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2008-07-01 5-G SubmittalC~~O~~e9~ ~~~~C~~i~ -GF1~1ED Engineering City Council Members City Hall Room 320 2263 Santa Clara Avenue Alameda, CA 94501 Pr~iC s 2 8 JUG 3 0 ~ 4: ~ ~b c~r~ ~ ~~~ X08 C~~Y C~~~~~~~~~5 ~'~~~~C~ Reference: Alameda Municipal Golf Complex Subject: Commentary on the NGF Master Plan Dear Council Member Tam; As this letter is highly critical of the alleged data and the proposals presented in the just completed "Master Plan" composed by NGF Consulting, I will briefly state my credentials as a critic: I am president of Global Perspectives, a Consulting Engineering Service licensed here in Alameda. I, and my wife, play golf frequently at the Chuck Corica Golf Complex and spend about $6000 per year there. I belong to the Men's Senior Golf Club Being somewhat retired, I have been able to contribute my experience ta: 1)The design of the foundation and pedestal for the Encinal High Jet; 2)The campaign for the Alameda Point Skate Park; my registration stamp is on the construction drawings 3) nine years as a member of the Restoration Advisory Board at the former Alameda Naval Air Station. Sixty-four years of engineering experience (Civil and Structural). Thirty years of Project Management experience, the later ten of which I was a senior Project Manager for the World's largest Consulting Engineering Company. Re: Agenda ~~em 5-G V~-V~ wOV P.O. Box 2859 Phone: 510-864-0770 Fax: 510-864-0790 Alameda, CA 94501 E-mail: jleach C glabalperspectives.com ABOUT THE MASTER PLAN REPORT I went to the Golf Commission Meeting on June 28 where the Plan and Report were presented. I also downloaded the full report. June 29, Thursday, I played in the Senior Men's tournament. There was a Women's tournament that day too. I was able to listen to the complaints of many men and women-not about the course, but about the proposals in the Report. Misconceptions in the Report: Page 2-Operating Results The number, 100,000 rounds, is misleading and wrongly stated. The course did not have a decline of 100,000 rounds. Instead, since the early 1990's it has always earned income from well over 100,000 rounds. In fact, before the Metropolitan Course (down the road ire Oakland, by the Airport entrance) opened, and while the Chabot Course in Oakland was under renovation, the Chuck Corica Course booked over 123,000 rounds. If the Report meant to say that the all-time high (rounds) at Alameda declined since those other two courses opened, then they are correct. But our bookings are increasing while theirs are decreasing. Our bookings will still exceed the 100,000 mark this year. Page 2, still first paragraph. The "tremendous increase in golf supply in the Bay Area", that they refer to, consists of the two courses mentioned above as competitors for players. The other new courses are in Contra Costa County and east Alameda County where increased population justified their existence. They are too far away to pose an income threat to our course. The Chuck Corica Golf Complex still attracts more play (booked rounds of gold than any other course in Alameda or Contra Costa County. Page 2, still first paragraph. There are some facility-specific issues that still need attention, but they can be accomplished economically, in a phased sequence, without shutting down the course or seriously interfering with play. Page 2, second paragraph. The report states :that the course has recently had "operating deficits". In fact, the Golf Complex has never "not made a profit". Do you know of any other institution, company, or business, that annually gives away $500,000 (last year $900,000) out of its gross receipts for something that has nothing to do with its operational costs? Does any other Parks and Recreation facility in the City pay for itself and still contribute $500,000 to the General fund? If the City accepted a share of the rofits, then it would be ethical; but to skim money off the top of the income and then accuse the course management of not being able to meet increased (union) labor and operating expenses is a deceit to the public and patently unfair The use and income numbers quoted in the report are projections based on the early use and income figures for this year which got a slow start because of the extended cold and wet weather. Now that the weather is good, the course parking lot is almost full.. The courses are a beehive of activity. An indicator is the increase in business at "Jim's on the Course". Admittedly, there was a decline in play for two reasons, both of which have been partially corrected. Maintenance and the purchase of needed equipment had been denied. Management was lacking in the skills needed to manage people, prepare budgets, to be accountable for income and expenditures and to be responsive to suggestions. The old management has moved on and morale and every-day maintenance has been restored. I haven't heard very many complaints lately about course conditions The greens have improved considerably. Temporary micro-management by a remotely located non-golfer has been tolerated because it has been viewed as being temporary. But, already, he has made some serious, quick judgment, mistakes, all correctable. PHYSICAL ASSESSMENT OF CHUCK CORICA I have no argument to the four paragraphs under this heading on page 3 of the report except in paragraph four I believe their recommendation of a "master plan should not be limited to the master plan given in the report. Their plan is too costly, too disruptive, too diminishing of current facilities, and completely misses the character and needs of our current, loyal, and dedicated players. MANAGEMENT OPTIONS AND RECOMMENDATION 1.) Continue "As Is". All we need to do is hire a good manager, let him/her manage the full income within the bounds of a budget, and make sure he/she has superior personnel relations skills. 2.) Full Service Management Contract-private for-fee Management. It hasn't worked anywhere here in the Bay Area. What convinces that it world work here? Their priority's and goals are contraindicative to apeople-serving facility. Just ask Monarch Bay, in San Leandro, Metropolitan in Oakland, or Castle Wood in Clayton. 3.) Operating Lease-private operator funds improvements and operations. Too costly! ! Cost-of-Recovery prices would increase fees » decrease play » slow down/omit contract obligations » force re-negotiation » abandon the facility » City take over a torn up, partially completed facility with a ruined reputation. In effect we would lose this beautiful asset. The Report's financial analysis is false and misleading. It slants figures and numbers in a way that leans toward their objective of the City's accepting the third option. A 30 year lease, for example, is untenable. You might as well give away City Hall. Or how would you feel if we contracted out our police or fire protection services if the franchise agency promises to build some new buildings (which they would own) and give them a "hands off', 30 year lease, and charge whatever they wanted to meet their profit goals? Oh yes, you would be required to accept their cost-of- doing business figures or else they would vacate the project. (That is what happened at Monarch Bay). The Outside Management's extortion threat forced the City of San Leandro to renegotiate their lease agreement for the Management of the Course. MAJOR MISCONCEPTIONS AND FALSE ASSUMPTIONS The Report assumes that the North (Earl Fry) Course needs to be reconfigured to qualify for and attract National competition events. This assumption completely misreads: 1.) Who our courses attracts. These loyal golfers who support the course come here regularly, not once a yeax, to courses that meet the needs of their skills and abilities. It is afamily-friendly facility. It is a recreational facility which is the envy of every other city in Northern California. It's addictive in that an average player has, at least once, pared almost every hole on the course; and they keep coming back knowing that the course is not too hard for them. Yet the courses are challenging and the layouts are interesting, not boring. Even the professionals have a hard time consistently breaking par. Our clientele are 98 percent non-professional. But even the near professionals are attracted to the Annual Commuters Tournament. Even if we had a "Harding Park" (a financial disaster for San Francisco) this City does not have the facilities to host a National Tournament once a year. (i.e. hotels, parking, transportation corridors, nightclubs, etc. that large cities have.) 2.) Our most sought after course would be closed for two years, at a cost of $3,500,000-not counting loss of revenue, and the end product may decrease, rather than enhance, its attraction to the overwhelming bulk of the current players. These Courses are presently "user friendly". 