1/9/2001 - San Francisco International Airport

Minutes of the Airport Commission Special Meeting of
January 9, 2001
CALENDAR AGENDA RESOLUTION
SECTION ITEM TITLE NUMBER PAGE
A. CALL TO ORDER: 3
B. ROLL CALL: 3
C. ADOPTION OF MINUTES:
D. SPECIAL ITEM:
Regular meetings of November 21, 2000 and
December 5, 2000 01-0001 3
1. Retirement Resolution - Mr. Ryan Haynes 01-0002 3
2. Retirement Resolution - Mr. Peter Johansen 01-0003 3-4
3. Retirement Resolution - Mr. Elmer Whelpley 01-0004 4
E. DIRECTOR’S REPORTS:
4. ShuttlePort/DAJA Curbside Management Contract 4-6
F. ITEMS INITIATED BY COMMISSIONERS:
G. POLICY:
Airline Baggage Claim Checks 6-7
5. “Wings of the Phoenix” Official History of SFO 01-0005 7
H. ITEMS RELATING TO MASTER PLAN PROJECTS:
6. Modification No. 6 to Contract 5500F -
International Terminal Baggage System - BAE
Automated Systems Inc. 01-0006 8
I. ITEMS RELATING TO ADMINISTRATION,
OPERATIONS & MAINTENANCE:
7. Rate Increase for Short-Term Public Parking 01-0007 8-9
8. Award Contract 3565A - Terminal Upper Level
Viaduct - Resurfacing, Phase A - Cone
Engineering Contractors , Inc. 01-0008 9
Minutes, January 9, 2001, Page 1

9. Rescind Award of High Speed Wireless Internet
Master Lease to Aerzone and Award Lease to
Wayport 01-0009 9-10
J. CONSENT CALENDAR OF ROUTINE
ADMINISTRATIVE MATTERS:
10. Award Contract 4299 - International Terminal
Hair Salon - Agbayani Construction Corp. 01-0010 10-11
11. Award Contract 3797R - Utilities Cathodic
Protection Improvements - Corrpro Companies,
Inc. 01-0011 11
12. Modification No. 1 to Memorandum of Under-
standing (MOU) with San Francisco Bay
Conservation and Development Commission
(BCDC) to Review Permits for a Potential
Runway Reconfiguration Project 01-0012 11
13. Bid Call - Contract 3590A - South Detention
Pond Improvement, Phase A 01-0013 11
14. Bid Call - Contract 4372 - Airport-Wide
As-Needed Utility Repairs 2000/2001 01-0014 11
15. Bid Call - Contract 4177 - North Access Road
Spur Trail 01-0015 11
16. Bid Call - Contract 3303G - Sewer System
Improvement, Phase VII 01-0016 12
17. Bid Call - Contract 3996B - Multi-Modal
Transportation Center, Phase B 01-0017 12
18. Bid Call - Contract 3830.1 - United Airlines
Pedestrian Overcrossing - Seismic Retrofit 01-0018 12
19. Consent to Deemed Assignment of Lease
and Concession Agreement Assignment
Resulting from Sale of Avis Stock to its
Major Stockholder, Cendent 01-0019 12
K. NEW BUSINESS: 12
L. CORRESPONDENCE: 12
M. CLOSED SESSION:
Minutes, January 9, 2001, Page 2

Potential Litigation. 13
N. ADJOURNMENT: 13
AIRPORT COMMISSION SPECIAL MEETING MINUTES
A. CALL TO ORDER:
January 9, 2001
The regular meeting of the Airport Commission was called to order at 9:00 AM in Room
400, City Hall, San Francisco, CA.
B. ROLL CALL:
* * *
Present: Hon. Henry E. Berman, President
Hon. Michael S. Strunsky
Hon. Linda S. Crayton
Hon. Caryl Ito
Absent: Hon. Larry Mazzola, Vice President
C. ADOPTION OF MINUTES:
* * *
The minutes of the regular meetings of November 21, 2000 and December 5, 2000
were adopted unanimously.
No. 01-0001
D. SPECIAL ITEM:
* * *
Item No. 1 was moved by Commissioner Strunsky and seconded by Commissioner Ito.
The vote to approve was unanimous.
1. Retirement Resolution for Mr. Ryan Haynes
No. 01-0002
Mr. John Martin, Airport Director explained that Ryan Haynes has spent six of his
20 years with the City at the Airport. Mr. Haynes played a lead role in developing
the staffing projections for the new International Terminal.
Minutes, January 9, 2001, Page 3

