth we still exceed at San Josersquos volume growth If you look in the furthest right column of that table Even though they grew by 17 they only grew by 1 million total passengers where as we grew 19 million total passengers
Mr Nakornkhet said they are experiencing of strong growth from a number of airlines I mentioned earlier
Commissioner Crayton asked and we have those same airlines here
Mr Nakornkhet replied and we have the same airlines as well Yes
Commissioner Crayton said I was wondering if there was a factor there that was having people choosing them over us
Minutes September 4 2018 Page 6
Commissioner Johns said I actually think itrsquos good for us that theyrsquore growing I think we need this regional plan I know that our previous Director John Martin had indicated to us several years ago that we really need to look to a regional plan I do know that weather is better in San Jose and in Oakland And I think some people are trying to find ways to get on time flights especially if itrsquos crucial And I personally know if you have done that in the last 10 days So I donrsquot find this a problem I think itrsquos important for us to all work together all the airports regionally and perhaps something in the North Bay also as we look towards the future I just wanted to make that comment
Commissioner Crayton said and I want to be clear I donrsquot see this as a problem Irsquom talking about as I look at this wondering if there are factors that were in San Jose that would make them have more enplanements because I know what our Airport is like Irsquove been here Irsquove been in San Jose too and I said never do that again So after you experience SFO you know yoursquove had about the best And so having said that I just was wondering why it just looks skewed for some reason
Commissioner Mazzola said so picking up on Commissioner Guggenhimersquos question do we have an on‐going runway study Do we study runways as planning to get bigger And as passengers keep coming do we ever decide wersquore going to reconfigure those runways again
Mr Ivar Satero Airport Director replied you know what we do is wersquore preparing for it like more a regional approach to things and so that starts with the Regional Airport Planning Commission And really thatrsquos where the update to the Regional Airport System Plan has to happen Their plan is almost seven years old now And so itrsquos outdated from the assumptions that were made back then in terms of growth for the region You can see wersquore far out pacing that So our efforts are around reconvening the Regional Airport Planning Commission That is the lead agencies in that are MTC ABAG and BCDC and so wersquore starting a process to get them engaged in this broader review of airport capacity in a regional
Commissioner Mazzola said as we review a regional plan our local plan is stifled We stay where we are and we decide that wersquore going to do a regional plan and you know and land planes in other areas
Mr Satero said it needs to be a regional approach just because the investment thatrsquos required and all of the politics that go into this kind of review We donrsquot wersquore not we also what wersquore looking at is how does technology continued to advance the capacity of SFO Wersquove been successful in the past with technology and wersquore investing a new technology particularly the Ground Based Augmentation System that this Commission authorized that will add capacity particularly when we see the delays during the poor weather conditions And really thatrsquos where our problem exists Thatrsquos where we see the delays We will continue to see industry respond as we have seen that over the last ten years as Mike said larger aircraft spreading out flights across a broader schedule and increased load factors
Minutes September 4 2018 Page 7
So thatrsquos why our forecast project about another ten years of capacity before we get to that point
Commissioner Mazzola asked alright other questions of Mike Thank you very much for your report
E ITEMS INITIATED BY COMMISSIONERS Item No 2 is for discussion only
2 Following upon Resolution No 18‐0200 establishing a special advisory Committee to consider and recommend action on the nomination of Edwin M Lee for naming or dedication at the San Francisco International Airport the Commission Presidentrsquos proposed appointments to the Committee DISCUSSION ONLY
Commissioner Mazzola said to bring you up to date on that with that is we had a group of San Franciscans approach us to name something after Ed Lee and that started our process of naming We have to start to name a committee and then after we name the committee and then the people have to accept to be on the committee and we wersquoll have meetings talk about what we should do And meetings will be public meetings It will be held probably at the end of these meetings At the end of an Airport meeting then wersquoll adjourn this and go into a committee meeting We donrsquot anticipate many meetings Three something like thathellipwe have six months to do that That will be January 19th to come up with a recommendation So Corina if you want to read the Nominees to the Committee
Ms Corina Monzoacuten stated proposed appointments to the committee by President Mazzola The first five appointments are members of the San Francisco Airport Commission Larry Mazzola President Linda S Crayton Vice President Eleanor Johns Commissioner Richard J Guggenhime Commissioner Peter Stern Commissioner Followed by John Martin Former Airport Director San Francisco International Airport Anni Chung President and CEO Self Help for the Elderly San Francisco Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Commissioner Mazzola said alright Commissioners any questions you anything you want to add Okay and thatrsquos for information
Commissioner Johns asked have all these members other than ourselves been asked
Commissioner Mazzola replied yes Theyrsquove all agreed theyrsquove all agreed And so I know I talked to all of you but itrsquos not mandatory to be on this So if you decide you donrsquot want to be on let me know so we can appoint somebody else We donrsquot need a motion just discussion
Minutes September 4 2018 Page 8
F ACTION ITEMS RELATED TO ADMINISTRATION OPERATIONS amp MAINTENANCE Item No 3 was approved unanimously by a motion by Commissioner Johns and a second by Commissioner Mazzola
3 Award of the Terminal 3 Boarding Area E Candy Kiosk Lease to Canonica
No 18‐0284 Resolution awarding the Terminal 3 Boarding Area E Candy Kiosk to Canonica New York LLC
Ms Cheryl Nashir Director Revenue Development and Management said good morning Commissioners
I am here this morning seeking your approval to award the Boarding Area E Candy Kiosk Lease to Canonica New York LLC This lease was to be awarded a few weeks ago with some others that were awarded in the same Boarding Area but it was pulled off of your agenda because there was protest
The location is a 104 square foot kiosk in Terminal 3 Boarding Area E Presently the kiosk is operating as Seersquos Candies but that lease is expiring in January There were three proposers for this lease and one of them Gary Rulli Operator of Emporio Rulli issued a protest alleging that Canonica did not meet the minimum qualifications In his protest he pointed out that Canonica New York LLC is a fairly new entity and therefore could not meet the requirement of having operated a candy business in 3 of the last 5 years and also could not have met the sales requirement attached to the MQs We studied his protest and found it lacking in merit Canonica New York LLC is a subsidiary of Swisscanonica who very easily meets the minimum qualifications
The term for this lease is 7‐years The rent is the greater of percentage or $100000 per year which is the minimum annual guarantee They will 0perate as The Chocolate Market and they operate today in our International Terminal as The Chocolate Market in what I think is one of our most beautiful build outs at the Airport Theyrsquore also coming to Terminal 2 this Fall
I expect that theyrsquore going to pay MAG rent in the early years Currently the minimum annual guarantee on this space is $226000 so this is a very unusual situation where Irsquom coming to you in awarding a lease that will bring us more money or less money however the present lease is paying almost 45 rent and thatrsquos not anything we expected would continue when we release this
I would be happy to take any questions
Commissioner Crayton asked do we have any vendors that are now presently paying 45 scale rent here at the Airport
Minutes September 4 2018 Page 9
Ms Nashir said no stores or restaurants our advertising concession pays in that range but know that thatrsquos our average rent is between 11 and 16
Commissioner Johns asked so therersquos no one here today protesting
Ms Nashir replied no
Commissioner Johns said thank you
Commissioner Mazzola asked so you said Rullirsquos protest is without merit right Okay alright
There were no further questions
Item No 4 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
4 Authorization to Accept Proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
No 18‐0285 Resolution approving the revised lease specifications and authorizing Staff to accept proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
Good morning I am Cheryl Nashir from Revenue Development and Management And before we start on this item I would just like to point out that I have given you all a replacement page to this Commission memo this morning There was an error on the attachment in your Commission memo I had said that the construction period was 120 days Itrsquos actually 90 days so that is the correction that I made this morning in that new attachment Irsquom here to gain your approval this morning to make one change in this RFP and also to be allowed to accept proposals
On June 19th you authorized the issuance of this Request for Proposals for the Terminal 1 Specialty Retail Lease No 3 You may recall that we had previously tried to lease this space as a small business set aside specialty store and we did not receive any proposals So this is a redo of this particular lease and we dropped the SBE requirement
Commissioner Johns asked what requirement
Ms Nashir replied the Small Business Enterprise We conducted an informational conference and received no substantive questions on this business proposal thatrsquos in the RFP We do however want to recommend one change In the RFP we said that this would be a specialty retail store but there were four concepts that would be excluded And that
Minutes September 4 2018 Page 10
was News Sunglasses Bath and Body and Electronics We would like to drop those exclusions to just two It canrsquot be a newsstand or sunglass store but we would like to allow bath and body stores and electronic stores to enter this competition We think it will lead to more proposals and it will not adversely affect the rest of the program It could increase the competition thatrsquos the whole point We will be back in October for award And I would be happy to take any questions
Commissioner Johns said so I see that you had an informational conference and it wasnrsquot all that well attended So whatrsquos the issue here
Ms Nashir said well this is a very small store and its specialty retail which wersquore starting to find a challenge to lease We do well on our pop‐up retail which are small specialty stores but wersquove built those stores Wersquove just wersquore in the middle of an RFP right now where we got six proposals and at least three of them are very good on a pop‐up location But these small specialty stores that someone comes in and has to build themselves are starting to just be a challenge for us to lease And thatrsquos one reason I want to get rid of two of those exclusions
Commissioner Johns asked so are we seeing a trend here that maybe in the future we need to start looking in different directions
Ms Nashir replied yes I think wersquore seeing a trend in retail dropping off probably due to on‐line shopping And also some of our biggest tenants are the ones that are able to bring us specialty retail like the national beauty brands etc and they donrsquot want to bid on these locations because of the limit of eight They want to hold out for the larger stores and the newsstands So we are studying right now our limit of eight policy and wersquoll be sending an off‐calendar to you shortly on some recommended changes
Commissioner Johns said I mean maybe wersquore beginning an era we need a little less retail a little more food because I noticed in Terminal 2 at the is it Peetrsquos Coffee I mean the line is so long that itrsquos impossible if yoursquore catching a plane which is why most people are there to get what you want in the appropriate time So just a thought
Ms Nashir said very good Thank you
Commissioner Crayton said and my question is the outreach in terms of this particular proposal Did we do anything with the Chamber I mean what did we do
Ms Nashir replied we contacted all of the previous pop‐up tenants we had worked with We had hoped we had graduate to become you know permanent tenants with us and so wersquore hoping that wersquoll see some of those in the competition And again we just go out into neighborhoods in the City and put out press releases
Commissioner Crayton said well we tried twice so
Minutes September 4 2018 Page 11
Ms Nashir replied yes
There were no further questions
Item No 5 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Mazzola
5 Authorization to Accept Proposals for the Terminal 1 Boarding Area C Retail Concession Leases
No 18‐0286 Resolution approving the lease specifications and proposal requirements and authorizing Staff to accept proposals for two leases for two locations in Terminal 1 Boarding Area C
Good morning I am Cheryl Nashir from Revenue Development and Management I am here this morning as well requesting authorization to accept proposals for the Boarding Area C Retail Concession Leases
On June 5th the Airport Commission authorized the issuance of an RFP for two retail leases both are in Terminal 1 on Boarding Area C Boarding Area C is primarily served by Delta Airlines These two stores represent the only retail on this boarding area They are currently combined under a single lease
In this RFP we pulled them apart and created two leases We held an informational conference and collected comments They were very few comments The most substantive question however asked was could we combine these two spaces once again under a single lease And we recommend against this We believe that theyrsquore both viable on a stand‐alone basis One is a newsstand and the other one is a retail market place which is really a big newsstand with quite a bit of specialty retail in it Currently one location is doing about $7 million a year and the other is doing over $3 million a year So these are not small or challenged spaces So we would like to be able to accept proposals and without making changes to our RFP
And I would be happy to take any questions
There were no questions
Item No 6 was approved unanimously by a motion by Commissioner Guggenhime and a second by Commissioner Mazzola
Minutes September 4 2018 Page 12
6 Reject All Proposals for Professional Services Contract No 50130 and Re‐Issue Request for Proposals for Professional Services Contract No 5013001 for Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement
No 18‐0287 Resolution rejecting all proposals for Professional Services Contract No 50130 and re‐issue a Request for Proposals for Professional Services Contract No 5013001 Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement and enter into negotiations with the top ranked proposer
Good morning Commissioners My name is John Bergener and Irsquom the Airport Planning Director This item seeks your approval to reject all proposals and re‐issue this RFP 5013001 for Aircraft Noise Monitoring System with support maintenance and noise monitor replacement and negotiate with the top ranked firm
An aircraft noise monitoring system (or ldquoANMSrdquo) has been an integral function of the Airport since the late 1970s when SFO became the first US airport to implement an FAA‐approved noise compatibility program The ANMS consists of noise monitors with microphones and software that collects the data from the monitors and other sources This data is then used by Staff to conduct analysis draft reports to meet various federal and state reporting requirements and provide information to stakeholders and decision makers
The Airport currently operates a total of 37 noise monitors including 29 permanent and 8 portable monitors located on Airport and in San Francisco and San Mateo counties The existing noise monitors and microphones are over 10 years old and require regular site visits for maintenance especially during inclement weather
On July 25 2017 the Commission authorize Staff to issue an RFP 50130 for Aircraft Noise Monitoring System and Maintenance and Noise Monitor Replacement On November 1 2017 Staff issued the RFP and three proposals were received by the submission deadline on December 1 2017 The written proposals were scored by a panel of subject matter of experts All proposers were invited to an oral interview with a product demonstration
Staff successfully negotiated a contract with the top ranking firm and on April 13 2018 notified all proposers of the intent to seek Airport Commission approval to award a contract Upon notification the 2nd and 3rd ranked proposers submitted protests contesting that the top ranked firm did not meet the minimum qualifications among other items After careful review Staff determined it would be best to reject all proposals and reissue the RFP with refined minimum qualifications including clarification that submission of project experiences gained at non‐US airports is permissible
If the Commission approves of this item Staff will re‐issue the RFP with refined minimum
Minutes September 4 2018 Page 13
qualifications and submission requirements The purpose of the RFP remains the same ndash the resulting contract would enable the Airport to select a team with the expertise and knowledge to provide an ANMS replace and purchase additional noise monitors and provide the software that collects and transmits the data collected in the field The selected proposer would also train Staff on the selected noise monitoring system and assist with maintenance to ensure the equipment and software are operating properly
A panel of subject matter experts would be convened to evaluate and score each qualified proposer Staff would return to the Commission to request approval to award a contract with the top ranked firm following successful negotiations There is a 15 LBE requirement for this contract and the anticipated contract would have a term of 5 years with two 2‐year options to renew to be exercised at the discretion of the Commission
I recommend your approval and can answer any questions you have on this item
Commissioner Johns said so I really donrsquot even know where to begin with this except to say that in all the years Irsquove been here at the Commission Irsquove never had an issue like this It does relate to noise and we know wersquore growing so we know the noise is going to get worse I was approached by a member of the Board of Supervisors who told me that he is going to have a hearing on noise issues And wersquove had two protests on this Wersquove had itrsquos been going on a year you said since July rsquo17 Wersquove had it postponed twice I personally requested a briefing and was given a briefing I requested a lot of information I was given the information At the briefing I stated that I was concerned about some of the issues in the prior RFP that I thought it was important that we had somebody who could do both the hardware and the software and who have the appropriate experience to do this assuming there is such a person entity available I see nothing in this new RFP that has added anything that was not there in what you guys gave us the last time Irsquom stymied I donrsquot understand it Instead of four years of experience I think the one this time has three years of experience so wersquore looking for less experience We talked about Title 21 and having some experience in California I donrsquot see that except yoursquore saying after the fact once you choose someone then they can write a letter saying that theyrsquove been authorized by is it Caltrans that does this or the PUC
Mr Bergener responded that the system acceptance requirements requires a letter from Caltrans verifying that the system complies with Title 21 requirements
Commissioner Johns stated that she doesnrsquot understand it We are in Airport that tries to seek number 1 Why do we not want a firm who has experiencehellip Irsquoll go along with your RFP but when you bring somebody back to us for approval I sure hope they meet the qualifications I have never had to speak on an issue like I am today so I donrsquot understand it I think I made clear that we need somebody who has experience in both hardware and software Irsquom kind of repeating this so I donrsquot forget what I wanted to say Secondly they should have experience in California so that they understand Title 21 whether itrsquos the prime or the sub‐contractor They should be able to show that they have experience for a certain
Minutes September 4 2018 Page 14
amount of years consistently with large airports You have given us today how we are growing Wersquore getting larger and larger and yet wersquore not looking for somebody who has serviced this size Airport So those are my comments I donrsquot know what else to say I think I made my point clear
Commissioner Mazzola said alright okay did you want to respond to that or leave her statement be
Mr Bergener said I will just note that the minimum qualifications do include a requirement for experience in an Airport with more than 7 million enplanements or 14 million total passengers which is consistent with the US large hub definition of airports in 2017
Commissioner Johns said alright How long do they have to have that Is it one year and is it combined with the sub and the prime
Mr Bergener replied it was at least one airport in each of the subject areas for three years Commissioner Johns said say that again
Commissioner Johns stated I had it in front of me I mean itrsquos the same as before but what about the California requirement
Mr Bergener replied no we did not add the California requirement because itrsquos part of the systemsrsquo acceptance requirements
Commissioner Johns said I stand with my comments I donrsquot have anything further
Commissioner Crayton said I want to say and I know you guys briefed us and when I left the meeting I felt somewhat comfortable with the responses that I had received Going through this again I yet became concern because it seems that itrsquos watered down from the previous contract that we had when I went back and had my assistant do a comparison in terms of that and I agree with all of the things Commissioner Johns had said And so itrsquos problematic for me because it sounds as if noise has taken a lesser seat here than it had before This is a huge Airport I think itrsquos a premier Airport and in that regard we have to have that concern because lots of people that are very vocal out there have had five or six people call me regarding this and having an issue And I Irsquom not sure whatrsquos spearheading all of this except for the fact that I myself see it at a lesser than the qualifications are somewhat construed from the previous contract And Irsquom a little concern about that Irsquom also concerned in that noise as she said with the number of enplanements that we have the large Airport that we have and where we stand in the scheme of things in terms of an International Airport I think we need to give more value to it So I am yet concerned about this also and Irsquom not clear how to what the fix is It for some reason to me and maybe itrsquos because you know this is not my area It almost looks like the importance of this was sort of weighed down in this particular contract as to the previous ones that wersquove had the and Irsquove only had been present for one prior contract and so therefore this does concern me
Minutes September 4 2018 Page 15
that a lot of proponents out there as I said earlier I received at least five calls And so I donrsquot know what else to say regarding this I thought I was okay with it read it through again and it does concern me
Commissioner Mazzola asked Ivar you want to weigh‐in
Mr Satero replied yeah sure I will Commissioners my apologies We thought we had made the necessary tweaks We certainly want you to be comfortable with this We are we know therersquos three firms that do this kind of work that are very well qualified We want a competitive process and so we believe wersquove crafted something that gives us the excellence that we always strive for in terms of all of our work and noise monitoring is an important point of what we do especially in todayrsquos community issues wersquore having around noise But you need to be confident that we can deliver excellence as we intend to do So if wersquore still not satisfied I will remove this once again if it is the desire of the Commission to be continued to be briefed on how to make sure we achieve our goals
Commissioner Mazzola said so as far as Irsquom concern let me speak up here I think we ought to let the RFP go out and when they come back then we ought to really hone in on what we really want But I think we need to get on with it and not hold it up longer
Commissioner Johns said Irsquom fine with that I just think itrsquos important that we get some entity that is qualified
Commissioner Mazzola said so I think that will be the report Thank you for that
Item No 7 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
7 Approval of Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project Turner Construction Company $12073574
No 18‐0288 Resolution approving Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project with Turner Construction Company to increase the contract capacity by $12073574 for a new total contract capacity amount of $69930727 and with no change to the contract duration
Ms Judi Mosqueda Director of Project Management said good morning Commissioners
This item is for your approval of Phase C6 adding Trade Package Set No 4 into our contract with Turner Construction for the Demolition of Terminal 2 Air Traffic Control Tower
Minutes September 4 2018 Page 16
Project The Phase C6 approval will increase the contract capacity by $121 million for a new contract capacity amount of $699 million with a corresponding amount of contingency and with no change to the contract duration
The Project includes demolition of the existing air traffic control tower and design and construction of a new office block on top of T2 The new floors may be used for a new airline lounge office space a new employee cafe and a public observation deck As you know demolition of the old tower has been completed already Steel erection for the new floors is beginning this month
This approval will provide for Trade Package Set No 4 to be added to the contract The trade package set includes SeismicMain Building Concrete Glazing Storefront and Metal Panels Exterior Framing and Plaster Plumbing and Air Handling Units
The forecast for this contract is $831 million which falls within the budget of $841 million and includes appropriate levels of contingency The Project is on‐schedule to be substantially complete in August of 2019
The LBE goals for this contract are 24 for design services and 20 for construction services and Turner Construction is committed to meeting these goals
We recommend your approval and I would be happy to answer questions
There were no questions from the Commissioners
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS The Consent Calendar Item Nos 8 through 12 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Mazzola
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $1852527
No 18‐0289 Resolution approving Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project with PMANBA Joint Venture in an amount of $1852527 for a new contract amount not to exceed $6348283 for services through March 31 2020
Minutes September 4 2018 Page 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project Faith Group LLC $1736000
No 18‐0290 Resolution approving Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project with Faith Group LLC in an amount of $1736000 for a new contract amount not to exceed $3266000 for services through October 18 2019
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services to Loza Upholstery Inc for $800000 Kay Chesterfield Inc for $800000
No 18‐0291 Resolutions awarding Professional Services Contract No 5014501 As‐No 18‐0292 Needed Furniture Repair and Re‐upholstery services to Loza Upholstery
Inc and Contract No 5014502 to Kay Chesterfield Inc each with a contract amount not‐to‐exceed $800000 with a contract duration of five years
Commissioner Johns said I donrsquot have a question I have a comment Item 10 I was very happy to see that item because I was in Terminal 2 in the baggage area and we have some seating there that really needs to be reupholstered or perhaps replaced But I was happy to see this item and I do hope that we review all furniture and either reupholster or replace and specifically I would like to point out that there is therersquos sort of curve seating that theyrsquore in white leather They werenrsquot good from the beginning and they need attention
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project CAGE Professional Services Inc dba CAGE Inc $750000
No 18‐0293 Resolution approving Modification No 11 (Annual Renewal) to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project with CAGE
Minutes September 4 2018 Page 18
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Minutes of the Airport Commission Meeting of Tuesday September 4 2018
A CALL TO ORDER The regular meeting of the Airport Commission was called to order at 900 AM in Room 400 City Hall San Francisco CA
B ROLL CALL Present
Absent
C ADOPTION OF MINUTES
Hon Larry Mazzola President Hon Linda S Crayton Vice President Hon Eleanor Johns Hon Richard J Guggenhime
Hon Peter A Stern
The minutes of the regular meeting of August 21 2018 were adopted unanimously upon a motion by Commissioner Crayton and a second by Commissioner Johns
No 18‐0283 Regular meeting of August 21 2018
D DIRECTORrsquoS REPORT Item No 1 is for discussion only
1 Analysis of Airline Traffic for Fiscal Year 201718
Analysis of Airline Traffic for Fiscal Year 201718
Mr Mike Nakornkhet Financial Planning amp Analysis Director said good morning Commissioners I will be walking you through the analysis of airline traffic that you have in front of you slide by slide And I will call out of each slide before talking about them
If you could turn to Slide 2 please San Francisco International Airport concluded Fiscal Year 2018 with 578 million total passengers This represents a 7 increase from the prior fiscal year and establishes a record for SFO for the seventh consecutive year
Minutes September 4 2018 Page 4
Now if you could turn to Slide 3 That compares our passenger growth to ten other major international gateway airports in the United States SFO had the highest growth rate among this comparison set in Fiscal Year 2018
If you turn to Slide 4 That compares SFOrsquos passenger growth to other airports in the Bay Area region Oakland International and Mineta San Jose International airports All three airports experienced strong growth with San Jose experiencing very strong growth Bay Area total percentage increase was 85 in Fiscal Year 2018 In terms of passenger volume however SFO because of its relatively large base of passengers continues to be responsible for a majority of the passenger volume increase with 19 million (out of the 33 million) passenger additions to the Bay Area region
If you turn to Slide 5 SFOrsquos strong growth has been sustained for a long period of time Four out of the past seven years experienced strong growth rates of 5 or higher This has resulted in a Compound Average Growth Rate over the past eight years of 52 which has increased our total passenger count by nearly 18 million passengers from 40 million in Fiscal Year 2011 to 578 million in Fiscal Year 2018
On Slide 6 If you were to take this 52 average growth rate and trend it forward SFO would reach 71 million total annual passengers by Fiscal Year 2022 However we are more conservative with our forecasts and a more realistic scenario is shown on the next slide Slide 7 which reflects a more moderate 2 Average Growth Rate going forward SFO would reach 71 million total annual passengers under this scenario by Fiscal Year 2029 This slower rate of growth takes into account potential softening of the economy and 71 million total annual passengers matches what we expect to be the maximum capacity of the Airport in the Airportrsquos Development Plan
On Slide 8 Our short term outlook of scheduled airline seats confirms that this 2 moderate growth rate going forward is realistic The data indicates that domestic capacity will moderate we donrsquot expect it to be negative as shown in certain months of the table because airline schedules have not been finalized yet However we do expect domestic growth to be moderate by the end of the year in approximately in the 1 range while international growth will continue to be strong at 6 or above This would result in an increase by the end of Fiscal Year 2019 of 22
In to the next Slide 9 Shows the regions that comprise our strong international growth The majority of the added services in Fiscal Year 2018 was to Asia which had a combined 164000 seats added The South Pacific region Europe Latin America and Canada also experienced strong growth as well
Lastly if you turn to the last Slide 10 SFOrsquos passenger growth has also led to strong performance in Concessions Revenue Most business categories experienced an increase in revenue to the Airport 15 of this revenue becomes the Annual Service Payment to the City and County of San Francisco which totaled $464 million in Fiscal Year 2018
Minutes September 4 2018 Page 5
Thank you and Irsquod be happy to answer any questions
Commissioner Guggenhime commented the amount of traffic therefore the number of airplanes going in and out of here with the runway issues and the weather issues that we seem to have I mean at some point being on time to me is more important than the number of passengers Thatrsquos just a comment not a question
Mr Nakornkhet said we have experienced a trend of what we call airline up gauging in our data which means aircraft size are getting larger So the airlines are doing their part to bring in more passengers without increasing operations by the same amount by increasing the aircraft size And the average aircraft size ten years ago for example was approximately 130 seats and now itrsquos 158 seats So they are getting larger
Commissioner Guggenhime thanked Mr Nakornkhet
Commissioner Crayton said great thank you so much First of all thank you for this report When you read it itrsquos self‐explanatory It gives you a lot of information The question that I have though and actually itrsquos helpful to get it before the meeting so it can really really make sure that you can talk about it But when I look at Page 4 and it tells me that that the growth the 2018 growth etc was for San Francisco which is great too and certainly itrsquos an improvement I look at San Jose itrsquos 172 Now is the San Jose Airport smaller than we are What are they doing that or what are the factors that land to its 172 thatrsquos a high amount
Mr Nakornkhet replied yes so San Jose is much smaller than we are They are only in the 12 million total passenger range wherersquos wersquore at 58 million and theyrsquove been getting a lot of domestic growth from a number of domestic carriers such as Delta American and Southwest I think itrsquos just a factor of how small they are and when you grow a relatively large amount on that small base of passengers you get that large percentage But in terms of volume growth we still exceed at San Josersquos volume growth If you look in the furthest right column of that table Even though they grew by 17 they only grew by 1 million total passengers where as we grew 19 million total passengers
Mr Nakornkhet said they are experiencing of strong growth from a number of airlines I mentioned earlier
Commissioner Crayton asked and we have those same airlines here
Mr Nakornkhet replied and we have the same airlines as well Yes
Commissioner Crayton said I was wondering if there was a factor there that was having people choosing them over us
Minutes September 4 2018 Page 6
Commissioner Johns said I actually think itrsquos good for us that theyrsquore growing I think we need this regional plan I know that our previous Director John Martin had indicated to us several years ago that we really need to look to a regional plan I do know that weather is better in San Jose and in Oakland And I think some people are trying to find ways to get on time flights especially if itrsquos crucial And I personally know if you have done that in the last 10 days So I donrsquot find this a problem I think itrsquos important for us to all work together all the airports regionally and perhaps something in the North Bay also as we look towards the future I just wanted to make that comment
Commissioner Crayton said and I want to be clear I donrsquot see this as a problem Irsquom talking about as I look at this wondering if there are factors that were in San Jose that would make them have more enplanements because I know what our Airport is like Irsquove been here Irsquove been in San Jose too and I said never do that again So after you experience SFO you know yoursquove had about the best And so having said that I just was wondering why it just looks skewed for some reason
Commissioner Mazzola said so picking up on Commissioner Guggenhimersquos question do we have an on‐going runway study Do we study runways as planning to get bigger And as passengers keep coming do we ever decide wersquore going to reconfigure those runways again
Mr Ivar Satero Airport Director replied you know what we do is wersquore preparing for it like more a regional approach to things and so that starts with the Regional Airport Planning Commission And really thatrsquos where the update to the Regional Airport System Plan has to happen Their plan is almost seven years old now And so itrsquos outdated from the assumptions that were made back then in terms of growth for the region You can see wersquore far out pacing that So our efforts are around reconvening the Regional Airport Planning Commission That is the lead agencies in that are MTC ABAG and BCDC and so wersquore starting a process to get them engaged in this broader review of airport capacity in a regional
Commissioner Mazzola said as we review a regional plan our local plan is stifled We stay where we are and we decide that wersquore going to do a regional plan and you know and land planes in other areas
Mr Satero said it needs to be a regional approach just because the investment thatrsquos required and all of the politics that go into this kind of review We donrsquot wersquore not we also what wersquore looking at is how does technology continued to advance the capacity of SFO Wersquove been successful in the past with technology and wersquore investing a new technology particularly the Ground Based Augmentation System that this Commission authorized that will add capacity particularly when we see the delays during the poor weather conditions And really thatrsquos where our problem exists Thatrsquos where we see the delays We will continue to see industry respond as we have seen that over the last ten years as Mike said larger aircraft spreading out flights across a broader schedule and increased load factors
Minutes September 4 2018 Page 7
So thatrsquos why our forecast project about another ten years of capacity before we get to that point
Commissioner Mazzola asked alright other questions of Mike Thank you very much for your report
E ITEMS INITIATED BY COMMISSIONERS Item No 2 is for discussion only