3.) The Report completely ignores the present function and usefulness of the Mif Albright Course. Although it has had reduced income as the result of five years of neglect, it is now back in good shape (the greens have never been better). The problem may be that it's restoration has not been publicized and many former players still don't know it has been improved. It is used the following ways, (completely ignored in the Report): a.) Short-game practice b.) Junior and beginner players who would be uncomfortable and unwanted on the main courses c.) Executive play for those who don't have time for main course play. One can play the 9-hole, par 3, Mif Albright course in little over an hour. Either of the main courses take over 2 hours for just 9 holes, not counting the waiting for a tee time. d.) The elderly and slower players use the course. I've seen people using walkers who play the course. e.) It's more affordable for those with limited income- both retirees and children. f.) It's a great course for couples-both married and single. It's a great, safe, beautiful, neutral, place to take a friend with whom you would like to get better acquainted. 4.) The Report assumes that $1,000,000 could be received in one year for the privilege of dumping surplus clean fill over the entire site of the South (Jack Clark) Course which the Report wants to rebuild. Hello there!! Wake up!! There is no clean fill anywhere near here; not in Alameda certainly, not in Oakland or Berkeley, none in San Leandro or San Lorenzo. 5.) If the Jack Clark Course was sacked in three years for a million yards of "clean fill", there is no mention about the fate of hundreds of trees that would die or need to be destroyed. It would take years to restore them. Even in the proposed reconfiguration of the Earl Fry layout, many beautiful, mature, trees would be cut down. Would such an act be done without permit, review, or requirement for any mitigating measures? 6.) The price for construction estimates in the Report are very optimistic. At best, at this sketchy level of preliminary definition, the quantities could be off by from 30% to 50%. There was no mention of inflation (which is now almost certain) and no certification that Bay Area unit prices were used. Once the place is torn up and the lessee comes back to the City and demands a renegotiation of the lease, we will be at their mercy (as was the case in San Leandro or at Castle Wood). We will have given up all control, lost all our options, and probably have lost this asset. THE MASTER PLAN AND REPORT WE REALLY NEEDED 1. It should address the needed improvements for each of the existing facilities. 2. It should define how each of these improvements could be made without long-term disruption of play, or even without interrupting play. 3. It should prioritize the needs for each project, give accurate cost estimates, and propose incremental steps to fit a planned budget. 4. It should disclose a documented survey of what the existing players believe needs to be done. 5. It should disclose a documented list of the things our Operating and Maintenance employees think needs to be done. 6. It should report on the results of a confidential survey of all employees on what they think, not only in terms of facility improvement, but of what needs to change with management. The people who are here, our players/payers, employees, citizens who live here and appreciate the park-like open space, those who know first hand, ... these are the ones who should be guiding us in what to do; not someone who is projecting their vested interest on us and who live and work a thousand miles away. Many are resentful that the City spent $80,00 on a misleading report when we could have had all new, present and usable, cart paths for the same money. To send our money elsewhere for expert advice is a slap in the face, a putdown, to the rich inventory of professional talent that already exists within the city limits. We have financial analysts who have helped many large corporations bail out of their troubles. We have Civil and Mechanical Engineers who play golf here and have years of professional experience. We have Contractors who know local prices and labor availability, and stay in business because they can do accurate construction cost estimating. We have Human Resource experts who could help us diagnose management and labor problems (this has been and is a big problem which directly affects productivity and our public image). We have Horticulture and Landscape experts. We have experts in Water Treatment who could help us clarify and purify our lakes, ponds, and canals. We have experts in Marketing. Many citizens love and enjoy our golf courses so much that they would volunteer their knowledge, time, and money to help out if only they were asked. Do you remember that over 600 residents came forward and helped build the Skate Park? They accomplished building it in two weeks and everyone had fun doing it. Having touched on just a few things in the Report it has become obvious that this letter could go on and on. Already it exceeds the short, one page, letter I would have preferred. Since I am retired, I could meet with any of you individually and reveal some things I would rather not put in writing, but I hope this will stimulate an in-depth, and critical review of the Report and past practices (policies). I'm optimistic than progress can be made in a non-disruptive, economically feasible, and sensible way that will assure the Alameda Residents that we won't lose this valuable asset. v ~ -, ~. ~~, July 1, 2008 Beverly Johnson, Mayor Alameda City Hall, #320 2263 Santa Clara Ave., Alameda, CA 94501 Honorable Mayor Johnson, REC~ivED 2008 JUL - I P 3 36 CfT~' O~~~r~;i~~~'~~FD~ CfT~' Cf_E~~~i°S aFFfCE I am writing to strongly urge you NOT to accept the NGF Master Plan proposals for our Alameda Golf complex. While the proposal may have been well-executed, their findings are based on an incorrect premise and are not a right fit for our community. Does our Golf Complex need repairs and improvements? Yes. Does our Golf Complex need better management than it has had in previous years? Yes. Do we need to raise a good deal of money and make a viable budget where part of the profits are used to repair, maintain and improve our Golf Complex? Yes. Do we need to nurture a good working relationship with the maintenance staff and teachers? Yes. Do we need aworld-class, championship golf course intended for use by a minority of golfers, and not geared toward our Alameda players with no real guarantee that it would even be successful? NO. Our Golf Complex is one of the true treasures of our city and is used by a wide variety of serious and recreational players of all different skill levels. How sad it would be to have this taken away from our Alameda golfers. For example the Mif Albright par-3 course can be used for a quick game of golf, to practice short-game skills, where a grandparent can take a visiting grand child, for slower players, and especially for the new student golfer. Would all of these players be welcomed to the proposed championship course? I don't think so. The par-3 course is especially important for the new golfer who needs practice on a real course without the added pressure of having to move along as quickly as the experienced golfer. Even if the proposed Re; Agenda Item #5-G 01-41-Q8 Council Meetin 9 championship course would welcome the new inexperienced player, which we know it would not, it would be unfair and discouraging to the novice. It would be like teaching a new student driver to