Item No. 2 was moved by Commissioner Strunsky and seconded by
Commissioner Berman. The vote to approve was unanimous.
4. Retirement Resolution for Mr. Peter Johansen
No. 01-0003
Mr. Martin said that Mr. Johansen is an outstanding employee. Mr. Johansen, an
Electrician Supervisor, has been with the City for 27 years, nine of which were spent at the
Airport.
Item No. 3 was moved by Commissioner Crayton and seconded by Commissioner Ito. The
vote to approve was unanimous.
5. Retirement Resolution for Mr. Elmer Whelpley
No. 01-0004
Mr. Martin said that Mr. Whelpley is an Light Fixture Maintenance worker who has spent
20 of his 36 years with the City at the Airport. He will be missed by his fellow workers
E. DIRECTOR’S REPORTS:
* * *
4. ShuttlePort/DAJA Curbside Management Contract
Report by the Director on the Board of
Supervisors action on the ShuttlePort/DAJA
contract option and the options for future
Commission action.
Mr. Martin explained that the City Charter requires that any contract exceeding
$10 million must seek approval from the Board of Supervisors. The Finance
Committee did not approve the additional funding.
We have funds to carry the contract through September 1. The choices available
to the Commission are to (1) return to the Board of Supervisors to request the
funding and exercise the second year option on this contract. (2) To immediately
begin an RFP process to have a new contractor in place on September 15. (3)
Some combination where the Board of Supervisors provides some level of
additional funding to give us some additional time and contingency in our
schedule for doing the RFP. Failing receiving that level of funding and possibly
running into delays in the RFP process, we would be face with cutting service and
laying off employees. We would probably cut the Curbside Management

Program for either scheduled buses or for limousines as the first step.
Correspondingly, we would roll back the rates for the ground transportation
operators because we could not charge them for a service that is no longer being
provided.
ShuttlePort/DAJA is doing an excellent job and we are pleased with the level of
service they are providing. Our Ground Transportation Program continues to be
viewed as a model by other airports throughout the country.
Mr. Martin said that he outlined to the Finance Committee in his presentation that
City procedures were strictly followed in the selection process. He stands behind
and he stands behind the integrity of that process. There is no reason not to
extend this contract.
Commissioner Ito said that she is not clear on the Board’s authority in this
instance. She listened to the replay of the Finance Committee’s hearing where
Mr. Martin testified. The action requested by Supervisor Yee was to table this
contract for review. She did not understand that we were being charged,
although strongly suggested, that an RFP be issued.
The Airport Commissioner voted unanimously to continue this contract. Why is
the Commission’s authority is being questioned after they were provided with
adequate information. She did not understand from the Finance Committee
hearing that the Supervisors were accusing the Commission or the contractor of
not fulfilling the contract. There were certain stipulations recommended by the
Finance Committee that were complied with. She does not understand what is
happening.
Ms. Mara Rosales, Airport General Counsel explained that the Board of
Supervisors does not have the authority to direct a Commission to initiated a
Request for Proposal process. She understood the Committee to strongly urge
the Commission to undertake an RFP process.
The Committee does have the authority to approve contracts that exceed $10
million, so the Commission’s authority is limited to the $10 million mark. The
Commission will not longer have the authority to expend money on this contract
under the Charter.
Commissioner Ito said that she needs more specifics. The public comment she
heard was positive and helpful. Supervisor Ammiano’s questions about why we
are spending all of this money. No one else is spending this kind of money. No
one else is doing anything like this. Why just one provider doing the
coordination. We have to remind the Board that this Airport has done due
diligence in this contract. The process took two years of study on the
effectiveness of what type of curbside management would work and improve our
traffic flow.
Perhaps the Board lacked sufficient information. The public comments were
Minutes, January 9, 2001, Page 5

