SAN FRANCISCO AIRPORT COMMISSION

MINUTES April 3 2018

900 AM

Room 400 - City Hall 1 Dr Carlton B Goodlett Place

(400 Van Ness Avenue) City and County of San Francisco

MARK FARRELL MAYOR

COMMISSIONERS LARRY MAZZOLA

President LINDA S CRAYTON

Vice President ELEANOR JOHNS

RICHARD J GUGGENHIME PETER A STERN

IVAR C SATERO Airport Director

SAN FRANCISCO INTERNATIONAL AIRPORT SAN FRANCISCO CALIFORNIA 94128

Minutes of the Airport Commission Meeting of April 3 2018

CALENDAR AGENDA RESOLUTION SECTION ITEM TITLE NUMBER PAGE

A CALL TO ORDER 4

B ROLL CALL 4

C ADOPTION OF MINUTES Regular meeting of March 20 2018 18-0088 4

D ITEMS INITIATED BY COMMISSIONERS Commission Secretary appointment Discussion and overall process and timeline for recruiting and interviewing potential candidates DISCUSSION ONLY 4

E ITEMS RELATING TO ADMINISTRATION OPERATIONS amp MAINTENANCE

1 Authorize Sale of Additional $278000000 Aggregate Principal Amount of Previously Approved SFIA Second Series Revenue Bonds for Hotel Project and Related Purposes and $260000000 Aggregate Principal Amount of Previously Approved SFIA Special Facility Bonds for the Hotel Project 18-0089 4-6

2 Authorize Sale of Additional $950000000 Aggregate Principal Amount of Previously Approved SFIA Second Series Revenue Bonds for Capital Plan Purposes 18-0090 4-6

3 Execute Letter of Credit amp Reimbursement Agreements with 6-8 (1) Sumitomo Mitsui Banking Corporation and 18-0091 (2) Barclays Bank PLC 18-0092

4 Phase C5 to Contract 1001166 - Design-Build Services for Terminal 1 Center Project - Hensel Phelps Construction Co 18-0093 8

5 Phase C4 to Contract No 1051176 - Design-Build Services for the Airport Security Infrastructure Program - Hunt Construction Group Inc 18-0094 8-9

6 Modification No 3 (Annual Renewal) to Professional Services Contract 1125241 - PMSS for Activation Planning Services - SFO Partners 18-0095 9-10

7 Modification No 1 to Contract 50052 - Airport Information and Guest Assistance Services -Hallmark Aviation Services LP 18-0096 10-11

Minutes of the Airport Commission Meeting of April 3 2018

CALENDAR AGENDA RESOLUTION SECTION ITEM TITLE NUMBER PAGE

A CALL TO ORDER 4

B ROLL CALL 4

C ADOPTION OF MINUTES Regular meeting of March 20 2018 18-0088 4

D ITEMS INITIATED BY COMMISSIONERS Commission Secretary appointment Discussion and overall process and timeline for recruiting and interviewing potential candidates DISCUSSION ONLY 4

E ITEMS RELATING TO ADMINISTRATION OPERATIONS amp MAINTENANCE

1 Authorize Sale of Additional $278000000 Aggregate Principal Amount of Previously Approved SFIA Second Series Revenue Bonds for Hotel Project and Related Purposes and $260000000 Aggregate Principal Amount of Previously Approved SFIA Special Facility Bonds for the Hotel Project 18-0089 4-6

2 Authorize Sale of Additional $950000000 Aggregate Principal Amount of Previously Approved SFIA Second Series Revenue Bonds for Capital Plan Purposes 18-0090 4-6

3 Execute Letter of Credit amp Reimbursement Agreements with 6-8 (1) Sumitomo Mitsui Banking Corporation and 18-0091 (2) Barclays Bank PLC 18-0092

4 Phase C5 to Contract 1001166 - Design-Build Services for Terminal 1 Center Project - Hensel Phelps Construction Co 18-0093 8

5 Phase C4 to Contract No 1051176 - Design-Build Services for the Airport Security Infrastructure Program - Hunt Construction Group Inc 18-0094 8-9

6 Modification No 3 (Annual Renewal) to Professional Services Contract 1125241 - PMSS for Activation Planning Services - SFO Partners 18-0095 9-10

7 Modification No 1 to Contract 50052 - Airport Information and Guest Assistance Services -Hallmark Aviation Services LP 18-0096 10-11

8 Negotiate Contract 5010701 - Management and Operation of Airportrsquos Public and Employee Parking Facilities - New South Parking - California GP 18-0097 11-12

F CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS

9 Phase C8 of Contract 9350A66 - Design-Build Services for REACH - Customer Hospitality Boarding Areas A amp G Project - Webcor Construction LP dba Webcor Builders 18-0098 12

10 Award Contract 1114476 - Construction Services for Central Garage Tunnel Doors Project - Rubecon Builders 18-0099 12-13

11 Phase C5 to Contract 8427C66 - Design-Build Services for Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project -Walsh Construction Company II LLC 18-0100 13

12 Issue a RFP for Contract 50169 State Legislative Advocacy Services 18-0101 13

13 Modification No 2 to Professional Services Contract 50036 - Airport Management and Financial Consulting Services - LeighFisher Inc 18-0102 13

14 Modification No 4 to Contract 8977 - Airport Customer Survey Services - Corey Canapary amp Galanis 18-0103 13-14

15 Modification No 1 to Contract 1064761 - International Terminal Building Roadway Expansion Joints Repairs and Storm Drain Gutter System Replacement -Schembri Construction 18-0104 14

16 Second Amendment of Off-Airport Property Lease L09-0023 with Michael C Mitchell at 837 Malcolm Road Burlingame California 18-0105 14

G NEW BUSINESS Tariq Mehmood Cab Driver 14-15

H CORRESPONDENCE 16

I CLOSED SESSION 16

J ADJOURNMENT 16

AIRPORT COMMISSION MEETING MINUTES April 3 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 Hon Linda S Crayton Vice President

Hon Eleanor Johns Hon Richard J Guggenhime Hon Peter A Stern

Absent Hon Larry Mazzola President

C ADOPTION OF MINUTES The minutes of the regular meeting of March 20 2018 were adopted unanimously

No 17-0088

D ITEMS INITIATED BY COMMISSIONERS Commission Secretary appointment Discussion and overall process and timeline for recruiting and interviewing potential candidates DISCUSSION ONLY This item was put over without discussion

E ACTION ITEMS RELATING TO ADMINISTRATION OPERATIONS amp MAINTENANCE Item Nos 1 and 2 were called together They were approved unanimously upon a motion by Commissioner Stern and a second by Commissioner Johns 1 Authorization of the Sale of an Additional $278000000 Aggregate Principal