2 Following upon Resolution No 18‐0200 establishing a special advisory Committee to consider and recommend action on the nomination of Edwin M Lee for naming or dedication at the San Francisco International Airport the Commission Presidentrsquos proposed appointments to the Committee DISCUSSION ONLY
Commissioner Mazzola said to bring you up to date on that with that is we had a group of San Franciscans approach us to name something after Ed Lee and that started our process of naming We have to start to name a committee and then after we name the committee and then the people have to accept to be on the committee and we wersquoll have meetings talk about what we should do And meetings will be public meetings It will be held probably at the end of these meetings At the end of an Airport meeting then wersquoll adjourn this and go into a committee meeting We donrsquot anticipate many meetings Three something like thathellipwe have six months to do that That will be January 19th to come up with a recommendation So Corina if you want to read the Nominees to the Committee
Ms Corina Monzoacuten stated proposed appointments to the committee by President Mazzola The first five appointments are members of the San Francisco Airport Commission Larry Mazzola President Linda S Crayton Vice President Eleanor Johns Commissioner Richard J Guggenhime Commissioner Peter Stern Commissioner Followed by John Martin Former Airport Director San Francisco International Airport Anni Chung President and CEO Self Help for the Elderly San Francisco Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Commissioner Mazzola said alright Commissioners any questions you anything you want to add Okay and thatrsquos for information
Commissioner Johns asked have all these members other than ourselves been asked
Commissioner Mazzola replied yes Theyrsquove all agreed theyrsquove all agreed And so I know I talked to all of you but itrsquos not mandatory to be on this So if you decide you donrsquot want to be on let me know so we can appoint somebody else We donrsquot need a motion just discussion
Minutes September 4 2018 Page 8
F ACTION ITEMS RELATED TO ADMINISTRATION OPERATIONS amp MAINTENANCE Item No 3 was approved unanimously by a motion by Commissioner Johns and a second by Commissioner Mazzola
3 Award of the Terminal 3 Boarding Area E Candy Kiosk Lease to Canonica
No 18‐0284 Resolution awarding the Terminal 3 Boarding Area E Candy Kiosk to Canonica New York LLC
Ms Cheryl Nashir Director Revenue Development and Management said good morning Commissioners
I am here this morning seeking your approval to award the Boarding Area E Candy Kiosk Lease to Canonica New York LLC This lease was to be awarded a few weeks ago with some others that were awarded in the same Boarding Area but it was pulled off of your agenda because there was protest
The location is a 104 square foot kiosk in Terminal 3 Boarding Area E Presently the kiosk is operating as Seersquos Candies but that lease is expiring in January There were three proposers for this lease and one of them Gary Rulli Operator of Emporio Rulli issued a protest alleging that Canonica did not meet the minimum qualifications In his protest he pointed out that Canonica New York LLC is a fairly new entity and therefore could not meet the requirement of having operated a candy business in 3 of the last 5 years and also could not have met the sales requirement attached to the MQs We studied his protest and found it lacking in merit Canonica New York LLC is a subsidiary of Swisscanonica who very easily meets the minimum qualifications
The term for this lease is 7‐years The rent is the greater of percentage or $100000 per year which is the minimum annual guarantee They will 0perate as The Chocolate Market and they operate today in our International Terminal as The Chocolate Market in what I think is one of our most beautiful build outs at the Airport Theyrsquore also coming to Terminal 2 this Fall
I expect that theyrsquore going to pay MAG rent in the early years Currently the minimum annual guarantee on this space is $226000 so this is a very unusual situation where Irsquom coming to you in awarding a lease that will bring us more money or less money however the present lease is paying almost 45 rent and thatrsquos not anything we expected would continue when we release this
I would be happy to take any questions
Commissioner Crayton asked do we have any vendors that are now presently paying 45 scale rent here at the Airport
Minutes September 4 2018 Page 9
Ms Nashir said no stores or restaurants our advertising concession pays in that range but know that thatrsquos our average rent is between 11 and 16
Commissioner Johns asked so therersquos no one here today protesting
Ms Nashir replied no
Commissioner Johns said thank you
Commissioner Mazzola asked so you said Rullirsquos protest is without merit right Okay alright
There were no further questions
Item No 4 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
4 Authorization to Accept Proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
No 18‐0285 Resolution approving the revised lease specifications and authorizing Staff to accept proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
Good morning I am Cheryl Nashir from Revenue Development and Management And before we start on this item I would just like to point out that I have given you all a replacement page to this Commission memo this morning There was an error on the attachment in your Commission memo I had said that the construction period was 120 days Itrsquos actually 90 days so that is the correction that I made this morning in that new attachment Irsquom here to gain your approval this morning to make one change in this RFP and also to be allowed to accept proposals
On June 19th you authorized the issuance of this Request for Proposals for the Terminal 1 Specialty Retail Lease No 3 You may recall that we had previously tried to lease this space as a small business set aside specialty store and we did not receive any proposals So this is a redo of this particular lease and we dropped the SBE requirement
Commissioner Johns asked what requirement
Ms Nashir replied the Small Business Enterprise We conducted an informational conference and received no substantive questions on this business proposal thatrsquos in the RFP We do however want to recommend one change In the RFP we said that this would be a specialty retail store but there were four concepts that would be excluded And that
Minutes September 4 2018 Page 10
was News Sunglasses Bath and Body and Electronics We would like to drop those exclusions to just two It canrsquot be a newsstand or sunglass store but we would like to allow bath and body stores and electronic stores to enter this competition We think it will lead to more proposals and it will not adversely affect the rest of the program It could increase the competition thatrsquos the whole point We will be back in October for award And I would be happy to take any questions
Commissioner Johns said so I see that you had an informational conference and it wasnrsquot all that well attended So whatrsquos the issue here
Ms Nashir said well this is a very small store and its specialty retail which wersquore starting to find a challenge to lease We do well on our pop‐up retail which are small specialty stores but wersquove built those stores Wersquove just wersquore in the middle of an RFP right now where we got six proposals and at least three of them are very good on a pop‐up location But these small specialty stores that someone comes in and has to build themselves are starting to just be a challenge for us to lease And thatrsquos one reason I want to get rid of two of those exclusions
Commissioner Johns asked so are we seeing a trend here that maybe in the future we need to start looking in different directions
Ms Nashir replied yes I think wersquore seeing a trend in retail dropping off probably due to on‐line shopping And also some of our biggest tenants are the ones that are able to bring us specialty retail like the national beauty brands etc and they donrsquot want to bid on these locations because of the limit of eight They want to hold out for the larger stores and the newsstands So we are studying right now our limit of eight policy and wersquoll be sending an off‐calendar to you shortly on some recommended changes
Commissioner Johns said I mean maybe wersquore beginning an era we need a little less retail a little more food because I noticed in Terminal 2 at the is it Peetrsquos Coffee I mean the line is so long that itrsquos impossible if yoursquore catching a plane which is why most people are there to get what you want in the appropriate time So just a thought
Ms Nashir said very good Thank you
Commissioner Crayton said and my question is the outreach in terms of this particular proposal Did we do anything with the Chamber I mean what did we do
Ms Nashir replied we contacted all of the previous pop‐up tenants we had worked with We had hoped we had graduate to become you know permanent tenants with us and so wersquore hoping that wersquoll see some of those in the competition And again we just go out into neighborhoods in the City and put out press releases
Commissioner Crayton said well we tried twice so
Minutes September 4 2018 Page 11
Ms Nashir replied yes
There were no further questions
Item No 5 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Mazzola
5 Authorization to Accept Proposals for the Terminal 1 Boarding Area C Retail Concession Leases
No 18‐0286 Resolution approving the lease specifications and proposal requirements and authorizing Staff to accept proposals for two leases for two locations in Terminal 1 Boarding Area C
Good morning I am Cheryl Nashir from Revenue Development and Management I am here this morning as well requesting authorization to accept proposals for the Boarding Area C Retail Concession Leases
On June 5th the Airport Commission authorized the issuance of an RFP for two retail leases both are in Terminal 1 on Boarding Area C Boarding Area C is primarily served by Delta Airlines These two stores represent the only retail on this boarding area They are currently combined under a single lease
In this RFP we pulled them apart and created two leases We held an informational conference and collected comments They were very few comments The most substantive question however asked was could we combine these two spaces once again under a single lease And we recommend against this We believe that theyrsquore both viable on a stand‐alone basis One is a newsstand and the other one is a retail market place which is really a big newsstand with quite a bit of specialty retail in it Currently one location is doing about $7 million a year and the other is doing over $3 million a year So these are not small or challenged spaces So we would like to be able to accept proposals and without making changes to our RFP
And I would be happy to take any questions
There were no questions
Item No 6 was approved unanimously by a motion by Commissioner Guggenhime and a second by Commissioner Mazzola
Minutes September 4 2018 Page 12
6 Reject All Proposals for Professional Services Contract No 50130 and Re‐Issue Request for Proposals for Professional Services Contract No 5013001 for Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement
No 18‐0287 Resolution rejecting all proposals for Professional Services Contract No 50130 and re‐issue a Request for Proposals for Professional Services Contract No 5013001 Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement and enter into negotiations with the top ranked proposer
Good morning Commissioners My name is John Bergener and Irsquom the Airport Planning Director This item seeks your approval to reject all proposals and re‐issue this RFP 5013001 for Aircraft Noise Monitoring System with support maintenance and noise monitor replacement and negotiate with the top ranked firm
An aircraft noise monitoring system (or ldquoANMSrdquo) has been an integral function of the Airport since the late 1970s when SFO became the first US airport to implement an FAA‐approved noise compatibility program The ANMS consists of noise monitors with microphones and software that collects the data from the monitors and other sources This data is then used by Staff to conduct analysis draft reports to meet various federal and state reporting requirements and provide information to stakeholders and decision makers
The Airport currently operates a total of 37 noise monitors including 29 permanent and 8 portable monitors located on Airport and in San Francisco and San Mateo counties The existing noise monitors and microphones are over 10 years old and require regular site visits for maintenance especially during inclement weather
On July 25 2017 the Commission authorize Staff to issue an RFP 50130 for Aircraft Noise Monitoring System and Maintenance and Noise Monitor Replacement On November 1 2017 Staff issued the RFP and three proposals were received by the submission deadline on December 1 2017 The written proposals were scored by a panel of subject matter of experts All proposers were invited to an oral interview with a product demonstration
Staff successfully negotiated a contract with the top ranking firm and on April 13 2018 notified all proposers of the intent to seek Airport Commission approval to award a contract Upon notification the 2nd and 3rd ranked proposers submitted protests contesting that the top ranked firm did not meet the minimum qualifications among other items After careful review Staff determined it would be best to reject all proposals and reissue the RFP with refined minimum qualifications including clarification that submission of project experiences gained at non‐US airports is permissible
If the Commission approves of this item Staff will re‐issue the RFP with refined minimum
Minutes September 4 2018 Page 13
qualifications and submission requirements The purpose of the RFP remains the same ndash the resulting contract would enable the Airport to select a team with the expertise and knowledge to provide an ANMS replace and purchase additional noise monitors and provide the software that collects and transmits the data collected in the field The selected proposer would also train Staff on the selected noise monitoring system and assist with maintenance to ensure the equipment and software are operating properly
A panel of subject matter experts would be convened to evaluate and score each qualified proposer Staff would return to the Commission to request approval to award a contract with the top ranked firm following successful negotiations There is a 15 LBE requirement for this contract and the anticipated contract would have a term of 5 years with two 2‐year options to renew to be exercised at the discretion of the Commission
I recommend your approval and can answer any questions you have on this item
Commissioner Johns said so I really donrsquot even know where to begin with this except to say that in all the years Irsquove been here at the Commission Irsquove never had an issue like this It does relate to noise and we know wersquore growing so we know the noise is going to get worse I was approached by a member of the Board of Supervisors who told me that he is going to have a hearing on noise issues And wersquove had two protests on this Wersquove had itrsquos been going on a year you said since July rsquo17 Wersquove had it postponed twice I personally requested a briefing and was given a briefing I requested a lot of information I was given the information At the briefing I stated that I was concerned about some of the issues in the prior RFP that I thought it was important that we had somebody who could do both the hardware and the software and who have the appropriate experience to do this assuming there is such a person entity available I see nothing in this new RFP that has added anything that was not there in what you guys gave us the last time Irsquom stymied I donrsquot understand it Instead of four years of experience I think the one this time has three years of experience so wersquore looking for less experience We talked about Title 21 and having some experience in California I donrsquot see that except yoursquore saying after the fact once you choose someone then they can write a letter saying that theyrsquove been authorized by is it Caltrans that does this or the PUC
Mr Bergener responded that the system acceptance requirements requires a letter from Caltrans verifying that the system complies with Title 21 requirements
Commissioner Johns stated that she doesnrsquot understand it We are in Airport that tries to seek number 1 Why do we not want a firm who has experiencehellip Irsquoll go along with your RFP but when you bring somebody back to us for approval I sure hope they meet the qualifications I have never had to speak on an issue like I am today so I donrsquot understand it I think I made clear that we need somebody who has experience in both hardware and software Irsquom kind of repeating this so I donrsquot forget what I wanted to say Secondly they should have experience in California so that they understand Title 21 whether itrsquos the prime or the sub‐contractor They should be able to show that they have experience for a certain
Minutes September 4 2018 Page 14
amount of years consistently with large airports You have given us today how we are growing Wersquore getting larger and larger and yet wersquore not looking for somebody who has serviced this size Airport So those are my comments I donrsquot know what else to say I think I made my point clear
Commissioner Mazzola said alright okay did you want to respond to that or leave her statement be
Mr Bergener said I will just note that the minimum qualifications do include a requirement for experience in an Airport with more than 7 million enplanements or 14 million total passengers which is consistent with the US large hub definition of airports in 2017
Commissioner Johns said alright How long do they have to have that Is it one year and is it combined with the sub and the prime
Mr Bergener replied it was at least one airport in each of the subject areas for three years Commissioner Johns said say that again
Commissioner Johns stated I had it in front of me I mean itrsquos the same as before but what about the California requirement
Mr Bergener replied no we did not add the California requirement because itrsquos part of the systemsrsquo acceptance requirements
Commissioner Johns said I stand with my comments I donrsquot have anything further
Commissioner Crayton said I want to say and I know you guys briefed us and when I left the meeting I felt somewhat comfortable with the responses that I had received Going through this again I yet became concern because it seems that itrsquos watered down from the previous contract that we had when I went back and had my assistant do a comparison in terms of that and I agree with all of the things Commissioner Johns had said And so itrsquos problematic for me because it sounds as if noise has taken a lesser seat here than it had before This is a huge Airport I think itrsquos a premier Airport and in that regard we have to have that concern because lots of people that are very vocal out there have had five or six people call me regarding this and having an issue And I Irsquom not sure whatrsquos spearheading all of this except for the fact that I myself see it at a lesser than the qualifications are somewhat construed from the previous contract And Irsquom a little concern about that Irsquom also concerned in that noise as she said with the number of enplanements that we have the large Airport that we have and where we stand in the scheme of things in terms of an International Airport I think we need to give more value to it So I am yet concerned about this also and Irsquom not clear how to what the fix is It for some reason to me and maybe itrsquos because you know this is not my area It almost looks like the importance of this was sort of weighed down in this particular contract as to the previous ones that wersquove had the and Irsquove only had been present for one prior contract and so therefore this does concern me
Minutes September 4 2018 Page 15
that a lot of proponents out there as I said earlier I received at least five calls And so I donrsquot know what else to say regarding this I thought I was okay with it read it through again and it does concern me
Commissioner Mazzola asked Ivar you want to weigh‐in
Mr Satero replied yeah sure I will Commissioners my apologies We thought we had made the necessary tweaks We certainly want you to be comfortable with this We are we know therersquos three firms that do this kind of work that are very well qualified We want a competitive process and so we believe wersquove crafted something that gives us the excellence that we always strive for in terms of all of our work and noise monitoring is an important point of what we do especially in todayrsquos community issues wersquore having around noise But you need to be confident that we can deliver excellence as we intend to do So if wersquore still not satisfied I will remove this once again if it is the desire of the Commission to be continued to be briefed on how to make sure we achieve our goals
Commissioner Mazzola said so as far as Irsquom concern let me speak up here I think we ought to let the RFP go out and when they come back then we ought to really hone in on what we really want But I think we need to get on with it and not hold it up longer
Commissioner Johns said Irsquom fine with that I just think itrsquos important that we get some entity that is qualified
Commissioner Mazzola said so I think that will be the report Thank you for that
Item No 7 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
7 Approval of Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project Turner Construction Company $12073574
No 18‐0288 Resolution approving Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project with Turner Construction Company to increase the contract capacity by $12073574 for a new total contract capacity amount of $69930727 and with no change to the contract duration
Ms Judi Mosqueda Director of Project Management said good morning Commissioners
This item is for your approval of Phase C6 adding Trade Package Set No 4 into our contract with Turner Construction for the Demolition of Terminal 2 Air Traffic Control Tower
Minutes September 4 2018 Page 16
Project The Phase C6 approval will increase the contract capacity by $121 million for a new contract capacity amount of $699 million with a corresponding amount of contingency and with no change to the contract duration
The Project includes demolition of the existing air traffic control tower and design and construction of a new office block on top of T2 The new floors may be used for a new airline lounge office space a new employee cafe and a public observation deck As you know demolition of the old tower has been completed already Steel erection for the new floors is beginning this month
This approval will provide for Trade Package Set No 4 to be added to the contract The trade package set includes SeismicMain Building Concrete Glazing Storefront and Metal Panels Exterior Framing and Plaster Plumbing and Air Handling Units
The forecast for this contract is $831 million which falls within the budget of $841 million and includes appropriate levels of contingency The Project is on‐schedule to be substantially complete in August of 2019
The LBE goals for this contract are 24 for design services and 20 for construction services and Turner Construction is committed to meeting these goals
We recommend your approval and I would be happy to answer questions
There were no questions from the Commissioners
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS The Consent Calendar Item Nos 8 through 12 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Mazzola
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $1852527
No 18‐0289 Resolution approving Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project with PMANBA Joint Venture in an amount of $1852527 for a new contract amount not to exceed $6348283 for services through March 31 2020
Minutes September 4 2018 Page 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project Faith Group LLC $1736000
No 18‐0290 Resolution approving Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project with Faith Group LLC in an amount of $1736000 for a new contract amount not to exceed $3266000 for services through October 18 2019
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services to Loza Upholstery Inc for $800000 Kay Chesterfield Inc for $800000
No 18‐0291 Resolutions awarding Professional Services Contract No 5014501 As‐No 18‐0292 Needed Furniture Repair and Re‐upholstery services to Loza Upholstery
Inc and Contract No 5014502 to Kay Chesterfield Inc each with a contract amount not‐to‐exceed $800000 with a contract duration of five years
Commissioner Johns said I donrsquot have a question I have a comment Item 10 I was very happy to see that item because I was in Terminal 2 in the baggage area and we have some seating there that really needs to be reupholstered or perhaps replaced But I was happy to see this item and I do hope that we review all furniture and either reupholster or replace and specifically I would like to point out that there is therersquos sort of curve seating that theyrsquore in white leather They werenrsquot good from the beginning and they need attention
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project CAGE Professional Services Inc dba CAGE Inc $750000
No 18‐0293 Resolution approving Modification No 11 (Annual Renewal) to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project with CAGE
Minutes September 4 2018 Page 18
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Now if you could turn to Slide 3 That compares our passenger growth to ten other major international gateway airports in the United States SFO had the highest growth rate among this comparison set in Fiscal Year 2018
If you turn to Slide 4 That compares SFOrsquos passenger growth to other airports in the Bay Area region Oakland International and Mineta San Jose International airports All three airports experienced strong growth with San Jose experiencing very strong growth Bay Area total percentage increase was 85 in Fiscal Year 2018 In terms of passenger volume however SFO because of its relatively large base of passengers continues to be responsible for a majority of the passenger volume increase with 19 million (out of the 33 million) passenger additions to the Bay Area region
If you turn to Slide 5 SFOrsquos strong growth has been sustained for a long period of time Four out of the past seven years experienced strong growth rates of 5 or higher This has resulted in a Compound Average Growth Rate over the past eight years of 52 which has increased our total passenger count by nearly 18 million passengers from 40 million in Fiscal Year 2011 to 578 million in Fiscal Year 2018
On Slide 6 If you were to take this 52 average growth rate and trend it forward SFO would reach 71 million total annual passengers by Fiscal Year 2022 However we are more conservative with our forecasts and a more realistic scenario is shown on the next slide Slide 7 which reflects a more moderate 2 Average Growth Rate going forward SFO would reach 71 million total annual passengers under this scenario by Fiscal Year 2029 This slower rate of growth takes into account potential softening of the economy and 71 million total annual passengers matches what we expect to be the maximum capacity of the Airport in the Airportrsquos Development Plan
On Slide 8 Our short term outlook of scheduled airline seats confirms that this 2 moderate growth rate going forward is realistic The data indicates that domestic capacity will moderate we donrsquot expect it to be negative as shown in certain months of the table because airline schedules have not been finalized yet However we do expect domestic growth to be moderate by the end of the year in approximately in the 1 range while international growth will continue to be strong at 6 or above This would result in an increase by the end of Fiscal Year 2019 of 22
In to the next Slide 9 Shows the regions that comprise our strong international growth The majority of the added services in Fiscal Year 2018 was to Asia which had a combined 164000 seats added The South Pacific region Europe Latin America and Canada also experienced strong growth as well
Lastly if you turn to the last Slide 10 SFOrsquos passenger growth has also led to strong performance in Concessions Revenue Most business categories experienced an increase in revenue to the Airport 15 of this revenue becomes the Annual Service Payment to the City and County of San Francisco which totaled $464 million in Fiscal Year 2018
Minutes September 4 2018 Page 5
Thank you and Irsquod be happy to answer any questions
Commissioner Guggenhime commented the amount of traffic therefore the number of airplanes going in and out of here with the runway issues and the weather issues that we seem to have I mean at some point being on time to me is more important than the number of passengers Thatrsquos just a comment not a question
Mr Nakornkhet said we have experienced a trend of what we call airline up gauging in our data which means aircraft size are getting larger So the airlines are doing their part to bring in more passengers without increasing operations by the same amount by increasing the aircraft size And the average aircraft size ten years ago for example was approximately 130 seats and now itrsquos 158 seats So they are getting larger
Commissioner Guggenhime thanked Mr Nakornkhet
Commissioner Crayton said great thank you so much First of all thank you for this report When you read it itrsquos self‐explanatory It gives you a lot of information The question that I have though and actually itrsquos helpful to get it before the meeting so it can really really make sure that you can talk about it But when I look at Page 4 and it tells me that that the growth the 2018 growth etc was for San Francisco which is great too and certainly itrsquos an improvement I look at San Jose itrsquos 172 Now is the San Jose Airport smaller than we are What are they doing that or what are the factors that land to its 172 thatrsquos a high amount
Mr Nakornkhet replied yes so San Jose is much smaller than we are They are only in the 12 million total passenger range wherersquos wersquore at 58 million and theyrsquove been getting a lot of domestic growth from a number of domestic carriers such as Delta American and Southwest I think itrsquos just a factor of how small they are and when you grow a relatively large amount on that small base of passengers you get that large percentage But in terms of volume growth we still exceed at San Josersquos volume growth If you look in the furthest right column of that table Even though they grew by 17 they only grew by 1 million total passengers where as we grew 19 million total passengers
Mr Nakornkhet said they are experiencing of strong growth from a number of airlines I mentioned earlier
Commissioner Crayton asked and we have those same airlines here
Mr Nakornkhet replied and we have the same airlines as well Yes
Commissioner Crayton said I was wondering if there was a factor there that was having people choosing them over us
Minutes September 4 2018 Page 6
Commissioner Johns said I actually think itrsquos good for us that theyrsquore growing I think we need this regional plan I know that our previous Director John Martin had indicated to us several years ago that we really need to look to a regional plan I do know that weather is better in San Jose and in Oakland And I think some people are trying to find ways to get on time flights especially if itrsquos crucial And I personally know if you have done that in the last 10 days So I donrsquot find this a problem I think itrsquos important for us to all work together all the airports regionally and perhaps something in the North Bay also as we look towards the future I just wanted to make that comment
Commissioner Crayton said and I want to be clear I donrsquot see this as a problem Irsquom talking about as I look at this wondering if there are factors that were in San Jose that would make them have more enplanements because I know what our Airport is like Irsquove been here Irsquove been in San Jose too and I said never do that again So after you experience SFO you know yoursquove had about the best And so having said that I just was wondering why it just looks skewed for some reason
Commissioner Mazzola said so picking up on Commissioner Guggenhimersquos question do we have an on‐going runway study Do we study runways as planning to get bigger And as passengers keep coming do we ever decide wersquore going to reconfigure those runways again
Mr Ivar Satero Airport Director replied you know what we do is wersquore preparing for it like more a regional approach to things and so that starts with the Regional Airport Planning Commission And really thatrsquos where the update to the Regional Airport System Plan has to happen Their plan is almost seven years old now And so itrsquos outdated from the assumptions that were made back then in terms of growth for the region You can see wersquore far out pacing that So our efforts are around reconvening the Regional Airport Planning Commission That is the lead agencies in that are MTC ABAG and BCDC and so wersquore starting a process to get them engaged in this broader review of airport capacity in a regional
Commissioner Mazzola said as we review a regional plan our local plan is stifled We stay where we are and we decide that wersquore going to do a regional plan and you know and land planes in other areas
Mr Satero said it needs to be a regional approach just because the investment thatrsquos required and all of the politics that go into this kind of review We donrsquot wersquore not we also what wersquore looking at is how does technology continued to advance the capacity of SFO Wersquove been successful in the past with technology and wersquore investing a new technology particularly the Ground Based Augmentation System that this Commission authorized that will add capacity particularly when we see the delays during the poor weather conditions And really thatrsquos where our problem exists Thatrsquos where we see the delays We will continue to see industry respond as we have seen that over the last ten years as Mike said larger aircraft spreading out flights across a broader schedule and increased load factors
Minutes September 4 2018 Page 7
So thatrsquos why our forecast project about another ten years of capacity before we get to that point
Commissioner Mazzola asked alright other questions of Mike Thank you very much for your report
E ITEMS INITIATED BY COMMISSIONERS Item No 2 is for discussion only
2 Following upon Resolution No 18‐0200 establishing a special advisory Committee to consider and recommend action on the nomination of Edwin M Lee for naming or dedication at the San Francisco International Airport the Commission Presidentrsquos proposed appointments to the Committee DISCUSSION ONLY
Commissioner Mazzola said to bring you up to date on that with that is we had a group of San Franciscans approach us to name something after Ed Lee and that started our process of naming We have to start to name a committee and then after we name the committee and then the people have to accept to be on the committee and we wersquoll have meetings talk about what we should do And meetings will be public meetings It will be held probably at the end of these meetings At the end of an Airport meeting then wersquoll adjourn this and go into a committee meeting We donrsquot anticipate many meetings Three something like thathellipwe have six months to do that That will be January 19th to come up with a recommendation So Corina if you want to read the Nominees to the Committee
Ms Corina Monzoacuten stated proposed appointments to the committee by President Mazzola The first five appointments are members of the San Francisco Airport Commission Larry Mazzola President Linda S Crayton Vice President Eleanor Johns Commissioner Richard J Guggenhime Commissioner Peter Stern Commissioner Followed by John Martin Former Airport Director San Francisco International Airport Anni Chung President and CEO Self Help for the Elderly San Francisco Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Commissioner Mazzola said alright Commissioners any questions you anything you want to add Okay and thatrsquos for information
Commissioner Johns asked have all these members other than ourselves been asked
Commissioner Mazzola replied yes Theyrsquove all agreed theyrsquove all agreed And so I know I talked to all of you but itrsquos not mandatory to be on this So if you decide you donrsquot want to be on let me know so we can appoint somebody else We donrsquot need a motion just discussion
Minutes September 4 2018 Page 8
F ACTION ITEMS RELATED TO ADMINISTRATION OPERATIONS amp MAINTENANCE Item No 3 was approved unanimously by a motion by Commissioner Johns and a second by Commissioner Mazzola
3 Award of the Terminal 3 Boarding Area E Candy Kiosk Lease to Canonica
No 18‐0284 Resolution awarding the Terminal 3 Boarding Area E Candy Kiosk to Canonica New York LLC
Ms Cheryl Nashir Director Revenue Development and Management said good morning Commissioners
I am here this morning seeking your approval to award the Boarding Area E Candy Kiosk Lease to Canonica New York LLC This lease was to be awarded a few weeks ago with some others that were awarded in the same Boarding Area but it was pulled off of your agenda because there was protest
The location is a 104 square foot kiosk in Terminal 3 Boarding Area E Presently the kiosk is operating as Seersquos Candies but that lease is expiring in January There were three proposers for this lease and one of them Gary Rulli Operator of Emporio Rulli issued a protest alleging that Canonica did not meet the minimum qualifications In his protest he pointed out that Canonica New York LLC is a fairly new entity and therefore could not meet the requirement of having operated a candy business in 3 of the last 5 years and also could not have met the sales requirement attached to the MQs We studied his protest and found it lacking in merit Canonica New York LLC is a subsidiary of Swisscanonica who very easily meets the minimum qualifications
The term for this lease is 7‐years The rent is the greater of percentage or $100000 per year which is the minimum annual guarantee They will 0perate as The Chocolate Market and they operate today in our International Terminal as The Chocolate Market in what I think is one of our most beautiful build outs at the Airport Theyrsquore also coming to Terminal 2 this Fall
I expect that theyrsquore going to pay MAG rent in the early years Currently the minimum annual guarantee on this space is $226000 so this is a very unusual situation where Irsquom coming to you in awarding a lease that will bring us more money or less money however the present lease is paying almost 45 rent and thatrsquos not anything we expected would continue when we release this
I would be happy to take any questions
Commissioner Crayton asked do we have any vendors that are now presently paying 45 scale rent here at the Airport
Minutes September 4 2018 Page 9
Ms Nashir said no stores or restaurants our advertising concession pays in that range but know that thatrsquos our average rent is between 11 and 16
Commissioner Johns asked so therersquos no one here today protesting
Ms Nashir replied no
Commissioner Johns said thank you
Commissioner Mazzola asked so you said Rullirsquos protest is without merit right Okay alright
There were no further questions
Item No 4 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
4 Authorization to Accept Proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
No 18‐0285 Resolution approving the revised lease specifications and authorizing Staff to accept proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