inadequate to derail this contract. We need to keep in mind that the contract
participant is a woman/minority-owned business. She would like information on
how many minority workers would be impacted if this contract is derailed.
We have met several goals in our attempt, not only in the efficiency of traffic flow,
but in providing access for prime contracts for women of color. She is concerned
about the costs involved in putting another RFP out for no specific reasons as to
what is wrong with what we are doing. If we need to tinker with the costs, a
review could be the next step.
We do not have adequate information from that hearing.
Commissioner Crayton believed that this contract was benefitting the citizens of
San Francisco and was the best use of our dollars.
She would like a report submitted to the Finance Committee indicating the
number of employees that would be impacted, how this is benefitting the Airport
and why we need the level of service that we have.
She hoped that clearer heads would prevail on this issue.
Mr. Martin said that he will prepare a report to the new Finance Committee which
would include the background on the contract, responding to specific issues
raised at the last Finance Committee meeting, and again request the full level of
funding required to exercise the option. He will call upon one or two
Commissioners to attend and speak at the Finance Committee meeting.
Commissioner Strunsky asked when the contract expires.
Mr. Martin said that the Commission has exercised the second year option, but
the level of funding available up to the $10 million would only carry us through
September 1. If they continue beyond September 1 we have to cut services.
He will go back to the Finance Committee in two weeks to request full funding
approval necessary. If he fails to receive that approval he will return to the
Commission. Failing receipt of full funding, services will have to be cut in order to
insure that we could follow a new RFP process and have a new contractor in
place.
* * *
F. ITEMS INITIATED BY COMMISSIONERS:
Commissioner Crayton said that a receipt newspaper article noted that there are no
luggage checkers at the Airport.
Mr. Martin responded that a Supervisor Ammiano asked why luggage is not checked
against claim checks at SFO.
Minutes, January 9, 2001, Page 6

The reason is that the airlines report that there is a very low theft rate at SFO and it is
not cost effective. It is more cost effective for them to reimburse passengers on those
rare occasions when luggage is stolen.
We have found that over the years there are luggage theft rings that periodically come
through. Our police department is very good at catching them quickly. When you
consider that out of 53 passenger airlines at SFO, not one of those airlines have found
it important to provide that service. It speaks to our low crime rate. Airports like
Kennedy have high crime rates. He is told that their crime rate is due, in part, to the
subway access.
Supervisor Ammiano has introduced resolution to the Board relative to this issue.
Mr. Peter Nardoza, Deputy Director, Public Affairs explained that Supervisor Ammiano
introduced, and the Board unanimously adopted, a resolution urging this Commission
to direct its airlines to provide this service. He is told by the Mayor’s Office that the
Mayor does not intent to sign this resolution. He will send it back to the Board
unsigned.
A letter to Supervisor Ammiano has been drafted for the Director’s signature stating that
while we understand his concerns, we do not see the need for this program at this time.
G. POLICY:
* * *
Item No. 5 was moved by Commissioner Strunsky and seconded by Commissioner
Crayton. The vote to approve was unanimous.
5. “Wings of the Phoenix” Publication to Become Official History of San Francisco
International Airport
No. 01-0005 Resolution designating “Wings of the Phoenix” as the official
history of San Francisco International Airport.
Mr. Ron Wilson, Director, Community Affairs explained that the project to
document and preserve the history of San Francisco Airport and aviation in
general in the Bay Area.
Extensive research was done, including oral histories of past Commissioners,
Directors and Administrators, inventories of collections of the labor libraries in
San Mateo and San Francisco Public Libraries, the Library of Congress, the
Bancroft Library at UC Berkeley, the historical section at Stanford University and
other research.
Mr. Don Shoecraft was hired to author the book. Mr. Shoecraft was a reporter for
the San Francisco Progress.
Minutes, January 9, 2001, Page 7

He asked the Commission to vote to make this publication the official history of
San Francisco Airport. It has been distributed to Congressional representatives,
the Mayor, various libraries in the community.
Commissioner Ito hoped that it would receive wider distribution.
Mr. Wilson responded that it could be distributed within the Airport shops, local
bookstores, and perhaps worldwide distribution.
* * *
H. ITEMS RELATING TO MASTER PLAN PROJECTS:
Item No. 6 was moved by Commissioner Crayton and seconded by Commissioner Ito.
The vote to approve was unanimous.
6. Modification No. 6 to Contract No. 5500F - International Terminal Baggage
System - BAE Automated Systems Inc. - $794,917
No. 01-0006 Resolution approving Modification No. 6 to Contract 5500F,
International Terminal Baggage System, with BAE Automated
Systems Inc., in the amount of $794,917 to purchase
maintenance stock of spare parts. Funding source is Program
Reserve.
Mr. Tom Kardos, Deputy Director, Bureau of Design and Construction explained
that as part of the contract close-out procedures, the Airport needs to purchase
the required stock of spare parts to ensure the reliable operation and
maintenance of the baggage handling system.
As originally contemplated, the comprehensive list of spare parts was developed
during the completion phase of the contract, incorporating all the changes and
modifications to the system during its design and installation.
The modification has been reviewed and approved by the Master Plan Advisory
Board and funding will be provided initially by the contract’s contingency and
program reserves, and later to be refunded by SFO Tech, the final operator of the
system.
The contract’s MBE/WBE subcontractor participation through this modification will
be at the 9.49% combined participation level, considerably in excess of the base
contract’s 5% goal and 5.28% original commitment.
Commissioner Ito asked how the system is operating.
Mr. Kardos responded that the system is operating reliably. There are some
integration issues that we are refining and the high level of sophistication of the
surveillance system continues to be refined and perfected.
Minutes, January 9, 2001, Page 8