Amount of Previously Approved San Francisco International Airport Second Series Revenue Bonds for the Hotel Project and Related Purposes and of $260000000 Aggregate Principal Amount of Previously Approved San Francisco International Airport Special Facility Bonds for the Hotel Project

No 18-0089 Resolution authorizing the sale of an additional $278000000 aggregate principal amount of previously approved SFIA Second Series Revenue Bonds for the Hotel Project and related purposes and of $260000000 aggregate principal amount of previously approved SFIA Special Facility Bonds for the Hotel Project and related matters

2 Authorization of the Sale of an Additional $950000000 Aggregate Principal Amount of Previously Approved San Francisco International Airport Second Series Revenue Bonds for Capital Plan Purposes

No 18-0090 Resolution authorizing the sale of an additional $950000000 aggregate principal amount of previously approved SFIA Second Series Revenue Bonds for Capital Plan purposes

Mr Kevin Kone Finance Director we are requesting authorization to sell an additional $950 million of previously approved San Francisco Airport Second Series Revenue Bonds along with $278 million for the hotel project and related purposes I wanted to remind the Commission of the process we go through to sell bonds First there is a multi-step approval process Last year we came to the Commission and asked for authorization to issue bonds We then must obtain Board of Supervisors approval This morning we are back to you to seek authorization for the actual sale of the bonds Itrsquos a three-step process The two bond sales will support the Airportrsquos $74 billion Ascent Capital Improvement Program which also includes funding the new Grand Hyatt at SFO Since our bond sale last fall we have been funding our capital projects with the Airportrsquos $500 million Commercial Paper Program which is our short term bridge financing that carries us until we can sell bonds Since our last bond sale last Fall a new law was been enacted on October 9 2017 Californiarsquos Senate Bill 540 added a section to the Government Code that requires that we provide you with a good faith estimate of how much these bonds will cost the Airport over the life of the bonds prior to the authorization to issue certain bonds

The information you are about to receive is only a good faith estimate from our underwriter and municipal financial advisor For the Capital Plan bonds we believe that the true interest cost that we will sell these bonds at will be an estimated 43 We estimate that the sum of all the fees and charges will be approximately $35 million to sell these bonds so that pays for the cost of issuance Taking into account the fees deposits to the Debt Service Reserve and contingency funds paying for capitalize interest and the net bond proceeds is estimated at $9532 million Over the 30 year life of these bonds we estimate total payments of principal and interest that will pay back over 30 years will actually be about $24 billion On the hotel bonds we expect the true interest cost to be about 3 We estimate the sum of all the fees and charges at approximately $562 million

Wersquore going to pay $54 million in letter of credit fees and $17 million in bond placement fees to the underwriters Taking into account the fees and capitalized interest paid the net bond proceeds is estimated at about $215 million Over the life of the hotel bonds between principal and interest letter of credit fees and remarketing fees to the underwriters wersquoll actually pay back about $592 million over the 30 years

Both of these resolutions for these bond sales have been reviewed and approved by the Airportrsquos Financial Advisory Committee

Minutes April 3 2018 Page 5

Commissioner Crayton you said the rule change happened in October 2017

Mr Kone the California State Senate passed a law on October 9 2017

Commissioner Crayton I want to be clear about it

Mr Kone the specification to the Government Code was for me to provide the estimate of these fees for both of these bond sales at a public meeting

Commissioner Crayton you have to have a prior conversation

Mr Kone correct In the future we may include these items in the Commission package This wasnrsquot in the package itself so we were required to do this in a public setting

Commissioner Crayton I would like a briefing I want to be able to clearly understand this This is a lot of money and I know that we have some financial wizards on the Commission

Mr Kone wersquod be happy to do that

Commissioner Johns you gave us a percentage and then you delineated what they were in actual dollars Irsquom just trying to find out if the 43 and the 3 on the hotel if those were the total

Mr Kone yes Those are the estimated interest rates that we expect the investors will charge us to sell these bonds on the open market So 43 for the $970 million and we expect to sell the hotel bonds at about 3 interest rate

Commissioner Johns I think I misunderstood You were saying the 43 is not the total percentage that we are paying on the bonds

Mr Kone no It is Itrsquos just an estimate at this point The market may move up and down by the time we sell but for todayrsquos purposes of calculating all the numbers we made an assumption that we would be selling the bonds in todayrsquos market at 43

Item No 3 was approved unanimously upon a motion by Commissioner Guggenhime and a second by Commissioner Stern

3 Authorization to Execute Letter of Credit and Reimbursement Agreements with (1) Sumitomo Mitsui Banking Corporation to Secure Up to $139 Million Principal Amount of Airport Commission Variable Rate Bonds for a Term of Four Years and (2) Barclays Bank PLC to Secure Up to $139 Million Principal Amount of Airport Commission Variable Rate Bonds for a Term of Four Years

Resolutions authorizing the Execution of Letter of Credit and Reimbursement Agreements with

Minutes April 3 2018 Page 6

No 18-0091 (1) Sumitomo Mitsui Banking Corporation acting through its New York branch to secure up to $139 million principal amount of Airport Commission Variable Rate Bonds for a term of four years and

No 18-0092 (2) Barclays Bank PLC to secure up to $139 million principal amount of Airport Commission Variable Rate Bonds for a term of four years

Mr Kone this item seeks authorization to execute Letters of Credit and Reimbursement Agreements with Sumitomo Mitsui Banking Corporation for $139 million and Barclays Bank PLC for another $139 million

On January 18th staff solicited proposals from an established pool of pre-qualified credit and liquidity facility providers for the hotel project When developing the feasibility study for the new on-airport hotel the team determined that variable rate debt where interest rates reset every seven days will provide the lowest cost financing for the airport hotel giving the hotel the best chance of financial flexibility and success during the first three years of the start up period After a careful review staff and the Airportrsquos financial advisor selected Sumitomo and Barclays each for a letter of credit securing the total of $278 million together Barclays proposed the lowest facility fee of 39 or 39 basis points for a four year term After negotiating with Sumitomo they agreed to lower their fee to 39 basis points as well The variable bond holders unlike fixed rate bond holders actually have the right to demand their money back after seven days So what happens with variable rate debt is the interest rate resets every seven days At the end of the seven days if investors want their money back rather than using the Airportrsquos money to pay the investor we draw on these letters of credit By doing so Sumitomo and Barclays receive a fee Itrsquos a safety back stop for these bonds When you do a variable rate debt you have to have a letter of credit backing these bonds for security purposes We hope to sell these bonds this summer The airport hotel has been financed with commercial paper up to this time so this will transfer that commercial paper funding into bond financing Both letters of credit have been reviewed by the Airportrsquos Financial Advisory Committee