drive a stick shift by taking them to Park St. in afternoon traffic. Not a good way to cultivate new players. We have in our community a great deal of both competence and willingness to address legitimate issues at the Golf Complex. I believe that the proposed plan is not the best answer for us, the citizens of Alameda; but, there are many who would be willing to work towards finding the appropriate solutions to our problems. The decision that you make regarding this proposal is vital. If we go in the wrong direction now, there will be no turning back. This treasure of a golf complex will be lost forever and that would truly be a shame. Please consider how our community uses and values our Golf Complex. Please give serious thought to how accepting the NFG Master Plan proposal would affect our wonderful staff of golf teachers, our maintenance crew (some of whom have been with us for many years), and our Alameda golfers who appreciate the Complex and would increase usage if some small-scale repairs and improvements were made. Please look at other avenues to solve the present challenges at the Golf Complex using local talents who understand how and by whom our golf courses are used. Please vote against accepting the NGF Master Plan proposal. Sincerely, `~~G~~, ~ C~~~~ Bobbie V. Centurion S C~ '~ 1 ~~~ ~~~~ ...::::::...::... r.:: ~.~:~r W:•n.x•.~.. .:.~:...:.....Yn::.. [:.~:.:r.:..... r.:r. r.:i: S'..:' .~r..:...n~[.r.•..,.:.i....~....:::..: :....:::r........:.:L.n [...t ...Wr. ~. ~~..:.-...... :.:....:..: .'.2. l.f~~.::ru~..~.ii~. ~::::::.. i.....: .L.s-s ... '~m~riv: ~:........... ~..r~.:. a .. .. « :~~~.. , ~11~1200 ~ ....... ~ ~ ~....,.., .....................:.... _~ . S} Lara we~sl er - Fwd: r ~ .. .~ .............~:.:.:::..~...........r....[ry[.~...,,.........._...._..y_.,..........:::hti:::.:..[ .Yi....,.:.....r................... .............. x e. r~vat~ zation of the golf com lex ,... .:~~r:;'::....V,.....y,.,pv..... k!M^....~»yfsY.M`»Yr1W)WS`W.,iMS`.""`s'M`.~»>•rorer~~m,;r,..,~,:.,>;..a~.. arr.~L,.~..~....,. ................ rrr~x.r~'~rMrxys...~„~....... ~~~wrc-wmrrnwc.».~w• ....w...... ~~wwe...~.,~-...., ,...;.w,i,>,,;;.; w..w.N..:,,, w..,,.,..w.. .. .. from: Beverly ~ohnsan To: CITY CLERK; Dale Lillard; DAVID Brandt; Debra Kurita; Lana Stoker; ,.. Date; 7/112aa81:1a PM Subject: Fwd: re: privatization of the golf complex Attachments: avia_shee_a80G25.pdf »> "Ran Salsig" <rsalsig@gmail.com> 711/2Qa81a:34 AM »> To: Mayor and members of the city council From: Ron Salsig thought you might like tv see this document from the city of oakland and the port of oakland, concerning Metropolitan Golf Club See Item 6, page 27 in the document below. l have also attached the document to this email to download, should you so choose http_://www.por~ofoakland.com/pdf/av~a shee 080625.pd~ The city and port of oakland has leased out their golf course to a private company, courseco. The city and port were set to realize ~~aa,aao a year, very similar to the proposal in alameda. But the city and port have been forced to accept far less, as this document testifies. A private company may make promises, even by contract, but when things get tough hand they will), the city never gets what it believes it will. VUe are much better off maintaining control of our asset. Alameda is famous throughout the country for having the most public of public golf courses. When 1 am on the PGA Tour, I am often asked how we do it. Unfortunately, we took our eye off the ball, made Fridays a weekendlholiday for the sake of raising fees, raised other fees, let our facilities go, and the public became frustrated, They went elsewhere. Vile lost our identity. When you take your eye off the bail, often you get hit right in the head. And that's what happened. Now it's easy to point fingers, harder to take responsibility. It is easy to wipe our hands of the whole thing and give it to a private company, harder to acknowledge responsibility to our heritage and make things right. Chuck Carica took responsibility in our last crisis. VVe were about to lose our south course to developers and hotels. take a quick look at our current master plan, and I see hotels. l see the south course going away. Again. History is repeating itself. The question before council is whether we choose to remain true to our heritage, or give up. Sincerely Yours, Ran Salsig ~~ a-X22-aa~a rsalsi ~mail.com Re: Agenda Item 5-G 07-O1-OS QMAR BENJAMIN Executive Director DOUGLAS WARING Deputy Executive Director JaE ~11ONG Deputy EXeCutiVe Director DAVxD L. ALEXANDER Port Attorney JOHN T, BETTERTpN Secretary of tie Board PART ~F ~AKLANL~ BOARD OF PART CoMN~TSSIDNERS 530 Water Street • ~akiand, California 94607 Telephone: (510) 627-1100 Facsimile: (510) 451-5914 TDD/TTY- Dia1711 e-Mail; ~oard~-portoakland.corn V~lebsi~e: wv~w,partofaakland.com AGENDA ANTHONY A. BATARSE, 3R. President MARK MCCLURE 1~` Vice President DARLENE AYERS-3OHNS4N 2"~ Vice President MARGARET GaRDON Commissioner KENNETH S. KATZOFF Commissioner PATRICIA A. SLATES Commissioner VICTOR UN4 Commissioner Regular Meeting of the Aviation Carr~mittee Uvednesday, June ~5, ~Oa8--4:34 p.m. Port of aakland Courtyard Conference Room ~ZS ,yam e~: ~ ~ ~ ti .f M ?. ~~..rY 'trM ~ A . ~• rJrr~ S ra ~ ~~ ~ ~~:5 ~'' Jam. r ~ vy. v r` f, r -4 ~ ~.4 ~ •~, r 4 ~;,'r ~.G +K.r ~ ~ ' ~ E.~ x c~ '~_s' ~.-` ~.: 4.r" t a,+~ s ~ K,~ i O.:r ~.;~..~ s ra `s. ` ~ ~ ~ 6 a ~; ~ ! x n z 4 RILL CALL Second Vice-President AyersWJohnsan, Chair Commissioner Gordan first Mice-President McC~ure CLOSED SE551~N ~ . Conference ~IVith Real Property Negotiator. Government Code Section 54956.8, Property: #~ Airport Drive, South Airport Negotiating Parties; Part of Oakland, Various Agency Negotiator: Steve Grossman, Director of Aviation Under Negotiation; Terms of Space~Use Permit Conference With Legal Counsel -Anticipated Litigation. Significant exposure to litigation pursuant to subdivision {b~ of Section 54956.9: ~2 Matters DIRECTaR ~F AVIATION'S REPORT ITEMS ~~R DISCUSSION AND PASSIBLE ACTIN June ~ Board Items ~. Amendment to Ordinance ~6~3, as amended, for Airport Public Parking Rate Modifications and Delegating to the [Executive DirectorlDirectar of Aviation] the authority to revise certain public parking rates within certain parameters. 3. Adoption of a Resolution Approving First Amendments Ta Space Use Permits Far Nan-Exclusive Rental Car Concession with Avis Budget Car Rental, LLC, DTG Operations, inc., Enterprise Rent A Car Company of San Francisco, Fox Rent A Car,. Inc., The Hertz Corporation and Vanguard Car Rental USA Holdings, Inc,, 7904 Earhart Road, Oakland, CA 94621 ~. Approval of a Second Supplemental Agreement with Blackhawk Systems Group LLC to Provide Continued Information Technology ~lT} Support for the Oakland Airport for $168,149 5. Ratification of an Agreer~er~t and Sfipulation between ATA Airlines, Inc. and the Port to Terminate Certain Agreements with the Port and for ATA Airlines, lnc, to Pay the Part $222,1$1.50 in Past Costs ~#1 Airport Drive, South Airport} 6. Approval of a Third Supplemenla!Agreement !a Amended and Reslaled Lease with the City of Oakland and Concurrence with the Execution of a First Amendment fa Sublease and Operating Agreement between Oakland Golf, LLC and the City of Gakland Resulting in an Estimated Loss of Revenue of Approximately $500,000 ~Metropalitan Golf Links, 10051 Doolittle Drive} ~, Authorization for the Executive Director to execute an Agreement with ?~X~CXXXXXX to Provide Information Technology Consulting Services to Assist in~ Preparing a 5•year Information Technology SIT} Master Plan for the Oakland International Airport in an Amount Disclosed to the Board of Part Commissioners. OPEN F~RU~I The Oarnmittee will receive public comment an non-agenda items during this dime. Please fill auto speaker cardandpresentit to the Gommii~ee Secretary. ADJOURNMENT The nee! regular meeting will be held on Monday, A ugust ~f ~QQS, a! 4: 3Q p. m. Public ~Part~elpatiun This mceti~lg is wheelchair. accessible, To request ~,naterials iil alteri~ative .formats, ar to req~~est an ASL interpreter or assistive listening device, please call the Board Secretary, Sohn Betterton, at 51 U-G27- l ~9~ or TDDITTY- Dial 7I 1 at least three working days before the meeting. Please refrai~~ from w~;aring scented products to this meeting so attendees who experience che~n~ical sensitivities may attend. You may speak an any item appearing on the Agenda. Please fill out a Speaker's Card and give it to the Board Secretary before the start of the meeting. All speakers w11i be allotted a mir~in~u~x1 of t~vo minutes. Should you .laave questions or concerns regarding this agenda, or wise to review any of the Agenda Related Materials, please contact the Board Secretary, John Bette~.