There have been no complaints so far.
* * *
I. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE:
Item No. 7, as amended, was moved by Commissioner Crayton and seconded by
Commissioner Ito. The vote to approve was unanimous.
7. Approval of Rate Increase for Short-Term Public Parking
No. 01-0007 Resolution establishing a revised rate schedule
for short-term public parking facilities.
Mr. Martin explained that this item will increase the rate in the two new parking
garages in front of the International Terminal to match the central garage. It will
also do away for the discounted rate for the first day of parking, making it $35 for
each day of parking in each of the facilities. The Valet Parking rate will increase
to $45 a day. The Lot D (long term parking lot) rate will increase to $15 per day.
We now have adequate space, however, it requires active management in order
to avoid closing the long term lot or central garage. Closure of the central garage
was always a threat on weekdays when we experience heavy traffic by the
business traveler. The lot term lot had the same closure threat on weekends.
With space available in the three central garages, we have instituted a voucher
program for long term parkers who are turned away from the long term lot when it
is full. They can park in the central garages at the same rate.
Item No. 8 was moved by Commissioner Crayton and seconded by
Commissioner Ito. The vote to approve was unanimous.
8. Award of Contract No. 3565A - Terminal Upper Level Viaduct - Resurfacing,
Phase A - Cone Engineering Contractors , Inc. - $2,562,800
No. 01-0008 Resolution awarding Contract 3565A, Terminal
Upper Level Viaduct - Resurfacing, Phase A, to
the lowest responsive, responsible bidder, Cone
Engineering Contractors, Inc., in the amount of
$2,562,800.
Mr. Jackson Wong, Chief Operating Officer explained that this is the first of a
series of contracts that will provide maintenance and repair to our existing upper
roadways in front of our existing terminals.
Phase A, before the Commission, will resurface and repair two of the four lanes in
Minutes, January 9, 2001, Page 9

front of the East and South Terminals. This project was part of the 1999 Capital
Improvement Plan.
Two bids were received on December 5, 2000. The apparent low bid was
submitted by Cone Engineering.
Commissioner Strunsky noted that there is a 46% difference between the two
bids. He asked if we are comfortable in this bid.
Mr. Wong responded that bids for this contract were rejected for being over
budget. The scope was reduced. The work will be done from midnight to 6:00
A.M. This is not work that is normally done so it is an issue of managing and
watching the contractor.
Item No. 9 was moved by Commissioner Crayton and seconded by
Commissioner Strunsky. The vote to approve was unanimous.
9. Rescind Award of High Speed Wireless Internet Master Lease to Aerzone
and Award the Lease to Wayport - Minimum Annual Guarantee: $80,000
No. 01-0009 Resolutions rescinding the award of the High
Speed Wireless Internet Master Lease to
Aerzone and award the lease to Wayport with a
first year Minimum Annual Guarantee of $80,000.
Mr. Bob Rhoades, Deputy Director, Business explained that on October 26, 2000
the Airport received three proposals ... Aerzone, Wayport and Airwave. An
independent panel reviewed the proposals. All three companies met the
minimum qualifications with Aerzone scoring the highest and subsequently was
awarded the contract.
On December 19, 2000, SoftNet Systems, Inc., Aerzone’s parent company,
announced plans to discontinue operations of Aerzone. The Airport received this
information in writing on December 23.
Wayport is the next most qualified and responsive proposer and has
demonstrated its ability to fulfill the Airport’s needs. It currently operates the
internet services and DFW and the New York airports.
Staff recommends rescinding Resolution No. 00-0409, awarding the lease to
Aerzone, and to award the lease to Wayport, pending a determination by the
Human Rights Commission that Wayport complies with the Equal Benefits
Ordinance.
Wayport’s first years minimum annual guarantee is $80,000.
Further, Aerzone, forfeits its bid bond in the amount of $30,000.
Minutes, January 9, 2001, Page 10