Currently the banks are comfortable with four year terms With rising interest rates they can only guarantee four years of credit Wersquoll then put out another RFP to solicit renewals for these credit facilities Wersquove been doing that for the variable rate program so we plan for the renewals in advance of the expiration In the event we canrsquot get it we have a couple of options We can convert the variable rate into the $500 million commercial paper program or as a last resort we can convert that variable rate to fixed rate and just access the bond market

Commissioner Crayton I want to make sure you said that possibly if this didnrsquot work convert the variable into a market rate And what is the probability of having to pay more at that particular point in time

Mr Kone itrsquos hard to judge The market is moving up and down Wersquove been in a rising interest rate environment for the last 15 years but the variable rate in

Minutes April 3 2018 Page 7

general is typically lower than the fixed rate so we will still be saving money by using variable rate

Commissioner Guggenhime what happened when interest rates were 12 13 14 do you recall any incidents with respect to the Airport

Mr Kone during that time the Airport didnrsquot have variable rate debt but traditionally over the 30 year period therersquos always been a difference of 2 to 3 between variable and fixed rate

Item No 4 was approved unanimously upon a motion by Commissioner Stern and a second by Commissioner Johns

4 Approval of Phase C5 to Contract No 1001166 - Design-Build Services for the Terminal 1 Center Project - Hensel Phelps Construction Co - $67991073

No 18-0093 Resolution approving Phase C5 to Contract No 1001166 Design-Build Services for the Terminal 1 Center Project with Hensel Phelps Construction Company to increase the contract capacity by $67991073 for a new contract capacity amount of $765360650 and to extend the total contract duration to 2943 consecutive calendar days

Ms Judi Mosqueda Planning Design and Construction this requests your approval of Phase C5 to the Design Build contract with Hensel Phelps to add scope for energy efficiency shared use passenger processing and security enhancements and Trade Package Sets (TPS) Nos 10 and 11 The project is constructing a new architectural envelope and complete electrical mechanical and special system replacements Phase C5 approval will provide for TPS Nos 10 and 11 to be added to the contract including BEUMER Controls Hardware Components BHS Catwalk and Miscellaneous Equipment BHS Conveyor and Upper Level Controls and BHS Activation and Commission Interior and Exterior Drywall and Framing The Phase C5 approval will increase the contract amount by $68 million for a new total contract amount of $765 million The budget for this contract is $126 billion Currently the forecast is at $126 billion with appropriate levels of contingencies The project is on schedule to be substantially completed by December 2022 The LBE goals are 25 for design and 18 for construction subcontracting services Hensel Phelps is committed to meeting these goals

Item No 5 was approved unanimously upon a motion by Commissioner Stern and a second by Commissioner Johns

5 Approval of Phase C4 to Contract No 1051176 - Design-Build Services for the Airport Security Infrastructure Program - Hunt Construction Group Inc - $27974900

Minutes April 3 2018 Page 8

2 Authorization of the Sale of an Additional $950000000 Aggregate Principal Amount of Previously Approved San Francisco International Airport Second Series Revenue Bonds for Capital Plan Purposes

No 18-0090 Resolution authorizing the sale of an additional $950000000 aggregate principal amount of previously approved SFIA Second Series Revenue Bonds for Capital Plan purposes

Mr Kevin Kone Finance Director we are requesting authorization to sell an additional $950 million of previously approved San Francisco Airport Second Series Revenue Bonds along with $278 million for the hotel project and related purposes I wanted to remind the Commission of the process we go through to sell bonds First there is a multi-step approval process Last year we came to the Commission and asked for authorization to issue bonds We then must obtain Board of Supervisors approval This morning we are back to you to seek authorization for the actual sale of the bonds Itrsquos a three-step process The two bond sales will support the Airportrsquos $74 billion Ascent Capital Improvement Program which also includes funding the new Grand Hyatt at SFO Since our bond sale last fall we have been funding our capital projects with the Airportrsquos $500 million Commercial Paper Program which is our short term bridge financing that carries us until we can sell bonds Since our last bond sale last Fall a new law was been enacted on October 9 2017 Californiarsquos Senate Bill 540 added a section to the Government Code that requires that we provide you with a good faith estimate of how much these bonds will cost the Airport over the life of the bonds prior to the authorization to issue certain bonds

The information you are about to receive is only a good faith estimate from our underwriter and municipal financial advisor For the Capital Plan bonds we believe that the true interest cost that we will sell these bonds at will be an estimated 43 We estimate that the sum of all the fees and charges will be approximately $35 million to sell these bonds so that pays for the cost of issuance Taking into account the fees deposits to the Debt Service Reserve and contingency funds paying for capitalize interest and the net bond proceeds is estimated at $9532 million Over the 30 year life of these bonds we estimate total payments of principal and interest that will pay back over 30 years will actually be about $24 billion On the hotel bonds we expect the true interest cost to be about 3 We estimate the sum of all the fees and charges at approximately $562 million

Wersquore going to pay $54 million in letter of credit fees and $17 million in bond placement fees to the underwriters Taking into account the fees and capitalized interest paid the net bond proceeds is estimated at about $215 million Over the life of the hotel bonds between principal and interest letter of credit fees and remarketing fees to the underwriters wersquoll actually pay back about $592 million over the 30 years

Both of these resolutions for these bond sales have been reviewed and approved by the Airportrsquos Financial Advisory Committee

Minutes April 3 2018 Page 5

Commissioner Crayton you said the rule change happened in October 2017

Mr Kone the California State Senate passed a law on October 9 2017

Commissioner Crayton I want to be clear about it

Mr Kone the specification to the Government Code was for me to provide the estimate of these fees for both of these bond sales at a public meeting

Commissioner Crayton you have to have a prior conversation

Mr Kone correct In the future we may include these items in the Commission package This wasnrsquot in the package itself so we were required to do this in a public setting

Commissioner Crayton I would like a briefing I want to be able to clearly understand this This is a lot of money and I know that we have some financial wizards on the Commission

Mr Kone wersquod be happy to do that

Commissioner Johns you gave us a percentage and then you delineated what they were in actual dollars Irsquom just trying to find out if the 43 and the 3 on the hotel if those were the total

Mr Kone yes Those are the estimated interest rates that we expect the investors will charge us to sell these bonds on the open market So 43 for the $970 million and we expect to sell the hotel bonds at about 3 interest rate

Commissioner Johns I think I misunderstood You were saying the 43 is not the total percentage that we are paying on the bonds

Mr Kone no It is Itrsquos just an estimate at this point The market may move up and down by the time we sell but for todayrsquos purposes of calculating all the numbers we made an assumption that we would be selling the bonds in todayrsquos market at 43

Item No 3 was approved unanimously upon a motion by Commissioner Guggenhime and a second by Commissioner Stern

3 Authorization to Execute Letter of Credit and Reimbursement Agreements with (1) Sumitomo Mitsui Banking Corporation to Secure Up to $139 Million Principal Amount of Airport Commission Variable Rate Bonds for a Term of Four Years and (2) Barclays Bank PLC to Secure Up to $139 Million Principal Amount of Airport Commission Variable Rate Bonds for a Term of Four Years