`ton, at 510-~27-1 ~i9~, or visit our web page at ~~~~~~w. 7cy~~tc~faak.l~~r~.cl.com. To receive Port Agendas and Agenda Related Ivlaterials by c~~mail, please email your request to ~GA~D MTG. DATE: 111108 AGENDA REPORT TITLE: Amendment to Grdinance ~0~3, as amended, for Airport Public Parking Rate Modifications and Delegating to the [Executive DirectorlDirector of Aviation] the authority to revise certain public parking rates within certain parameters. AMaUNT: NA PARTIES INVQLVED: N1A TYPE ~F ACTION: SUBMITTED BY: COMMITTEE ASSIGNED: SCHEDULED FAR COMMITTEE: APPROVED BY: Grdinance Steven Grossman, Director of Aviation AViatlQn June ~~, 2408 Gmar Benjamin, Executive Director FACTUAL BACKGROUND On-Airport parking is one of several competing modes of Airport access, yet remains one of the Port's largest single sources of operating revenue. However in recent years, the Airport's parking system has lost considerable market share and revenue due to increased competition from off-Airport parking operators, more stringent terminal security procedures and changes ~n consumer behavior. To increase the competitiveness of on-Airport parking and increase market share, the Board has authorized two parking marketing campaigns in the past twelve months, including one scheduled to begin in July X008. These campaigns feature tem ora rate p rY adjustments through web-based coupon distributions to generate new business. However the current approval process for these promotions and for obtaining Board authorization to change regular parking rates is lengthy and does not allow the Executive Director to respond quickly to changes ar opportunities presented by market conditions. ANALYSIS To enhance staffs ability to respond to market conditions efficiently and be more competitive, staff requests that the Board grant the Executive Director for Director of Aviation] the authority to set maximum ~~~hour parking rates at any point within Board- approved ranges for each on-Airport parking lot as shown in the following tables. Agenda Re~Oart-RateRanges-~608.doc BARD MTS. DATE; 111108 Maximum 24~Haur Parking Rates: Current Rates and Propased Ranges Ecanam Parkin Lot Current Current City Tax Total Minutes Rate 18.5°/o Ramie 0-30 $ 1,69 $ 0.31 $ 2.aa 31-fiD 3.35 0.62 4.00 51-90 S.Ol a. 94 6.00 91~12a 6,~a 1.25 a.aa 121-15a 8.44 1.55 1a.0a 151-180 9 a.13 1.81' 12.00 181-~10 11,8Z 2.19 14.00 ~ 11 240 12.66 2.34 15.00 Up to 24 Hours $12.66 $ 2.34 $15.00 Proposed Range of Maximum 24-Hour Rate: Law $10.11 $ 1.89 $12.00 High $15,10 $ 2.84 $18.Oa Dail Parkin Lot Current Current City Tax Total Minutes Rafe 18,5°lo Rate o-3a $ ~ .69 $ 0.31 $ 2. oa ~ ~ -6a 3.38 0, a2 4. oQ 61w9o 5.oa a.o4 6.aa 91-9 20 5.15 1.25 B.Oa 121-150 8.44 1.56 1 O.QO 151-1sa 1a.13 1.81 12.aa 151-210 11.81 2.19 14.aa 291-240 13,54 2.5a 16.aa 241-210 15.9 9 2.89 9 8.00 271 w300 10$8 3.12 ZO.QO 301-830 18.5G 3.43 22,00 Up tQ 24 Haurs $18.50 $ 3.43 $22,Q0 Prapased Range of Ma~cimum 24-Hour Rata; Law ~ $14.32 $ 2.65 $1?.oa High $ 21.05 $ 3.95 $25.00 Hourly Parking Lot Current B~IARD MTG. GATE: 711 !0$ Current City Tax Total Minutes R~. 1~.5- °.~ Rte 4-3a ~ 1.69 ~ 0.31 ~ Z.ao ~ ~ -60 3.38 a,62 4.04 61-90 5.07 4.94 6.0a 91-120 6.75 1.25 8,a0 121-15a 8.44 ~ ,56 10.a0 151-180 10.13 1.87 12.00 181-210 11.82 2.19 14.00 211-240 13.50 2,50 16.0a 241-27a 15.19 2.81 1 s, as 271-304 16.88 3.12 Zo,Oo 301-339 18, 57 3.43 22, 40 331-360 24,25 3.T5 24.Da 361-390 21.94 4, 06 26.00 391-420 23.63 4.31 28.00 421-454 25.32 4.6$ 34.Oa 45 ~ -48a 27.oa 5.a0 32.00 Up to 24 Hours $ 27.00 $ 5.40 $32,00 Proposed Range of Maximum 24-Hour Rate: Low $ 21.90 $ 4.11 X26.00 High $ 29.47 $ 5.53 $35.0a Valet Parkin Lot Current Current City Tax Total Minutes Rate 1~ 8.5°l0~ R_ ate, 0-120 ~ 14.97 $ 2.03 $13.00 121-240 21.94 4.a6 26,00 fiver 241 32.91 6.09 39.D4 U~ to 24 Hours $ 32.91 ~ 6.09 X39,00 Proposed Range of Ma~cimum 24-Hour Rate; Low ~ 28.63 $ 5.37 $34.oa High ~ 3G.21 $ 6.79 $43,00 3 ~qA~D MTS. ~AT~M 11~1oS Staff wilt document and notify the Board of any authorized change in rates, and will document the results of those changes for the Board no mare than one calendar-quarter following any authorized change in parking rates. Such documentation will estimate the impact of each change on net operating revenue and parking market share. BUDGET ~ FINANCIAL IMPACT There is no financial impact associated with this request because there is no proposed change in the rates for any parking lot at this time. Staff will thoroughly evaluate the likely impact on net revenue of any recommended change in rates. Estimates of likely financial irr~pact will be presented to the Executive Director with any recommended change in rates. STAFFING IMPACT There would be no impact on Port or contractor staffing. SUSTAINABILITY There are na obvious environmental impacts or enhancement opportunities associated with the proposed plans, ENI~IR~NMENTAL The California Environmental Quality Act CEQA} Guidelines Section 15378~~}, Project, states that "Project" means the whole of an action, which has a potential for resulting in either direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The general rule in Section 1506~~b} ~~.} of the CEQA Guidelines, additionally, states that CEQA applies only to activities that have a potential for causing a significant effect on the environment. It can be seen with certainty that extending the agreement with e~agency, Inc to provide marketing communications services will not result in a significant effect on the environment; therefore, the proposed activity is not subjectto CEQA, MARITIME AND AVIATION PROJECT LABOR AGREEMENT (MAPLA) The matters contained in this Agenda Sheet do not fail within the scope of the Port of Oakland Maritime and Aviation Project Labor Agreement 4MAPLA} and the provisions of the MAPLA do not apply. OWNER CONTROLLED INSURANCE PROGRAM (4CIP) Far the purposes of this agenda, ~CIP does not apply. 4 ~DARQ MT~~ DATE: ~~1 ~g8 GENERAL Pl~AN This action deer not meet the definition of "pra~ect" under the City of Oakland General Plan, and no conformity determination is required. LIVING V~ACE Neither the Port's Living Wage ordinance Port Ordinance No. 366} nor the living wage requirements set forth in Section l28 of the Charter of the City of Oakland apply to this Section because the action requested is not fora "Port Contract" as defined by the Port Ordinance Na. X666 and Charter l~S. OPTIC?N5 The options include: 1. l~laintain Status duo: da not authorize the Executive Director to set maximum ~4- hour parking rates within specified ranges, and retain Board oversight of any proposed rate modification. ~. Approve Staff's recommendation to amend Part Ordinance #~fi13 as amended, to authorize the Executive Director to set maximum 24-hour parking rates within the recommended ranges for each on-Airport parking lat. 3. Approve Staffs recommendation to amend Port Ordinance #613 as amended, to authorize the Executive director to set maximum 24-hour parking rates within Board- approved ranges that are different than those recommended above. RECOMMENDATION Adept Option ~: amend Port Ordinance #~fi13 as amended, to authorize the Executive Director to set maximum ~4-hour parking rates within the recommended ranges for each on Airport parking lot. 5 BDARD MTG. DATE ?!'~lDB AGENDA REPORT TITLE: Adoption of a Resolution Approving First Amendments To Space Use Permits For Non-Exclusive Rental Car Concession with Avis Budget Car Rental, LLG, DTO Operations, Inc., Enterprise Rent A Car Company of Ban Francisco, Fax Rent A Car, lnc., The Hertz Corporation and Vanguard Car Rental USA Holdings, fnc., 7600 Earhart Road, Oaf~fand, CA 946 ~ AMOUNT: Annual Revenue of Approximately $3~,9Z~ PARTIES INVaLVEI]: i 1 i .' . '~ 1. i . i ;Avis Budget Car Ren#af, LLC Parsippany, NJ f~TO Operations, Inc. ;Tulsa, OK ;Enterprise RentA Car Cornpan Y of San f=rancisca ;San Leandro, GA '' Fox Rent A Car, Inc. Los Angeles, CA 1 ' The Hertz Corporation Park Rid e, NJ 9 Vanguard Car Rental USA Holdinly~.yys, Inc. =Tulsa, OK ~.1..1.