Good morning I am Cheryl Nashir from Revenue Development and Management And before we start on this item I would just like to point out that I have given you all a replacement page to this Commission memo this morning There was an error on the attachment in your Commission memo I had said that the construction period was 120 days Itrsquos actually 90 days so that is the correction that I made this morning in that new attachment Irsquom here to gain your approval this morning to make one change in this RFP and also to be allowed to accept proposals
On June 19th you authorized the issuance of this Request for Proposals for the Terminal 1 Specialty Retail Lease No 3 You may recall that we had previously tried to lease this space as a small business set aside specialty store and we did not receive any proposals So this is a redo of this particular lease and we dropped the SBE requirement
Commissioner Johns asked what requirement
Ms Nashir replied the Small Business Enterprise We conducted an informational conference and received no substantive questions on this business proposal thatrsquos in the RFP We do however want to recommend one change In the RFP we said that this would be a specialty retail store but there were four concepts that would be excluded And that
Minutes September 4 2018 Page 10
was News Sunglasses Bath and Body and Electronics We would like to drop those exclusions to just two It canrsquot be a newsstand or sunglass store but we would like to allow bath and body stores and electronic stores to enter this competition We think it will lead to more proposals and it will not adversely affect the rest of the program It could increase the competition thatrsquos the whole point We will be back in October for award And I would be happy to take any questions
Commissioner Johns said so I see that you had an informational conference and it wasnrsquot all that well attended So whatrsquos the issue here
Ms Nashir said well this is a very small store and its specialty retail which wersquore starting to find a challenge to lease We do well on our pop‐up retail which are small specialty stores but wersquove built those stores Wersquove just wersquore in the middle of an RFP right now where we got six proposals and at least three of them are very good on a pop‐up location But these small specialty stores that someone comes in and has to build themselves are starting to just be a challenge for us to lease And thatrsquos one reason I want to get rid of two of those exclusions
Commissioner Johns asked so are we seeing a trend here that maybe in the future we need to start looking in different directions
Ms Nashir replied yes I think wersquore seeing a trend in retail dropping off probably due to on‐line shopping And also some of our biggest tenants are the ones that are able to bring us specialty retail like the national beauty brands etc and they donrsquot want to bid on these locations because of the limit of eight They want to hold out for the larger stores and the newsstands So we are studying right now our limit of eight policy and wersquoll be sending an off‐calendar to you shortly on some recommended changes
Commissioner Johns said I mean maybe wersquore beginning an era we need a little less retail a little more food because I noticed in Terminal 2 at the is it Peetrsquos Coffee I mean the line is so long that itrsquos impossible if yoursquore catching a plane which is why most people are there to get what you want in the appropriate time So just a thought
Ms Nashir said very good Thank you
Commissioner Crayton said and my question is the outreach in terms of this particular proposal Did we do anything with the Chamber I mean what did we do
Ms Nashir replied we contacted all of the previous pop‐up tenants we had worked with We had hoped we had graduate to become you know permanent tenants with us and so wersquore hoping that wersquoll see some of those in the competition And again we just go out into neighborhoods in the City and put out press releases
Commissioner Crayton said well we tried twice so
Minutes September 4 2018 Page 11
Ms Nashir replied yes
There were no further questions
Item No 5 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Mazzola
5 Authorization to Accept Proposals for the Terminal 1 Boarding Area C Retail Concession Leases
No 18‐0286 Resolution approving the lease specifications and proposal requirements and authorizing Staff to accept proposals for two leases for two locations in Terminal 1 Boarding Area C
Good morning I am Cheryl Nashir from Revenue Development and Management I am here this morning as well requesting authorization to accept proposals for the Boarding Area C Retail Concession Leases
On June 5th the Airport Commission authorized the issuance of an RFP for two retail leases both are in Terminal 1 on Boarding Area C Boarding Area C is primarily served by Delta Airlines These two stores represent the only retail on this boarding area They are currently combined under a single lease
In this RFP we pulled them apart and created two leases We held an informational conference and collected comments They were very few comments The most substantive question however asked was could we combine these two spaces once again under a single lease And we recommend against this We believe that theyrsquore both viable on a stand‐alone basis One is a newsstand and the other one is a retail market place which is really a big newsstand with quite a bit of specialty retail in it Currently one location is doing about $7 million a year and the other is doing over $3 million a year So these are not small or challenged spaces So we would like to be able to accept proposals and without making changes to our RFP
And I would be happy to take any questions
There were no questions
Item No 6 was approved unanimously by a motion by Commissioner Guggenhime and a second by Commissioner Mazzola
Minutes September 4 2018 Page 12
6 Reject All Proposals for Professional Services Contract No 50130 and Re‐Issue Request for Proposals for Professional Services Contract No 5013001 for Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement
No 18‐0287 Resolution rejecting all proposals for Professional Services Contract No 50130 and re‐issue a Request for Proposals for Professional Services Contract No 5013001 Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement and enter into negotiations with the top ranked proposer
Good morning Commissioners My name is John Bergener and Irsquom the Airport Planning Director This item seeks your approval to reject all proposals and re‐issue this RFP 5013001 for Aircraft Noise Monitoring System with support maintenance and noise monitor replacement and negotiate with the top ranked firm
An aircraft noise monitoring system (or ldquoANMSrdquo) has been an integral function of the Airport since the late 1970s when SFO became the first US airport to implement an FAA‐approved noise compatibility program The ANMS consists of noise monitors with microphones and software that collects the data from the monitors and other sources This data is then used by Staff to conduct analysis draft reports to meet various federal and state reporting requirements and provide information to stakeholders and decision makers
The Airport currently operates a total of 37 noise monitors including 29 permanent and 8 portable monitors located on Airport and in San Francisco and San Mateo counties The existing noise monitors and microphones are over 10 years old and require regular site visits for maintenance especially during inclement weather
On July 25 2017 the Commission authorize Staff to issue an RFP 50130 for Aircraft Noise Monitoring System and Maintenance and Noise Monitor Replacement On November 1 2017 Staff issued the RFP and three proposals were received by the submission deadline on December 1 2017 The written proposals were scored by a panel of subject matter of experts All proposers were invited to an oral interview with a product demonstration
Staff successfully negotiated a contract with the top ranking firm and on April 13 2018 notified all proposers of the intent to seek Airport Commission approval to award a contract Upon notification the 2nd and 3rd ranked proposers submitted protests contesting that the top ranked firm did not meet the minimum qualifications among other items After careful review Staff determined it would be best to reject all proposals and reissue the RFP with refined minimum qualifications including clarification that submission of project experiences gained at non‐US airports is permissible
If the Commission approves of this item Staff will re‐issue the RFP with refined minimum
Minutes September 4 2018 Page 13
qualifications and submission requirements The purpose of the RFP remains the same ndash the resulting contract would enable the Airport to select a team with the expertise and knowledge to provide an ANMS replace and purchase additional noise monitors and provide the software that collects and transmits the data collected in the field The selected proposer would also train Staff on the selected noise monitoring system and assist with maintenance to ensure the equipment and software are operating properly
A panel of subject matter experts would be convened to evaluate and score each qualified proposer Staff would return to the Commission to request approval to award a contract with the top ranked firm following successful negotiations There is a 15 LBE requirement for this contract and the anticipated contract would have a term of 5 years with two 2‐year options to renew to be exercised at the discretion of the Commission
I recommend your approval and can answer any questions you have on this item
Commissioner Johns said so I really donrsquot even know where to begin with this except to say that in all the years Irsquove been here at the Commission Irsquove never had an issue like this It does relate to noise and we know wersquore growing so we know the noise is going to get worse I was approached by a member of the Board of Supervisors who told me that he is going to have a hearing on noise issues And wersquove had two protests on this Wersquove had itrsquos been going on a year you said since July rsquo17 Wersquove had it postponed twice I personally requested a briefing and was given a briefing I requested a lot of information I was given the information At the briefing I stated that I was concerned about some of the issues in the prior RFP that I thought it was important that we had somebody who could do both the hardware and the software and who have the appropriate experience to do this assuming there is such a person entity available I see nothing in this new RFP that has added anything that was not there in what you guys gave us the last time Irsquom stymied I donrsquot understand it Instead of four years of experience I think the one this time has three years of experience so wersquore looking for less experience We talked about Title 21 and having some experience in California I donrsquot see that except yoursquore saying after the fact once you choose someone then they can write a letter saying that theyrsquove been authorized by is it Caltrans that does this or the PUC
Mr Bergener responded that the system acceptance requirements requires a letter from Caltrans verifying that the system complies with Title 21 requirements
Commissioner Johns stated that she doesnrsquot understand it We are in Airport that tries to seek number 1 Why do we not want a firm who has experiencehellip Irsquoll go along with your RFP but when you bring somebody back to us for approval I sure hope they meet the qualifications I have never had to speak on an issue like I am today so I donrsquot understand it I think I made clear that we need somebody who has experience in both hardware and software Irsquom kind of repeating this so I donrsquot forget what I wanted to say Secondly they should have experience in California so that they understand Title 21 whether itrsquos the prime or the sub‐contractor They should be able to show that they have experience for a certain
Minutes September 4 2018 Page 14
amount of years consistently with large airports You have given us today how we are growing Wersquore getting larger and larger and yet wersquore not looking for somebody who has serviced this size Airport So those are my comments I donrsquot know what else to say I think I made my point clear
Commissioner Mazzola said alright okay did you want to respond to that or leave her statement be
Mr Bergener said I will just note that the minimum qualifications do include a requirement for experience in an Airport with more than 7 million enplanements or 14 million total passengers which is consistent with the US large hub definition of airports in 2017
Commissioner Johns said alright How long do they have to have that Is it one year and is it combined with the sub and the prime
Mr Bergener replied it was at least one airport in each of the subject areas for three years Commissioner Johns said say that again
Commissioner Johns stated I had it in front of me I mean itrsquos the same as before but what about the California requirement
Mr Bergener replied no we did not add the California requirement because itrsquos part of the systemsrsquo acceptance requirements
Commissioner Johns said I stand with my comments I donrsquot have anything further
Commissioner Crayton said I want to say and I know you guys briefed us and when I left the meeting I felt somewhat comfortable with the responses that I had received Going through this again I yet became concern because it seems that itrsquos watered down from the previous contract that we had when I went back and had my assistant do a comparison in terms of that and I agree with all of the things Commissioner Johns had said And so itrsquos problematic for me because it sounds as if noise has taken a lesser seat here than it had before This is a huge Airport I think itrsquos a premier Airport and in that regard we have to have that concern because lots of people that are very vocal out there have had five or six people call me regarding this and having an issue And I Irsquom not sure whatrsquos spearheading all of this except for the fact that I myself see it at a lesser than the qualifications are somewhat construed from the previous contract And Irsquom a little concern about that Irsquom also concerned in that noise as she said with the number of enplanements that we have the large Airport that we have and where we stand in the scheme of things in terms of an International Airport I think we need to give more value to it So I am yet concerned about this also and Irsquom not clear how to what the fix is It for some reason to me and maybe itrsquos because you know this is not my area It almost looks like the importance of this was sort of weighed down in this particular contract as to the previous ones that wersquove had the and Irsquove only had been present for one prior contract and so therefore this does concern me
Minutes September 4 2018 Page 15
that a lot of proponents out there as I said earlier I received at least five calls And so I donrsquot know what else to say regarding this I thought I was okay with it read it through again and it does concern me
Commissioner Mazzola asked Ivar you want to weigh‐in
Mr Satero replied yeah sure I will Commissioners my apologies We thought we had made the necessary tweaks We certainly want you to be comfortable with this We are we know therersquos three firms that do this kind of work that are very well qualified We want a competitive process and so we believe wersquove crafted something that gives us the excellence that we always strive for in terms of all of our work and noise monitoring is an important point of what we do especially in todayrsquos community issues wersquore having around noise But you need to be confident that we can deliver excellence as we intend to do So if wersquore still not satisfied I will remove this once again if it is the desire of the Commission to be continued to be briefed on how to make sure we achieve our goals
Commissioner Mazzola said so as far as Irsquom concern let me speak up here I think we ought to let the RFP go out and when they come back then we ought to really hone in on what we really want But I think we need to get on with it and not hold it up longer
Commissioner Johns said Irsquom fine with that I just think itrsquos important that we get some entity that is qualified
Commissioner Mazzola said so I think that will be the report Thank you for that
Item No 7 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
7 Approval of Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project Turner Construction Company $12073574
No 18‐0288 Resolution approving Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project with Turner Construction Company to increase the contract capacity by $12073574 for a new total contract capacity amount of $69930727 and with no change to the contract duration
Ms Judi Mosqueda Director of Project Management said good morning Commissioners
This item is for your approval of Phase C6 adding Trade Package Set No 4 into our contract with Turner Construction for the Demolition of Terminal 2 Air Traffic Control Tower
Minutes September 4 2018 Page 16
Project The Phase C6 approval will increase the contract capacity by $121 million for a new contract capacity amount of $699 million with a corresponding amount of contingency and with no change to the contract duration
The Project includes demolition of the existing air traffic control tower and design and construction of a new office block on top of T2 The new floors may be used for a new airline lounge office space a new employee cafe and a public observation deck As you know demolition of the old tower has been completed already Steel erection for the new floors is beginning this month
This approval will provide for Trade Package Set No 4 to be added to the contract The trade package set includes SeismicMain Building Concrete Glazing Storefront and Metal Panels Exterior Framing and Plaster Plumbing and Air Handling Units
The forecast for this contract is $831 million which falls within the budget of $841 million and includes appropriate levels of contingency The Project is on‐schedule to be substantially complete in August of 2019
The LBE goals for this contract are 24 for design services and 20 for construction services and Turner Construction is committed to meeting these goals
We recommend your approval and I would be happy to answer questions
There were no questions from the Commissioners
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS The Consent Calendar Item Nos 8 through 12 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Mazzola
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $1852527
No 18‐0289 Resolution approving Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project with PMANBA Joint Venture in an amount of $1852527 for a new contract amount not to exceed $6348283 for services through March 31 2020
Minutes September 4 2018 Page 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project Faith Group LLC $1736000
No 18‐0290 Resolution approving Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project with Faith Group LLC in an amount of $1736000 for a new contract amount not to exceed $3266000 for services through October 18 2019
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services to Loza Upholstery Inc for $800000 Kay Chesterfield Inc for $800000
No 18‐0291 Resolutions awarding Professional Services Contract No 5014501 As‐No 18‐0292 Needed Furniture Repair and Re‐upholstery services to Loza Upholstery
Inc and Contract No 5014502 to Kay Chesterfield Inc each with a contract amount not‐to‐exceed $800000 with a contract duration of five years
Commissioner Johns said I donrsquot have a question I have a comment Item 10 I was very happy to see that item because I was in Terminal 2 in the baggage area and we have some seating there that really needs to be reupholstered or perhaps replaced But I was happy to see this item and I do hope that we review all furniture and either reupholster or replace and specifically I would like to point out that there is therersquos sort of curve seating that theyrsquore in white leather They werenrsquot good from the beginning and they need attention
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project CAGE Professional Services Inc dba CAGE Inc $750000
No 18‐0293 Resolution approving Modification No 11 (Annual Renewal) to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project with CAGE
Minutes September 4 2018 Page 18
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Thank you and Irsquod be happy to answer any questions
Commissioner Guggenhime commented the amount of traffic therefore the number of airplanes going in and out of here with the runway issues and the weather issues that we seem to have I mean at some point being on time to me is more important than the number of passengers Thatrsquos just a comment not a question
Mr Nakornkhet said we have experienced a trend of what we call airline up gauging in our data which means aircraft size are getting larger So the airlines are doing their part to bring in more passengers without increasing operations by the same amount by increasing the aircraft size And the average aircraft size ten years ago for example was approximately 130 seats and now itrsquos 158 seats So they are getting larger
Commissioner Guggenhime thanked Mr Nakornkhet
Commissioner Crayton said great thank you so much First of all thank you for this report When you read it itrsquos self‐explanatory It gives you a lot of information The question that I have though and actually itrsquos helpful to get it before the meeting so it can really really make sure that you can talk about it But when I look at Page 4 and it tells me that that the growth the 2018 growth etc was for San Francisco which is great too and certainly itrsquos an improvement I look at San Jose itrsquos 172 Now is the San Jose Airport smaller than we are What are they doing that or what are the factors that land to its 172 thatrsquos a high amount
Mr Nakornkhet replied yes so San Jose is much smaller than we are They are only in the 12 million total passenger range wherersquos wersquore at 58 million and theyrsquove been getting a lot of domestic growth from a number of domestic carriers such as Delta American and Southwest I think itrsquos just a factor of how small they are and when you grow a relatively large amount on that small base of passengers you get that large percentage But in terms of volume growth we still exceed at San Josersquos volume growth If you look in the furthest right column of that table Even though they grew by 17 they only grew by 1 million total passengers where as we grew 19 million total passengers
Mr Nakornkhet said they are experiencing of strong growth from a number of airlines I mentioned earlier
Commissioner Crayton asked and we have those same airlines here
Mr Nakornkhet replied and we have the same airlines as well Yes
Commissioner Crayton said I was wondering if there was a factor there that was having people choosing them over us
Minutes September 4 2018 Page 6
Commissioner Johns said I actually think itrsquos good for us that theyrsquore growing I think we need this regional plan I know that our previous Director John Martin had indicated to us several years ago that we really need to look to a regional plan I do know that weather is better in San Jose and in Oakland And I think some people are trying to find ways to get on time flights especially if itrsquos crucial And I personally know if you have done that in the last 10 days So I donrsquot find this a problem I think itrsquos important for us to all work together all the airports regionally and perhaps something in the North Bay also as we look towards the future I just wanted to make that comment
Commissioner Crayton said and I want to be clear I donrsquot see this as a problem Irsquom talking about as I look at this wondering if there are factors that were in San Jose that would make them have more enplanements because I know what our Airport is like Irsquove been here Irsquove been in San Jose too and I said never do that again So after you experience SFO you know yoursquove had about the best And so having said that I just was wondering why it just looks skewed for some reason
Commissioner Mazzola said so picking up on Commissioner Guggenhimersquos question do we have an on‐going runway study Do we study runways as planning to get bigger And as passengers keep coming do we ever decide wersquore going to reconfigure those runways again
Mr Ivar Satero Airport Director replied you know what we do is wersquore preparing for it like more a regional approach to things and so that starts with the Regional Airport Planning Commission And really thatrsquos where the update to the Regional Airport System Plan has to happen Their plan is almost seven years old now And so itrsquos outdated from the assumptions that were made back then in terms of growth for the region You can see wersquore far out pacing that So our efforts are around reconvening the Regional Airport Planning Commission That is the lead agencies in that are MTC ABAG and BCDC and so wersquore starting a process to get them engaged in this broader review of airport capacity in a regional
Commissioner Mazzola said as we review a regional plan our local plan is stifled We stay where we are and we decide that wersquore going to do a regional plan and you know and land planes in other areas
Mr Satero said it needs to be a regional approach just because the investment thatrsquos required and all of the politics that go into this kind of review We donrsquot wersquore not we also what wersquore looking at is how does technology continued to advance the capacity of SFO Wersquove been successful in the past with technology and wersquore investing a new technology particularly the Ground Based Augmentation System that this Commission authorized that will add capacity particularly when we see the delays during the poor weather conditions And really thatrsquos where our problem exists Thatrsquos where we see the delays We will continue to see industry respond as we have seen that over the last ten years as Mike said larger aircraft spreading out flights across a broader schedule and increased load factors
Minutes September 4 2018 Page 7
So thatrsquos why our forecast project about another ten years of capacity before we get to that point
Commissioner Mazzola asked alright other questions of Mike Thank you very much for your report
E ITEMS INITIATED BY COMMISSIONERS Item No 2 is for discussion only
2 Following upon Resolution No 18‐0200 establishing a special advisory Committee to consider and recommend action on the nomination of Edwin M Lee for naming or dedication at the San Francisco International Airport the Commission Presidentrsquos proposed appointments to the Committee DISCUSSION ONLY
Commissioner Mazzola said to bring you up to date on that with that is we had a group of San Franciscans approach us to name something after Ed Lee and that started our process of naming We have to start to name a committee and then after we name the committee and then the people have to accept to be on the committee and we wersquoll have meetings talk about what we should do And meetings will be public meetings It will be held probably at the end of these meetings At the end of an Airport meeting then wersquoll adjourn this and go into a committee meeting We donrsquot anticipate many meetings Three something like thathellipwe have six months to do that That will be January 19th to come up with a recommendation So Corina if you want to read the Nominees to the Committee
Ms Corina Monzoacuten stated proposed appointments to the committee by President Mazzola The first five appointments are members of the San Francisco Airport Commission Larry Mazzola President Linda S Crayton Vice President Eleanor Johns Commissioner Richard J Guggenhime Commissioner Peter Stern Commissioner Followed by John Martin Former Airport Director San Francisco International Airport Anni Chung President and CEO Self Help for the Elderly San Francisco Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Commissioner Mazzola said alright Commissioners any questions you anything you want to add Okay and thatrsquos for information
Commissioner Johns asked have all these members other than ourselves been asked
Commissioner Mazzola replied yes Theyrsquove all agreed theyrsquove all agreed And so I know I talked to all of you but itrsquos not mandatory to be on this So if you decide you donrsquot want to be on let me know so we can appoint somebody else We donrsquot need a motion just discussion
Minutes September 4 2018 Page 8
F ACTION ITEMS RELATED TO ADMINISTRATION OPERATIONS amp MAINTENANCE Item No 3 was approved unanimously by a motion by Commissioner Johns and a second by Commissioner Mazzola
3 Award of the Terminal 3 Boarding Area E Candy Kiosk Lease to Canonica
No 18‐0284 Resolution awarding the Terminal 3 Boarding Area E Candy Kiosk to Canonica New York LLC
Ms Cheryl Nashir Director Revenue Development and Management said good morning Commissioners
I am here this morning seeking your approval to award the Boarding Area E Candy Kiosk Lease to Canonica New York LLC This lease was to be awarded a few weeks ago with some others that were awarded in the same Boarding Area but it was pulled off of your agenda because there was protest
The location is a 104 square foot kiosk in Terminal 3 Boarding Area E Presently the kiosk is operating as Seersquos Candies but that lease is expiring in January There were three proposers for this lease and one of them Gary Rulli Operator of Emporio Rulli issued a protest alleging that Canonica did not meet the minimum qualifications In his protest he pointed out that Canonica New York LLC is a fairly new entity and therefore could not meet the requirement of having operated a candy business in 3 of the last 5 years and also could not have met the sales requirement attached to the MQs We studied his protest and found it lacking in merit Canonica New York LLC is a subsidiary of Swisscanonica who very easily meets the minimum qualifications
The term for this lease is 7‐years The rent is the greater of percentage or $100000 per year which is the minimum annual guarantee They will 0perate as The Chocolate Market and they operate today in our International Terminal as The Chocolate Market in what I think is one of our most beautiful build outs at the Airport Theyrsquore also coming to Terminal 2 this Fall
I expect that theyrsquore going to pay MAG rent in the early years Currently the minimum annual guarantee on this space is $226000 so this is a very unusual situation where Irsquom coming to you in awarding a lease that will bring us more money or less money however the present lease is paying almost 45 rent and thatrsquos not anything we expected would continue when we release this
I would be happy to take any questions
Commissioner Crayton asked do we have any vendors that are now presently paying 45 scale rent here at the Airport
Minutes September 4 2018 Page 9
Ms Nashir said no stores or restaurants our advertising concession pays in that range but know that thatrsquos our average rent is between 11 and 16
Commissioner Johns asked so therersquos no one here today protesting
Ms Nashir replied no
Commissioner Johns said thank you
Commissioner Mazzola asked so you said Rullirsquos protest is without merit right Okay alright
There were no further questions
Item No 4 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
4 Authorization to Accept Proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
No 18‐0285 Resolution approving the revised lease specifications and authorizing Staff to accept proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
Good morning I am Cheryl Nashir from Revenue Development and Management And before we start on this item I would just like to point out that I have given you all a replacement page to this Commission memo this morning There was an error on the attachment in your Commission memo I had said that the construction period was 120 days Itrsquos actually 90 days so that is the correction that I made this morning in that new attachment Irsquom here to gain your approval this morning to make one change in this RFP and also to be allowed to accept proposals
On June 19th you authorized the issuance of this Request for Proposals for the Terminal 1 Specialty Retail Lease No 3 You may recall that we had previously tried to lease this space as a small business set aside specialty store and we did not receive any proposals So this is a redo of this particular lease and we dropped the SBE requirement
Commissioner Johns asked what requirement
Ms Nashir replied the Small Business Enterprise We conducted an informational conference and received no substantive questions on this business proposal thatrsquos in the RFP We do however want to recommend one change In the RFP we said that this would be a specialty retail store but there were four concepts that would be excluded And that
Minutes September 4 2018 Page 10
was News Sunglasses Bath and Body and Electronics We would like to drop those exclusions to just two It canrsquot be a newsstand or sunglass store but we would like to allow bath and body stores and electronic stores to enter this competition We think it will lead to more proposals and it will not adversely affect the rest of the program It could increase the competition thatrsquos the whole point We will be back in October for award And I would be happy to take any questions
Commissioner Johns said so I see that you had an informational conference and it wasnrsquot all that well attended So whatrsquos the issue here
Ms Nashir said well this is a very small store and its specialty retail which wersquore starting to find a challenge to lease We do well on our pop‐up retail which are small specialty stores but wersquove built those stores Wersquove just wersquore in the middle of an RFP right now where we got six proposals and at least three of them are very good on a pop‐up location But these small specialty stores that someone comes in and has to build themselves are starting to just be a challenge for us to lease And thatrsquos one reason I want to get rid of two of those exclusions
Commissioner Johns asked so are we seeing a trend here that maybe in the future we need to start looking in different directions
Ms Nashir replied yes I think wersquore seeing a trend in retail dropping off probably due to on‐line shopping And also some of our biggest tenants are the ones that are able to bring us specialty retail like the national beauty brands etc and they donrsquot want to bid on these locations because of the limit of eight They want to hold out for the larger stores and the newsstands So we are studying right now our limit of eight policy and wersquoll be sending an off‐calendar to you shortly on some recommended changes
Commissioner Johns said I mean maybe wersquore beginning an era we need a little less retail a little more food because I noticed in Terminal 2 at the is it Peetrsquos Coffee I mean the line is so long that itrsquos impossible if yoursquore catching a plane which is why most people are there to get what you want in the appropriate time So just a thought
Ms Nashir said very good Thank you
Commissioner Crayton said and my question is the outreach in terms of this particular proposal Did we do anything with the Chamber I mean what did we do
Ms Nashir replied we contacted all of the previous pop‐up tenants we had worked with We had hoped we had graduate to become you know permanent tenants with us and so wersquore hoping that wersquoll see some of those in the competition And again we just go out into neighborhoods in the City and put out press releases
Commissioner Crayton said well we tried twice so
Minutes September 4 2018 Page 11
Ms Nashir replied yes
There were no further questions
Item No 5 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Mazzola
5 Authorization to Accept Proposals for the Terminal 1 Boarding Area C Retail Concession Leases
No 18‐0286 Resolution approving the lease specifications and proposal requirements and authorizing Staff to accept proposals for two leases for two locations in Terminal 1 Boarding Area C
Good morning I am Cheryl Nashir from Revenue Development and Management I am here this morning as well requesting authorization to accept proposals for the Boarding Area C Retail Concession Leases
On June 5th the Airport Commission authorized the issuance of an RFP for two retail leases both are in Terminal 1 on Boarding Area C Boarding Area C is primarily served by Delta Airlines These two stores represent the only retail on this boarding area They are currently combined under a single lease
In this RFP we pulled them apart and created two leases We held an informational conference and collected comments They were very few comments The most substantive question however asked was could we combine these two spaces once again under a single lease And we recommend against this We believe that theyrsquore both viable on a stand‐alone basis One is a newsstand and the other one is a retail market place which is really a big newsstand with quite a bit of specialty retail in it Currently one location is doing about $7 million a year and the other is doing over $3 million a year So these are not small or challenged spaces So we would like to be able to accept proposals and without making changes to our RFP
And I would be happy to take any questions
There were no questions
Item No 6 was approved unanimously by a motion by Commissioner Guggenhime and a second by Commissioner Mazzola
Minutes September 4 2018 Page 12
6 Reject All Proposals for Professional Services Contract No 50130 and Re‐Issue Request for Proposals for Professional Services Contract No 5013001 for Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement
No 18‐0287 Resolution rejecting all proposals for Professional Services Contract No 50130 and re‐issue a Request for Proposals for Professional Services Contract No 5013001 Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement and enter into negotiations with the top ranked proposer
Good morning Commissioners My name is John Bergener and Irsquom the Airport Planning Director This item seeks your approval to reject all proposals and re‐issue this RFP 5013001 for Aircraft Noise Monitoring System with support maintenance and noise monitor replacement and negotiate with the top ranked firm
An aircraft noise monitoring system (or ldquoANMSrdquo) has been an integral function of the Airport since the late 1970s when SFO became the first US airport to implement an FAA‐approved noise compatibility program The ANMS consists of noise monitors with microphones and software that collects the data from the monitors and other sources This data is then used by Staff to conduct analysis draft reports to meet various federal and state reporting requirements and provide information to stakeholders and decision makers
The Airport currently operates a total of 37 noise monitors including 29 permanent and 8 portable monitors located on Airport and in San Francisco and San Mateo counties The existing noise monitors and microphones are over 10 years old and require regular site visits for maintenance especially during inclement weather
On July 25 2017 the Commission authorize Staff to issue an RFP 50130 for Aircraft Noise Monitoring System and Maintenance and Noise Monitor Replacement On November 1 2017 Staff issued the RFP and three proposals were received by the submission deadline on December 1 2017 The written proposals were scored by a panel of subject matter of experts All proposers were invited to an oral interview with a product demonstration
Staff successfully negotiated a contract with the top ranking firm and on April 13 2018 notified all proposers of the intent to seek Airport Commission approval to award a contract Upon notification the 2nd and 3rd ranked proposers submitted protests contesting that the top ranked firm did not meet the minimum qualifications among other items After careful review Staff determined it would be best to reject all proposals and reissue the RFP with refined minimum qualifications including clarification that submission of project experiences gained at non‐US airports is permissible
If the Commission approves of this item Staff will re‐issue the RFP with refined minimum
Minutes September 4 2018 Page 13