Resolutions authorizing the Execution of Letter of Credit and Reimbursement Agreements with

Minutes April 3 2018 Page 6

No 18-0091 (1) Sumitomo Mitsui Banking Corporation acting through its New York branch to secure up to $139 million principal amount of Airport Commission Variable Rate Bonds for a term of four years and

No 18-0092 (2) Barclays Bank PLC to secure up to $139 million principal amount of Airport Commission Variable Rate Bonds for a term of four years

Mr Kone this item seeks authorization to execute Letters of Credit and Reimbursement Agreements with Sumitomo Mitsui Banking Corporation for $139 million and Barclays Bank PLC for another $139 million

On January 18th staff solicited proposals from an established pool of pre-qualified credit and liquidity facility providers for the hotel project When developing the feasibility study for the new on-airport hotel the team determined that variable rate debt where interest rates reset every seven days will provide the lowest cost financing for the airport hotel giving the hotel the best chance of financial flexibility and success during the first three years of the start up period After a careful review staff and the Airportrsquos financial advisor selected Sumitomo and Barclays each for a letter of credit securing the total of $278 million together Barclays proposed the lowest facility fee of 39 or 39 basis points for a four year term After negotiating with Sumitomo they agreed to lower their fee to 39 basis points as well The variable bond holders unlike fixed rate bond holders actually have the right to demand their money back after seven days So what happens with variable rate debt is the interest rate resets every seven days At the end of the seven days if investors want their money back rather than using the Airportrsquos money to pay the investor we draw on these letters of credit By doing so Sumitomo and Barclays receive a fee Itrsquos a safety back stop for these bonds When you do a variable rate debt you have to have a letter of credit backing these bonds for security purposes We hope to sell these bonds this summer The airport hotel has been financed with commercial paper up to this time so this will transfer that commercial paper funding into bond financing Both letters of credit have been reviewed by the Airportrsquos Financial Advisory Committee

Currently the banks are comfortable with four year terms With rising interest rates they can only guarantee four years of credit Wersquoll then put out another RFP to solicit renewals for these credit facilities Wersquove been doing that for the variable rate program so we plan for the renewals in advance of the expiration In the event we canrsquot get it we have a couple of options We can convert the variable rate into the $500 million commercial paper program or as a last resort we can convert that variable rate to fixed rate and just access the bond market

Commissioner Crayton I want to make sure you said that possibly if this didnrsquot work convert the variable into a market rate And what is the probability of having to pay more at that particular point in time

Mr Kone itrsquos hard to judge The market is moving up and down Wersquove been in a rising interest rate environment for the last 15 years but the variable rate in

Minutes April 3 2018 Page 7

general is typically lower than the fixed rate so we will still be saving money by using variable rate

Commissioner Guggenhime what happened when interest rates were 12 13 14 do you recall any incidents with respect to the Airport

Mr Kone during that time the Airport didnrsquot have variable rate debt but traditionally over the 30 year period therersquos always been a difference of 2 to 3 between variable and fixed rate

Item No 4 was approved unanimously upon a motion by Commissioner Stern and a second by Commissioner Johns

4 Approval of Phase C5 to Contract No 1001166 - Design-Build Services for the Terminal 1 Center Project - Hensel Phelps Construction Co - $67991073

No 18-0093 Resolution approving Phase C5 to Contract No 1001166 Design-Build Services for the Terminal 1 Center Project with Hensel Phelps Construction Company to increase the contract capacity by $67991073 for a new contract capacity amount of $765360650 and to extend the total contract duration to 2943 consecutive calendar days

Ms Judi Mosqueda Planning Design and Construction this requests your approval of Phase C5 to the Design Build contract with Hensel Phelps to add scope for energy efficiency shared use passenger processing and security enhancements and Trade Package Sets (TPS) Nos 10 and 11 The project is constructing a new architectural envelope and complete electrical mechanical and special system replacements Phase C5 approval will provide for TPS Nos 10 and 11 to be added to the contract including BEUMER Controls Hardware Components BHS Catwalk and Miscellaneous Equipment BHS Conveyor and Upper Level Controls and BHS Activation and Commission Interior and Exterior Drywall and Framing The Phase C5 approval will increase the contract amount by $68 million for a new total contract amount of $765 million The budget for this contract is $126 billion Currently the forecast is at $126 billion with appropriate levels of contingencies The project is on schedule to be substantially completed by December 2022 The LBE goals are 25 for design and 18 for construction subcontracting services Hensel Phelps is committed to meeting these goals

Item No 5 was approved unanimously upon a motion by Commissioner Stern and a second by Commissioner Johns

5 Approval of Phase C4 to Contract No 1051176 - Design-Build Services for the Airport Security Infrastructure Program - Hunt Construction Group Inc - $27974900

Minutes April 3 2018 Page 8

Commissioner Crayton you said the rule change happened in October 2017

Mr Kone the California State Senate passed a law on October 9 2017

Commissioner Crayton I want to be clear about it

Mr Kone the specification to the Government Code was for me to provide the estimate of these fees for both of these bond sales at a public meeting

Commissioner Crayton you have to have a prior conversation

Mr Kone correct In the future we may include these items in the Commission package This wasnrsquot in the package itself so we were required to do this in a public setting

Commissioner Crayton I would like a briefing I want to be able to clearly understand this This is a lot of money and I know that we have some financial wizards on the Commission

Mr Kone wersquod be happy to do that

Commissioner Johns you gave us a percentage and then you delineated what they were in actual dollars Irsquom just trying to find out if the 43 and the 3 on the hotel if those were the total

Mr Kone yes Those are the estimated interest rates that we expect the investors will charge us to sell these bonds on the open market So 43 for the $970 million and we expect to sell the hotel bonds at about 3 interest rate

Commissioner Johns I think I misunderstood You were saying the 43 is not the total percentage that we are paying on the bonds

Mr Kone no It is Itrsquos just an estimate at this point The market may move up and down by the time we sell but for todayrsquos purposes of calculating all the numbers we made an assumption that we would be selling the bonds in todayrsquos market at 43

Item No 3 was approved unanimously upon a motion by Commissioner Guggenhime and a second by Commissioner Stern

3 Authorization to Execute Letter of Credit and Reimbursement Agreements with (1) Sumitomo Mitsui Banking Corporation to Secure Up to $139 Million Principal Amount of Airport Commission Variable Rate Bonds for a Term of Four Years and (2) Barclays Bank PLC to Secure Up to $139 Million Principal Amount of Airport Commission Variable Rate Bonds for a Term of Four Years

Resolutions authorizing the Execution of Letter of Credit and Reimbursement Agreements with