•1.a.a...~.1..1,•/.r.11.......•/.•r.e.•/......./...•1........~.1.ra..•4....Ir.I...i...•1......•..•1M1....~...a.....• ................•..I.r1........•..••.......•...1.1...............` i j 1 1 • . .•••..1...........••..•• .....................r.r............r.r.....r...................1....•...........~.•r..r..•r...•..•1.i....•....••.............................•.......... •.r r.•~....~ TYPE 0~ ACTiC~N: SUE3MITTED BY; COMMITTEE ASSIGNED; SCHEDULED I~~R COMMITTEE: APPROVED ~Y: Ordinances and Resolutions Steven J. Grassrnan, Direc#ar of Aviation Aviation 615108 Omar Benjamin, Executive Director This action requests adoption of a Resolution approving Amendment No. ~ to SpacelUse Permit for Non-Exclusive Rental Car Concession ~"Amendment"} for six companies that are operating rental car concessions at the Oak(and International Airport. The Amendment provides far the incarporatian of an additional ~',SgB sg.ft. of (and, and provides for reimbursement of certain improvements tv the (and with Customer Facility Charges CFCs}. FACTUAL BACKGROUND At its rneetrng of June ~(9, ~a0~, tf~e Board authorized Ordinance X4004 approving Space Use Permits for Nan-Exclusive Rental Car Concessions ~SUI's} with six an-airport rental car companies. The SUPS commenced July 20, X007 and terminate an June 30, 20~ 2. BOARD I~~'G~ DATE: ?111D$ The terns and conditions of the SUPS are the same far each company, with the exception of the Minimum Annual Guaranty {"MAG"}, which is the amount bid by each company for the first year, and the proportionate allocation of exclusive use areas to each company. In order to reapportion the exclusive use areas of each company, certain improvements were made to the land including relocating fences, paving, restriping drive lanes and modifying common signage, including highway signs. These casts, which are estimated to be approximately $?12,000, are eligible to be reimbursed with the Customer Facility Charge {"CFC"} which is collected pursuant to Part Grdinance 385, adopted March 2, 2DD2. The CFC is paid by the customer who rents the vehicle, and is then remitted to the Port by the car rental companies. tither costs that are specific to each rents! car company {such as adding customer service booths and amenities} are not eligible for CFC reimbursement. In addition, a parse! of land consisting of approximately ?,895 sq.ft. will be added to total land area that is pro-rated among each company based on its bid share. This parcel will be used to expand the entry driveway to facilitate bus movement, and will increase the area available for customer parking. The approx;mate cost far this work is estimated to be ~~OO,Q00 and is also eligible far CFC reimbursement. ANALYSIS The rental cars will operate from the North Field facility for the foreseeable future. The casts to reconfgure the exclusive use areas as a result of the Request For Bids issued in 200? is an appropriate use of the CFCs. It should be Hated that State law and the Port Grdinance which authorize the im osition of the CFCs limit haw these CFCs can be s ent. The funds are onl ermined to a far im rovements and ex enses related to the o eration of a common rental car facili . The addition of ?,898 sq.ft. of land will improve access for the rental car shuttle buses and provide additional handicap and visitor parking. The site currently has two visitor parking spaces and two handicap spaces. The incorporation of this additional square footage will increase the visitor parking to five spaces. The additional square footage viii also permit the driveway into the facility to be widened and allow for an easier turning radius far the rental car shuttle buses. BUDGET & FINANCIAL IMPACT Approval of the Amendment No. ~ to the Space Use Permits wilt increase revenue by $32,923 and will be included in the Proposed Revenue Budget FY 08-09. This rent will increase annually based on change in Consumer Price index. Improvement costs are reimbursable by CFC. STAFFING IMPACT There will be na staffing impact as the result of this action, BOARD MTG. DAT~s 71~ !g8 SUSTAINABILITY The Amendments do not change the Space Use Permit requirement that Permittees will abide by all relevant Part policies regarding sustainability. ENVIRONIUIENTAL The action proposed in this agenda report involves amending existing agreements, This action is categorically exempt firom requirements of the California Environmental Quality Act ~CEQA} Guidelines pursuant to Section 15~g0.4 and the Port CEQA Guidelines, Section ~ 530 ~p}, which exempts renewals, extensions or amendments to (eases or license and concession agreements where the premises or licensed activity was previously leased or licensed to the same or another person, and involving negligible or nv expansion of use beyond that previously existing. I~ARITIIUIE ANA AVIATION PROJECT LABQR ACREE~IENT 1VIAPLA The matters contained in this Agenda Report do not fall within the scope of the Port of Oakland ~llaritirne and Aviation Project LaborAgreement ~MAPLA}and the provisions ofi the MAP~A do not apply. However, if the tenant performs construction type work that requires a Port permit and if the 1011APLA is in effect for tenants when Part Permits are requested, the MAPLA can apply to those activities. OWNER CONTROLLED INSURANCE PROGRAM tOCIP} Owner controlled Insurance Program does not apply to this agreement. GENERAL PLAN Pursuant to Section 7~7 of the City of Oakland Charter, this project has been determined to conform to the policies for the transportation designation of the Oakland General Plan. LIVING ~IIAGE Based upon a review of the terms of the agreement and information provided by the tenants, it appears that the living wage requirements set forth in Section l~8 of the Charter of the City of Oakland apply to this agreement because the contract is far a value greater than $5g,OD~, as calculated under Section 7~~, and each tenant employs more than ~D employees working an Port-related work. Port Ordinance Na. ~6Gfi} as amended, does not apply tenancy agreements are not subject to Port Ordinance No. ~fi6~~. OPTIONS ~. Approve the First Amendment To Space else Permit For Non-Exclusive Rental Car Concession with each of the six on~airport car rental companies, which is the staff recommendation. ~~ARD MTS. DAT~~ 7~~ la8 2. Da not approve the First Amendment To Space Use Permit For Non~Exclusive Rental Car Concession with each of the six on-airport car rental companies 3. Approve the First Amendment To Space Use Pern7it Far Nan-Exclusive Rental Car Concession with each of the six on-airport car rental companies, under different terms and conditions. RECOMMENDATION It is recommended that the Board adopt a Resolution approving the First Amendment To Space Use Permit For Non-Exclusive Rental Car Concession with ~1~ Avis Budget Car Rental, LLC, ~2} DTG Operations, Inc., t3} Enterprise Rent A Car Company of San Francisco, ~4} Fox Rent A Car, inc., ~5} The Hertz Corporation and ~6} Vanguard Car Rental USA Holdings, Inc, on the terms and conditions set forth above, subject to the Part Attorney's review and approval as to form and legality. BGARI~ MTG. DATE: 7!~l08 Board ~f Adoption ofi a Resolution Approving First Amendments To Space Use Permits Far Nan-Exclusive Rental Car Concession Por# Comn~iss~on~r~ with Avis Budget Car Rental, LLC, DTG aperat~cns, Inc., l~g~nd~ Report Enter rise Rent A Car Cam an ol~ San Francesco, Fox Rent A p p Y Car, Inc., The Hertz Corporation and Vanguard Car Rental USA Holdings, Inc., 76x0 Earhart Read, Gakland, CA 946~~ r y/~-..~_,.~..-~-,.~..~..... r.._..._.~..~~....~..___.~.._..~~.~.._..~ ......._.-..T~ .~... __--~..__.....~. NATIpNp~AWu10 I ' ornc 31,dB8 SF 8.55°h I ~ ~ 69,924 SF 16 999'. x$.12°!°1 ~ t ... 45,]' SS '~'~'~ ~ 12.a1~° . {16.2190 ' I I ~iz.a19~1 ..._____~ox :....__ 11,6b5 SF 3,,6°fo ~ 11y 1 i I ~ PArri ~ x.113 SF ~ ~~.'