qualifications and submission requirements The purpose of the RFP remains the same ndash the resulting contract would enable the Airport to select a team with the expertise and knowledge to provide an ANMS replace and purchase additional noise monitors and provide the software that collects and transmits the data collected in the field The selected proposer would also train Staff on the selected noise monitoring system and assist with maintenance to ensure the equipment and software are operating properly
A panel of subject matter experts would be convened to evaluate and score each qualified proposer Staff would return to the Commission to request approval to award a contract with the top ranked firm following successful negotiations There is a 15 LBE requirement for this contract and the anticipated contract would have a term of 5 years with two 2‐year options to renew to be exercised at the discretion of the Commission
I recommend your approval and can answer any questions you have on this item
Commissioner Johns said so I really donrsquot even know where to begin with this except to say that in all the years Irsquove been here at the Commission Irsquove never had an issue like this It does relate to noise and we know wersquore growing so we know the noise is going to get worse I was approached by a member of the Board of Supervisors who told me that he is going to have a hearing on noise issues And wersquove had two protests on this Wersquove had itrsquos been going on a year you said since July rsquo17 Wersquove had it postponed twice I personally requested a briefing and was given a briefing I requested a lot of information I was given the information At the briefing I stated that I was concerned about some of the issues in the prior RFP that I thought it was important that we had somebody who could do both the hardware and the software and who have the appropriate experience to do this assuming there is such a person entity available I see nothing in this new RFP that has added anything that was not there in what you guys gave us the last time Irsquom stymied I donrsquot understand it Instead of four years of experience I think the one this time has three years of experience so wersquore looking for less experience We talked about Title 21 and having some experience in California I donrsquot see that except yoursquore saying after the fact once you choose someone then they can write a letter saying that theyrsquove been authorized by is it Caltrans that does this or the PUC
Mr Bergener responded that the system acceptance requirements requires a letter from Caltrans verifying that the system complies with Title 21 requirements
Commissioner Johns stated that she doesnrsquot understand it We are in Airport that tries to seek number 1 Why do we not want a firm who has experiencehellip Irsquoll go along with your RFP but when you bring somebody back to us for approval I sure hope they meet the qualifications I have never had to speak on an issue like I am today so I donrsquot understand it I think I made clear that we need somebody who has experience in both hardware and software Irsquom kind of repeating this so I donrsquot forget what I wanted to say Secondly they should have experience in California so that they understand Title 21 whether itrsquos the prime or the sub‐contractor They should be able to show that they have experience for a certain
Minutes September 4 2018 Page 14
amount of years consistently with large airports You have given us today how we are growing Wersquore getting larger and larger and yet wersquore not looking for somebody who has serviced this size Airport So those are my comments I donrsquot know what else to say I think I made my point clear
Commissioner Mazzola said alright okay did you want to respond to that or leave her statement be
Mr Bergener said I will just note that the minimum qualifications do include a requirement for experience in an Airport with more than 7 million enplanements or 14 million total passengers which is consistent with the US large hub definition of airports in 2017
Commissioner Johns said alright How long do they have to have that Is it one year and is it combined with the sub and the prime
Mr Bergener replied it was at least one airport in each of the subject areas for three years Commissioner Johns said say that again
Commissioner Johns stated I had it in front of me I mean itrsquos the same as before but what about the California requirement
Mr Bergener replied no we did not add the California requirement because itrsquos part of the systemsrsquo acceptance requirements
Commissioner Johns said I stand with my comments I donrsquot have anything further
Commissioner Crayton said I want to say and I know you guys briefed us and when I left the meeting I felt somewhat comfortable with the responses that I had received Going through this again I yet became concern because it seems that itrsquos watered down from the previous contract that we had when I went back and had my assistant do a comparison in terms of that and I agree with all of the things Commissioner Johns had said And so itrsquos problematic for me because it sounds as if noise has taken a lesser seat here than it had before This is a huge Airport I think itrsquos a premier Airport and in that regard we have to have that concern because lots of people that are very vocal out there have had five or six people call me regarding this and having an issue And I Irsquom not sure whatrsquos spearheading all of this except for the fact that I myself see it at a lesser than the qualifications are somewhat construed from the previous contract And Irsquom a little concern about that Irsquom also concerned in that noise as she said with the number of enplanements that we have the large Airport that we have and where we stand in the scheme of things in terms of an International Airport I think we need to give more value to it So I am yet concerned about this also and Irsquom not clear how to what the fix is It for some reason to me and maybe itrsquos because you know this is not my area It almost looks like the importance of this was sort of weighed down in this particular contract as to the previous ones that wersquove had the and Irsquove only had been present for one prior contract and so therefore this does concern me
Minutes September 4 2018 Page 15
that a lot of proponents out there as I said earlier I received at least five calls And so I donrsquot know what else to say regarding this I thought I was okay with it read it through again and it does concern me
Commissioner Mazzola asked Ivar you want to weigh‐in
Mr Satero replied yeah sure I will Commissioners my apologies We thought we had made the necessary tweaks We certainly want you to be comfortable with this We are we know therersquos three firms that do this kind of work that are very well qualified We want a competitive process and so we believe wersquove crafted something that gives us the excellence that we always strive for in terms of all of our work and noise monitoring is an important point of what we do especially in todayrsquos community issues wersquore having around noise But you need to be confident that we can deliver excellence as we intend to do So if wersquore still not satisfied I will remove this once again if it is the desire of the Commission to be continued to be briefed on how to make sure we achieve our goals
Commissioner Mazzola said so as far as Irsquom concern let me speak up here I think we ought to let the RFP go out and when they come back then we ought to really hone in on what we really want But I think we need to get on with it and not hold it up longer
Commissioner Johns said Irsquom fine with that I just think itrsquos important that we get some entity that is qualified
Commissioner Mazzola said so I think that will be the report Thank you for that
Item No 7 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
7 Approval of Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project Turner Construction Company $12073574
No 18‐0288 Resolution approving Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project with Turner Construction Company to increase the contract capacity by $12073574 for a new total contract capacity amount of $69930727 and with no change to the contract duration
Ms Judi Mosqueda Director of Project Management said good morning Commissioners
This item is for your approval of Phase C6 adding Trade Package Set No 4 into our contract with Turner Construction for the Demolition of Terminal 2 Air Traffic Control Tower
Minutes September 4 2018 Page 16
Project The Phase C6 approval will increase the contract capacity by $121 million for a new contract capacity amount of $699 million with a corresponding amount of contingency and with no change to the contract duration
The Project includes demolition of the existing air traffic control tower and design and construction of a new office block on top of T2 The new floors may be used for a new airline lounge office space a new employee cafe and a public observation deck As you know demolition of the old tower has been completed already Steel erection for the new floors is beginning this month
This approval will provide for Trade Package Set No 4 to be added to the contract The trade package set includes SeismicMain Building Concrete Glazing Storefront and Metal Panels Exterior Framing and Plaster Plumbing and Air Handling Units
The forecast for this contract is $831 million which falls within the budget of $841 million and includes appropriate levels of contingency The Project is on‐schedule to be substantially complete in August of 2019
The LBE goals for this contract are 24 for design services and 20 for construction services and Turner Construction is committed to meeting these goals
We recommend your approval and I would be happy to answer questions
There were no questions from the Commissioners
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS The Consent Calendar Item Nos 8 through 12 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Mazzola
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $1852527
No 18‐0289 Resolution approving Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project with PMANBA Joint Venture in an amount of $1852527 for a new contract amount not to exceed $6348283 for services through March 31 2020
Minutes September 4 2018 Page 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project Faith Group LLC $1736000
No 18‐0290 Resolution approving Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project with Faith Group LLC in an amount of $1736000 for a new contract amount not to exceed $3266000 for services through October 18 2019
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services to Loza Upholstery Inc for $800000 Kay Chesterfield Inc for $800000
No 18‐0291 Resolutions awarding Professional Services Contract No 5014501 As‐No 18‐0292 Needed Furniture Repair and Re‐upholstery services to Loza Upholstery
Inc and Contract No 5014502 to Kay Chesterfield Inc each with a contract amount not‐to‐exceed $800000 with a contract duration of five years
Commissioner Johns said I donrsquot have a question I have a comment Item 10 I was very happy to see that item because I was in Terminal 2 in the baggage area and we have some seating there that really needs to be reupholstered or perhaps replaced But I was happy to see this item and I do hope that we review all furniture and either reupholster or replace and specifically I would like to point out that there is therersquos sort of curve seating that theyrsquore in white leather They werenrsquot good from the beginning and they need attention
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project CAGE Professional Services Inc dba CAGE Inc $750000
No 18‐0293 Resolution approving Modification No 11 (Annual Renewal) to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project with CAGE
Minutes September 4 2018 Page 18
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Commissioner Johns said I actually think itrsquos good for us that theyrsquore growing I think we need this regional plan I know that our previous Director John Martin had indicated to us several years ago that we really need to look to a regional plan I do know that weather is better in San Jose and in Oakland And I think some people are trying to find ways to get on time flights especially if itrsquos crucial And I personally know if you have done that in the last 10 days So I donrsquot find this a problem I think itrsquos important for us to all work together all the airports regionally and perhaps something in the North Bay also as we look towards the future I just wanted to make that comment
Commissioner Crayton said and I want to be clear I donrsquot see this as a problem Irsquom talking about as I look at this wondering if there are factors that were in San Jose that would make them have more enplanements because I know what our Airport is like Irsquove been here Irsquove been in San Jose too and I said never do that again So after you experience SFO you know yoursquove had about the best And so having said that I just was wondering why it just looks skewed for some reason
Commissioner Mazzola said so picking up on Commissioner Guggenhimersquos question do we have an on‐going runway study Do we study runways as planning to get bigger And as passengers keep coming do we ever decide wersquore going to reconfigure those runways again
Mr Ivar Satero Airport Director replied you know what we do is wersquore preparing for it like more a regional approach to things and so that starts with the Regional Airport Planning Commission And really thatrsquos where the update to the Regional Airport System Plan has to happen Their plan is almost seven years old now And so itrsquos outdated from the assumptions that were made back then in terms of growth for the region You can see wersquore far out pacing that So our efforts are around reconvening the Regional Airport Planning Commission That is the lead agencies in that are MTC ABAG and BCDC and so wersquore starting a process to get them engaged in this broader review of airport capacity in a regional
Commissioner Mazzola said as we review a regional plan our local plan is stifled We stay where we are and we decide that wersquore going to do a regional plan and you know and land planes in other areas
Mr Satero said it needs to be a regional approach just because the investment thatrsquos required and all of the politics that go into this kind of review We donrsquot wersquore not we also what wersquore looking at is how does technology continued to advance the capacity of SFO Wersquove been successful in the past with technology and wersquore investing a new technology particularly the Ground Based Augmentation System that this Commission authorized that will add capacity particularly when we see the delays during the poor weather conditions And really thatrsquos where our problem exists Thatrsquos where we see the delays We will continue to see industry respond as we have seen that over the last ten years as Mike said larger aircraft spreading out flights across a broader schedule and increased load factors
Minutes September 4 2018 Page 7
So thatrsquos why our forecast project about another ten years of capacity before we get to that point
Commissioner Mazzola asked alright other questions of Mike Thank you very much for your report
E ITEMS INITIATED BY COMMISSIONERS Item No 2 is for discussion only
2 Following upon Resolution No 18‐0200 establishing a special advisory Committee to consider and recommend action on the nomination of Edwin M Lee for naming or dedication at the San Francisco International Airport the Commission Presidentrsquos proposed appointments to the Committee DISCUSSION ONLY
Commissioner Mazzola said to bring you up to date on that with that is we had a group of San Franciscans approach us to name something after Ed Lee and that started our process of naming We have to start to name a committee and then after we name the committee and then the people have to accept to be on the committee and we wersquoll have meetings talk about what we should do And meetings will be public meetings It will be held probably at the end of these meetings At the end of an Airport meeting then wersquoll adjourn this and go into a committee meeting We donrsquot anticipate many meetings Three something like thathellipwe have six months to do that That will be January 19th to come up with a recommendation So Corina if you want to read the Nominees to the Committee
Ms Corina Monzoacuten stated proposed appointments to the committee by President Mazzola The first five appointments are members of the San Francisco Airport Commission Larry Mazzola President Linda S Crayton Vice President Eleanor Johns Commissioner Richard J Guggenhime Commissioner Peter Stern Commissioner Followed by John Martin Former Airport Director San Francisco International Airport Anni Chung President and CEO Self Help for the Elderly San Francisco Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Commissioner Mazzola said alright Commissioners any questions you anything you want to add Okay and thatrsquos for information
Commissioner Johns asked have all these members other than ourselves been asked
Commissioner Mazzola replied yes Theyrsquove all agreed theyrsquove all agreed And so I know I talked to all of you but itrsquos not mandatory to be on this So if you decide you donrsquot want to be on let me know so we can appoint somebody else We donrsquot need a motion just discussion
Minutes September 4 2018 Page 8
F ACTION ITEMS RELATED TO ADMINISTRATION OPERATIONS amp MAINTENANCE Item No 3 was approved unanimously by a motion by Commissioner Johns and a second by Commissioner Mazzola
3 Award of the Terminal 3 Boarding Area E Candy Kiosk Lease to Canonica
No 18‐0284 Resolution awarding the Terminal 3 Boarding Area E Candy Kiosk to Canonica New York LLC
Ms Cheryl Nashir Director Revenue Development and Management said good morning Commissioners
I am here this morning seeking your approval to award the Boarding Area E Candy Kiosk Lease to Canonica New York LLC This lease was to be awarded a few weeks ago with some others that were awarded in the same Boarding Area but it was pulled off of your agenda because there was protest
The location is a 104 square foot kiosk in Terminal 3 Boarding Area E Presently the kiosk is operating as Seersquos Candies but that lease is expiring in January There were three proposers for this lease and one of them Gary Rulli Operator of Emporio Rulli issued a protest alleging that Canonica did not meet the minimum qualifications In his protest he pointed out that Canonica New York LLC is a fairly new entity and therefore could not meet the requirement of having operated a candy business in 3 of the last 5 years and also could not have met the sales requirement attached to the MQs We studied his protest and found it lacking in merit Canonica New York LLC is a subsidiary of Swisscanonica who very easily meets the minimum qualifications
The term for this lease is 7‐years The rent is the greater of percentage or $100000 per year which is the minimum annual guarantee They will 0perate as The Chocolate Market and they operate today in our International Terminal as The Chocolate Market in what I think is one of our most beautiful build outs at the Airport Theyrsquore also coming to Terminal 2 this Fall
I expect that theyrsquore going to pay MAG rent in the early years Currently the minimum annual guarantee on this space is $226000 so this is a very unusual situation where Irsquom coming to you in awarding a lease that will bring us more money or less money however the present lease is paying almost 45 rent and thatrsquos not anything we expected would continue when we release this
I would be happy to take any questions
Commissioner Crayton asked do we have any vendors that are now presently paying 45 scale rent here at the Airport
Minutes September 4 2018 Page 9
Ms Nashir said no stores or restaurants our advertising concession pays in that range but know that thatrsquos our average rent is between 11 and 16
Commissioner Johns asked so therersquos no one here today protesting
Ms Nashir replied no
Commissioner Johns said thank you
Commissioner Mazzola asked so you said Rullirsquos protest is without merit right Okay alright
There were no further questions
Item No 4 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
4 Authorization to Accept Proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
No 18‐0285 Resolution approving the revised lease specifications and authorizing Staff to accept proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
Good morning I am Cheryl Nashir from Revenue Development and Management And before we start on this item I would just like to point out that I have given you all a replacement page to this Commission memo this morning There was an error on the attachment in your Commission memo I had said that the construction period was 120 days Itrsquos actually 90 days so that is the correction that I made this morning in that new attachment Irsquom here to gain your approval this morning to make one change in this RFP and also to be allowed to accept proposals
On June 19th you authorized the issuance of this Request for Proposals for the Terminal 1 Specialty Retail Lease No 3 You may recall that we had previously tried to lease this space as a small business set aside specialty store and we did not receive any proposals So this is a redo of this particular lease and we dropped the SBE requirement
Commissioner Johns asked what requirement
Ms Nashir replied the Small Business Enterprise We conducted an informational conference and received no substantive questions on this business proposal thatrsquos in the RFP We do however want to recommend one change In the RFP we said that this would be a specialty retail store but there were four concepts that would be excluded And that
Minutes September 4 2018 Page 10
was News Sunglasses Bath and Body and Electronics We would like to drop those exclusions to just two It canrsquot be a newsstand or sunglass store but we would like to allow bath and body stores and electronic stores to enter this competition We think it will lead to more proposals and it will not adversely affect the rest of the program It could increase the competition thatrsquos the whole point We will be back in October for award And I would be happy to take any questions
Commissioner Johns said so I see that you had an informational conference and it wasnrsquot all that well attended So whatrsquos the issue here
Ms Nashir said well this is a very small store and its specialty retail which wersquore starting to find a challenge to lease We do well on our pop‐up retail which are small specialty stores but wersquove built those stores Wersquove just wersquore in the middle of an RFP right now where we got six proposals and at least three of them are very good on a pop‐up location But these small specialty stores that someone comes in and has to build themselves are starting to just be a challenge for us to lease And thatrsquos one reason I want to get rid of two of those exclusions
Commissioner Johns asked so are we seeing a trend here that maybe in the future we need to start looking in different directions
Ms Nashir replied yes I think wersquore seeing a trend in retail dropping off probably due to on‐line shopping And also some of our biggest tenants are the ones that are able to bring us specialty retail like the national beauty brands etc and they donrsquot want to bid on these locations because of the limit of eight They want to hold out for the larger stores and the newsstands So we are studying right now our limit of eight policy and wersquoll be sending an off‐calendar to you shortly on some recommended changes
Commissioner Johns said I mean maybe wersquore beginning an era we need a little less retail a little more food because I noticed in Terminal 2 at the is it Peetrsquos Coffee I mean the line is so long that itrsquos impossible if yoursquore catching a plane which is why most people are there to get what you want in the appropriate time So just a thought
Ms Nashir said very good Thank you
Commissioner Crayton said and my question is the outreach in terms of this particular proposal Did we do anything with the Chamber I mean what did we do
Ms Nashir replied we contacted all of the previous pop‐up tenants we had worked with We had hoped we had graduate to become you know permanent tenants with us and so wersquore hoping that wersquoll see some of those in the competition And again we just go out into neighborhoods in the City and put out press releases
Commissioner Crayton said well we tried twice so
Minutes September 4 2018 Page 11
Ms Nashir replied yes
There were no further questions
Item No 5 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Mazzola
5 Authorization to Accept Proposals for the Terminal 1 Boarding Area C Retail Concession Leases
No 18‐0286 Resolution approving the lease specifications and proposal requirements and authorizing Staff to accept proposals for two leases for two locations in Terminal 1 Boarding Area C
Good morning I am Cheryl Nashir from Revenue Development and Management I am here this morning as well requesting authorization to accept proposals for the Boarding Area C Retail Concession Leases
On June 5th the Airport Commission authorized the issuance of an RFP for two retail leases both are in Terminal 1 on Boarding Area C Boarding Area C is primarily served by Delta Airlines These two stores represent the only retail on this boarding area They are currently combined under a single lease
In this RFP we pulled them apart and created two leases We held an informational conference and collected comments They were very few comments The most substantive question however asked was could we combine these two spaces once again under a single lease And we recommend against this We believe that theyrsquore both viable on a stand‐alone basis One is a newsstand and the other one is a retail market place which is really a big newsstand with quite a bit of specialty retail in it Currently one location is doing about $7 million a year and the other is doing over $3 million a year So these are not small or challenged spaces So we would like to be able to accept proposals and without making changes to our RFP
And I would be happy to take any questions
There were no questions
Item No 6 was approved unanimously by a motion by Commissioner Guggenhime and a second by Commissioner Mazzola
Minutes September 4 2018 Page 12
6 Reject All Proposals for Professional Services Contract No 50130 and Re‐Issue Request for Proposals for Professional Services Contract No 5013001 for Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement
No 18‐0287 Resolution rejecting all proposals for Professional Services Contract No 50130 and re‐issue a Request for Proposals for Professional Services Contract No 5013001 Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement and enter into negotiations with the top ranked proposer
Good morning Commissioners My name is John Bergener and Irsquom the Airport Planning Director This item seeks your approval to reject all proposals and re‐issue this RFP 5013001 for Aircraft Noise Monitoring System with support maintenance and noise monitor replacement and negotiate with the top ranked firm
An aircraft noise monitoring system (or ldquoANMSrdquo) has been an integral function of the Airport since the late 1970s when SFO became the first US airport to implement an FAA‐approved noise compatibility program The ANMS consists of noise monitors with microphones and software that collects the data from the monitors and other sources This data is then used by Staff to conduct analysis draft reports to meet various federal and state reporting requirements and provide information to stakeholders and decision makers
The Airport currently operates a total of 37 noise monitors including 29 permanent and 8 portable monitors located on Airport and in San Francisco and San Mateo counties The existing noise monitors and microphones are over 10 years old and require regular site visits for maintenance especially during inclement weather
On July 25 2017 the Commission authorize Staff to issue an RFP 50130 for Aircraft Noise Monitoring System and Maintenance and Noise Monitor Replacement On November 1 2017 Staff issued the RFP and three proposals were received by the submission deadline on December 1 2017 The written proposals were scored by a panel of subject matter of experts All proposers were invited to an oral interview with a product demonstration
Staff successfully negotiated a contract with the top ranking firm and on April 13 2018 notified all proposers of the intent to seek Airport Commission approval to award a contract Upon notification the 2nd and 3rd ranked proposers submitted protests contesting that the top ranked firm did not meet the minimum qualifications among other items After careful review Staff determined it would be best to reject all proposals and reissue the RFP with refined minimum qualifications including clarification that submission of project experiences gained at non‐US airports is permissible
If the Commission approves of this item Staff will re‐issue the RFP with refined minimum
Minutes September 4 2018 Page 13
qualifications and submission requirements The purpose of the RFP remains the same ndash the resulting contract would enable the Airport to select a team with the expertise and knowledge to provide an ANMS replace and purchase additional noise monitors and provide the software that collects and transmits the data collected in the field The selected proposer would also train Staff on the selected noise monitoring system and assist with maintenance to ensure the equipment and software are operating properly
A panel of subject matter experts would be convened to evaluate and score each qualified proposer Staff would return to the Commission to request approval to award a contract with the top ranked firm following successful negotiations There is a 15 LBE requirement for this contract and the anticipated contract would have a term of 5 years with two 2‐year options to renew to be exercised at the discretion of the Commission
I recommend your approval and can answer any questions you have on this item
Commissioner Johns said so I really donrsquot even know where to begin with this except to say that in all the years Irsquove been here at the Commission Irsquove never had an issue like this It does relate to noise and we know wersquore growing so we know the noise is going to get worse I was approached by a member of the Board of Supervisors who told me that he is going to have a hearing on noise issues And wersquove had two protests on this Wersquove had itrsquos been going on a year you said since July rsquo17 Wersquove had it postponed twice I personally requested a briefing and was given a briefing I requested a lot of information I was given the information At the briefing I stated that I was concerned about some of the issues in the prior RFP that I thought it was important that we had somebody who could do both the hardware and the software and who have the appropriate experience to do this assuming there is such a person entity available I see nothing in this new RFP that has added anything that was not there in what you guys gave us the last time Irsquom stymied I donrsquot understand it Instead of four years of experience I think the one this time has three years of experience so wersquore looking for less experience We talked about Title 21 and having some experience in California I donrsquot see that except yoursquore saying after the fact once you choose someone then they can write a letter saying that theyrsquove been authorized by is it Caltrans that does this or the PUC
Mr Bergener responded that the system acceptance requirements requires a letter from Caltrans verifying that the system complies with Title 21 requirements
Commissioner Johns stated that she doesnrsquot understand it We are in Airport that tries to seek number 1 Why do we not want a firm who has experiencehellip Irsquoll go along with your RFP but when you bring somebody back to us for approval I sure hope they meet the qualifications I have never had to speak on an issue like I am today so I donrsquot understand it I think I made clear that we need somebody who has experience in both hardware and software Irsquom kind of repeating this so I donrsquot forget what I wanted to say Secondly they should have experience in California so that they understand Title 21 whether itrsquos the prime or the sub‐contractor They should be able to show that they have experience for a certain
Minutes September 4 2018 Page 14
amount of years consistently with large airports You have given us today how we are growing Wersquore getting larger and larger and yet wersquore not looking for somebody who has serviced this size Airport So those are my comments I donrsquot know what else to say I think I made my point clear
Commissioner Mazzola said alright okay did you want to respond to that or leave her statement be
Mr Bergener said I will just note that the minimum qualifications do include a requirement for experience in an Airport with more than 7 million enplanements or 14 million total passengers which is consistent with the US large hub definition of airports in 2017
Commissioner Johns said alright How long do they have to have that Is it one year and is it combined with the sub and the prime
Mr Bergener replied it was at least one airport in each of the subject areas for three years Commissioner Johns said say that again
Commissioner Johns stated I had it in front of me I mean itrsquos the same as before but what about the California requirement
Mr Bergener replied no we did not add the California requirement because itrsquos part of the systemsrsquo acceptance requirements
Commissioner Johns said I stand with my comments I donrsquot have anything further
Commissioner Crayton said I want to say and I know you guys briefed us and when I left the meeting I felt somewhat comfortable with the responses that I had received Going through this again I yet became concern because it seems that itrsquos watered down from the previous contract that we had when I went back and had my assistant do a comparison in terms of that and I agree with all of the things Commissioner Johns had said And so itrsquos problematic for me because it sounds as if noise has taken a lesser seat here than it had before This is a huge Airport I think itrsquos a premier Airport and in that regard we have to have that concern because lots of people that are very vocal out there have had five or six people call me regarding this and having an issue And I Irsquom not sure whatrsquos spearheading all of this except for the fact that I myself see it at a lesser than the qualifications are somewhat construed from the previous contract And Irsquom a little concern about that Irsquom also concerned in that noise as she said with the number of enplanements that we have the large Airport that we have and where we stand in the scheme of things in terms of an International Airport I think we need to give more value to it So I am yet concerned about this also and Irsquom not clear how to what the fix is It for some reason to me and maybe itrsquos because you know this is not my area It almost looks like the importance of this was sort of weighed down in this particular contract as to the previous ones that wersquove had the and Irsquove only had been present for one prior contract and so therefore this does concern me
Minutes September 4 2018 Page 15
that a lot of proponents out there as I said earlier I received at least five calls And so I donrsquot know what else to say regarding this I thought I was okay with it read it through again and it does concern me
Commissioner Mazzola asked Ivar you want to weigh‐in
Mr Satero replied yeah sure I will Commissioners my apologies We thought we had made the necessary tweaks We certainly want you to be comfortable with this We are we know therersquos three firms that do this kind of work that are very well qualified We want a competitive process and so we believe wersquove crafted something that gives us the excellence that we always strive for in terms of all of our work and noise monitoring is an important point of what we do especially in todayrsquos community issues wersquore having around noise But you need to be confident that we can deliver excellence as we intend to do So if wersquore still not satisfied I will remove this once again if it is the desire of the Commission to be continued to be briefed on how to make sure we achieve our goals
Commissioner Mazzola said so as far as Irsquom concern let me speak up here I think we ought to let the RFP go out and when they come back then we ought to really hone in on what we really want But I think we need to get on with it and not hold it up longer
Commissioner Johns said Irsquom fine with that I just think itrsquos important that we get some entity that is qualified
Commissioner Mazzola said so I think that will be the report Thank you for that
Item No 7 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
7 Approval of Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project Turner Construction Company $12073574
No 18‐0288 Resolution approving Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project with Turner Construction Company to increase the contract capacity by $12073574 for a new total contract capacity amount of $69930727 and with no change to the contract duration
Ms Judi Mosqueda Director of Project Management said good morning Commissioners
This item is for your approval of Phase C6 adding Trade Package Set No 4 into our contract with Turner Construction for the Demolition of Terminal 2 Air Traffic Control Tower
Minutes September 4 2018 Page 16
Project The Phase C6 approval will increase the contract capacity by $121 million for a new contract capacity amount of $699 million with a corresponding amount of contingency and with no change to the contract duration
The Project includes demolition of the existing air traffic control tower and design and construction of a new office block on top of T2 The new floors may be used for a new airline lounge office space a new employee cafe and a public observation deck As you know demolition of the old tower has been completed already Steel erection for the new floors is beginning this month
This approval will provide for Trade Package Set No 4 to be added to the contract The trade package set includes SeismicMain Building Concrete Glazing Storefront and Metal Panels Exterior Framing and Plaster Plumbing and Air Handling Units
The forecast for this contract is $831 million which falls within the budget of $841 million and includes appropriate levels of contingency The Project is on‐schedule to be substantially complete in August of 2019
The LBE goals for this contract are 24 for design services and 20 for construction services and Turner Construction is committed to meeting these goals
We recommend your approval and I would be happy to answer questions
There were no questions from the Commissioners
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS The Consent Calendar Item Nos 8 through 12 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Mazzola
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $1852527
No 18‐0289 Resolution approving Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project with PMANBA Joint Venture in an amount of $1852527 for a new contract amount not to exceed $6348283 for services through March 31 2020
Minutes September 4 2018 Page 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project Faith Group LLC $1736000
No 18‐0290 Resolution approving Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project with Faith Group LLC in an amount of $1736000 for a new contract amount not to exceed $3266000 for services through October 18 2019
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services to Loza Upholstery Inc for $800000 Kay Chesterfield Inc for $800000
No 18‐0291 Resolutions awarding Professional Services Contract No 5014501 As‐No 18‐0292 Needed Furniture Repair and Re‐upholstery services to Loza Upholstery