Minutes April 3 2018 Page 6

No 18-0091 (1) Sumitomo Mitsui Banking Corporation acting through its New York branch to secure up to $139 million principal amount of Airport Commission Variable Rate Bonds for a term of four years and

No 18-0092 (2) Barclays Bank PLC to secure up to $139 million principal amount of Airport Commission Variable Rate Bonds for a term of four years

Mr Kone this item seeks authorization to execute Letters of Credit and Reimbursement Agreements with Sumitomo Mitsui Banking Corporation for $139 million and Barclays Bank PLC for another $139 million

On January 18th staff solicited proposals from an established pool of pre-qualified credit and liquidity facility providers for the hotel project When developing the feasibility study for the new on-airport hotel the team determined that variable rate debt where interest rates reset every seven days will provide the lowest cost financing for the airport hotel giving the hotel the best chance of financial flexibility and success during the first three years of the start up period After a careful review staff and the Airportrsquos financial advisor selected Sumitomo and Barclays each for a letter of credit securing the total of $278 million together Barclays proposed the lowest facility fee of 39 or 39 basis points for a four year term After negotiating with Sumitomo they agreed to lower their fee to 39 basis points as well The variable bond holders unlike fixed rate bond holders actually have the right to demand their money back after seven days So what happens with variable rate debt is the interest rate resets every seven days At the end of the seven days if investors want their money back rather than using the Airportrsquos money to pay the investor we draw on these letters of credit By doing so Sumitomo and Barclays receive a fee Itrsquos a safety back stop for these bonds When you do a variable rate debt you have to have a letter of credit backing these bonds for security purposes We hope to sell these bonds this summer The airport hotel has been financed with commercial paper up to this time so this will transfer that commercial paper funding into bond financing Both letters of credit have been reviewed by the Airportrsquos Financial Advisory Committee

Currently the banks are comfortable with four year terms With rising interest rates they can only guarantee four years of credit Wersquoll then put out another RFP to solicit renewals for these credit facilities Wersquove been doing that for the variable rate program so we plan for the renewals in advance of the expiration In the event we canrsquot get it we have a couple of options We can convert the variable rate into the $500 million commercial paper program or as a last resort we can convert that variable rate to fixed rate and just access the bond market

Commissioner Crayton I want to make sure you said that possibly if this didnrsquot work convert the variable into a market rate And what is the probability of having to pay more at that particular point in time

Mr Kone itrsquos hard to judge The market is moving up and down Wersquove been in a rising interest rate environment for the last 15 years but the variable rate in

Minutes April 3 2018 Page 7

general is typically lower than the fixed rate so we will still be saving money by using variable rate

Commissioner Guggenhime what happened when interest rates were 12 13 14 do you recall any incidents with respect to the Airport

Mr Kone during that time the Airport didnrsquot have variable rate debt but traditionally over the 30 year period therersquos always been a difference of 2 to 3 between variable and fixed rate

Item No 4 was approved unanimously upon a motion by Commissioner Stern and a second by Commissioner Johns

4 Approval of Phase C5 to Contract No 1001166 - Design-Build Services for the Terminal 1 Center Project - Hensel Phelps Construction Co - $67991073

No 18-0093 Resolution approving Phase C5 to Contract No 1001166 Design-Build Services for the Terminal 1 Center Project with Hensel Phelps Construction Company to increase the contract capacity by $67991073 for a new contract capacity amount of $765360650 and to extend the total contract duration to 2943 consecutive calendar days

Ms Judi Mosqueda Planning Design and Construction this requests your approval of Phase C5 to the Design Build contract with Hensel Phelps to add scope for energy efficiency shared use passenger processing and security enhancements and Trade Package Sets (TPS) Nos 10 and 11 The project is constructing a new architectural envelope and complete electrical mechanical and special system replacements Phase C5 approval will provide for TPS Nos 10 and 11 to be added to the contract including BEUMER Controls Hardware Components BHS Catwalk and Miscellaneous Equipment BHS Conveyor and Upper Level Controls and BHS Activation and Commission Interior and Exterior Drywall and Framing The Phase C5 approval will increase the contract amount by $68 million for a new total contract amount of $765 million The budget for this contract is $126 billion Currently the forecast is at $126 billion with appropriate levels of contingencies The project is on schedule to be substantially completed by December 2022 The LBE goals are 25 for design and 18 for construction subcontracting services Hensel Phelps is committed to meeting these goals

Item No 5 was approved unanimously upon a motion by Commissioner Stern and a second by Commissioner Johns

5 Approval of Phase C4 to Contract No 1051176 - Design-Build Services for the Airport Security Infrastructure Program - Hunt Construction Group Inc - $27974900

Minutes April 3 2018 Page 8

No 18-0091 (1) Sumitomo Mitsui Banking Corporation acting through its New York branch to secure up to $139 million principal amount of Airport Commission Variable Rate Bonds for a term of four years and

No 18-0092 (2) Barclays Bank PLC to secure up to $139 million principal amount of Airport Commission Variable Rate Bonds for a term of four years

Mr Kone this item seeks authorization to execute Letters of Credit and Reimbursement Agreements with Sumitomo Mitsui Banking Corporation for $139 million and Barclays Bank PLC for another $139 million

On January 18th staff solicited proposals from an established pool of pre-qualified credit and liquidity facility providers for the hotel project When developing the feasibility study for the new on-airport hotel the team determined that variable rate debt where interest rates reset every seven days will provide the lowest cost financing for the airport hotel giving the hotel the best chance of financial flexibility and success during the first three years of the start up period After a careful review staff and the Airportrsquos financial advisor selected Sumitomo and Barclays each for a letter of credit securing the total of $278 million together Barclays proposed the lowest facility fee of 39 or 39 basis points for a four year term After negotiating with Sumitomo they agreed to lower their fee to 39 basis points as well The variable bond holders unlike fixed rate bond holders actually have the right to demand their money back after seven days So what happens with variable rate debt is the interest rate resets every seven days At the end of the seven days if investors want their money back rather than using the Airportrsquos money to pay the investor we draw on these letters of credit By doing so Sumitomo and Barclays receive a fee Itrsquos a safety back stop for these bonds When you do a variable rate debt you have to have a letter of credit backing these bonds for security purposes We hope to sell these bonds this summer The airport hotel has been financed with commercial paper up to this time so this will transfer that commercial paper funding into bond financing Both letters of credit have been reviewed by the Airportrsquos Financial Advisory Committee

Currently the banks are comfortable with four year terms With rising interest rates they can only guarantee four years of credit Wersquoll then put out another RFP to solicit renewals for these credit facilities Wersquove been doing that for the variable rate program so we plan for the renewals in advance of the expiration In the event we canrsquot get it we have a couple of options We can convert the variable rate into the $500 million commercial paper program or as a last resort we can convert that variable rate to fixed rate and just access the bond market