~~. ,~ ". '- _... ~' f ~~. ,,.yW. '• ~ ~ { , o ~ r~ i ~` ~~ ~ ~ . ~~ r ~' . './ ~. ~~ ~ ~1 ., t HERTZ ~w~~ ~'~~ 105,719 SF T$.fi996 c~.~9901 1 ,l __ .. ,,. ' ~ ~..~rw ';i: r. ., ., .rig.,. :ni„{r, .., Airport Properties .,, .~. ' ,Yti .. ._ s .., ,. ;i•d~;:i ~'„',;4i'yi.i~ i';;S I~.i ~;,?ai~~l ~'•~I"y€;i~.!_, is:~~'.~ f!F_i~ I~~_i~~''~ 1'.: ~:_:.,1{ ;~~ `:;:; _J -~: . -I,Y ~Y . , - ~- Nortn Airport Map Not to Scale m m 2 X w ~C~A~~ MTG~ SATE: 71110$ AGENDA REPORT TITLE: Approval of a Second Supplemental Agreement with Blackhawk Systems Group LLC to Provide Continued Information Technology SIT} Support for the Oakland Airport for $15$,749 AMGUNT: $168,749 PARTIES INV~L11Ea: Blackhawk Systems Group LLC Oakland, California Steve Ding, Partner Marie Gl nn, Partner n..~ ......................a..................~...a........r...•...................~r...........r.......r...•......~....,...........................,......................................i TYPE ~F ACTIC3N: Resolution SUBMITTED EY; Frederick C. De Palm, Director of Information Technology & CIO COMMITTEE ASSIGNED; Aviation SCHEDULED f GR COMMITTEE: June 25, 2x97 APPRGVED BY' Omar Benjamin, Executive Director FACTUAL BACl~GRGUND On September 1, 2004, the Port of Oakland and Soluziona USA, Inc. entered a three year contract for support services relating to the maintenance of the Airport's Multi User Systems Equipment AMUSE} application platform, Flight Information Displays ~FIDs}, Gate Information Displays ~GIDs}, Baggage Information Displays ~BIDs}, and other specialized information technology ~1T} systems and infrastructure at the Oakland Airport. On November 15, 2006, Blackhawk Systems Group LLC performed a 190°/o asset acquisition of Soluz}ono USA, Inc, The Port subsequently approved the assignment of the Saluziona contract to Blackhawk Systems Group ~77D0 Edgewater Drive, Suite $60, Oakland, CA 94621, http:llwww.blackhawksystemsgroup.com; phone: x$31 } G59-0229; LBA1LlA certified: no}. On September 4, 2007, the Board of Port Commissioners authorized a First Supplemental Agreement with Blackhawk Systems in the amount of X983,840 so that they can continue providing their support services for one year. This First Supplemental Agreement will expire in Septerber 2008. In an effort to obtain the best possible vendor to provide the above mentioned lT services for the Oakland Airport, the Part s#aff published a Request far Proposal ~RFP} on May 19,, 20a$ for these services. DMS#~ 8148 BARD MTG~ DATE: 11115 ANALYSIS Considerable time is required to choose a vendor, execute a contract and ensure a smooth transition far specialized iT systems support as outlined above. This process will take until November 2Dg8 -two months beyond the end date of the First Supplemental Agreement with Blackhawk Systems. A two month Second Supplemental Agreement with Blackhawk Systems is needed to ensure that the specialized lT support services for the Gakland Airport will continue while the transition is being completed. Blackhawk Systems has been providing the above mentioned IT support services far the past several years. The services provided are highly specialized, and it would be difficult for Part personnel to assume these services. The Port seeks approval to enter into a Second Supplemental Agreement with Blackhawk Systems Group LLC to provide continued IT support farthe Gakfand Airport for $158,19. BUDGET & FINANCIAL IMPACT The Aviation budget contains funds far consultant work of this nature. STAFFING IMPACT The proposed Board action will have no impact an existing staffing needs. SUSTAINABILITY The MUSE system facilitates an increased efficiency of the utilization of current airport facilities. ENVIRGNMENTAL The proposal to approve a supplemental agreement far continued information technology support at the Gakland Airport was reviewed in accordance with the requirements of the California Environmental duality Act ~CEQA}, and the Part CEC~A Guidelines, The eneral 9 rule in Section 15561~b}~3} of the CEQA Guidelines states that CE~A applies only to activities that have a potential for causing a significant effect on the environment. It can be seen with certainty that executing this professional services contract will not result in a physical change in the environment; therefore, it is not a project under CE~A and na environmental review is required, MARITIME AND AVIATIQN PROJECT LABOR AGREEMENT (MAPLA~ This contract is for professional services that do not include construction, testing and inspection, and the provisions of the Pert of Gakland N[aritime and Aviation Project labor Agreement ~MAPLA} da na apply to this work. ~~ARD N~TG. DAT~~ 71~ 1~~ OWNER CONTROLLED INSURANCE PROGRAM OCIP) This project does not fail within the ~CIP program. GENERAL PLAN The project is limited to maintenance of existing equipment J facilities that conform to the previsions of the Gakland General Plan, and will not change the existing uses} of any facility~s~. LIVING 1NAGE Based upon a review of the terms of the agreement and information provided by the contractor, it appears that the living wage requirements set forth in Section 7~8 of the Charter of the City of Gakland and Port Grdinance dumber 3~6~, as amended, da not apply because the contractor employs fewer than the Z~ employees working on Port- related wank required for coverage. GPTIGNS ~ . Authorize the Executive Director to execute a second supplemental agreement with Blackhawk Systems Group LLC to provide continued information technology support at the Gakland Airport for $~~5,7'4g. 2. Take no action. Illlith this option, however, the maintenance of critical network infrastructure, common use ticketing and baggage handling systems, special airline systems, and application specific platforms for the airline industry would terminate resulting in potential disruption of Airport operations. RE~GI~I~IENDATI~N It is recommended that the Board authorize the Executive Director to execute a second supplemental agreement with Blackhawk Systems Group LLC to provide continued information technology support at the Uakland Airport for ~~68,~4g. BGARa MTS. DATE: 711108 AGENDA REPORT TITLE: Ratification of an Agreement and S~ipuiation between ATA Airlines, Inc. and the Part to Terminate Certain Agreements with the l:'ort and for ATA Airlines, Inc, to Pay the Part $222,181.50 in Past Casts ~#1 Airport Drive, South Airport} AMOUNT: $222,151.54 PARTIES INVOLVED: 'ATA Airlines, inc. :Indianapolis, Indiana '.a......1......a.{ ..............1..1..1{.•1....1..........................................~..............................1............•I..t...•i.............•1..1................{.........~........ .....•a....Y Jahn Denison, Chairman, CEO ~ President TYPE OF ACTION: Resolution SUBMITTED BY: COMMITTEE ASSIGNED: SCHEDULED FOR COMMITTEE: AP PROVE D BY: Steven Grossman, Director of Aviation Aviation June 25, 240$ Omar Benjamin, Executive Director This action would ratify the Executive Qirectar's execution of an Agreement and S~ipulatian between ATA Airlines, Inc. ~"ATA"} and the Port of Oakland covering ATA's refection through bankruptcy proceedings of certain agreements at Oakland International Airport and the payment by ATA to the Part of $222,181.50 in rental and other charges. FACTUAL BACKGROUND ATA had been serving the Airport since April 24x6 with flights to Chicago and the Hawaiian islands. Along with Aloha Airlines, ATA provided the only scheduled service to Hawaii. ATA also was acode-share partner with Southwest Airlines Ca. offering connecting service far Southwest's passengers throughout the United States to and from Hawaii. ATA had entered into an Airline Operafing Agreernenf ~AOA} that covered its operations on the airfield and within the carman areas of the terminal. In addition, ATA had executed an Annex `~A't Space/Use Aermif SUP} which covered its use of spaces within the terminal buildings. Far these two agreements, the Part is holding a Letter of Credit PLC} in the amount of $215,040 which satisfies the required security deposits. On April 2, 200$, ATA declared bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. It ceased all a~rl,ne service the next day -April 3`d. Under its agreements, ATA owes the Part $213,002.69 in pre-petition debt pins $9,17$.81 in post-petition charges through April 30, 2008. ATA has vacated its spaces at the Airport. ATA Airlines-Settlement Agenda Report.