Inc and Contract No 5014502 to Kay Chesterfield Inc each with a contract amount not‐to‐exceed $800000 with a contract duration of five years
Commissioner Johns said I donrsquot have a question I have a comment Item 10 I was very happy to see that item because I was in Terminal 2 in the baggage area and we have some seating there that really needs to be reupholstered or perhaps replaced But I was happy to see this item and I do hope that we review all furniture and either reupholster or replace and specifically I would like to point out that there is therersquos sort of curve seating that theyrsquore in white leather They werenrsquot good from the beginning and they need attention
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project CAGE Professional Services Inc dba CAGE Inc $750000
No 18‐0293 Resolution approving Modification No 11 (Annual Renewal) to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project with CAGE
Minutes September 4 2018 Page 18
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
So thatrsquos why our forecast project about another ten years of capacity before we get to that point
Commissioner Mazzola asked alright other questions of Mike Thank you very much for your report
E ITEMS INITIATED BY COMMISSIONERS Item No 2 is for discussion only
2 Following upon Resolution No 18‐0200 establishing a special advisory Committee to consider and recommend action on the nomination of Edwin M Lee for naming or dedication at the San Francisco International Airport the Commission Presidentrsquos proposed appointments to the Committee DISCUSSION ONLY
Commissioner Mazzola said to bring you up to date on that with that is we had a group of San Franciscans approach us to name something after Ed Lee and that started our process of naming We have to start to name a committee and then after we name the committee and then the people have to accept to be on the committee and we wersquoll have meetings talk about what we should do And meetings will be public meetings It will be held probably at the end of these meetings At the end of an Airport meeting then wersquoll adjourn this and go into a committee meeting We donrsquot anticipate many meetings Three something like thathellipwe have six months to do that That will be January 19th to come up with a recommendation So Corina if you want to read the Nominees to the Committee
Ms Corina Monzoacuten stated proposed appointments to the committee by President Mazzola The first five appointments are members of the San Francisco Airport Commission Larry Mazzola President Linda S Crayton Vice President Eleanor Johns Commissioner Richard J Guggenhime Commissioner Peter Stern Commissioner Followed by John Martin Former Airport Director San Francisco International Airport Anni Chung President and CEO Self Help for the Elderly San Francisco Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Commissioner Mazzola said alright Commissioners any questions you anything you want to add Okay and thatrsquos for information
Commissioner Johns asked have all these members other than ourselves been asked
Commissioner Mazzola replied yes Theyrsquove all agreed theyrsquove all agreed And so I know I talked to all of you but itrsquos not mandatory to be on this So if you decide you donrsquot want to be on let me know so we can appoint somebody else We donrsquot need a motion just discussion
Minutes September 4 2018 Page 8
F ACTION ITEMS RELATED TO ADMINISTRATION OPERATIONS amp MAINTENANCE Item No 3 was approved unanimously by a motion by Commissioner Johns and a second by Commissioner Mazzola
3 Award of the Terminal 3 Boarding Area E Candy Kiosk Lease to Canonica
No 18‐0284 Resolution awarding the Terminal 3 Boarding Area E Candy Kiosk to Canonica New York LLC
Ms Cheryl Nashir Director Revenue Development and Management said good morning Commissioners
I am here this morning seeking your approval to award the Boarding Area E Candy Kiosk Lease to Canonica New York LLC This lease was to be awarded a few weeks ago with some others that were awarded in the same Boarding Area but it was pulled off of your agenda because there was protest
The location is a 104 square foot kiosk in Terminal 3 Boarding Area E Presently the kiosk is operating as Seersquos Candies but that lease is expiring in January There were three proposers for this lease and one of them Gary Rulli Operator of Emporio Rulli issued a protest alleging that Canonica did not meet the minimum qualifications In his protest he pointed out that Canonica New York LLC is a fairly new entity and therefore could not meet the requirement of having operated a candy business in 3 of the last 5 years and also could not have met the sales requirement attached to the MQs We studied his protest and found it lacking in merit Canonica New York LLC is a subsidiary of Swisscanonica who very easily meets the minimum qualifications
The term for this lease is 7‐years The rent is the greater of percentage or $100000 per year which is the minimum annual guarantee They will 0perate as The Chocolate Market and they operate today in our International Terminal as The Chocolate Market in what I think is one of our most beautiful build outs at the Airport Theyrsquore also coming to Terminal 2 this Fall
I expect that theyrsquore going to pay MAG rent in the early years Currently the minimum annual guarantee on this space is $226000 so this is a very unusual situation where Irsquom coming to you in awarding a lease that will bring us more money or less money however the present lease is paying almost 45 rent and thatrsquos not anything we expected would continue when we release this
I would be happy to take any questions
Commissioner Crayton asked do we have any vendors that are now presently paying 45 scale rent here at the Airport
Minutes September 4 2018 Page 9
Ms Nashir said no stores or restaurants our advertising concession pays in that range but know that thatrsquos our average rent is between 11 and 16
Commissioner Johns asked so therersquos no one here today protesting
Ms Nashir replied no
Commissioner Johns said thank you
Commissioner Mazzola asked so you said Rullirsquos protest is without merit right Okay alright
There were no further questions
Item No 4 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
4 Authorization to Accept Proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
No 18‐0285 Resolution approving the revised lease specifications and authorizing Staff to accept proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
Good morning I am Cheryl Nashir from Revenue Development and Management And before we start on this item I would just like to point out that I have given you all a replacement page to this Commission memo this morning There was an error on the attachment in your Commission memo I had said that the construction period was 120 days Itrsquos actually 90 days so that is the correction that I made this morning in that new attachment Irsquom here to gain your approval this morning to make one change in this RFP and also to be allowed to accept proposals
On June 19th you authorized the issuance of this Request for Proposals for the Terminal 1 Specialty Retail Lease No 3 You may recall that we had previously tried to lease this space as a small business set aside specialty store and we did not receive any proposals So this is a redo of this particular lease and we dropped the SBE requirement
Commissioner Johns asked what requirement
Ms Nashir replied the Small Business Enterprise We conducted an informational conference and received no substantive questions on this business proposal thatrsquos in the RFP We do however want to recommend one change In the RFP we said that this would be a specialty retail store but there were four concepts that would be excluded And that
Minutes September 4 2018 Page 10
was News Sunglasses Bath and Body and Electronics We would like to drop those exclusions to just two It canrsquot be a newsstand or sunglass store but we would like to allow bath and body stores and electronic stores to enter this competition We think it will lead to more proposals and it will not adversely affect the rest of the program It could increase the competition thatrsquos the whole point We will be back in October for award And I would be happy to take any questions
Commissioner Johns said so I see that you had an informational conference and it wasnrsquot all that well attended So whatrsquos the issue here
Ms Nashir said well this is a very small store and its specialty retail which wersquore starting to find a challenge to lease We do well on our pop‐up retail which are small specialty stores but wersquove built those stores Wersquove just wersquore in the middle of an RFP right now where we got six proposals and at least three of them are very good on a pop‐up location But these small specialty stores that someone comes in and has to build themselves are starting to just be a challenge for us to lease And thatrsquos one reason I want to get rid of two of those exclusions
Commissioner Johns asked so are we seeing a trend here that maybe in the future we need to start looking in different directions
Ms Nashir replied yes I think wersquore seeing a trend in retail dropping off probably due to on‐line shopping And also some of our biggest tenants are the ones that are able to bring us specialty retail like the national beauty brands etc and they donrsquot want to bid on these locations because of the limit of eight They want to hold out for the larger stores and the newsstands So we are studying right now our limit of eight policy and wersquoll be sending an off‐calendar to you shortly on some recommended changes
Commissioner Johns said I mean maybe wersquore beginning an era we need a little less retail a little more food because I noticed in Terminal 2 at the is it Peetrsquos Coffee I mean the line is so long that itrsquos impossible if yoursquore catching a plane which is why most people are there to get what you want in the appropriate time So just a thought
Ms Nashir said very good Thank you
Commissioner Crayton said and my question is the outreach in terms of this particular proposal Did we do anything with the Chamber I mean what did we do
Ms Nashir replied we contacted all of the previous pop‐up tenants we had worked with We had hoped we had graduate to become you know permanent tenants with us and so wersquore hoping that wersquoll see some of those in the competition And again we just go out into neighborhoods in the City and put out press releases
Commissioner Crayton said well we tried twice so
Minutes September 4 2018 Page 11
Ms Nashir replied yes
There were no further questions
Item No 5 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Mazzola
5 Authorization to Accept Proposals for the Terminal 1 Boarding Area C Retail Concession Leases
No 18‐0286 Resolution approving the lease specifications and proposal requirements and authorizing Staff to accept proposals for two leases for two locations in Terminal 1 Boarding Area C
Good morning I am Cheryl Nashir from Revenue Development and Management I am here this morning as well requesting authorization to accept proposals for the Boarding Area C Retail Concession Leases
On June 5th the Airport Commission authorized the issuance of an RFP for two retail leases both are in Terminal 1 on Boarding Area C Boarding Area C is primarily served by Delta Airlines These two stores represent the only retail on this boarding area They are currently combined under a single lease
In this RFP we pulled them apart and created two leases We held an informational conference and collected comments They were very few comments The most substantive question however asked was could we combine these two spaces once again under a single lease And we recommend against this We believe that theyrsquore both viable on a stand‐alone basis One is a newsstand and the other one is a retail market place which is really a big newsstand with quite a bit of specialty retail in it Currently one location is doing about $7 million a year and the other is doing over $3 million a year So these are not small or challenged spaces So we would like to be able to accept proposals and without making changes to our RFP
And I would be happy to take any questions
There were no questions
Item No 6 was approved unanimously by a motion by Commissioner Guggenhime and a second by Commissioner Mazzola
Minutes September 4 2018 Page 12
6 Reject All Proposals for Professional Services Contract No 50130 and Re‐Issue Request for Proposals for Professional Services Contract No 5013001 for Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement
No 18‐0287 Resolution rejecting all proposals for Professional Services Contract No 50130 and re‐issue a Request for Proposals for Professional Services Contract No 5013001 Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement and enter into negotiations with the top ranked proposer
Good morning Commissioners My name is John Bergener and Irsquom the Airport Planning Director This item seeks your approval to reject all proposals and re‐issue this RFP 5013001 for Aircraft Noise Monitoring System with support maintenance and noise monitor replacement and negotiate with the top ranked firm
An aircraft noise monitoring system (or ldquoANMSrdquo) has been an integral function of the Airport since the late 1970s when SFO became the first US airport to implement an FAA‐approved noise compatibility program The ANMS consists of noise monitors with microphones and software that collects the data from the monitors and other sources This data is then used by Staff to conduct analysis draft reports to meet various federal and state reporting requirements and provide information to stakeholders and decision makers
The Airport currently operates a total of 37 noise monitors including 29 permanent and 8 portable monitors located on Airport and in San Francisco and San Mateo counties The existing noise monitors and microphones are over 10 years old and require regular site visits for maintenance especially during inclement weather
On July 25 2017 the Commission authorize Staff to issue an RFP 50130 for Aircraft Noise Monitoring System and Maintenance and Noise Monitor Replacement On November 1 2017 Staff issued the RFP and three proposals were received by the submission deadline on December 1 2017 The written proposals were scored by a panel of subject matter of experts All proposers were invited to an oral interview with a product demonstration
Staff successfully negotiated a contract with the top ranking firm and on April 13 2018 notified all proposers of the intent to seek Airport Commission approval to award a contract Upon notification the 2nd and 3rd ranked proposers submitted protests contesting that the top ranked firm did not meet the minimum qualifications among other items After careful review Staff determined it would be best to reject all proposals and reissue the RFP with refined minimum qualifications including clarification that submission of project experiences gained at non‐US airports is permissible
If the Commission approves of this item Staff will re‐issue the RFP with refined minimum
Minutes September 4 2018 Page 13
qualifications and submission requirements The purpose of the RFP remains the same ndash the resulting contract would enable the Airport to select a team with the expertise and knowledge to provide an ANMS replace and purchase additional noise monitors and provide the software that collects and transmits the data collected in the field The selected proposer would also train Staff on the selected noise monitoring system and assist with maintenance to ensure the equipment and software are operating properly
A panel of subject matter experts would be convened to evaluate and score each qualified proposer Staff would return to the Commission to request approval to award a contract with the top ranked firm following successful negotiations There is a 15 LBE requirement for this contract and the anticipated contract would have a term of 5 years with two 2‐year options to renew to be exercised at the discretion of the Commission
I recommend your approval and can answer any questions you have on this item
Commissioner Johns said so I really donrsquot even know where to begin with this except to say that in all the years Irsquove been here at the Commission Irsquove never had an issue like this It does relate to noise and we know wersquore growing so we know the noise is going to get worse I was approached by a member of the Board of Supervisors who told me that he is going to have a hearing on noise issues And wersquove had two protests on this Wersquove had itrsquos been going on a year you said since July rsquo17 Wersquove had it postponed twice I personally requested a briefing and was given a briefing I requested a lot of information I was given the information At the briefing I stated that I was concerned about some of the issues in the prior RFP that I thought it was important that we had somebody who could do both the hardware and the software and who have the appropriate experience to do this assuming there is such a person entity available I see nothing in this new RFP that has added anything that was not there in what you guys gave us the last time Irsquom stymied I donrsquot understand it Instead of four years of experience I think the one this time has three years of experience so wersquore looking for less experience We talked about Title 21 and having some experience in California I donrsquot see that except yoursquore saying after the fact once you choose someone then they can write a letter saying that theyrsquove been authorized by is it Caltrans that does this or the PUC
Mr Bergener responded that the system acceptance requirements requires a letter from Caltrans verifying that the system complies with Title 21 requirements
Commissioner Johns stated that she doesnrsquot understand it We are in Airport that tries to seek number 1 Why do we not want a firm who has experiencehellip Irsquoll go along with your RFP but when you bring somebody back to us for approval I sure hope they meet the qualifications I have never had to speak on an issue like I am today so I donrsquot understand it I think I made clear that we need somebody who has experience in both hardware and software Irsquom kind of repeating this so I donrsquot forget what I wanted to say Secondly they should have experience in California so that they understand Title 21 whether itrsquos the prime or the sub‐contractor They should be able to show that they have experience for a certain
Minutes September 4 2018 Page 14
amount of years consistently with large airports You have given us today how we are growing Wersquore getting larger and larger and yet wersquore not looking for somebody who has serviced this size Airport So those are my comments I donrsquot know what else to say I think I made my point clear
Commissioner Mazzola said alright okay did you want to respond to that or leave her statement be
Mr Bergener said I will just note that the minimum qualifications do include a requirement for experience in an Airport with more than 7 million enplanements or 14 million total passengers which is consistent with the US large hub definition of airports in 2017
Commissioner Johns said alright How long do they have to have that Is it one year and is it combined with the sub and the prime
Mr Bergener replied it was at least one airport in each of the subject areas for three years Commissioner Johns said say that again
Commissioner Johns stated I had it in front of me I mean itrsquos the same as before but what about the California requirement
Mr Bergener replied no we did not add the California requirement because itrsquos part of the systemsrsquo acceptance requirements
Commissioner Johns said I stand with my comments I donrsquot have anything further
Commissioner Crayton said I want to say and I know you guys briefed us and when I left the meeting I felt somewhat comfortable with the responses that I had received Going through this again I yet became concern because it seems that itrsquos watered down from the previous contract that we had when I went back and had my assistant do a comparison in terms of that and I agree with all of the things Commissioner Johns had said And so itrsquos problematic for me because it sounds as if noise has taken a lesser seat here than it had before This is a huge Airport I think itrsquos a premier Airport and in that regard we have to have that concern because lots of people that are very vocal out there have had five or six people call me regarding this and having an issue And I Irsquom not sure whatrsquos spearheading all of this except for the fact that I myself see it at a lesser than the qualifications are somewhat construed from the previous contract And Irsquom a little concern about that Irsquom also concerned in that noise as she said with the number of enplanements that we have the large Airport that we have and where we stand in the scheme of things in terms of an International Airport I think we need to give more value to it So I am yet concerned about this also and Irsquom not clear how to what the fix is It for some reason to me and maybe itrsquos because you know this is not my area It almost looks like the importance of this was sort of weighed down in this particular contract as to the previous ones that wersquove had the and Irsquove only had been present for one prior contract and so therefore this does concern me
Minutes September 4 2018 Page 15
that a lot of proponents out there as I said earlier I received at least five calls And so I donrsquot know what else to say regarding this I thought I was okay with it read it through again and it does concern me
Commissioner Mazzola asked Ivar you want to weigh‐in
Mr Satero replied yeah sure I will Commissioners my apologies We thought we had made the necessary tweaks We certainly want you to be comfortable with this We are we know therersquos three firms that do this kind of work that are very well qualified We want a competitive process and so we believe wersquove crafted something that gives us the excellence that we always strive for in terms of all of our work and noise monitoring is an important point of what we do especially in todayrsquos community issues wersquore having around noise But you need to be confident that we can deliver excellence as we intend to do So if wersquore still not satisfied I will remove this once again if it is the desire of the Commission to be continued to be briefed on how to make sure we achieve our goals
Commissioner Mazzola said so as far as Irsquom concern let me speak up here I think we ought to let the RFP go out and when they come back then we ought to really hone in on what we really want But I think we need to get on with it and not hold it up longer
Commissioner Johns said Irsquom fine with that I just think itrsquos important that we get some entity that is qualified
Commissioner Mazzola said so I think that will be the report Thank you for that
Item No 7 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
7 Approval of Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project Turner Construction Company $12073574
No 18‐0288 Resolution approving Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project with Turner Construction Company to increase the contract capacity by $12073574 for a new total contract capacity amount of $69930727 and with no change to the contract duration
Ms Judi Mosqueda Director of Project Management said good morning Commissioners
This item is for your approval of Phase C6 adding Trade Package Set No 4 into our contract with Turner Construction for the Demolition of Terminal 2 Air Traffic Control Tower
Minutes September 4 2018 Page 16
Project The Phase C6 approval will increase the contract capacity by $121 million for a new contract capacity amount of $699 million with a corresponding amount of contingency and with no change to the contract duration
The Project includes demolition of the existing air traffic control tower and design and construction of a new office block on top of T2 The new floors may be used for a new airline lounge office space a new employee cafe and a public observation deck As you know demolition of the old tower has been completed already Steel erection for the new floors is beginning this month
This approval will provide for Trade Package Set No 4 to be added to the contract The trade package set includes SeismicMain Building Concrete Glazing Storefront and Metal Panels Exterior Framing and Plaster Plumbing and Air Handling Units
The forecast for this contract is $831 million which falls within the budget of $841 million and includes appropriate levels of contingency The Project is on‐schedule to be substantially complete in August of 2019
The LBE goals for this contract are 24 for design services and 20 for construction services and Turner Construction is committed to meeting these goals
We recommend your approval and I would be happy to answer questions
There were no questions from the Commissioners
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS The Consent Calendar Item Nos 8 through 12 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Mazzola
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $1852527
No 18‐0289 Resolution approving Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project with PMANBA Joint Venture in an amount of $1852527 for a new contract amount not to exceed $6348283 for services through March 31 2020
Minutes September 4 2018 Page 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project Faith Group LLC $1736000
No 18‐0290 Resolution approving Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project with Faith Group LLC in an amount of $1736000 for a new contract amount not to exceed $3266000 for services through October 18 2019
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services to Loza Upholstery Inc for $800000 Kay Chesterfield Inc for $800000
No 18‐0291 Resolutions awarding Professional Services Contract No 5014501 As‐No 18‐0292 Needed Furniture Repair and Re‐upholstery services to Loza Upholstery
Inc and Contract No 5014502 to Kay Chesterfield Inc each with a contract amount not‐to‐exceed $800000 with a contract duration of five years
Commissioner Johns said I donrsquot have a question I have a comment Item 10 I was very happy to see that item because I was in Terminal 2 in the baggage area and we have some seating there that really needs to be reupholstered or perhaps replaced But I was happy to see this item and I do hope that we review all furniture and either reupholster or replace and specifically I would like to point out that there is therersquos sort of curve seating that theyrsquore in white leather They werenrsquot good from the beginning and they need attention
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project CAGE Professional Services Inc dba CAGE Inc $750000
No 18‐0293 Resolution approving Modification No 11 (Annual Renewal) to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project with CAGE
Minutes September 4 2018 Page 18
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
F ACTION ITEMS RELATED TO ADMINISTRATION OPERATIONS amp MAINTENANCE Item No 3 was approved unanimously by a motion by Commissioner Johns and a second by Commissioner Mazzola
3 Award of the Terminal 3 Boarding Area E Candy Kiosk Lease to Canonica
No 18‐0284 Resolution awarding the Terminal 3 Boarding Area E Candy Kiosk to Canonica New York LLC
Ms Cheryl Nashir Director Revenue Development and Management said good morning Commissioners
I am here this morning seeking your approval to award the Boarding Area E Candy Kiosk Lease to Canonica New York LLC This lease was to be awarded a few weeks ago with some others that were awarded in the same Boarding Area but it was pulled off of your agenda because there was protest
The location is a 104 square foot kiosk in Terminal 3 Boarding Area E Presently the kiosk is operating as Seersquos Candies but that lease is expiring in January There were three proposers for this lease and one of them Gary Rulli Operator of Emporio Rulli issued a protest alleging that Canonica did not meet the minimum qualifications In his protest he pointed out that Canonica New York LLC is a fairly new entity and therefore could not meet the requirement of having operated a candy business in 3 of the last 5 years and also could not have met the sales requirement attached to the MQs We studied his protest and found it lacking in merit Canonica New York LLC is a subsidiary of Swisscanonica who very easily meets the minimum qualifications
The term for this lease is 7‐years The rent is the greater of percentage or $100000 per year which is the minimum annual guarantee They will 0perate as The Chocolate Market and they operate today in our International Terminal as The Chocolate Market in what I think is one of our most beautiful build outs at the Airport Theyrsquore also coming to Terminal 2 this Fall
I expect that theyrsquore going to pay MAG rent in the early years Currently the minimum annual guarantee on this space is $226000 so this is a very unusual situation where Irsquom coming to you in awarding a lease that will bring us more money or less money however the present lease is paying almost 45 rent and thatrsquos not anything we expected would continue when we release this
I would be happy to take any questions
Commissioner Crayton asked do we have any vendors that are now presently paying 45 scale rent here at the Airport
Minutes September 4 2018 Page 9
Ms Nashir said no stores or restaurants our advertising concession pays in that range but know that thatrsquos our average rent is between 11 and 16
Commissioner Johns asked so therersquos no one here today protesting
Ms Nashir replied no
Commissioner Johns said thank you
Commissioner Mazzola asked so you said Rullirsquos protest is without merit right Okay alright
There were no further questions
Item No 4 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
4 Authorization to Accept Proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
No 18‐0285 Resolution approving the revised lease specifications and authorizing Staff to accept proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
Good morning I am Cheryl Nashir from Revenue Development and Management And before we start on this item I would just like to point out that I have given you all a replacement page to this Commission memo this morning There was an error on the attachment in your Commission memo I had said that the construction period was 120 days Itrsquos actually 90 days so that is the correction that I made this morning in that new attachment Irsquom here to gain your approval this morning to make one change in this RFP and also to be allowed to accept proposals
On June 19th you authorized the issuance of this Request for Proposals for the Terminal 1 Specialty Retail Lease No 3 You may recall that we had previously tried to lease this space as a small business set aside specialty store and we did not receive any proposals So this is a redo of this particular lease and we dropped the SBE requirement
Commissioner Johns asked what requirement
Ms Nashir replied the Small Business Enterprise We conducted an informational conference and received no substantive questions on this business proposal thatrsquos in the RFP We do however want to recommend one change In the RFP we said that this would be a specialty retail store but there were four concepts that would be excluded And that
Minutes September 4 2018 Page 10
was News Sunglasses Bath and Body and Electronics We would like to drop those exclusions to just two It canrsquot be a newsstand or sunglass store but we would like to allow bath and body stores and electronic stores to enter this competition We think it will lead to more proposals and it will not adversely affect the rest of the program It could increase the competition thatrsquos the whole point We will be back in October for award And I would be happy to take any questions
Commissioner Johns said so I see that you had an informational conference and it wasnrsquot all that well attended So whatrsquos the issue here
Ms Nashir said well this is a very small store and its specialty retail which wersquore starting to find a challenge to lease We do well on our pop‐up retail which are small specialty stores but wersquove built those stores Wersquove just wersquore in the middle of an RFP right now where we got six proposals and at least three of them are very good on a pop‐up location But these small specialty stores that someone comes in and has to build themselves are starting to just be a challenge for us to lease And thatrsquos one reason I want to get rid of two of those exclusions
Commissioner Johns asked so are we seeing a trend here that maybe in the future we need to start looking in different directions
Ms Nashir replied yes I think wersquore seeing a trend in retail dropping off probably due to on‐line shopping And also some of our biggest tenants are the ones that are able to bring us specialty retail like the national beauty brands etc and they donrsquot want to bid on these locations because of the limit of eight They want to hold out for the larger stores and the newsstands So we are studying right now our limit of eight policy and wersquoll be sending an off‐calendar to you shortly on some recommended changes
Commissioner Johns said I mean maybe wersquore beginning an era we need a little less retail a little more food because I noticed in Terminal 2 at the is it Peetrsquos Coffee I mean the line is so long that itrsquos impossible if yoursquore catching a plane which is why most people are there to get what you want in the appropriate time So just a thought
Ms Nashir said very good Thank you
Commissioner Crayton said and my question is the outreach in terms of this particular proposal Did we do anything with the Chamber I mean what did we do
Ms Nashir replied we contacted all of the previous pop‐up tenants we had worked with We had hoped we had graduate to become you know permanent tenants with us and so wersquore hoping that wersquoll see some of those in the competition And again we just go out into neighborhoods in the City and put out press releases
Commissioner Crayton said well we tried twice so
Minutes September 4 2018 Page 11
Ms Nashir replied yes
There were no further questions
Item No 5 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Mazzola
5 Authorization to Accept Proposals for the Terminal 1 Boarding Area C Retail Concession Leases
No 18‐0286 Resolution approving the lease specifications and proposal requirements and authorizing Staff to accept proposals for two leases for two locations in Terminal 1 Boarding Area C
Good morning I am Cheryl Nashir from Revenue Development and Management I am here this morning as well requesting authorization to accept proposals for the Boarding Area C Retail Concession Leases
On June 5th the Airport Commission authorized the issuance of an RFP for two retail leases both are in Terminal 1 on Boarding Area C Boarding Area C is primarily served by Delta Airlines These two stores represent the only retail on this boarding area They are currently combined under a single lease
In this RFP we pulled them apart and created two leases We held an informational conference and collected comments They were very few comments The most substantive question however asked was could we combine these two spaces once again under a single lease And we recommend against this We believe that theyrsquore both viable on a stand‐alone basis One is a newsstand and the other one is a retail market place which is really a big newsstand with quite a bit of specialty retail in it Currently one location is doing about $7 million a year and the other is doing over $3 million a year So these are not small or challenged spaces So we would like to be able to accept proposals and without making changes to our RFP
And I would be happy to take any questions
There were no questions
Item No 6 was approved unanimously by a motion by Commissioner Guggenhime and a second by Commissioner Mazzola
Minutes September 4 2018 Page 12
6 Reject All Proposals for Professional Services Contract No 50130 and Re‐Issue Request for Proposals for Professional Services Contract No 5013001 for Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement
No 18‐0287 Resolution rejecting all proposals for Professional Services Contract No 50130 and re‐issue a Request for Proposals for Professional Services Contract No 5013001 Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement and enter into negotiations with the top ranked proposer
Good morning Commissioners My name is John Bergener and Irsquom the Airport Planning Director This item seeks your approval to reject all proposals and re‐issue this RFP 5013001 for Aircraft Noise Monitoring System with support maintenance and noise monitor replacement and negotiate with the top ranked firm
An aircraft noise monitoring system (or ldquoANMSrdquo) has been an integral function of the Airport since the late 1970s when SFO became the first US airport to implement an FAA‐approved noise compatibility program The ANMS consists of noise monitors with microphones and software that collects the data from the monitors and other sources This data is then used by Staff to conduct analysis draft reports to meet various federal and state reporting requirements and provide information to stakeholders and decision makers
The Airport currently operates a total of 37 noise monitors including 29 permanent and 8 portable monitors located on Airport and in San Francisco and San Mateo counties The existing noise monitors and microphones are over 10 years old and require regular site visits for maintenance especially during inclement weather
On July 25 2017 the Commission authorize Staff to issue an RFP 50130 for Aircraft Noise Monitoring System and Maintenance and Noise Monitor Replacement On November 1 2017 Staff issued the RFP and three proposals were received by the submission deadline on December 1 2017 The written proposals were scored by a panel of subject matter of experts All proposers were invited to an oral interview with a product demonstration
Staff successfully negotiated a contract with the top ranking firm and on April 13 2018 notified all proposers of the intent to seek Airport Commission approval to award a contract Upon notification the 2nd and 3rd ranked proposers submitted protests contesting that the top ranked firm did not meet the minimum qualifications among other items After careful review Staff determined it would be best to reject all proposals and reissue the RFP with refined minimum qualifications including clarification that submission of project experiences gained at non‐US airports is permissible
If the Commission approves of this item Staff will re‐issue the RFP with refined minimum
Minutes September 4 2018 Page 13
qualifications and submission requirements The purpose of the RFP remains the same ndash the resulting contract would enable the Airport to select a team with the expertise and knowledge to provide an ANMS replace and purchase additional noise monitors and provide the software that collects and transmits the data collected in the field The selected proposer would also train Staff on the selected noise monitoring system and assist with maintenance to ensure the equipment and software are operating properly
A panel of subject matter experts would be convened to evaluate and score each qualified proposer Staff would return to the Commission to request approval to award a contract with the top ranked firm following successful negotiations There is a 15 LBE requirement for this contract and the anticipated contract would have a term of 5 years with two 2‐year options to renew to be exercised at the discretion of the Commission
I recommend your approval and can answer any questions you have on this item