Commissioner Crayton I want to make sure you said that possibly if this didnrsquot work convert the variable into a market rate And what is the probability of having to pay more at that particular point in time

Mr Kone itrsquos hard to judge The market is moving up and down Wersquove been in a rising interest rate environment for the last 15 years but the variable rate in

Minutes April 3 2018 Page 7

general is typically lower than the fixed rate so we will still be saving money by using variable rate

Commissioner Guggenhime what happened when interest rates were 12 13 14 do you recall any incidents with respect to the Airport

Mr Kone during that time the Airport didnrsquot have variable rate debt but traditionally over the 30 year period therersquos always been a difference of 2 to 3 between variable and fixed rate

Item No 4 was approved unanimously upon a motion by Commissioner Stern and a second by Commissioner Johns

4 Approval of Phase C5 to Contract No 1001166 - Design-Build Services for the Terminal 1 Center Project - Hensel Phelps Construction Co - $67991073

No 18-0093 Resolution approving Phase C5 to Contract No 1001166 Design-Build Services for the Terminal 1 Center Project with Hensel Phelps Construction Company to increase the contract capacity by $67991073 for a new contract capacity amount of $765360650 and to extend the total contract duration to 2943 consecutive calendar days

Ms Judi Mosqueda Planning Design and Construction this requests your approval of Phase C5 to the Design Build contract with Hensel Phelps to add scope for energy efficiency shared use passenger processing and security enhancements and Trade Package Sets (TPS) Nos 10 and 11 The project is constructing a new architectural envelope and complete electrical mechanical and special system replacements Phase C5 approval will provide for TPS Nos 10 and 11 to be added to the contract including BEUMER Controls Hardware Components BHS Catwalk and Miscellaneous Equipment BHS Conveyor and Upper Level Controls and BHS Activation and Commission Interior and Exterior Drywall and Framing The Phase C5 approval will increase the contract amount by $68 million for a new total contract amount of $765 million The budget for this contract is $126 billion Currently the forecast is at $126 billion with appropriate levels of contingencies The project is on schedule to be substantially completed by December 2022 The LBE goals are 25 for design and 18 for construction subcontracting services Hensel Phelps is committed to meeting these goals

Item No 5 was approved unanimously upon a motion by Commissioner Stern and a second by Commissioner Johns

5 Approval of Phase C4 to Contract No 1051176 - Design-Build Services for the Airport Security Infrastructure Program - Hunt Construction Group Inc - $27974900

Minutes April 3 2018 Page 8

general is typically lower than the fixed rate so we will still be saving money by using variable rate

Commissioner Guggenhime what happened when interest rates were 12 13 14 do you recall any incidents with respect to the Airport

Mr Kone during that time the Airport didnrsquot have variable rate debt but traditionally over the 30 year period therersquos always been a difference of 2 to 3 between variable and fixed rate

Item No 4 was approved unanimously upon a motion by Commissioner Stern and a second by Commissioner Johns

4 Approval of Phase C5 to Contract No 1001166 - Design-Build Services for the Terminal 1 Center Project - Hensel Phelps Construction Co - $67991073

No 18-0093 Resolution approving Phase C5 to Contract No 1001166 Design-Build Services for the Terminal 1 Center Project with Hensel Phelps Construction Company to increase the contract capacity by $67991073 for a new contract capacity amount of $765360650 and to extend the total contract duration to 2943 consecutive calendar days

Ms Judi Mosqueda Planning Design and Construction this requests your approval of Phase C5 to the Design Build contract with Hensel Phelps to add scope for energy efficiency shared use passenger processing and security enhancements and Trade Package Sets (TPS) Nos 10 and 11 The project is constructing a new architectural envelope and complete electrical mechanical and special system replacements Phase C5 approval will provide for TPS Nos 10 and 11 to be added to the contract including BEUMER Controls Hardware Components BHS Catwalk and Miscellaneous Equipment BHS Conveyor and Upper Level Controls and BHS Activation and Commission Interior and Exterior Drywall and Framing The Phase C5 approval will increase the contract amount by $68 million for a new total contract amount of $765 million The budget for this contract is $126 billion Currently the forecast is at $126 billion with appropriate levels of contingencies The project is on schedule to be substantially completed by December 2022 The LBE goals are 25 for design and 18 for construction subcontracting services Hensel Phelps is committed to meeting these goals

Item No 5 was approved unanimously upon a motion by Commissioner Stern and a second by Commissioner Johns

5 Approval of Phase C4 to Contract No 1051176 - Design-Build Services for the Airport Security Infrastructure Program - Hunt Construction Group Inc - $27974900

Minutes April 3 2018 Page 8

No 18-0094 Resolution approving Phase C4 to Contract No 1051176 Design-Build Services for the Airport Security Infrastructure Program with Hunt Construction Group Inc to increase the contract capacity by $27974900 for a new contract capacity amount of $99263430

Ms Mosqueda this requests approval of Phase C4 to the design build contract with Hunt Construction Group The program is enhancing the Airportrsquos security systems based upon recommendations established in the Airportrsquos Trade Package Set (TPS) No 5 to be added to the plan The TPS includes International Terminal Building Access Control and Camera Systems doors frames and hardware and curtain wall systems Phase C4 will increase the contract amount by $28 million for a new total contract amount of $99 million The current budget for ths contract is $157 million and the project remains on schedule to be substantially complete in the second quarter of 2019 The LBE goals are 18 for design services and 11 for construction services and Hunt has committed to meeting these goals

Commissioner Stern so theyrsquore just doing the architecture and the design but they wonrsquot actually be doing the implementation on an on-going basis Is that accurate

Ms Mosqueda they will be doing implementation on an on-going basis Irsquom not sure I understood your question

Commissioner Stern when you think about security and security infrastructure therersquos construction and building and therersquos the technology so Irsquom trying to delineate those two things to better understand it

Ms Mosqueda Hunt is our design builder They were subcontract for both designs services and for all construction technology procurement in support of the Airportrsquos security infrastructure Theyrsquore responsible for bringing in experts If they donrsquot have expertise themselves they subcontract out But they are responsible for the overall implementation of it

Item No 6 was approved unanimously upon a motion by Commissioner Guggenhime and a second by Commissioner Johns

6 Modification No 3 (Annual Renewal) to Professional Services Contract No 1125241 - Project Management Support Services for Activation Planning Services - SFO Partners - $2994000

No 18-0095 Resolution approving Modification No 3 (Annual Renewal) to Professional Services Contract No 1125241 Project Management Support Services for Activation Planning Services with SFO Partners in an amount of $2994000 for a new contract amount