~1 {O1-01-0'8}, Q~C B~AI~D MTG. DATE: 7l11Q8 ANALY~iS Uvith the assistance of outside bankruptcy counsel, the Port and ATA have negotiated a settlement agreement.which will: 1. Allow the Port to draw on the LC to cover all pre-petition amounts owed by ATA totaling $213,o0Z.~9 the LC, with a remaining balance of $1,997.31 will be returned to ATA; 2. Require ATA to pay past-petition charges in the amount of $9,178.81 to the Port within ten ~10~ days of filing the Agreement and S#ipula~ion with the Bankruptcy Court; 3. Establish the rejection date of the AOA and the ~iJP as of April 3D, 2D08 which waives the 3o-day termination requirement established in those agreements; ~. Require ATA to remove by May 31, 20p$ any and all remaining personal property left in the common areas at the Airport; and, 5. Mutually release ATA and the Port from any other claims against each other, except for a breach of the Agreement and Stiputafion. ATA has ceased all operations throughout its network, Furthermore, it vacated ail of its spaces at the Airport as of April 3ot~ and much of that space subsequently has been re- occupied. Failure to accept and execute the negotiated Agreement and Sti~ulafion would have prolonged the payment reconciliation process and could have delayed ATA's vacancy of its occupied space which would have impacted other tenants wanting to utilize that vacated space. BUpGET& f=fNAfVCfAL ffVfPACT The FYO?'-Q8 Budget anticipated that ATA would continue to operate at the Airport and occupy its spaces on an on-going basis. Therefore, there will be a revenue shortfall of approximately ~25Q,000 for the remaining two months of the current Fiscal Year, attr'rbutabie to unearned space rents, landing fees, terminal charges, aircraft and employee vehicle parking, etc. ATA filed for bankruptcy while staff was developing the FYQ$-Q9 Budget, so no revenues have been anticipated far that Fiscal Year. ~TAFFfNG IMPACT There is no staffing impact as a result of entering into the Agreement and S~ipula~ion. SUSTAfNAB~LtTY There are no obvious opportunities to enhance sustainability associated with this action. ATA Airlines-Settiemer~tAge~~da Re~or#.~~ ~a7•~1.08~.DDC 2 ~C~A~~ MT~~ DATE: 711108 ENVNRgNMENTAL This project has been determined to be categorically exempt from the California Environmental Quality Act ~CEQA}Guidelines pursuant to Section ~ 53QD.~ and Part CEQA Guidelines Section 153D1 {p} Existing Facilities}. Subsection gyp} categorically exempts the execution of leases or license and concession agreements where the premises ar licensed activity was previously leased or licensed to the same yr another person and involving negligible or no expansion of use beyond that previously existing. MARITIME ANa AVIATIaN PROJECT LA~QR AGREEMENT MAPLA The matters contained in this Agenda Report do not fall within the scope of the Port of Oakland Maritime and Aviation Project Labor Agreement ~MAPLA} and the provisions of the MAPLA do not apply, C~~IVNER CGNTRQLLED INSURANCE PROGRAM gCIPj Owner Controlled Insurance Program does not apply to these agreements. GENERAL PLAN Pursuant to Section 727 of the City of Oakland Charter, this project has been determined to conform to the policies farthe #ransportation designation of the Oakland General Plan. LIVING VIiAGE Neither the Port's Living vvage Ordinance Part Ordinance No. 366} nor the living wage requirements set forth in Section 728 of the Charter of the City of Oakland apply to this Section because the action requested is not fora "Port Contract" as defined by the Port Ordinance Na. 365G and Charter 725, QPTIONS ~. Ratify the Executive Director's execution of the Ag-reemen~ and S~iputa~~arr with ATA Airlines, lnc. as outlined above, 2. Direct staff to ~i}advise the Bankruptcy Court that ratification of the ~greemerr~ aid S~ipu~afrarr was nQt obtained, iii} ascertain the implications of such action] and viii} negotiate new terms with ATA. This is not recommended as the Port's deadline to object to ATA's rejection of the ~4C?A and the SUP has already passed and certain spaces formerly included in ATA's SUP are now occupied by athertenants. ATA Airlines-Sett~emer~t Agenda Report,~1 ~~7.01-08).DOC ~ ~~A~~ I~T~. ~AT~M ?11108 R~C~MN~~NDAT~~N It is recommended that the Board rati#y the Executive Directa~s e~cecu#ion of the A~reemenl and Stipulation with ATA Airlines, Inc, which will resu~# in ~i} ATA paying #a the Part all pre-petition and post-petition financial obligations and iii} rejection of all agreerr~ents between the Port and ATA. The Park Attorney has approved the Agreement and S~rpt~la~lon as to dorm and legality. ATA Airlines-5etttement Agenda Reporf_0~ ~0~-~1-g~~.DaC B~Q~D MTG~ DQTEM 11~~08 AGENDA REPORT TITLE: Approval of a Third Sup~alementaf Agreement fo Amended and Restated Lease with the City of Gakland and Concurrence with the Execution of a First Amendment fo Sublease and Gpera~ing Agreement between Gakland Golf, LLC and the City of Gakland Resulting in an Estimated Lass of Revenue ofApproximately $00,000 Metropolitan Golf Links, ~ 008 Doolittle Drive AMGUNT: $540,000 Approximate Amount of Reduction in Revenue liver 5 Yearn PARTIES INVOLVED: City of Gakland Lessee} :Gakland, California ...,.. ......... .... ....../.. ............................./.....1....•../.../11..•I..II...a........../.•~1/1....1•../.....I..I.a...l.././1...... /.1.................1. Gffice of Parks and Recreation 1 1...• r//.a.1.Mi/..../1.....1.....a.....a./..1/•1..•1..•.r...•n.1..1.•1.1/.1/.1./.../r...•1.../.....1.....1....r.../..r./~/.1..~.1............/......r...../ ................. r......... ~. •../~ Audree V. Janes-Taylor, Director i Gakland Golf, LLC 4Sublessee} :Gakland, California Y...../•I..1.../....•1/•1.....•t..1.1..•11./VI....al ....................•1./..1•.1./.1.Y1..11.1...........1..•./...../...1.../1.//w...........1....1......••.w/•e.....1............•/.//./ CourseCo, Inc. --General Partner ~ Napa, California ti/..t..11..1.1.1.1.....1 ..................1.........../......r...........1.•11/...1...-1.........../..../•1.../../.1.1.//.•1/1...•y..............1.././....~..... 1....•/...../....., /.,... Torn Isaak, President -- CaurseCo, Inc. Darryl A. Davis, General Manager f.....l.l../..l.. a..../.. a/1/.111 ......................./....n....//•Y./•.I.....I...... a..........///./ TYRE OF ACTrGN: SUBMITTED BY: CGMMITTEE ASSIGNED: SCHEDULED FGR CGMMITTEE; APPRGVED BY: Resolution Steven Grossman, Director ofAviation Aviation June 23, 2008 Gmar Benjamin, Executive Director This action would approve the terms and conditions, and authorize execution by the Executive Director, of two agreements which would modify the existing agreements covering the operation of Metropolitan Golf Links. Entering into these agreements would result in a Ioss of revenue to the Part of approximately $500,000 ~$~ 04,000 annually? over the next five years. It would also modify the agreements with terms beneficial to the City and the Port. The Gakland City Council has passed its Resolution No/ 8~~1~4 copy attached} approving the changes to the two agreements. The modifications to the agreements as detailed below include: ~ . Rent Relief for Tenant; ~. Accornmadation of Bay Trail by Deleting ~ 0,000± Square Feet from the Leased Premises and from the Subleasehold: 3, Tenant's Acknowledgement of FAA's Right to Construct Navigational Aids; 4. El'rminatian of Rent Credit far Capital Improvement Fund; and, 5. Miscellaneous Issues Clarification, Gakland Golf-Agenda Report.