Commissioner Johns said so I really donrsquot even know where to begin with this except to say that in all the years Irsquove been here at the Commission Irsquove never had an issue like this It does relate to noise and we know wersquore growing so we know the noise is going to get worse I was approached by a member of the Board of Supervisors who told me that he is going to have a hearing on noise issues And wersquove had two protests on this Wersquove had itrsquos been going on a year you said since July rsquo17 Wersquove had it postponed twice I personally requested a briefing and was given a briefing I requested a lot of information I was given the information At the briefing I stated that I was concerned about some of the issues in the prior RFP that I thought it was important that we had somebody who could do both the hardware and the software and who have the appropriate experience to do this assuming there is such a person entity available I see nothing in this new RFP that has added anything that was not there in what you guys gave us the last time Irsquom stymied I donrsquot understand it Instead of four years of experience I think the one this time has three years of experience so wersquore looking for less experience We talked about Title 21 and having some experience in California I donrsquot see that except yoursquore saying after the fact once you choose someone then they can write a letter saying that theyrsquove been authorized by is it Caltrans that does this or the PUC
Mr Bergener responded that the system acceptance requirements requires a letter from Caltrans verifying that the system complies with Title 21 requirements
Commissioner Johns stated that she doesnrsquot understand it We are in Airport that tries to seek number 1 Why do we not want a firm who has experiencehellip Irsquoll go along with your RFP but when you bring somebody back to us for approval I sure hope they meet the qualifications I have never had to speak on an issue like I am today so I donrsquot understand it I think I made clear that we need somebody who has experience in both hardware and software Irsquom kind of repeating this so I donrsquot forget what I wanted to say Secondly they should have experience in California so that they understand Title 21 whether itrsquos the prime or the sub‐contractor They should be able to show that they have experience for a certain
Minutes September 4 2018 Page 14
amount of years consistently with large airports You have given us today how we are growing Wersquore getting larger and larger and yet wersquore not looking for somebody who has serviced this size Airport So those are my comments I donrsquot know what else to say I think I made my point clear
Commissioner Mazzola said alright okay did you want to respond to that or leave her statement be
Mr Bergener said I will just note that the minimum qualifications do include a requirement for experience in an Airport with more than 7 million enplanements or 14 million total passengers which is consistent with the US large hub definition of airports in 2017
Commissioner Johns said alright How long do they have to have that Is it one year and is it combined with the sub and the prime
Mr Bergener replied it was at least one airport in each of the subject areas for three years Commissioner Johns said say that again
Commissioner Johns stated I had it in front of me I mean itrsquos the same as before but what about the California requirement
Mr Bergener replied no we did not add the California requirement because itrsquos part of the systemsrsquo acceptance requirements
Commissioner Johns said I stand with my comments I donrsquot have anything further
Commissioner Crayton said I want to say and I know you guys briefed us and when I left the meeting I felt somewhat comfortable with the responses that I had received Going through this again I yet became concern because it seems that itrsquos watered down from the previous contract that we had when I went back and had my assistant do a comparison in terms of that and I agree with all of the things Commissioner Johns had said And so itrsquos problematic for me because it sounds as if noise has taken a lesser seat here than it had before This is a huge Airport I think itrsquos a premier Airport and in that regard we have to have that concern because lots of people that are very vocal out there have had five or six people call me regarding this and having an issue And I Irsquom not sure whatrsquos spearheading all of this except for the fact that I myself see it at a lesser than the qualifications are somewhat construed from the previous contract And Irsquom a little concern about that Irsquom also concerned in that noise as she said with the number of enplanements that we have the large Airport that we have and where we stand in the scheme of things in terms of an International Airport I think we need to give more value to it So I am yet concerned about this also and Irsquom not clear how to what the fix is It for some reason to me and maybe itrsquos because you know this is not my area It almost looks like the importance of this was sort of weighed down in this particular contract as to the previous ones that wersquove had the and Irsquove only had been present for one prior contract and so therefore this does concern me
Minutes September 4 2018 Page 15
that a lot of proponents out there as I said earlier I received at least five calls And so I donrsquot know what else to say regarding this I thought I was okay with it read it through again and it does concern me
Commissioner Mazzola asked Ivar you want to weigh‐in
Mr Satero replied yeah sure I will Commissioners my apologies We thought we had made the necessary tweaks We certainly want you to be comfortable with this We are we know therersquos three firms that do this kind of work that are very well qualified We want a competitive process and so we believe wersquove crafted something that gives us the excellence that we always strive for in terms of all of our work and noise monitoring is an important point of what we do especially in todayrsquos community issues wersquore having around noise But you need to be confident that we can deliver excellence as we intend to do So if wersquore still not satisfied I will remove this once again if it is the desire of the Commission to be continued to be briefed on how to make sure we achieve our goals
Commissioner Mazzola said so as far as Irsquom concern let me speak up here I think we ought to let the RFP go out and when they come back then we ought to really hone in on what we really want But I think we need to get on with it and not hold it up longer
Commissioner Johns said Irsquom fine with that I just think itrsquos important that we get some entity that is qualified
Commissioner Mazzola said so I think that will be the report Thank you for that
Item No 7 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
7 Approval of Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project Turner Construction Company $12073574
No 18‐0288 Resolution approving Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project with Turner Construction Company to increase the contract capacity by $12073574 for a new total contract capacity amount of $69930727 and with no change to the contract duration
Ms Judi Mosqueda Director of Project Management said good morning Commissioners
This item is for your approval of Phase C6 adding Trade Package Set No 4 into our contract with Turner Construction for the Demolition of Terminal 2 Air Traffic Control Tower
Minutes September 4 2018 Page 16
Project The Phase C6 approval will increase the contract capacity by $121 million for a new contract capacity amount of $699 million with a corresponding amount of contingency and with no change to the contract duration
The Project includes demolition of the existing air traffic control tower and design and construction of a new office block on top of T2 The new floors may be used for a new airline lounge office space a new employee cafe and a public observation deck As you know demolition of the old tower has been completed already Steel erection for the new floors is beginning this month
This approval will provide for Trade Package Set No 4 to be added to the contract The trade package set includes SeismicMain Building Concrete Glazing Storefront and Metal Panels Exterior Framing and Plaster Plumbing and Air Handling Units
The forecast for this contract is $831 million which falls within the budget of $841 million and includes appropriate levels of contingency The Project is on‐schedule to be substantially complete in August of 2019
The LBE goals for this contract are 24 for design services and 20 for construction services and Turner Construction is committed to meeting these goals
We recommend your approval and I would be happy to answer questions
There were no questions from the Commissioners
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS The Consent Calendar Item Nos 8 through 12 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Mazzola
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $1852527
No 18‐0289 Resolution approving Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project with PMANBA Joint Venture in an amount of $1852527 for a new contract amount not to exceed $6348283 for services through March 31 2020
Minutes September 4 2018 Page 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project Faith Group LLC $1736000
No 18‐0290 Resolution approving Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project with Faith Group LLC in an amount of $1736000 for a new contract amount not to exceed $3266000 for services through October 18 2019
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services to Loza Upholstery Inc for $800000 Kay Chesterfield Inc for $800000
No 18‐0291 Resolutions awarding Professional Services Contract No 5014501 As‐No 18‐0292 Needed Furniture Repair and Re‐upholstery services to Loza Upholstery
Inc and Contract No 5014502 to Kay Chesterfield Inc each with a contract amount not‐to‐exceed $800000 with a contract duration of five years
Commissioner Johns said I donrsquot have a question I have a comment Item 10 I was very happy to see that item because I was in Terminal 2 in the baggage area and we have some seating there that really needs to be reupholstered or perhaps replaced But I was happy to see this item and I do hope that we review all furniture and either reupholster or replace and specifically I would like to point out that there is therersquos sort of curve seating that theyrsquore in white leather They werenrsquot good from the beginning and they need attention
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project CAGE Professional Services Inc dba CAGE Inc $750000
No 18‐0293 Resolution approving Modification No 11 (Annual Renewal) to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project with CAGE
Minutes September 4 2018 Page 18
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Ms Nashir said no stores or restaurants our advertising concession pays in that range but know that thatrsquos our average rent is between 11 and 16
Commissioner Johns asked so therersquos no one here today protesting
Ms Nashir replied no
Commissioner Johns said thank you
Commissioner Mazzola asked so you said Rullirsquos protest is without merit right Okay alright
There were no further questions
Item No 4 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
4 Authorization to Accept Proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
No 18‐0285 Resolution approving the revised lease specifications and authorizing Staff to accept proposals for the Terminal 1 Boarding Area B Retail Concession Lease No 3 ndash Specialty Retail
Good morning I am Cheryl Nashir from Revenue Development and Management And before we start on this item I would just like to point out that I have given you all a replacement page to this Commission memo this morning There was an error on the attachment in your Commission memo I had said that the construction period was 120 days Itrsquos actually 90 days so that is the correction that I made this morning in that new attachment Irsquom here to gain your approval this morning to make one change in this RFP and also to be allowed to accept proposals
On June 19th you authorized the issuance of this Request for Proposals for the Terminal 1 Specialty Retail Lease No 3 You may recall that we had previously tried to lease this space as a small business set aside specialty store and we did not receive any proposals So this is a redo of this particular lease and we dropped the SBE requirement
Commissioner Johns asked what requirement
Ms Nashir replied the Small Business Enterprise We conducted an informational conference and received no substantive questions on this business proposal thatrsquos in the RFP We do however want to recommend one change In the RFP we said that this would be a specialty retail store but there were four concepts that would be excluded And that
Minutes September 4 2018 Page 10
was News Sunglasses Bath and Body and Electronics We would like to drop those exclusions to just two It canrsquot be a newsstand or sunglass store but we would like to allow bath and body stores and electronic stores to enter this competition We think it will lead to more proposals and it will not adversely affect the rest of the program It could increase the competition thatrsquos the whole point We will be back in October for award And I would be happy to take any questions
Commissioner Johns said so I see that you had an informational conference and it wasnrsquot all that well attended So whatrsquos the issue here
Ms Nashir said well this is a very small store and its specialty retail which wersquore starting to find a challenge to lease We do well on our pop‐up retail which are small specialty stores but wersquove built those stores Wersquove just wersquore in the middle of an RFP right now where we got six proposals and at least three of them are very good on a pop‐up location But these small specialty stores that someone comes in and has to build themselves are starting to just be a challenge for us to lease And thatrsquos one reason I want to get rid of two of those exclusions
Commissioner Johns asked so are we seeing a trend here that maybe in the future we need to start looking in different directions
Ms Nashir replied yes I think wersquore seeing a trend in retail dropping off probably due to on‐line shopping And also some of our biggest tenants are the ones that are able to bring us specialty retail like the national beauty brands etc and they donrsquot want to bid on these locations because of the limit of eight They want to hold out for the larger stores and the newsstands So we are studying right now our limit of eight policy and wersquoll be sending an off‐calendar to you shortly on some recommended changes
Commissioner Johns said I mean maybe wersquore beginning an era we need a little less retail a little more food because I noticed in Terminal 2 at the is it Peetrsquos Coffee I mean the line is so long that itrsquos impossible if yoursquore catching a plane which is why most people are there to get what you want in the appropriate time So just a thought
Ms Nashir said very good Thank you
Commissioner Crayton said and my question is the outreach in terms of this particular proposal Did we do anything with the Chamber I mean what did we do
Ms Nashir replied we contacted all of the previous pop‐up tenants we had worked with We had hoped we had graduate to become you know permanent tenants with us and so wersquore hoping that wersquoll see some of those in the competition And again we just go out into neighborhoods in the City and put out press releases
Commissioner Crayton said well we tried twice so
Minutes September 4 2018 Page 11
Ms Nashir replied yes
There were no further questions
Item No 5 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Mazzola
5 Authorization to Accept Proposals for the Terminal 1 Boarding Area C Retail Concession Leases
No 18‐0286 Resolution approving the lease specifications and proposal requirements and authorizing Staff to accept proposals for two leases for two locations in Terminal 1 Boarding Area C
Good morning I am Cheryl Nashir from Revenue Development and Management I am here this morning as well requesting authorization to accept proposals for the Boarding Area C Retail Concession Leases
On June 5th the Airport Commission authorized the issuance of an RFP for two retail leases both are in Terminal 1 on Boarding Area C Boarding Area C is primarily served by Delta Airlines These two stores represent the only retail on this boarding area They are currently combined under a single lease
In this RFP we pulled them apart and created two leases We held an informational conference and collected comments They were very few comments The most substantive question however asked was could we combine these two spaces once again under a single lease And we recommend against this We believe that theyrsquore both viable on a stand‐alone basis One is a newsstand and the other one is a retail market place which is really a big newsstand with quite a bit of specialty retail in it Currently one location is doing about $7 million a year and the other is doing over $3 million a year So these are not small or challenged spaces So we would like to be able to accept proposals and without making changes to our RFP
And I would be happy to take any questions
There were no questions
Item No 6 was approved unanimously by a motion by Commissioner Guggenhime and a second by Commissioner Mazzola
Minutes September 4 2018 Page 12
6 Reject All Proposals for Professional Services Contract No 50130 and Re‐Issue Request for Proposals for Professional Services Contract No 5013001 for Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement
No 18‐0287 Resolution rejecting all proposals for Professional Services Contract No 50130 and re‐issue a Request for Proposals for Professional Services Contract No 5013001 Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement and enter into negotiations with the top ranked proposer
Good morning Commissioners My name is John Bergener and Irsquom the Airport Planning Director This item seeks your approval to reject all proposals and re‐issue this RFP 5013001 for Aircraft Noise Monitoring System with support maintenance and noise monitor replacement and negotiate with the top ranked firm
An aircraft noise monitoring system (or ldquoANMSrdquo) has been an integral function of the Airport since the late 1970s when SFO became the first US airport to implement an FAA‐approved noise compatibility program The ANMS consists of noise monitors with microphones and software that collects the data from the monitors and other sources This data is then used by Staff to conduct analysis draft reports to meet various federal and state reporting requirements and provide information to stakeholders and decision makers
The Airport currently operates a total of 37 noise monitors including 29 permanent and 8 portable monitors located on Airport and in San Francisco and San Mateo counties The existing noise monitors and microphones are over 10 years old and require regular site visits for maintenance especially during inclement weather
On July 25 2017 the Commission authorize Staff to issue an RFP 50130 for Aircraft Noise Monitoring System and Maintenance and Noise Monitor Replacement On November 1 2017 Staff issued the RFP and three proposals were received by the submission deadline on December 1 2017 The written proposals were scored by a panel of subject matter of experts All proposers were invited to an oral interview with a product demonstration
Staff successfully negotiated a contract with the top ranking firm and on April 13 2018 notified all proposers of the intent to seek Airport Commission approval to award a contract Upon notification the 2nd and 3rd ranked proposers submitted protests contesting that the top ranked firm did not meet the minimum qualifications among other items After careful review Staff determined it would be best to reject all proposals and reissue the RFP with refined minimum qualifications including clarification that submission of project experiences gained at non‐US airports is permissible
If the Commission approves of this item Staff will re‐issue the RFP with refined minimum
Minutes September 4 2018 Page 13
qualifications and submission requirements The purpose of the RFP remains the same ndash the resulting contract would enable the Airport to select a team with the expertise and knowledge to provide an ANMS replace and purchase additional noise monitors and provide the software that collects and transmits the data collected in the field The selected proposer would also train Staff on the selected noise monitoring system and assist with maintenance to ensure the equipment and software are operating properly
A panel of subject matter experts would be convened to evaluate and score each qualified proposer Staff would return to the Commission to request approval to award a contract with the top ranked firm following successful negotiations There is a 15 LBE requirement for this contract and the anticipated contract would have a term of 5 years with two 2‐year options to renew to be exercised at the discretion of the Commission
I recommend your approval and can answer any questions you have on this item
Commissioner Johns said so I really donrsquot even know where to begin with this except to say that in all the years Irsquove been here at the Commission Irsquove never had an issue like this It does relate to noise and we know wersquore growing so we know the noise is going to get worse I was approached by a member of the Board of Supervisors who told me that he is going to have a hearing on noise issues And wersquove had two protests on this Wersquove had itrsquos been going on a year you said since July rsquo17 Wersquove had it postponed twice I personally requested a briefing and was given a briefing I requested a lot of information I was given the information At the briefing I stated that I was concerned about some of the issues in the prior RFP that I thought it was important that we had somebody who could do both the hardware and the software and who have the appropriate experience to do this assuming there is such a person entity available I see nothing in this new RFP that has added anything that was not there in what you guys gave us the last time Irsquom stymied I donrsquot understand it Instead of four years of experience I think the one this time has three years of experience so wersquore looking for less experience We talked about Title 21 and having some experience in California I donrsquot see that except yoursquore saying after the fact once you choose someone then they can write a letter saying that theyrsquove been authorized by is it Caltrans that does this or the PUC
Mr Bergener responded that the system acceptance requirements requires a letter from Caltrans verifying that the system complies with Title 21 requirements
Commissioner Johns stated that she doesnrsquot understand it We are in Airport that tries to seek number 1 Why do we not want a firm who has experiencehellip Irsquoll go along with your RFP but when you bring somebody back to us for approval I sure hope they meet the qualifications I have never had to speak on an issue like I am today so I donrsquot understand it I think I made clear that we need somebody who has experience in both hardware and software Irsquom kind of repeating this so I donrsquot forget what I wanted to say Secondly they should have experience in California so that they understand Title 21 whether itrsquos the prime or the sub‐contractor They should be able to show that they have experience for a certain
Minutes September 4 2018 Page 14
amount of years consistently with large airports You have given us today how we are growing Wersquore getting larger and larger and yet wersquore not looking for somebody who has serviced this size Airport So those are my comments I donrsquot know what else to say I think I made my point clear
Commissioner Mazzola said alright okay did you want to respond to that or leave her statement be
Mr Bergener said I will just note that the minimum qualifications do include a requirement for experience in an Airport with more than 7 million enplanements or 14 million total passengers which is consistent with the US large hub definition of airports in 2017
Commissioner Johns said alright How long do they have to have that Is it one year and is it combined with the sub and the prime
Mr Bergener replied it was at least one airport in each of the subject areas for three years Commissioner Johns said say that again
Commissioner Johns stated I had it in front of me I mean itrsquos the same as before but what about the California requirement
Mr Bergener replied no we did not add the California requirement because itrsquos part of the systemsrsquo acceptance requirements
Commissioner Johns said I stand with my comments I donrsquot have anything further
Commissioner Crayton said I want to say and I know you guys briefed us and when I left the meeting I felt somewhat comfortable with the responses that I had received Going through this again I yet became concern because it seems that itrsquos watered down from the previous contract that we had when I went back and had my assistant do a comparison in terms of that and I agree with all of the things Commissioner Johns had said And so itrsquos problematic for me because it sounds as if noise has taken a lesser seat here than it had before This is a huge Airport I think itrsquos a premier Airport and in that regard we have to have that concern because lots of people that are very vocal out there have had five or six people call me regarding this and having an issue And I Irsquom not sure whatrsquos spearheading all of this except for the fact that I myself see it at a lesser than the qualifications are somewhat construed from the previous contract And Irsquom a little concern about that Irsquom also concerned in that noise as she said with the number of enplanements that we have the large Airport that we have and where we stand in the scheme of things in terms of an International Airport I think we need to give more value to it So I am yet concerned about this also and Irsquom not clear how to what the fix is It for some reason to me and maybe itrsquos because you know this is not my area It almost looks like the importance of this was sort of weighed down in this particular contract as to the previous ones that wersquove had the and Irsquove only had been present for one prior contract and so therefore this does concern me
Minutes September 4 2018 Page 15
that a lot of proponents out there as I said earlier I received at least five calls And so I donrsquot know what else to say regarding this I thought I was okay with it read it through again and it does concern me
Commissioner Mazzola asked Ivar you want to weigh‐in
Mr Satero replied yeah sure I will Commissioners my apologies We thought we had made the necessary tweaks We certainly want you to be comfortable with this We are we know therersquos three firms that do this kind of work that are very well qualified We want a competitive process and so we believe wersquove crafted something that gives us the excellence that we always strive for in terms of all of our work and noise monitoring is an important point of what we do especially in todayrsquos community issues wersquore having around noise But you need to be confident that we can deliver excellence as we intend to do So if wersquore still not satisfied I will remove this once again if it is the desire of the Commission to be continued to be briefed on how to make sure we achieve our goals
Commissioner Mazzola said so as far as Irsquom concern let me speak up here I think we ought to let the RFP go out and when they come back then we ought to really hone in on what we really want But I think we need to get on with it and not hold it up longer
Commissioner Johns said Irsquom fine with that I just think itrsquos important that we get some entity that is qualified
Commissioner Mazzola said so I think that will be the report Thank you for that
Item No 7 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
7 Approval of Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project Turner Construction Company $12073574
No 18‐0288 Resolution approving Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project with Turner Construction Company to increase the contract capacity by $12073574 for a new total contract capacity amount of $69930727 and with no change to the contract duration
Ms Judi Mosqueda Director of Project Management said good morning Commissioners
This item is for your approval of Phase C6 adding Trade Package Set No 4 into our contract with Turner Construction for the Demolition of Terminal 2 Air Traffic Control Tower
Minutes September 4 2018 Page 16
Project The Phase C6 approval will increase the contract capacity by $121 million for a new contract capacity amount of $699 million with a corresponding amount of contingency and with no change to the contract duration
The Project includes demolition of the existing air traffic control tower and design and construction of a new office block on top of T2 The new floors may be used for a new airline lounge office space a new employee cafe and a public observation deck As you know demolition of the old tower has been completed already Steel erection for the new floors is beginning this month
This approval will provide for Trade Package Set No 4 to be added to the contract The trade package set includes SeismicMain Building Concrete Glazing Storefront and Metal Panels Exterior Framing and Plaster Plumbing and Air Handling Units
The forecast for this contract is $831 million which falls within the budget of $841 million and includes appropriate levels of contingency The Project is on‐schedule to be substantially complete in August of 2019
The LBE goals for this contract are 24 for design services and 20 for construction services and Turner Construction is committed to meeting these goals
We recommend your approval and I would be happy to answer questions
There were no questions from the Commissioners
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS The Consent Calendar Item Nos 8 through 12 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Mazzola
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $1852527
No 18‐0289 Resolution approving Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project with PMANBA Joint Venture in an amount of $1852527 for a new contract amount not to exceed $6348283 for services through March 31 2020
Minutes September 4 2018 Page 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project Faith Group LLC $1736000
No 18‐0290 Resolution approving Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project with Faith Group LLC in an amount of $1736000 for a new contract amount not to exceed $3266000 for services through October 18 2019
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services to Loza Upholstery Inc for $800000 Kay Chesterfield Inc for $800000
No 18‐0291 Resolutions awarding Professional Services Contract No 5014501 As‐No 18‐0292 Needed Furniture Repair and Re‐upholstery services to Loza Upholstery
Inc and Contract No 5014502 to Kay Chesterfield Inc each with a contract amount not‐to‐exceed $800000 with a contract duration of five years
Commissioner Johns said I donrsquot have a question I have a comment Item 10 I was very happy to see that item because I was in Terminal 2 in the baggage area and we have some seating there that really needs to be reupholstered or perhaps replaced But I was happy to see this item and I do hope that we review all furniture and either reupholster or replace and specifically I would like to point out that there is therersquos sort of curve seating that theyrsquore in white leather They werenrsquot good from the beginning and they need attention
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project CAGE Professional Services Inc dba CAGE Inc $750000
No 18‐0293 Resolution approving Modification No 11 (Annual Renewal) to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project with CAGE
Minutes September 4 2018 Page 18
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
was News Sunglasses Bath and Body and Electronics We would like to drop those exclusions to just two It canrsquot be a newsstand or sunglass store but we would like to allow bath and body stores and electronic stores to enter this competition We think it will lead to more proposals and it will not adversely affect the rest of the program It could increase the competition thatrsquos the whole point We will be back in October for award And I would be happy to take any questions
Commissioner Johns said so I see that you had an informational conference and it wasnrsquot all that well attended So whatrsquos the issue here
Ms Nashir said well this is a very small store and its specialty retail which wersquore starting to find a challenge to lease We do well on our pop‐up retail which are small specialty stores but wersquove built those stores Wersquove just wersquore in the middle of an RFP right now where we got six proposals and at least three of them are very good on a pop‐up location But these small specialty stores that someone comes in and has to build themselves are starting to just be a challenge for us to lease And thatrsquos one reason I want to get rid of two of those exclusions
Commissioner Johns asked so are we seeing a trend here that maybe in the future we need to start looking in different directions
Ms Nashir replied yes I think wersquore seeing a trend in retail dropping off probably due to on‐line shopping And also some of our biggest tenants are the ones that are able to bring us specialty retail like the national beauty brands etc and they donrsquot want to bid on these locations because of the limit of eight They want to hold out for the larger stores and the newsstands So we are studying right now our limit of eight policy and wersquoll be sending an off‐calendar to you shortly on some recommended changes
Commissioner Johns said I mean maybe wersquore beginning an era we need a little less retail a little more food because I noticed in Terminal 2 at the is it Peetrsquos Coffee I mean the line is so long that itrsquos impossible if yoursquore catching a plane which is why most people are there to get what you want in the appropriate time So just a thought
Ms Nashir said very good Thank you
Commissioner Crayton said and my question is the outreach in terms of this particular proposal Did we do anything with the Chamber I mean what did we do
Ms Nashir replied we contacted all of the previous pop‐up tenants we had worked with We had hoped we had graduate to become you know permanent tenants with us and so wersquore hoping that wersquoll see some of those in the competition And again we just go out into neighborhoods in the City and put out press releases
Commissioner Crayton said well we tried twice so
Minutes September 4 2018 Page 11
Ms Nashir replied yes
There were no further questions
Item No 5 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Mazzola
5 Authorization to Accept Proposals for the Terminal 1 Boarding Area C Retail Concession Leases
No 18‐0286 Resolution approving the lease specifications and proposal requirements and authorizing Staff to accept proposals for two leases for two locations in Terminal 1 Boarding Area C
Good morning I am Cheryl Nashir from Revenue Development and Management I am here this morning as well requesting authorization to accept proposals for the Boarding Area C Retail Concession Leases
On June 5th the Airport Commission authorized the issuance of an RFP for two retail leases both are in Terminal 1 on Boarding Area C Boarding Area C is primarily served by Delta Airlines These two stores represent the only retail on this boarding area They are currently combined under a single lease
In this RFP we pulled them apart and created two leases We held an informational conference and collected comments They were very few comments The most substantive question however asked was could we combine these two spaces once again under a single lease And we recommend against this We believe that theyrsquore both viable on a stand‐alone basis One is a newsstand and the other one is a retail market place which is really a big newsstand with quite a bit of specialty retail in it Currently one location is doing about $7 million a year and the other is doing over $3 million a year So these are not small or challenged spaces So we would like to be able to accept proposals and without making changes to our RFP
And I would be happy to take any questions
There were no questions
Item No 6 was approved unanimously by a motion by Commissioner Guggenhime and a second by Commissioner Mazzola
Minutes September 4 2018 Page 12
6 Reject All Proposals for Professional Services Contract No 50130 and Re‐Issue Request for Proposals for Professional Services Contract No 5013001 for Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement
No 18‐0287 Resolution rejecting all proposals for Professional Services Contract No 50130 and re‐issue a Request for Proposals for Professional Services Contract No 5013001 Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement and enter into negotiations with the top ranked proposer
Good morning Commissioners My name is John Bergener and Irsquom the Airport Planning Director This item seeks your approval to reject all proposals and re‐issue this RFP 5013001 for Aircraft Noise Monitoring System with support maintenance and noise monitor replacement and negotiate with the top ranked firm
An aircraft noise monitoring system (or ldquoANMSrdquo) has been an integral function of the Airport since the late 1970s when SFO became the first US airport to implement an FAA‐approved noise compatibility program The ANMS consists of noise monitors with microphones and software that collects the data from the monitors and other sources This data is then used by Staff to conduct analysis draft reports to meet various federal and state reporting requirements and provide information to stakeholders and decision makers
The Airport currently operates a total of 37 noise monitors including 29 permanent and 8 portable monitors located on Airport and in San Francisco and San Mateo counties The existing noise monitors and microphones are over 10 years old and require regular site visits for maintenance especially during inclement weather
On July 25 2017 the Commission authorize Staff to issue an RFP 50130 for Aircraft Noise Monitoring System and Maintenance and Noise Monitor Replacement On November 1 2017 Staff issued the RFP and three proposals were received by the submission deadline on December 1 2017 The written proposals were scored by a panel of subject matter of experts All proposers were invited to an oral interview with a product demonstration
Staff successfully negotiated a contract with the top ranking firm and on April 13 2018 notified all proposers of the intent to seek Airport Commission approval to award a contract Upon notification the 2nd and 3rd ranked proposers submitted protests contesting that the top ranked firm did not meet the minimum qualifications among other items After careful review Staff determined it would be best to reject all proposals and reissue the RFP with refined minimum qualifications including clarification that submission of project experiences gained at non‐US airports is permissible
If the Commission approves of this item Staff will re‐issue the RFP with refined minimum
Minutes September 4 2018 Page 13
qualifications and submission requirements The purpose of the RFP remains the same ndash the resulting contract would enable the Airport to select a team with the expertise and knowledge to provide an ANMS replace and purchase additional noise monitors and provide the software that collects and transmits the data collected in the field The selected proposer would also train Staff on the selected noise monitoring system and assist with maintenance to ensure the equipment and software are operating properly
A panel of subject matter experts would be convened to evaluate and score each qualified proposer Staff would return to the Commission to request approval to award a contract with the top ranked firm following successful negotiations There is a 15 LBE requirement for this contract and the anticipated contract would have a term of 5 years with two 2‐year options to renew to be exercised at the discretion of the Commission
I recommend your approval and can answer any questions you have on this item