* * *
J. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS:
Item Nos. 10 through 19 were moved by Commissioner Crayton and seconded by
Commissioner Ito. The vote to approve was unanimous.
10. Award of Contract 4299 - International Terminal Hair Salon - Agbayani
Construction Corporation - $288,000
No. 01-0010 Resolution awarding Contract 4299, International
Terminal Hair Salon, to the lowest responsive,
responsible bidder, Agbayani Construction
Corporation, in the amount of $288,000.
Commissioner Strunsky noted that there is a significant difference between the
two bids. Are we comfortable with this bid?
Mr. Amir Koleini, Airport Architect responded that the architect’s estimate was
$310,000. Staff was concerned about the difference in bids and both contractors
were contacted. The first was concerned about the union issues and he was not
going to take a risk so he increased his bid to cover any possible future union
participation.
The second bidder verified that he was confident that he could do the job for the
price bid. We have had experience with Agbayani and we have no doubt that he
can do the job
11. Award Contract 3797R - Utilities Cathodic Protection Improvements - Corrpro
Companies, Inc. - $218,000
No. 01-0011 Resolution awarding Contract 3797R, Utilities
Cathodic Protection Improvements, to the lowest
responsive, responsible bidder, Corrpro
Companies, Inc., in the amount of $218,000.
12. Modification No. 1 to Memorandum of Understanding with the San Francisco Bay
Conservation and Development Commission for Review of Permits for a Potential
Runway Reconfiguration Project - $250,000
No. 01-0012 Resolution approving Modification No. 1 to
Memorandum of Understanding with the San
Francisco Bay Conservation and Development
Commission for Review of Permits for a Potential
Runway Reconfiguration Project in an amount not
to exceed $250,000.
Minutes, January 9, 2001, Page 11

13. Bid Call - Contract 3590A - South Detention Pond Improvement, Phase A
No. 01-0013 Resolution approving the scope, budget and
schedule for Contract No. 3590A, South
Detention Pond Improvement, Phase A, and to
authorize the Director to call for bids when ready.
14. Bid Call - Contract 4372 - Airport-Wide As-Needed Utility Repairs, 2000/2001
No. 01-0014 Resolution approving the scope, budget, and
schedule for Contract No. 4372, Airport-Wide As-
Needed Utility Repairs 2000/2001, and to
authorize the Director to call for bids when ready.
15. Bid Call - Contract 4177 - North Access Road Spur Trail
No. 01-0015 Resolution approving the scope, budget, and
schedule for Contract No. 4177, North Access
Road Spur Trail, and to authorize the Director to
call for bids when ready.
16. Bid Call - Contract 3303G - Sewer System Improvement, Phase VII
No. 01-0016 Resolution approving the scope, budget, and
schedule for Contract No. 3303G, Sewer System
Improvement, Phase VII, and to authorize the
Director to call for bids when ready.
17. Bid Call - Contract 3996B - Multi-Modal Transportation Center, Phase B
No. 01-0017 Resolution approving the scope, budget, and
schedule for Contract No. 3996B, Multi-Modal
Transportation Center, Phase B, and to authorize
the Director to call for bids when ready.
18. Bid Call - Contract 3830.1 - United Airlines Pedestrian Overcrossing - Seismic
Retrofit
Nol. 01-0018 Resolution approving the scope, budget, and schedule for
Contract No. 3830.1, United Airlines Pedestrian
Overcrossing - Seismic Retrofit, and authorizing
Director to call for bids when ready.
Minutes, January 9, 2001, Page 12

19. Consent to Deemed Assignment of Lease and Concession Agreement
Assignment Resulting from Sale of Avis Stock to its Major Stockholder, Cendent
No. 01-0019 Resolution consenting to the deemed assignment
of Lease and Concession Agreement assignment
resulting from stock sale.
K. NEW BUSINESS:
* * *
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 three (3) minutes. Please fill out a “Request to Speak” form located on the
table next to the speaker’s microphone, and submit it to the Commission Secretary.
There were no requests from the public to speak.
L. CORRESPONDENCE:
* * *
There was no discussion by the Commission.
M. CLOSED SESSION:
* * *
Discussion and vote pursuant to Sunshine Ordinance Section 67.11 on whether to
conduct a Closed Session.
The Airport Commission voted unanimously to go into closed session. The
Commission recessed its public meeting at 9:55 A.M. and began the closed session.
The Airport Commission will go into closed session in accordance with Government
Minutes, January 9, 2001, Page 13
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Discussion and vote pursuant to Brown Act Section 54957.1 and Sunshine Ordinance
Section 67.12 on whether to disclose action taken or discussions held in Closed
Session.
The Commission reconvened its public session at 10:03 A.M. The Commission
determined
that it was
not in the
public
interest to
disclose
the nature
of the
closed
session
and voted
unanimousl
y not to
disclose it.
N. ADJOURNMENT:
* * *
There being no further calendared business before the Commission the meeting
adjourned at 10:05 A.M.
Jean Caramatti
Commission Secretary
Minutes, January 9, 2001, Page 15
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