Minutes April 3 2018 Page 9

not to exceed $4494000 for services through May 23 2019

Ms Mosqueda this requests your approval of the 3rd annual renewal of the contract awarded to SFO Partners a joint venture between Abadjis Systems Ltd and AGS for project management support services for the activation planning services contract This contract includes development of a standard manual and the necessary tools to accomplish commissioning and activation of Capital Plan projects These services include project training and sustainability commissioning as required by the State and San Francisco environmental codes Modification No 3 will increase the contract amount by $3 million for a new total contract amount of $44 million The budget for this contract is $9 million with an anticipated duration of eight years overall The LBE goal for this contract is 21 and SFO Partners has committed to meeting this goal

Item No 7 was approved unanimously upon a motion by Commissioner Guggenhime and a second by Commissioner Stern

7 Modification No 1 to Contract No 50052 - Airport Information and Guest Assistance Services - Hallmark Aviation Services LP - $15803224

No 18-0096 Resolution approving Modification No 1 to Contract 50052 for Airport Information and Guest Assistance Services with Hallmark Aviation Services LP to exercise the first of three two-year options in an amount not to exceed $15803224 for a new total not to exceed contract amount of $27353224 and to revise the scope of work and calculation of charges

Mr Christopher Birch Director Guest Experience this item seeks approval for the first modification of this important contract and to exercise the first of three two-year options Hallmark Aviation provides the Airport with essential public facing services at critical junctions in the customer journey namely the International Arrivals process and both entry and exit areas from the public areas where customers typically require assistance in finding their way Via these functions Hallmark and their LBE staff interact with up to 8 million of our 55 million customers each year making them a critical component in the Airport service delivery strategy This modification includes an expanded scope of services requiring Hallmark staff to both monitor Customs and Border Protection (CBP) exit lanes and escort arriving customers who require further immigration processing to and from the secondary processing area This work will allow us to provide a higher level of service to these customers fully utilize language skills and partner more closely with CBP on reducing overall processing times The modification also includes a significantly redesigned contract performance evaluation scheme to ensure that Hallmark meets staffing language and appearance standards and remains in overall good standing with the Airport As you know SFO recently earned global recognition for having the best customer

Minutes April 3 2018 Page 10

staff in North America an award that wersquore both proud of and deeply grateful to our customers for This modification ensures that we have the necessary resources where we need them in order to continue to provide customers with exceptional service

Commissioner Johns do customers pay for this service

Mr Birch we pay for this

Item No 8 was approved unanimously upon a motion by Commissioner Guggenhime and a second by Commissioner Stern

8 Authorization to Negotiate Contract No 5010701 - Management and Operation of the Airportrsquos Public and Employee Parking Facilities - New South Parking -California GP

No 18-0097 Resolution authorizing Staff to negotiate a contract with New South Parking - California GP for the Management and Operation of the Airportrsquos Public and Employee Parking Facilities for a term of five years commencing July 1 2018

Mr Kone wersquore requesting authorization to negotiate Contract No 5010701 with New South Parking for the Management and Operation of the Airportrsquos Public and Employee Parking Facilities A revised request for proposals for this contract was issued on June 6 2017 On October 12 2017 staff conducted a pre-proposal conference which was attended by 16 people 11 in person and five by conference phone representing seven different parking companies The RFP was advertised through an SFO press release the SFO website and trade magazines as well as websites and online journals including local and minority newspapers to ensure maximum outreach A four member evaluation panel was convened consisting of the COO of the California Academy of Sciences the San Francisco Municipal Transportation Authority Director the Executive Director of the LA Metro and the Director of Safety and Security at SFO On March 16 2018 the top two ranked proposers participated in oral interviews and the panel determined that the highest ranked responsive proposer was New South Parking California This contract is a considered a concession so it falls under Federal Aviation Administration ACDBE regulations which does not allow us to consider preferences for geographical area race or gender However this top ranked proposer has an ACDBE certified firm that constitutes about 30 of this partnership

Commissioner Crayton would you normally be here bringing this item to the Commission Irsquom surprised that yoursquore bringing it to us

Mr Kone Parking Management falls under Leo Fermin and Leo is out on leave

Minutes April 3 2018 Page 11

staff in North America an award that wersquore both proud of and deeply grateful to our customers for This modification ensures that we have the necessary resources where we need them in order to continue to provide customers with exceptional service

Commissioner Johns do customers pay for this service

Mr Birch we pay for this

Item No 8 was approved unanimously upon a motion by Commissioner Guggenhime and a second by Commissioner Stern

8 Authorization to Negotiate Contract No 5010701 - Management and Operation of the Airportrsquos Public and Employee Parking Facilities - New South Parking -California GP

No 18-0097 Resolution authorizing Staff to negotiate a contract with New South Parking - California GP for the Management and Operation of the Airportrsquos Public and Employee Parking Facilities for a term of five years commencing July 1 2018

Mr Kone wersquore requesting authorization to negotiate Contract No 5010701 with New South Parking for the Management and Operation of the Airportrsquos Public and Employee Parking Facilities A revised request for proposals for this contract was issued on June 6 2017 On October 12 2017 staff conducted a pre-proposal conference which was attended by 16 people 11 in person and five by conference phone representing seven different parking companies The RFP was advertised through an SFO press release the SFO website and trade magazines as well as websites and online journals including local and minority newspapers to ensure maximum outreach A four member evaluation panel was convened consisting of the COO of the California Academy of Sciences the San Francisco Municipal Transportation Authority Director the Executive Director of the LA Metro and the Director of Safety and Security at SFO On March 16 2018 the top two ranked proposers participated in oral interviews and the panel determined that the highest ranked responsive proposer was New South Parking California This contract is a considered a concession so it falls under Federal Aviation Administration ACDBE regulations which does not allow us to consider preferences for geographical area race or gender However this top ranked proposer has an ACDBE certified firm that constitutes about 30 of this partnership

Commissioner Crayton would you normally be here bringing this item to the Commission Irsquom surprised that yoursquore bringing it to us

Mr Kone Parking Management falls under Leo Fermin and Leo is out on leave

Minutes April 3 2018 Page 11

Irsquom the acting Chief of Business amp Finance

Commissioner Crayton I understand that but I thought there was someone else that we had talked to when we had issues about parking previously

Mr Kone Mr Kevin Van Hoy is the Director of Aviation and Parking Management who reports to Leo Fermin

Commissioner Crayton I know him Thank you so very much

Commissioner Johns it seems like a long process A long period of time No

Mr Kone typically the process takes six months especially when you have oral interviews and you responding to inquiries One of things that we did last year is amend the minimum qualifications to expand the number of proposers and that may have added some time as well

Mr Ivar Satero Airport Director it was also delayed a month because of the availability of the selection panel We had a member that couldnrsquot make it so it was delayed another month because of that

F CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS The Consent Calendar Item Nos 9 through 16 was approved unanimously upon a motion by Commissioner Stern and a second by Commissioner Guggenhime 9 Approval of Phase C8 of Contract No 9350A66 - Design-Build Services for the