Commissioner Johns said so I really donrsquot even know where to begin with this except to say that in all the years Irsquove been here at the Commission Irsquove never had an issue like this It does relate to noise and we know wersquore growing so we know the noise is going to get worse I was approached by a member of the Board of Supervisors who told me that he is going to have a hearing on noise issues And wersquove had two protests on this Wersquove had itrsquos been going on a year you said since July rsquo17 Wersquove had it postponed twice I personally requested a briefing and was given a briefing I requested a lot of information I was given the information At the briefing I stated that I was concerned about some of the issues in the prior RFP that I thought it was important that we had somebody who could do both the hardware and the software and who have the appropriate experience to do this assuming there is such a person entity available I see nothing in this new RFP that has added anything that was not there in what you guys gave us the last time Irsquom stymied I donrsquot understand it Instead of four years of experience I think the one this time has three years of experience so wersquore looking for less experience We talked about Title 21 and having some experience in California I donrsquot see that except yoursquore saying after the fact once you choose someone then they can write a letter saying that theyrsquove been authorized by is it Caltrans that does this or the PUC
Mr Bergener responded that the system acceptance requirements requires a letter from Caltrans verifying that the system complies with Title 21 requirements
Commissioner Johns stated that she doesnrsquot understand it We are in Airport that tries to seek number 1 Why do we not want a firm who has experiencehellip Irsquoll go along with your RFP but when you bring somebody back to us for approval I sure hope they meet the qualifications I have never had to speak on an issue like I am today so I donrsquot understand it I think I made clear that we need somebody who has experience in both hardware and software Irsquom kind of repeating this so I donrsquot forget what I wanted to say Secondly they should have experience in California so that they understand Title 21 whether itrsquos the prime or the sub‐contractor They should be able to show that they have experience for a certain
Minutes September 4 2018 Page 14
amount of years consistently with large airports You have given us today how we are growing Wersquore getting larger and larger and yet wersquore not looking for somebody who has serviced this size Airport So those are my comments I donrsquot know what else to say I think I made my point clear
Commissioner Mazzola said alright okay did you want to respond to that or leave her statement be
Mr Bergener said I will just note that the minimum qualifications do include a requirement for experience in an Airport with more than 7 million enplanements or 14 million total passengers which is consistent with the US large hub definition of airports in 2017
Commissioner Johns said alright How long do they have to have that Is it one year and is it combined with the sub and the prime
Mr Bergener replied it was at least one airport in each of the subject areas for three years Commissioner Johns said say that again
Commissioner Johns stated I had it in front of me I mean itrsquos the same as before but what about the California requirement
Mr Bergener replied no we did not add the California requirement because itrsquos part of the systemsrsquo acceptance requirements
Commissioner Johns said I stand with my comments I donrsquot have anything further
Commissioner Crayton said I want to say and I know you guys briefed us and when I left the meeting I felt somewhat comfortable with the responses that I had received Going through this again I yet became concern because it seems that itrsquos watered down from the previous contract that we had when I went back and had my assistant do a comparison in terms of that and I agree with all of the things Commissioner Johns had said And so itrsquos problematic for me because it sounds as if noise has taken a lesser seat here than it had before This is a huge Airport I think itrsquos a premier Airport and in that regard we have to have that concern because lots of people that are very vocal out there have had five or six people call me regarding this and having an issue And I Irsquom not sure whatrsquos spearheading all of this except for the fact that I myself see it at a lesser than the qualifications are somewhat construed from the previous contract And Irsquom a little concern about that Irsquom also concerned in that noise as she said with the number of enplanements that we have the large Airport that we have and where we stand in the scheme of things in terms of an International Airport I think we need to give more value to it So I am yet concerned about this also and Irsquom not clear how to what the fix is It for some reason to me and maybe itrsquos because you know this is not my area It almost looks like the importance of this was sort of weighed down in this particular contract as to the previous ones that wersquove had the and Irsquove only had been present for one prior contract and so therefore this does concern me
Minutes September 4 2018 Page 15
that a lot of proponents out there as I said earlier I received at least five calls And so I donrsquot know what else to say regarding this I thought I was okay with it read it through again and it does concern me
Commissioner Mazzola asked Ivar you want to weigh‐in
Mr Satero replied yeah sure I will Commissioners my apologies We thought we had made the necessary tweaks We certainly want you to be comfortable with this We are we know therersquos three firms that do this kind of work that are very well qualified We want a competitive process and so we believe wersquove crafted something that gives us the excellence that we always strive for in terms of all of our work and noise monitoring is an important point of what we do especially in todayrsquos community issues wersquore having around noise But you need to be confident that we can deliver excellence as we intend to do So if wersquore still not satisfied I will remove this once again if it is the desire of the Commission to be continued to be briefed on how to make sure we achieve our goals
Commissioner Mazzola said so as far as Irsquom concern let me speak up here I think we ought to let the RFP go out and when they come back then we ought to really hone in on what we really want But I think we need to get on with it and not hold it up longer
Commissioner Johns said Irsquom fine with that I just think itrsquos important that we get some entity that is qualified
Commissioner Mazzola said so I think that will be the report Thank you for that
Item No 7 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
7 Approval of Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project Turner Construction Company $12073574
No 18‐0288 Resolution approving Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project with Turner Construction Company to increase the contract capacity by $12073574 for a new total contract capacity amount of $69930727 and with no change to the contract duration
Ms Judi Mosqueda Director of Project Management said good morning Commissioners
This item is for your approval of Phase C6 adding Trade Package Set No 4 into our contract with Turner Construction for the Demolition of Terminal 2 Air Traffic Control Tower
Minutes September 4 2018 Page 16
Project The Phase C6 approval will increase the contract capacity by $121 million for a new contract capacity amount of $699 million with a corresponding amount of contingency and with no change to the contract duration
The Project includes demolition of the existing air traffic control tower and design and construction of a new office block on top of T2 The new floors may be used for a new airline lounge office space a new employee cafe and a public observation deck As you know demolition of the old tower has been completed already Steel erection for the new floors is beginning this month
This approval will provide for Trade Package Set No 4 to be added to the contract The trade package set includes SeismicMain Building Concrete Glazing Storefront and Metal Panels Exterior Framing and Plaster Plumbing and Air Handling Units
The forecast for this contract is $831 million which falls within the budget of $841 million and includes appropriate levels of contingency The Project is on‐schedule to be substantially complete in August of 2019
The LBE goals for this contract are 24 for design services and 20 for construction services and Turner Construction is committed to meeting these goals
We recommend your approval and I would be happy to answer questions
There were no questions from the Commissioners
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS The Consent Calendar Item Nos 8 through 12 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Mazzola
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $1852527
No 18‐0289 Resolution approving Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project with PMANBA Joint Venture in an amount of $1852527 for a new contract amount not to exceed $6348283 for services through March 31 2020
Minutes September 4 2018 Page 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project Faith Group LLC $1736000
No 18‐0290 Resolution approving Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project with Faith Group LLC in an amount of $1736000 for a new contract amount not to exceed $3266000 for services through October 18 2019
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services to Loza Upholstery Inc for $800000 Kay Chesterfield Inc for $800000
No 18‐0291 Resolutions awarding Professional Services Contract No 5014501 As‐No 18‐0292 Needed Furniture Repair and Re‐upholstery services to Loza Upholstery
Inc and Contract No 5014502 to Kay Chesterfield Inc each with a contract amount not‐to‐exceed $800000 with a contract duration of five years
Commissioner Johns said I donrsquot have a question I have a comment Item 10 I was very happy to see that item because I was in Terminal 2 in the baggage area and we have some seating there that really needs to be reupholstered or perhaps replaced But I was happy to see this item and I do hope that we review all furniture and either reupholster or replace and specifically I would like to point out that there is therersquos sort of curve seating that theyrsquore in white leather They werenrsquot good from the beginning and they need attention
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project CAGE Professional Services Inc dba CAGE Inc $750000
No 18‐0293 Resolution approving Modification No 11 (Annual Renewal) to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project with CAGE
Minutes September 4 2018 Page 18
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Ms Nashir replied yes
There were no further questions
Item No 5 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Mazzola
5 Authorization to Accept Proposals for the Terminal 1 Boarding Area C Retail Concession Leases
No 18‐0286 Resolution approving the lease specifications and proposal requirements and authorizing Staff to accept proposals for two leases for two locations in Terminal 1 Boarding Area C
Good morning I am Cheryl Nashir from Revenue Development and Management I am here this morning as well requesting authorization to accept proposals for the Boarding Area C Retail Concession Leases
On June 5th the Airport Commission authorized the issuance of an RFP for two retail leases both are in Terminal 1 on Boarding Area C Boarding Area C is primarily served by Delta Airlines These two stores represent the only retail on this boarding area They are currently combined under a single lease
In this RFP we pulled them apart and created two leases We held an informational conference and collected comments They were very few comments The most substantive question however asked was could we combine these two spaces once again under a single lease And we recommend against this We believe that theyrsquore both viable on a stand‐alone basis One is a newsstand and the other one is a retail market place which is really a big newsstand with quite a bit of specialty retail in it Currently one location is doing about $7 million a year and the other is doing over $3 million a year So these are not small or challenged spaces So we would like to be able to accept proposals and without making changes to our RFP
And I would be happy to take any questions
There were no questions
Item No 6 was approved unanimously by a motion by Commissioner Guggenhime and a second by Commissioner Mazzola
Minutes September 4 2018 Page 12
6 Reject All Proposals for Professional Services Contract No 50130 and Re‐Issue Request for Proposals for Professional Services Contract No 5013001 for Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement
No 18‐0287 Resolution rejecting all proposals for Professional Services Contract No 50130 and re‐issue a Request for Proposals for Professional Services Contract No 5013001 Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement and enter into negotiations with the top ranked proposer
Good morning Commissioners My name is John Bergener and Irsquom the Airport Planning Director This item seeks your approval to reject all proposals and re‐issue this RFP 5013001 for Aircraft Noise Monitoring System with support maintenance and noise monitor replacement and negotiate with the top ranked firm
An aircraft noise monitoring system (or ldquoANMSrdquo) has been an integral function of the Airport since the late 1970s when SFO became the first US airport to implement an FAA‐approved noise compatibility program The ANMS consists of noise monitors with microphones and software that collects the data from the monitors and other sources This data is then used by Staff to conduct analysis draft reports to meet various federal and state reporting requirements and provide information to stakeholders and decision makers
The Airport currently operates a total of 37 noise monitors including 29 permanent and 8 portable monitors located on Airport and in San Francisco and San Mateo counties The existing noise monitors and microphones are over 10 years old and require regular site visits for maintenance especially during inclement weather
On July 25 2017 the Commission authorize Staff to issue an RFP 50130 for Aircraft Noise Monitoring System and Maintenance and Noise Monitor Replacement On November 1 2017 Staff issued the RFP and three proposals were received by the submission deadline on December 1 2017 The written proposals were scored by a panel of subject matter of experts All proposers were invited to an oral interview with a product demonstration
Staff successfully negotiated a contract with the top ranking firm and on April 13 2018 notified all proposers of the intent to seek Airport Commission approval to award a contract Upon notification the 2nd and 3rd ranked proposers submitted protests contesting that the top ranked firm did not meet the minimum qualifications among other items After careful review Staff determined it would be best to reject all proposals and reissue the RFP with refined minimum qualifications including clarification that submission of project experiences gained at non‐US airports is permissible
If the Commission approves of this item Staff will re‐issue the RFP with refined minimum
Minutes September 4 2018 Page 13
qualifications and submission requirements The purpose of the RFP remains the same ndash the resulting contract would enable the Airport to select a team with the expertise and knowledge to provide an ANMS replace and purchase additional noise monitors and provide the software that collects and transmits the data collected in the field The selected proposer would also train Staff on the selected noise monitoring system and assist with maintenance to ensure the equipment and software are operating properly
A panel of subject matter experts would be convened to evaluate and score each qualified proposer Staff would return to the Commission to request approval to award a contract with the top ranked firm following successful negotiations There is a 15 LBE requirement for this contract and the anticipated contract would have a term of 5 years with two 2‐year options to renew to be exercised at the discretion of the Commission
I recommend your approval and can answer any questions you have on this item
Commissioner Johns said so I really donrsquot even know where to begin with this except to say that in all the years Irsquove been here at the Commission Irsquove never had an issue like this It does relate to noise and we know wersquore growing so we know the noise is going to get worse I was approached by a member of the Board of Supervisors who told me that he is going to have a hearing on noise issues And wersquove had two protests on this Wersquove had itrsquos been going on a year you said since July rsquo17 Wersquove had it postponed twice I personally requested a briefing and was given a briefing I requested a lot of information I was given the information At the briefing I stated that I was concerned about some of the issues in the prior RFP that I thought it was important that we had somebody who could do both the hardware and the software and who have the appropriate experience to do this assuming there is such a person entity available I see nothing in this new RFP that has added anything that was not there in what you guys gave us the last time Irsquom stymied I donrsquot understand it Instead of four years of experience I think the one this time has three years of experience so wersquore looking for less experience We talked about Title 21 and having some experience in California I donrsquot see that except yoursquore saying after the fact once you choose someone then they can write a letter saying that theyrsquove been authorized by is it Caltrans that does this or the PUC
Mr Bergener responded that the system acceptance requirements requires a letter from Caltrans verifying that the system complies with Title 21 requirements
Commissioner Johns stated that she doesnrsquot understand it We are in Airport that tries to seek number 1 Why do we not want a firm who has experiencehellip Irsquoll go along with your RFP but when you bring somebody back to us for approval I sure hope they meet the qualifications I have never had to speak on an issue like I am today so I donrsquot understand it I think I made clear that we need somebody who has experience in both hardware and software Irsquom kind of repeating this so I donrsquot forget what I wanted to say Secondly they should have experience in California so that they understand Title 21 whether itrsquos the prime or the sub‐contractor They should be able to show that they have experience for a certain
Minutes September 4 2018 Page 14
amount of years consistently with large airports You have given us today how we are growing Wersquore getting larger and larger and yet wersquore not looking for somebody who has serviced this size Airport So those are my comments I donrsquot know what else to say I think I made my point clear
Commissioner Mazzola said alright okay did you want to respond to that or leave her statement be
Mr Bergener said I will just note that the minimum qualifications do include a requirement for experience in an Airport with more than 7 million enplanements or 14 million total passengers which is consistent with the US large hub definition of airports in 2017
Commissioner Johns said alright How long do they have to have that Is it one year and is it combined with the sub and the prime
Mr Bergener replied it was at least one airport in each of the subject areas for three years Commissioner Johns said say that again
Commissioner Johns stated I had it in front of me I mean itrsquos the same as before but what about the California requirement
Mr Bergener replied no we did not add the California requirement because itrsquos part of the systemsrsquo acceptance requirements
Commissioner Johns said I stand with my comments I donrsquot have anything further
Commissioner Crayton said I want to say and I know you guys briefed us and when I left the meeting I felt somewhat comfortable with the responses that I had received Going through this again I yet became concern because it seems that itrsquos watered down from the previous contract that we had when I went back and had my assistant do a comparison in terms of that and I agree with all of the things Commissioner Johns had said And so itrsquos problematic for me because it sounds as if noise has taken a lesser seat here than it had before This is a huge Airport I think itrsquos a premier Airport and in that regard we have to have that concern because lots of people that are very vocal out there have had five or six people call me regarding this and having an issue And I Irsquom not sure whatrsquos spearheading all of this except for the fact that I myself see it at a lesser than the qualifications are somewhat construed from the previous contract And Irsquom a little concern about that Irsquom also concerned in that noise as she said with the number of enplanements that we have the large Airport that we have and where we stand in the scheme of things in terms of an International Airport I think we need to give more value to it So I am yet concerned about this also and Irsquom not clear how to what the fix is It for some reason to me and maybe itrsquos because you know this is not my area It almost looks like the importance of this was sort of weighed down in this particular contract as to the previous ones that wersquove had the and Irsquove only had been present for one prior contract and so therefore this does concern me
Minutes September 4 2018 Page 15
that a lot of proponents out there as I said earlier I received at least five calls And so I donrsquot know what else to say regarding this I thought I was okay with it read it through again and it does concern me
Commissioner Mazzola asked Ivar you want to weigh‐in
Mr Satero replied yeah sure I will Commissioners my apologies We thought we had made the necessary tweaks We certainly want you to be comfortable with this We are we know therersquos three firms that do this kind of work that are very well qualified We want a competitive process and so we believe wersquove crafted something that gives us the excellence that we always strive for in terms of all of our work and noise monitoring is an important point of what we do especially in todayrsquos community issues wersquore having around noise But you need to be confident that we can deliver excellence as we intend to do So if wersquore still not satisfied I will remove this once again if it is the desire of the Commission to be continued to be briefed on how to make sure we achieve our goals
Commissioner Mazzola said so as far as Irsquom concern let me speak up here I think we ought to let the RFP go out and when they come back then we ought to really hone in on what we really want But I think we need to get on with it and not hold it up longer
Commissioner Johns said Irsquom fine with that I just think itrsquos important that we get some entity that is qualified
Commissioner Mazzola said so I think that will be the report Thank you for that
Item No 7 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
7 Approval of Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project Turner Construction Company $12073574
No 18‐0288 Resolution approving Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project with Turner Construction Company to increase the contract capacity by $12073574 for a new total contract capacity amount of $69930727 and with no change to the contract duration
Ms Judi Mosqueda Director of Project Management said good morning Commissioners
This item is for your approval of Phase C6 adding Trade Package Set No 4 into our contract with Turner Construction for the Demolition of Terminal 2 Air Traffic Control Tower
Minutes September 4 2018 Page 16
Project The Phase C6 approval will increase the contract capacity by $121 million for a new contract capacity amount of $699 million with a corresponding amount of contingency and with no change to the contract duration
The Project includes demolition of the existing air traffic control tower and design and construction of a new office block on top of T2 The new floors may be used for a new airline lounge office space a new employee cafe and a public observation deck As you know demolition of the old tower has been completed already Steel erection for the new floors is beginning this month
This approval will provide for Trade Package Set No 4 to be added to the contract The trade package set includes SeismicMain Building Concrete Glazing Storefront and Metal Panels Exterior Framing and Plaster Plumbing and Air Handling Units
The forecast for this contract is $831 million which falls within the budget of $841 million and includes appropriate levels of contingency The Project is on‐schedule to be substantially complete in August of 2019
The LBE goals for this contract are 24 for design services and 20 for construction services and Turner Construction is committed to meeting these goals
We recommend your approval and I would be happy to answer questions
There were no questions from the Commissioners
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS The Consent Calendar Item Nos 8 through 12 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Mazzola
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $1852527
No 18‐0289 Resolution approving Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project with PMANBA Joint Venture in an amount of $1852527 for a new contract amount not to exceed $6348283 for services through March 31 2020
Minutes September 4 2018 Page 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project Faith Group LLC $1736000
No 18‐0290 Resolution approving Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project with Faith Group LLC in an amount of $1736000 for a new contract amount not to exceed $3266000 for services through October 18 2019
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services to Loza Upholstery Inc for $800000 Kay Chesterfield Inc for $800000
No 18‐0291 Resolutions awarding Professional Services Contract No 5014501 As‐No 18‐0292 Needed Furniture Repair and Re‐upholstery services to Loza Upholstery
Inc and Contract No 5014502 to Kay Chesterfield Inc each with a contract amount not‐to‐exceed $800000 with a contract duration of five years
Commissioner Johns said I donrsquot have a question I have a comment Item 10 I was very happy to see that item because I was in Terminal 2 in the baggage area and we have some seating there that really needs to be reupholstered or perhaps replaced But I was happy to see this item and I do hope that we review all furniture and either reupholster or replace and specifically I would like to point out that there is therersquos sort of curve seating that theyrsquore in white leather They werenrsquot good from the beginning and they need attention
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project CAGE Professional Services Inc dba CAGE Inc $750000
No 18‐0293 Resolution approving Modification No 11 (Annual Renewal) to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project with CAGE
Minutes September 4 2018 Page 18
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
6 Reject All Proposals for Professional Services Contract No 50130 and Re‐Issue Request for Proposals for Professional Services Contract No 5013001 for Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement
No 18‐0287 Resolution rejecting all proposals for Professional Services Contract No 50130 and re‐issue a Request for Proposals for Professional Services Contract No 5013001 Aircraft Noise Monitoring System with Support Maintenance and Noise Monitor Replacement and enter into negotiations with the top ranked proposer
Good morning Commissioners My name is John Bergener and Irsquom the Airport Planning Director This item seeks your approval to reject all proposals and re‐issue this RFP 5013001 for Aircraft Noise Monitoring System with support maintenance and noise monitor replacement and negotiate with the top ranked firm
An aircraft noise monitoring system (or ldquoANMSrdquo) has been an integral function of the Airport since the late 1970s when SFO became the first US airport to implement an FAA‐approved noise compatibility program The ANMS consists of noise monitors with microphones and software that collects the data from the monitors and other sources This data is then used by Staff to conduct analysis draft reports to meet various federal and state reporting requirements and provide information to stakeholders and decision makers
The Airport currently operates a total of 37 noise monitors including 29 permanent and 8 portable monitors located on Airport and in San Francisco and San Mateo counties The existing noise monitors and microphones are over 10 years old and require regular site visits for maintenance especially during inclement weather
On July 25 2017 the Commission authorize Staff to issue an RFP 50130 for Aircraft Noise Monitoring System and Maintenance and Noise Monitor Replacement On November 1 2017 Staff issued the RFP and three proposals were received by the submission deadline on December 1 2017 The written proposals were scored by a panel of subject matter of experts All proposers were invited to an oral interview with a product demonstration
Staff successfully negotiated a contract with the top ranking firm and on April 13 2018 notified all proposers of the intent to seek Airport Commission approval to award a contract Upon notification the 2nd and 3rd ranked proposers submitted protests contesting that the top ranked firm did not meet the minimum qualifications among other items After careful review Staff determined it would be best to reject all proposals and reissue the RFP with refined minimum qualifications including clarification that submission of project experiences gained at non‐US airports is permissible
If the Commission approves of this item Staff will re‐issue the RFP with refined minimum
Minutes September 4 2018 Page 13
qualifications and submission requirements The purpose of the RFP remains the same ndash the resulting contract would enable the Airport to select a team with the expertise and knowledge to provide an ANMS replace and purchase additional noise monitors and provide the software that collects and transmits the data collected in the field The selected proposer would also train Staff on the selected noise monitoring system and assist with maintenance to ensure the equipment and software are operating properly
A panel of subject matter experts would be convened to evaluate and score each qualified proposer Staff would return to the Commission to request approval to award a contract with the top ranked firm following successful negotiations There is a 15 LBE requirement for this contract and the anticipated contract would have a term of 5 years with two 2‐year options to renew to be exercised at the discretion of the Commission
I recommend your approval and can answer any questions you have on this item
Commissioner Johns said so I really donrsquot even know where to begin with this except to say that in all the years Irsquove been here at the Commission Irsquove never had an issue like this It does relate to noise and we know wersquore growing so we know the noise is going to get worse I was approached by a member of the Board of Supervisors who told me that he is going to have a hearing on noise issues And wersquove had two protests on this Wersquove had itrsquos been going on a year you said since July rsquo17 Wersquove had it postponed twice I personally requested a briefing and was given a briefing I requested a lot of information I was given the information At the briefing I stated that I was concerned about some of the issues in the prior RFP that I thought it was important that we had somebody who could do both the hardware and the software and who have the appropriate experience to do this assuming there is such a person entity available I see nothing in this new RFP that has added anything that was not there in what you guys gave us the last time Irsquom stymied I donrsquot understand it Instead of four years of experience I think the one this time has three years of experience so wersquore looking for less experience We talked about Title 21 and having some experience in California I donrsquot see that except yoursquore saying after the fact once you choose someone then they can write a letter saying that theyrsquove been authorized by is it Caltrans that does this or the PUC
Mr Bergener responded that the system acceptance requirements requires a letter from Caltrans verifying that the system complies with Title 21 requirements
Commissioner Johns stated that she doesnrsquot understand it We are in Airport that tries to seek number 1 Why do we not want a firm who has experiencehellip Irsquoll go along with your RFP but when you bring somebody back to us for approval I sure hope they meet the qualifications I have never had to speak on an issue like I am today so I donrsquot understand it I think I made clear that we need somebody who has experience in both hardware and software Irsquom kind of repeating this so I donrsquot forget what I wanted to say Secondly they should have experience in California so that they understand Title 21 whether itrsquos the prime or the sub‐contractor They should be able to show that they have experience for a certain
Minutes September 4 2018 Page 14
amount of years consistently with large airports You have given us today how we are growing Wersquore getting larger and larger and yet wersquore not looking for somebody who has serviced this size Airport So those are my comments I donrsquot know what else to say I think I made my point clear
Commissioner Mazzola said alright okay did you want to respond to that or leave her statement be
Mr Bergener said I will just note that the minimum qualifications do include a requirement for experience in an Airport with more than 7 million enplanements or 14 million total passengers which is consistent with the US large hub definition of airports in 2017
Commissioner Johns said alright How long do they have to have that Is it one year and is it combined with the sub and the prime
Mr Bergener replied it was at least one airport in each of the subject areas for three years Commissioner Johns said say that again
Commissioner Johns stated I had it in front of me I mean itrsquos the same as before but what about the California requirement
Mr Bergener replied no we did not add the California requirement because itrsquos part of the systemsrsquo acceptance requirements
Commissioner Johns said I stand with my comments I donrsquot have anything further
Commissioner Crayton said I want to say and I know you guys briefed us and when I left the meeting I felt somewhat comfortable with the responses that I had received Going through this again I yet became concern because it seems that itrsquos watered down from the previous contract that we had when I went back and had my assistant do a comparison in terms of that and I agree with all of the things Commissioner Johns had said And so itrsquos problematic for me because it sounds as if noise has taken a lesser seat here than it had before This is a huge Airport I think itrsquos a premier Airport and in that regard we have to have that concern because lots of people that are very vocal out there have had five or six people call me regarding this and having an issue And I Irsquom not sure whatrsquos spearheading all of this except for the fact that I myself see it at a lesser than the qualifications are somewhat construed from the previous contract And Irsquom a little concern about that Irsquom also concerned in that noise as she said with the number of enplanements that we have the large Airport that we have and where we stand in the scheme of things in terms of an International Airport I think we need to give more value to it So I am yet concerned about this also and Irsquom not clear how to what the fix is It for some reason to me and maybe itrsquos because you know this is not my area It almost looks like the importance of this was sort of weighed down in this particular contract as to the previous ones that wersquove had the and Irsquove only had been present for one prior contract and so therefore this does concern me
Minutes September 4 2018 Page 15
that a lot of proponents out there as I said earlier I received at least five calls And so I donrsquot know what else to say regarding this I thought I was okay with it read it through again and it does concern me
Commissioner Mazzola asked Ivar you want to weigh‐in
Mr Satero replied yeah sure I will Commissioners my apologies We thought we had made the necessary tweaks We certainly want you to be comfortable with this We are we know therersquos three firms that do this kind of work that are very well qualified We want a competitive process and so we believe wersquove crafted something that gives us the excellence that we always strive for in terms of all of our work and noise monitoring is an important point of what we do especially in todayrsquos community issues wersquore having around noise But you need to be confident that we can deliver excellence as we intend to do So if wersquore still not satisfied I will remove this once again if it is the desire of the Commission to be continued to be briefed on how to make sure we achieve our goals
Commissioner Mazzola said so as far as Irsquom concern let me speak up here I think we ought to let the RFP go out and when they come back then we ought to really hone in on what we really want But I think we need to get on with it and not hold it up longer
Commissioner Johns said Irsquom fine with that I just think itrsquos important that we get some entity that is qualified
Commissioner Mazzola said so I think that will be the report Thank you for that
Item No 7 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
7 Approval of Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project Turner Construction Company $12073574
No 18‐0288 Resolution approving Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project with Turner Construction Company to increase the contract capacity by $12073574 for a new total contract capacity amount of $69930727 and with no change to the contract duration
Ms Judi Mosqueda Director of Project Management said good morning Commissioners
This item is for your approval of Phase C6 adding Trade Package Set No 4 into our contract with Turner Construction for the Demolition of Terminal 2 Air Traffic Control Tower
Minutes September 4 2018 Page 16
Project The Phase C6 approval will increase the contract capacity by $121 million for a new contract capacity amount of $699 million with a corresponding amount of contingency and with no change to the contract duration
The Project includes demolition of the existing air traffic control tower and design and construction of a new office block on top of T2 The new floors may be used for a new airline lounge office space a new employee cafe and a public observation deck As you know demolition of the old tower has been completed already Steel erection for the new floors is beginning this month
This approval will provide for Trade Package Set No 4 to be added to the contract The trade package set includes SeismicMain Building Concrete Glazing Storefront and Metal Panels Exterior Framing and Plaster Plumbing and Air Handling Units
The forecast for this contract is $831 million which falls within the budget of $841 million and includes appropriate levels of contingency The Project is on‐schedule to be substantially complete in August of 2019
The LBE goals for this contract are 24 for design services and 20 for construction services and Turner Construction is committed to meeting these goals
We recommend your approval and I would be happy to answer questions
There were no questions from the Commissioners
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS The Consent Calendar Item Nos 8 through 12 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Mazzola