REACH - Customer Hospitality Boarding Areas A amp G Project - Webcor Construction LP dba Webcor Builders - $1846329

No 18-0098 Resolution approving Phase C8 to include Trade Package Set No 5 to Contract 9350A66 Design-Build Services for the REACH - Customer Hospitality Boarding Areas A amp G Project with Webcor Construction LP dba Webcor Builders to increase the contract capacity by $1846329 for a new contract capacity amount of $41500000 with a corresponding contingency amount and with no change to the contract duration

10 Award of Contract No 1114476 - Construction Services for the Central Garage Tunnel Doors Project - Rubecon Builders - $617884

No 18-0099 Resolution awarding Contract No 1114476 Construction Services for the Central Garage Tunnel Doors Project to Rubecon Builders in the amount of

Minutes April 3 2018 Page 12

$617884 with a contract duration of 150 calendar days and a corresponding amount in contingency authorization

11 Approval of Phase C5 to Contract No 8427C66 - Design-Build Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project - Walsh Construction Company II LLC - $969896

No 18-0100 Resolution approving Phase C5 to Contract No 8427C66 Design-Build Services for the Mel Leong Treatment Plant Industrial Wastewater and Recycled Water Upgrades Project with Walsh Construction Company II LLC to increase the contract capacity by $969896 for a new total contract capacity amount of $47230184 with no change to contract duration and authorization of a corresponding contingency amount

12 Authorization to Issue a Request for Proposals for Contract No 50169 State Legislative Advocacy Services No 18-0101 Resolution approving the issuance of a RFP for

Contract No 50169 for State Legislative Advocacy Services and authorizing staff to negotiate with the highest ranked proposer Staff will return to the Commission for award of the contract

13 Modification No 2 to Professional Services Contract No 50036 - Airport Management and Financial Consulting Services - LeighFisher Inc - $250000

No 18-0102 Resolution approving Modification No 2 to Professional Services Contract No 50036 with LeighFisher Inc for Airport Management and Financial Consulting services to exercise the first of two one-year options to extend the contract term through April 30 2019 and increase the contract amount by $250000 for a new total not to exceed amount of $1115000

14 Modification No 4 to Contract No 8977 - Airport Customer Survey Services -Corey Canapary amp Galanis - $50000

No 18-0103 Resolution approving Modification No 4 to Contract

Minutes April 3 2018 Page 13

No 8977 with Corey Canapary amp Galanis for Airport Customer Survey Services to exercise the final of four (4) one-year options to extend the contract term through May 22 2019 and to increase the contract amount by $50000 for a new total not to exceed contract amount of $492500

15 Modification No 1 to Contract No 1064761 - International Terminal Building Roadway Expansion Joints Repairs and Storm Drain Gutter System Replacement - Schembri Construction - Time extension only

No 18-0104 Resolution approving Modification No 1 to Contract 1064761 International Terminal Building Roadway Expansion Joints Repairs and Storm Drain Gutter System Replacement with Schembri Construction with a new contract duration of 320 consecutive calendar days and no change to the contract amount

16 Second Amendment of Off-Airport Property Lease L09-0023 with Michael C Mitchell at 837 Malcolm Road Burlingame California

No 18-0105 Resolution approving the Second Amendment of Lease L09-0023 for off-Airport property at 837 Malcolm Road Burlingame to modify the annual rent and extend the term of the Lease and directing the Commission Secretary to forward the second amendment to the Board of Supervisors for approval

G NEW BUSINESS Discussion only This is the ldquoPublic Commentrdquo 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 ldquoRequest to Speakrdquo form located on the table next to the speakerrsquos microphone and submit it to the Commission Secretary

Mr Tariq Mehmood Taxi Driver for Taxi Driver Alliance I have given you a paper (see attachment) I hope you have seen it Taxi drivers were given the permits to distribute among the drivers and under the Freedom of Speech Act In the last 20 years SFO permits with no restriction the distribution of these flyers Then later on certainly some years back they restricted it It can only be locked one two three four

Minutes April 3 2018 Page 14

Then again they restricted it It can be two three or four only And now to restrict up our communications among the drivers they have put a new restriction that you can distribute only in the break area The break area or the picnic table over there Therersquos only one person driver come to the table And 99 they donrsquot come there So SFO when I talk to them oh itrsquos the reason of safety of the person who distributed them He may not get heard by these 400 taxis Hey there are 4000 pickups a day One pickup takes two to three hours at the Airport and taxi drivers and all day 40000 times get in and out of their taxi while theyrsquore parked How come one person coming and just distributing for one hour can be heard Do you accept responsibility we are heard You donrsquot So why you are biased and why you are trying to prevent us distributing freely the flyers among our drivers The next thing is where do you want me to distribute You want me to distribute outside the bathroom Irsquom accepting it but not that picnic table How about if I go to the bathroom outside and distribute there So Mr Ivar look at that You also have an issue with the part international section congestion I gave you a paper today Please look into that You have another issue downstairs Irsquom listening that issue for two years Look into that and solve Thank you

Commissioner Guggenhime I see pickups up there Who picks up at Departures

Mr Satero TNCs pick up at the Departures level

Commissioner Guggenhime what about taxis

Mr Jeff Littlefield Chief Operating Officer they just drop off They donrsquot pick up at the Departures Level

Commissioner Guggenhime I think we need to look harder at picking up Coming in on the inside so you go right past Terminal 1 as if you were going to drop off Itrsquos faster getting to Terminal 3 going closer to the curb then it is going outside And I thought there were too many pickups at Departure last night I think we need to come up with a system where if yoursquore picking up somebody you donrsquot know who they are and even if yoursquore picking up someone you know we just have to get more Police out there Itrsquos overly congested

Mr Satero we do have a plan we will be implementing over the next four months prior to the peak season to deal with congestion in incremental ways Irsquoll be happy to brief you on that

Commissioner Crayton I want to make sure that I understood what was being presented to us today theyrsquore not being allowed as they are waiting to give out flyers to the other drivers Is that part of what the issue is

Mr Satero Irsquoll look into it Irsquom not exactly sure what the safety concerns are I want to make sure I understand that

Minutes April 3 2018 Page 15

H CORRESPONDENCE There was no discussion by the Commission

I 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)

J ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 932 AM

(Original signed by Jean Caramatti) Jean Caramatti Commission Secretary

Minutes April 3 2018 Page 16

• m040318
• m040318Attachments

H CORRESPONDENCE There was no discussion by the Commission

I 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)

J ADJOURNMENT There being no further calendared business before the Commission the meeting adjourned at 932 AM

(Original signed by Jean Caramatti) Jean Caramatti Commission Secretary

Minutes April 3 2018 Page 16

• m040318
• m040318Attachments

• m040318
• m040318Attachments