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $1852527
No 18‐0289 Resolution approving Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project with PMANBA Joint Venture in an amount of $1852527 for a new contract amount not to exceed $6348283 for services through March 31 2020
Minutes September 4 2018 Page 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project Faith Group LLC $1736000
No 18‐0290 Resolution approving Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project with Faith Group LLC in an amount of $1736000 for a new contract amount not to exceed $3266000 for services through October 18 2019
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services to Loza Upholstery Inc for $800000 Kay Chesterfield Inc for $800000
No 18‐0291 Resolutions awarding Professional Services Contract No 5014501 As‐No 18‐0292 Needed Furniture Repair and Re‐upholstery services to Loza Upholstery
Inc and Contract No 5014502 to Kay Chesterfield Inc each with a contract amount not‐to‐exceed $800000 with a contract duration of five years
Commissioner Johns said I donrsquot have a question I have a comment Item 10 I was very happy to see that item because I was in Terminal 2 in the baggage area and we have some seating there that really needs to be reupholstered or perhaps replaced But I was happy to see this item and I do hope that we review all furniture and either reupholster or replace and specifically I would like to point out that there is therersquos sort of curve seating that theyrsquore in white leather They werenrsquot good from the beginning and they need attention
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project CAGE Professional Services Inc dba CAGE Inc $750000
No 18‐0293 Resolution approving Modification No 11 (Annual Renewal) to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project with CAGE
Minutes September 4 2018 Page 18
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
qualifications and submission requirements The purpose of the RFP remains the same ndash the resulting contract would enable the Airport to select a team with the expertise and knowledge to provide an ANMS replace and purchase additional noise monitors and provide the software that collects and transmits the data collected in the field The selected proposer would also train Staff on the selected noise monitoring system and assist with maintenance to ensure the equipment and software are operating properly
A panel of subject matter experts would be convened to evaluate and score each qualified proposer Staff would return to the Commission to request approval to award a contract with the top ranked firm following successful negotiations There is a 15 LBE requirement for this contract and the anticipated contract would have a term of 5 years with two 2‐year options to renew to be exercised at the discretion of the Commission
I recommend your approval and can answer any questions you have on this item
Commissioner Johns said so I really donrsquot even know where to begin with this except to say that in all the years Irsquove been here at the Commission Irsquove never had an issue like this It does relate to noise and we know wersquore growing so we know the noise is going to get worse I was approached by a member of the Board of Supervisors who told me that he is going to have a hearing on noise issues And wersquove had two protests on this Wersquove had itrsquos been going on a year you said since July rsquo17 Wersquove had it postponed twice I personally requested a briefing and was given a briefing I requested a lot of information I was given the information At the briefing I stated that I was concerned about some of the issues in the prior RFP that I thought it was important that we had somebody who could do both the hardware and the software and who have the appropriate experience to do this assuming there is such a person entity available I see nothing in this new RFP that has added anything that was not there in what you guys gave us the last time Irsquom stymied I donrsquot understand it Instead of four years of experience I think the one this time has three years of experience so wersquore looking for less experience We talked about Title 21 and having some experience in California I donrsquot see that except yoursquore saying after the fact once you choose someone then they can write a letter saying that theyrsquove been authorized by is it Caltrans that does this or the PUC
Mr Bergener responded that the system acceptance requirements requires a letter from Caltrans verifying that the system complies with Title 21 requirements
Commissioner Johns stated that she doesnrsquot understand it We are in Airport that tries to seek number 1 Why do we not want a firm who has experiencehellip Irsquoll go along with your RFP but when you bring somebody back to us for approval I sure hope they meet the qualifications I have never had to speak on an issue like I am today so I donrsquot understand it I think I made clear that we need somebody who has experience in both hardware and software Irsquom kind of repeating this so I donrsquot forget what I wanted to say Secondly they should have experience in California so that they understand Title 21 whether itrsquos the prime or the sub‐contractor They should be able to show that they have experience for a certain
Minutes September 4 2018 Page 14
amount of years consistently with large airports You have given us today how we are growing Wersquore getting larger and larger and yet wersquore not looking for somebody who has serviced this size Airport So those are my comments I donrsquot know what else to say I think I made my point clear
Commissioner Mazzola said alright okay did you want to respond to that or leave her statement be
Mr Bergener said I will just note that the minimum qualifications do include a requirement for experience in an Airport with more than 7 million enplanements or 14 million total passengers which is consistent with the US large hub definition of airports in 2017
Commissioner Johns said alright How long do they have to have that Is it one year and is it combined with the sub and the prime
Mr Bergener replied it was at least one airport in each of the subject areas for three years Commissioner Johns said say that again
Commissioner Johns stated I had it in front of me I mean itrsquos the same as before but what about the California requirement
Mr Bergener replied no we did not add the California requirement because itrsquos part of the systemsrsquo acceptance requirements
Commissioner Johns said I stand with my comments I donrsquot have anything further
Commissioner Crayton said I want to say and I know you guys briefed us and when I left the meeting I felt somewhat comfortable with the responses that I had received Going through this again I yet became concern because it seems that itrsquos watered down from the previous contract that we had when I went back and had my assistant do a comparison in terms of that and I agree with all of the things Commissioner Johns had said And so itrsquos problematic for me because it sounds as if noise has taken a lesser seat here than it had before This is a huge Airport I think itrsquos a premier Airport and in that regard we have to have that concern because lots of people that are very vocal out there have had five or six people call me regarding this and having an issue And I Irsquom not sure whatrsquos spearheading all of this except for the fact that I myself see it at a lesser than the qualifications are somewhat construed from the previous contract And Irsquom a little concern about that Irsquom also concerned in that noise as she said with the number of enplanements that we have the large Airport that we have and where we stand in the scheme of things in terms of an International Airport I think we need to give more value to it So I am yet concerned about this also and Irsquom not clear how to what the fix is It for some reason to me and maybe itrsquos because you know this is not my area It almost looks like the importance of this was sort of weighed down in this particular contract as to the previous ones that wersquove had the and Irsquove only had been present for one prior contract and so therefore this does concern me
Minutes September 4 2018 Page 15
that a lot of proponents out there as I said earlier I received at least five calls And so I donrsquot know what else to say regarding this I thought I was okay with it read it through again and it does concern me
Commissioner Mazzola asked Ivar you want to weigh‐in
Mr Satero replied yeah sure I will Commissioners my apologies We thought we had made the necessary tweaks We certainly want you to be comfortable with this We are we know therersquos three firms that do this kind of work that are very well qualified We want a competitive process and so we believe wersquove crafted something that gives us the excellence that we always strive for in terms of all of our work and noise monitoring is an important point of what we do especially in todayrsquos community issues wersquore having around noise But you need to be confident that we can deliver excellence as we intend to do So if wersquore still not satisfied I will remove this once again if it is the desire of the Commission to be continued to be briefed on how to make sure we achieve our goals
Commissioner Mazzola said so as far as Irsquom concern let me speak up here I think we ought to let the RFP go out and when they come back then we ought to really hone in on what we really want But I think we need to get on with it and not hold it up longer
Commissioner Johns said Irsquom fine with that I just think itrsquos important that we get some entity that is qualified
Commissioner Mazzola said so I think that will be the report Thank you for that
Item No 7 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
7 Approval of Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project Turner Construction Company $12073574
No 18‐0288 Resolution approving Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project with Turner Construction Company to increase the contract capacity by $12073574 for a new total contract capacity amount of $69930727 and with no change to the contract duration
Ms Judi Mosqueda Director of Project Management said good morning Commissioners
This item is for your approval of Phase C6 adding Trade Package Set No 4 into our contract with Turner Construction for the Demolition of Terminal 2 Air Traffic Control Tower
Minutes September 4 2018 Page 16
Project The Phase C6 approval will increase the contract capacity by $121 million for a new contract capacity amount of $699 million with a corresponding amount of contingency and with no change to the contract duration
The Project includes demolition of the existing air traffic control tower and design and construction of a new office block on top of T2 The new floors may be used for a new airline lounge office space a new employee cafe and a public observation deck As you know demolition of the old tower has been completed already Steel erection for the new floors is beginning this month
This approval will provide for Trade Package Set No 4 to be added to the contract The trade package set includes SeismicMain Building Concrete Glazing Storefront and Metal Panels Exterior Framing and Plaster Plumbing and Air Handling Units
The forecast for this contract is $831 million which falls within the budget of $841 million and includes appropriate levels of contingency The Project is on‐schedule to be substantially complete in August of 2019
The LBE goals for this contract are 24 for design services and 20 for construction services and Turner Construction is committed to meeting these goals
We recommend your approval and I would be happy to answer questions
There were no questions from the Commissioners
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS The Consent Calendar Item Nos 8 through 12 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Mazzola
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $1852527
No 18‐0289 Resolution approving Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project with PMANBA Joint Venture in an amount of $1852527 for a new contract amount not to exceed $6348283 for services through March 31 2020
Minutes September 4 2018 Page 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project Faith Group LLC $1736000
No 18‐0290 Resolution approving Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project with Faith Group LLC in an amount of $1736000 for a new contract amount not to exceed $3266000 for services through October 18 2019
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services to Loza Upholstery Inc for $800000 Kay Chesterfield Inc for $800000
No 18‐0291 Resolutions awarding Professional Services Contract No 5014501 As‐No 18‐0292 Needed Furniture Repair and Re‐upholstery services to Loza Upholstery
Inc and Contract No 5014502 to Kay Chesterfield Inc each with a contract amount not‐to‐exceed $800000 with a contract duration of five years
Commissioner Johns said I donrsquot have a question I have a comment Item 10 I was very happy to see that item because I was in Terminal 2 in the baggage area and we have some seating there that really needs to be reupholstered or perhaps replaced But I was happy to see this item and I do hope that we review all furniture and either reupholster or replace and specifically I would like to point out that there is therersquos sort of curve seating that theyrsquore in white leather They werenrsquot good from the beginning and they need attention
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project CAGE Professional Services Inc dba CAGE Inc $750000
No 18‐0293 Resolution approving Modification No 11 (Annual Renewal) to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project with CAGE
Minutes September 4 2018 Page 18
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
amount of years consistently with large airports You have given us today how we are growing Wersquore getting larger and larger and yet wersquore not looking for somebody who has serviced this size Airport So those are my comments I donrsquot know what else to say I think I made my point clear
Commissioner Mazzola said alright okay did you want to respond to that or leave her statement be
Mr Bergener said I will just note that the minimum qualifications do include a requirement for experience in an Airport with more than 7 million enplanements or 14 million total passengers which is consistent with the US large hub definition of airports in 2017
Commissioner Johns said alright How long do they have to have that Is it one year and is it combined with the sub and the prime
Mr Bergener replied it was at least one airport in each of the subject areas for three years Commissioner Johns said say that again
Commissioner Johns stated I had it in front of me I mean itrsquos the same as before but what about the California requirement
Mr Bergener replied no we did not add the California requirement because itrsquos part of the systemsrsquo acceptance requirements
Commissioner Johns said I stand with my comments I donrsquot have anything further
Commissioner Crayton said I want to say and I know you guys briefed us and when I left the meeting I felt somewhat comfortable with the responses that I had received Going through this again I yet became concern because it seems that itrsquos watered down from the previous contract that we had when I went back and had my assistant do a comparison in terms of that and I agree with all of the things Commissioner Johns had said And so itrsquos problematic for me because it sounds as if noise has taken a lesser seat here than it had before This is a huge Airport I think itrsquos a premier Airport and in that regard we have to have that concern because lots of people that are very vocal out there have had five or six people call me regarding this and having an issue And I Irsquom not sure whatrsquos spearheading all of this except for the fact that I myself see it at a lesser than the qualifications are somewhat construed from the previous contract And Irsquom a little concern about that Irsquom also concerned in that noise as she said with the number of enplanements that we have the large Airport that we have and where we stand in the scheme of things in terms of an International Airport I think we need to give more value to it So I am yet concerned about this also and Irsquom not clear how to what the fix is It for some reason to me and maybe itrsquos because you know this is not my area It almost looks like the importance of this was sort of weighed down in this particular contract as to the previous ones that wersquove had the and Irsquove only had been present for one prior contract and so therefore this does concern me
Minutes September 4 2018 Page 15
that a lot of proponents out there as I said earlier I received at least five calls And so I donrsquot know what else to say regarding this I thought I was okay with it read it through again and it does concern me
Commissioner Mazzola asked Ivar you want to weigh‐in
Mr Satero replied yeah sure I will Commissioners my apologies We thought we had made the necessary tweaks We certainly want you to be comfortable with this We are we know therersquos three firms that do this kind of work that are very well qualified We want a competitive process and so we believe wersquove crafted something that gives us the excellence that we always strive for in terms of all of our work and noise monitoring is an important point of what we do especially in todayrsquos community issues wersquore having around noise But you need to be confident that we can deliver excellence as we intend to do So if wersquore still not satisfied I will remove this once again if it is the desire of the Commission to be continued to be briefed on how to make sure we achieve our goals
Commissioner Mazzola said so as far as Irsquom concern let me speak up here I think we ought to let the RFP go out and when they come back then we ought to really hone in on what we really want But I think we need to get on with it and not hold it up longer
Commissioner Johns said Irsquom fine with that I just think itrsquos important that we get some entity that is qualified
Commissioner Mazzola said so I think that will be the report Thank you for that
Item No 7 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
7 Approval of Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project Turner Construction Company $12073574
No 18‐0288 Resolution approving Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project with Turner Construction Company to increase the contract capacity by $12073574 for a new total contract capacity amount of $69930727 and with no change to the contract duration
Ms Judi Mosqueda Director of Project Management said good morning Commissioners
This item is for your approval of Phase C6 adding Trade Package Set No 4 into our contract with Turner Construction for the Demolition of Terminal 2 Air Traffic Control Tower
Minutes September 4 2018 Page 16
Project The Phase C6 approval will increase the contract capacity by $121 million for a new contract capacity amount of $699 million with a corresponding amount of contingency and with no change to the contract duration
The Project includes demolition of the existing air traffic control tower and design and construction of a new office block on top of T2 The new floors may be used for a new airline lounge office space a new employee cafe and a public observation deck As you know demolition of the old tower has been completed already Steel erection for the new floors is beginning this month
This approval will provide for Trade Package Set No 4 to be added to the contract The trade package set includes SeismicMain Building Concrete Glazing Storefront and Metal Panels Exterior Framing and Plaster Plumbing and Air Handling Units
The forecast for this contract is $831 million which falls within the budget of $841 million and includes appropriate levels of contingency The Project is on‐schedule to be substantially complete in August of 2019
The LBE goals for this contract are 24 for design services and 20 for construction services and Turner Construction is committed to meeting these goals
We recommend your approval and I would be happy to answer questions
There were no questions from the Commissioners
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS The Consent Calendar Item Nos 8 through 12 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Mazzola
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $1852527
No 18‐0289 Resolution approving Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project with PMANBA Joint Venture in an amount of $1852527 for a new contract amount not to exceed $6348283 for services through March 31 2020
Minutes September 4 2018 Page 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project Faith Group LLC $1736000
No 18‐0290 Resolution approving Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project with Faith Group LLC in an amount of $1736000 for a new contract amount not to exceed $3266000 for services through October 18 2019
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services to Loza Upholstery Inc for $800000 Kay Chesterfield Inc for $800000
No 18‐0291 Resolutions awarding Professional Services Contract No 5014501 As‐No 18‐0292 Needed Furniture Repair and Re‐upholstery services to Loza Upholstery
Inc and Contract No 5014502 to Kay Chesterfield Inc each with a contract amount not‐to‐exceed $800000 with a contract duration of five years
Commissioner Johns said I donrsquot have a question I have a comment Item 10 I was very happy to see that item because I was in Terminal 2 in the baggage area and we have some seating there that really needs to be reupholstered or perhaps replaced But I was happy to see this item and I do hope that we review all furniture and either reupholster or replace and specifically I would like to point out that there is therersquos sort of curve seating that theyrsquore in white leather They werenrsquot good from the beginning and they need attention
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project CAGE Professional Services Inc dba CAGE Inc $750000
No 18‐0293 Resolution approving Modification No 11 (Annual Renewal) to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project with CAGE
Minutes September 4 2018 Page 18
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
that a lot of proponents out there as I said earlier I received at least five calls And so I donrsquot know what else to say regarding this I thought I was okay with it read it through again and it does concern me
Commissioner Mazzola asked Ivar you want to weigh‐in
Mr Satero replied yeah sure I will Commissioners my apologies We thought we had made the necessary tweaks We certainly want you to be comfortable with this We are we know therersquos three firms that do this kind of work that are very well qualified We want a competitive process and so we believe wersquove crafted something that gives us the excellence that we always strive for in terms of all of our work and noise monitoring is an important point of what we do especially in todayrsquos community issues wersquore having around noise But you need to be confident that we can deliver excellence as we intend to do So if wersquore still not satisfied I will remove this once again if it is the desire of the Commission to be continued to be briefed on how to make sure we achieve our goals
Commissioner Mazzola said so as far as Irsquom concern let me speak up here I think we ought to let the RFP go out and when they come back then we ought to really hone in on what we really want But I think we need to get on with it and not hold it up longer
Commissioner Johns said Irsquom fine with that I just think itrsquos important that we get some entity that is qualified
Commissioner Mazzola said so I think that will be the report Thank you for that
Item No 7 was approved unanimously by a motion by Commissioner Crayton and a second by Commissioner Guggenhime
7 Approval of Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project Turner Construction Company $12073574
No 18‐0288 Resolution approving Phase C6 to Contract No 903466 Design‐Build Services for the Demolition of Terminal 2 Air Traffic Control Tower Project with Turner Construction Company to increase the contract capacity by $12073574 for a new total contract capacity amount of $69930727 and with no change to the contract duration
Ms Judi Mosqueda Director of Project Management said good morning Commissioners
This item is for your approval of Phase C6 adding Trade Package Set No 4 into our contract with Turner Construction for the Demolition of Terminal 2 Air Traffic Control Tower
Minutes September 4 2018 Page 16
Project The Phase C6 approval will increase the contract capacity by $121 million for a new contract capacity amount of $699 million with a corresponding amount of contingency and with no change to the contract duration
The Project includes demolition of the existing air traffic control tower and design and construction of a new office block on top of T2 The new floors may be used for a new airline lounge office space a new employee cafe and a public observation deck As you know demolition of the old tower has been completed already Steel erection for the new floors is beginning this month
This approval will provide for Trade Package Set No 4 to be added to the contract The trade package set includes SeismicMain Building Concrete Glazing Storefront and Metal Panels Exterior Framing and Plaster Plumbing and Air Handling Units
The forecast for this contract is $831 million which falls within the budget of $841 million and includes appropriate levels of contingency The Project is on‐schedule to be substantially complete in August of 2019
The LBE goals for this contract are 24 for design services and 20 for construction services and Turner Construction is committed to meeting these goals
We recommend your approval and I would be happy to answer questions
There were no questions from the Commissioners
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS The Consent Calendar Item Nos 8 through 12 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Mazzola
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $1852527
No 18‐0289 Resolution approving Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project with PMANBA Joint Venture in an amount of $1852527 for a new contract amount not to exceed $6348283 for services through March 31 2020
Minutes September 4 2018 Page 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project Faith Group LLC $1736000
No 18‐0290 Resolution approving Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project with Faith Group LLC in an amount of $1736000 for a new contract amount not to exceed $3266000 for services through October 18 2019
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services to Loza Upholstery Inc for $800000 Kay Chesterfield Inc for $800000
No 18‐0291 Resolutions awarding Professional Services Contract No 5014501 As‐No 18‐0292 Needed Furniture Repair and Re‐upholstery services to Loza Upholstery
Inc and Contract No 5014502 to Kay Chesterfield Inc each with a contract amount not‐to‐exceed $800000 with a contract duration of five years
Commissioner Johns said I donrsquot have a question I have a comment Item 10 I was very happy to see that item because I was in Terminal 2 in the baggage area and we have some seating there that really needs to be reupholstered or perhaps replaced But I was happy to see this item and I do hope that we review all furniture and either reupholster or replace and specifically I would like to point out that there is therersquos sort of curve seating that theyrsquore in white leather They werenrsquot good from the beginning and they need attention
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project CAGE Professional Services Inc dba CAGE Inc $750000
No 18‐0293 Resolution approving Modification No 11 (Annual Renewal) to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project with CAGE
Minutes September 4 2018 Page 18
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Project The Phase C6 approval will increase the contract capacity by $121 million for a new contract capacity amount of $699 million with a corresponding amount of contingency and with no change to the contract duration
The Project includes demolition of the existing air traffic control tower and design and construction of a new office block on top of T2 The new floors may be used for a new airline lounge office space a new employee cafe and a public observation deck As you know demolition of the old tower has been completed already Steel erection for the new floors is beginning this month
This approval will provide for Trade Package Set No 4 to be added to the contract The trade package set includes SeismicMain Building Concrete Glazing Storefront and Metal Panels Exterior Framing and Plaster Plumbing and Air Handling Units
The forecast for this contract is $831 million which falls within the budget of $841 million and includes appropriate levels of contingency The Project is on‐schedule to be substantially complete in August of 2019
The LBE goals for this contract are 24 for design services and 20 for construction services and Turner Construction is committed to meeting these goals
We recommend your approval and I would be happy to answer questions
There were no questions from the Commissioners
G CONSENT CALENDAR OF ROUTINE ADMINISTATIVE MATTERS The Consent Calendar Item Nos 8 through 12 was approved unanimously upon a motion by Commissioner Crayton and a second by Commissioner Mazzola
8 Approval of Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project PMANBA Joint Venture $1852527
No 18‐0289 Resolution approving Modification No 6 (Annual Renewal) to Professional Services Contract No 8427C9 Project Management Support Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project with PMANBA Joint Venture in an amount of $1852527 for a new contract amount not to exceed $6348283 for services through March 31 2020
Minutes September 4 2018 Page 17
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project Faith Group LLC $1736000
No 18‐0290 Resolution approving Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project with Faith Group LLC in an amount of $1736000 for a new contract amount not to exceed $3266000 for services through October 18 2019
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services to Loza Upholstery Inc for $800000 Kay Chesterfield Inc for $800000
No 18‐0291 Resolutions awarding Professional Services Contract No 5014501 As‐No 18‐0292 Needed Furniture Repair and Re‐upholstery services to Loza Upholstery
Inc and Contract No 5014502 to Kay Chesterfield Inc each with a contract amount not‐to‐exceed $800000 with a contract duration of five years
Commissioner Johns said I donrsquot have a question I have a comment Item 10 I was very happy to see that item because I was in Terminal 2 in the baggage area and we have some seating there that really needs to be reupholstered or perhaps replaced But I was happy to see this item and I do hope that we review all furniture and either reupholster or replace and specifically I would like to point out that there is therersquos sort of curve seating that theyrsquore in white leather They werenrsquot good from the beginning and they need attention
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project CAGE Professional Services Inc dba CAGE Inc $750000
No 18‐0293 Resolution approving Modification No 11 (Annual Renewal) to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project with CAGE
Minutes September 4 2018 Page 18
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
9 Approval of Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project Faith Group LLC $1736000
No 18‐0290 Resolution approving Modification No 2 (Annual Renewal) to Professional Services Contract No 1106841 Project Management Support Services for the Energy Management Control System Project with Faith Group LLC in an amount of $1736000 for a new contract amount not to exceed $3266000 for services through October 18 2019
10 Award of Professional Services Contract No 5014501 and Contract No 5014502 for As‐Needed Furniture Repair and Re‐Upholstery Services to Loza Upholstery Inc for $800000 Kay Chesterfield Inc for $800000
No 18‐0291 Resolutions awarding Professional Services Contract No 5014501 As‐No 18‐0292 Needed Furniture Repair and Re‐upholstery services to Loza Upholstery
Inc and Contract No 5014502 to Kay Chesterfield Inc each with a contract amount not‐to‐exceed $800000 with a contract duration of five years
Commissioner Johns said I donrsquot have a question I have a comment Item 10 I was very happy to see that item because I was in Terminal 2 in the baggage area and we have some seating there that really needs to be reupholstered or perhaps replaced But I was happy to see this item and I do hope that we review all furniture and either reupholster or replace and specifically I would like to point out that there is therersquos sort of curve seating that theyrsquore in white leather They werenrsquot good from the beginning and they need attention
11 Approval of Modification No 11 to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project CAGE Professional Services Inc dba CAGE Inc $750000
No 18‐0293 Resolution approving Modification No 11 (Annual Renewal) to Professional Services Contract No 90249 Construction Management Services for the International Terminal Checked Baggage Inspection System Modernization Program and Baggage Handling System Improvements Project with CAGE
Minutes September 4 2018 Page 18
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Professional Services Inc dba CAGE Inc in an amount of $750000 for a new contract amount not to exceed $11445000 and a new contract duration through September 30 2019 ‐
12 Award Contract No 50174 Computer Based Training Maintenance and Support Safety and Security Instruction (SSI) Inc $255000
No 18‐0294 Resolution awarding Contract No 50174 Safety and Security Instruction (SSI) Inc for Computer Based Training Maintenance and Support Services in an amount not to exceed $255000 for the period of October 1 2018 through June 30 2021 with one (1) two‐year option to extend‐
H NEW BUSINESS Discussion only This is the Public Comment section of the calendar Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to two (2) minutes Please fill out a Request to Speak form located on the table next to the speakers microphone and submit it to the Commission Secretary
There were no speakers
I CORRESPONDENCE There was no discussion by the Commission
J CLOSED SESSION There are no planned agenda items for a Closed Session for the current meeting
In the event of any urgent matter requiring immediate action which has come to the attention of the Airport Commission after the agenda was issued and which is an item appropriately addressed in Closed Session the Airport Commission may discuss and vote whether to conduct a Closed Session under Brown Act (California Government Code Sections 549542(b)(2) and 549545) and Sunshine Ordinance (San Francisco Administrative Code Section 6711)
If the Airport Commission enters Closed Session under such circumstances the Airport Commission will discuss and vote whether to disclose action taken or discussions held in Closed Session under the Brown Act (California Government Code Section 549571) and Sunshine Ordinance (San Francisco Administrative Code Section 6712)
Minutes September 4 2018 Page 19
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
K ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 942 AM
(Original signed by Corina Monzoacuten) C Corina Monzoacuten Airport Commission Secretary
Minutes September 4 2018 Page 20
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Analysis of Airline Traffic Fiscal Year 201718 September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Total Airport Passengers in FY 2018
57780300 7 increase from FY 2017
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2017 ndash June 2018 2
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Major International Gateways
Year-over-Year Passenger Growth
Boston-Logan and Washington Dulles data reflects FYTD May 2018 Source Air Traffic data posted on respective Airportsrsquo websites
70
51 45
41 41 40 37
10 09
01 01
-4
-2
0
2
4
6
8
10
C
hang
e in
Tota
l Airp
ort P
asse
nger
s
3
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Bay Area Airports
Bay Area Airport FY 2018 Growth FY 2018 Enplanement Growth (Passengers)
San Francisco (SFO) 72 19 Million Oakland (OAK) 60 04 Million San Jose (SJC) 172 10 Million Bay Area Total 85 33 Million
Source Air Traffic data submitted by respective Airportsrsquo staff 4
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Sustained Passenger Growth 8-year
700 70
Compound
2011 2012 2013 2014 2015 2016 2017 2018
Domestic International Fiscal Year
Average Growth Rate 52
00
100
200
300
400
500
600
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
77 39
32 44
66 50
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 5
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Future Passenger Growth Scenarios 71 Million
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
700
600
500
52 Compound Average Growth
Passengers in 2022
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year Domestic International
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only 6
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Tota
l SFO
Pas
seng
ers (
Mill
ions
)
71 Million Future Passenger Growth Scenarios Passengers in 2029
700
20 600 Compound
Average Growth 500
400
300
200
100
00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Fiscal Year Domestic International 7
Source Monthly Air Traffic Activity Reports submitted by Airlines July 2010 ndash June 2018 Forecast scenario for illustrative purposes only
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Short Term Outlook
Scheduled Outbound Seats
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Fiscal Year Projection
Domestic -07 -19 -40 -42 -45 10
International 28 53 76 103 84 60
SFO Total 02 -01 -13 -10 -15 22
Source Official Airline Guide schedules as of July 2018 (subject to change) Fiscal Year Projection for illustrative purposes only 8
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Canada +82000 Europe +86000 Asia +164000 outbound seats outbound seats outbound seats
AUSNZSouth Pacific
Latin America +23000 +103000 outbound seats
outbound seats
Source Official Airline Guide FY 2018 vs FY 2017 seat capacity
5
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
Non-Airline Concessions Revenue ($ in Millions)
FY 2017 FY 2018 Incr(Decr) Preliminary
Public Parking Ground Transportation (1)
Food amp Beverage and Retail Concessions Duty Free Passenger Services (2)
Other (3)
$1068 958 374 297 243
64
$1009 1001
404 364 255
70
(52) 45 81
139 27 92
TOTAL $3002 $3103 34 Annual Service Payment
Total Annual Service Payment 15
$450 15
$464 34
(1) Commercial vehicle trip fees taxi trip fees rental car revenue (2) Advertising telephone currency exchange banking services (3) Non-airline space rentals CNG services
Source San Francisco International Airport Preliminary Fiscal Year-End 2018 Financials 10
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
SPECIAL ADVISORY COMMITTEE TO CONSIDER AND RECOMMEND ACTION
ON THE NOMINATION OF
Edwin M Lee FOR NAMING OR DEDICATION AT
THE SAN FRANCISCO INTERNATIONAL AIRPORT
Proposed Appointments to the Committee by President Mazzola
Larry Mazzola President San Francisco Airport Commission
Linda S Crayton Vice President San Francisco Airport Commission
Eleanor Johns Commissioner San Francisco Airport Commission
Richard J Guggenhime Commissioner San Francisco Airport Commission
Peter A Stern Commissioner San Francisco Airport Commission
John L Martin Former Airport Director San Francisco International Airport
Anni Chung President and CEO Self Help for the Elderly San Francisco
Melinda Yee Franklin Managing Director Corporate and Government Affairs Western Region United Airlines
Anthony ldquoTonyrdquo Ribera Former Chief of Police City and County of San Francisco Department Chair Assistant Professor University of San Francisco
Airport Commission Meeting September 4 2018