~~ X07-Q1-~8~.doc Bt~A~tD MTS. DATES ll1 !O8 FACTUAL BAC~GRO~JND The Lew F, Galbraith Golf Course was an 1 ~~hole course constructed at the northeast corner of the Airport in 1955. The golf course was leased by the Port to the City of Gakland and operated by Parks and Recreation staff for many years before it was subleased by the City to a private operator. In 1994, the Port needed a location to dispose of dredged material from the aakland Harbor Deepening Project, which widened and deepened the PortJs shipping channels, The golf course, by that time in poor repair, was closed so that the dredged material could be placed an the site; the golf course remained closed far almost 1n years, In 1994, the Pork and City entered into a new Lease of the golf course, which was subsequently amended in 1999 and resulted in the existing Amended and Resfafed Lease with a term of ~6 years covering 165- acres 4the Lease}. The Port and City anticipated that the golf course would be subleased to a professional, third-party operator. In 1999, the City released a request for proposal RFP}for such an operator. Through the City's RFP process and afker substantial negotiations, Gakland Golf, LI,wC, a limited liability company formed by CourseCo, Inc,, ~"Gakland Golf'} was selected to construct, maintain and operate the golf course, renamed Metropolitan Galf Links ~"Metro"}, CourseCo operates and manages 12 other golf courses in California. From 1999-2001, the Port assisted the City with negotiating and drafting the Sublease and Gperafrng Agreement the Sublease} with Gakland Galf. The term of the Sublease is 25 years, with three five- year optional extensions that may be exercised by aakland Golf, Approximately X14 million was invested into renovating and improving Metro - $9.5 million from Gakland Golf plus an additional $4.5 million from the Part and City. In its RFP response, Gakland Golf aggressively projected the number of golf rounds that would be played at Metro. lts proposal was based an the prediction that golf rounds would grow from 41,500 annually in 2003 to 10,000 annual rounds within the first five years of the Sublease term. In fact, the number of rounds played annually at Metro has only grown to 56,440 rounds and is not expected to grave significantly in the next eve years. Gakland Golf indicates that it is losing more than $350,004 per year on continuing operations based in part on its unrealized revenue growth projections. Gakland Golf has approached the City requesting rent relief through the Sublease. Along with amending the rent provision, it is proposed that other sections of the Lease and Sublease be amended as described below. The City Council has passed Resolution No. 81274 authorizing the changes. ANALYSIS Entering into the proposed ~nrrd Supplemental Agreen~enf fa Amended and Resfafed Lease between the Port and the City Third Supplement} and concurring with the City's execution of the ~irsf Amendment fo Sublease and Cperafing Agreement 4~irsf Arnendmenf} will modify various terms and conditions of the Lease and Sublease as detailed below: aakland Gold Agenda Re~ort.~3 {Q7-01.08~.doc 2 ~~ARD M~`G. DA'~~~ ll1 !g8 ~I. bent Relief.: Gakland Golf and staff from the City and Port have negotiated changes in renta! provisions that will result in last revenue of a maximum amount of appraximate(y $~ ,a00,ga0 over a limited five-year term. As described below, Gakland Galf will give up certain benefits in exchange for the proposed temporary rent relief. Current Rent Provisions: Under the terms of the Sublease, Gakland Gaff pays a combination of minimum annual guarantee ~"MAG"} against percentage rental assessed against grass sales. Rentals are split evenly between the City and the Port per the Lease, the Port is responsible far billing and collecting rentals}. Minimum Annual Guarantee: The fallowing table summarizes the MAG as currently specified in the Sublease: ;:.!;~~ '" ~`~r~rt: ,• ,~py~t ..;5 ~~ 5~_~!['~~'~ry;'?~ -~' ~. ~ •"'•'..n': ~: v+ • c., e' ~Y l.Ja T ~..' ,.4, ~, ~. .•. ~. ~ti.,: Pi: 1-_::1:~.v..~yrrJ^~~h "ti'!'."'~ 1~1L ti'~..,.1'• .~.~.- tiy- •. f:µ_ ~;M1i'"'~ ~ (~~ ti~~l.~H1~`:• •11'•~'~• ~ ~'ti: its:.- ~.,~,•~.: 5'.'n ~,. ..Y ~{+~~'.i:.~~5v.~.:~`vri1: : ~-{ice • ~ - ~.:~;.; ''~~i~~•. ~l..le.ti't y ~ S'~~':..~., .~~.~1,~7~4-1i ~ 51~ i~aa~ - ~«ai~aa~ ~ ~ aa, ado ~ 51~12aQ~ - 4J301~005 3a0,DaD 3 51~ I~a05 -- ~~3012006 4a0, aD0 4 51'l 1~QQfi -- 413D1~007 500, aa0 5* 51~124a7 -- ~13a1~D08 55,350 s 51~ r~aas ~- ~iaar~aog 530,450 *Commencing in Year 5, MAG is adjusted annually based an increases in GPI or 8a°lo of the previous year's total rental, whichever is greater and in no event less than the previous year's MAG. Percenta a Rentals: Assessed far various gaff-related, retail, and food and beverage sales: 17,5%: Gross revenues derived from golf-related activities including Green Fees, Pull Carts, Power Golf Carts, and driving Range. 4~~0: Gross revenues derived from food and beverage sales and ancillary services ~e.g., banquet room} and retail sales and services ~e.g., pro shop, instruction, equipment rentals, pay phones, newspaper racks, and other income derived from the operation of Metro}. Rent Credits:The Sublease provides for certain rent credits agains# annual rentals otherwise due; this results in the City and Port actually receiving less than the MAG. SIP Fund: A capital improvement fund ~'`C1P Fund"} is established to refurbish and maintain capital assets at Metro. The Sublease requires Gakland Golf to deposit into the C1P Fund a percentage of gross revenues and it is then authorized to deduct one-half ~'~~} of that amount as a rent credit. Far Sublease years 5 through 25, Gakland Golf is to deposit four percent ~4°l0} of gross revenue into the C1P Fund and is authorized to take a rent credit of two percent ~~%} of gross revenues. Gakland ~ai~-Agenda ~~port.03 (07-01-0$y.d4G 3 BC~AR~ ~lTG. DATE: 71~ 108 lr~at on: As a water~conservation initiative, East Bay Municipal Utilities District EBMUD}, the City of Qakland, and the former operator of the Galbraith Calf Course entered into an agreement for EBMUD to provide reclaimed water for irrigation purposes. The golf course operator ~i.e., Gakland Golf} is entitled to a rent credit related to its required use of reclai~rned water. The EBMUD agreement was terminated by the City effective March 2008; however, its affect an revenues is reflected in the current and prior fiscal years. As a result of the rent credits, the table below shows the gross MAG vs. how much tota[ rent Qakland Golf has actually paid since Metro opened: Reduced MAG; Under the terms of the proposed Frrst Amendment, for a maximum of five years, the MAG would be reduced to fifty percent ~5a°la} of the MAG that would otherwise be payable far each Rent Relief Year. Ear exarnple, commencing May ~ , 2008, the MAG was increased by CPl to $538,454. The revised "Re[ief Minimum Rent" would be $25,225 with the Port's share at $~ 32,6 3 plus its 50°/0 share of any Percentage Rental}. The Rent Relief Period would commence on July ~, 20D8. Each year, the City Council will review the fiscal situation of Gakland Golf, and after such review, shat! decide whether to extend rent relief for another twelve ~~2} month term. The base MAG will continue to be increased based on changes in the CPI. At the earlier of either five years ar if the City Council determines that Gakland Golf s fisca[ condition has improved such that it no larger needs rent relief, the MAG will revert to its full amount. Conclusion; Gakland Golf has indicated that it cannot continue to operate Metro at a financial loss far an indefinite period. !t believes that the proposed Rent Relief will allow it to continue maintaining and improving the golf course, and aver time, increase the number of golf rounds and thereby its gross revenues, !f Gakland Golf fails, operation of Metro would revert to the City, who would then need to find another operator. Nate: the Lease would not terminate and the Port would not r~.ain control o~,,,the premises. ~. Bay Trail: As a condition for making capital improvements associated with the Airport Development Program, the Port has camr~itted to constructing and maintaining its portion of the Bay Trail, a planned, 4o0-mile recreational "ring around the Bay" managed by the Association of Bay Area Governments ~ABAG}. Through previous projects, the Part has constructed two portions of the Bay Trail: alongside the outbound canes of Airport Drive and adjacent to the southern boundary of Metro. v~here these two trails should intersect, there ~s a grade differential of approximately twelve feet X12'}, Ta meet ABAG's design standards including degree of slope, width of trail, turning radius, etc., it has been determined that a 4akla~d Gol#-Agenda Repart.D~ ~D~'-D1-O8}.doc Amount is split evenly between the Port and City BOARS ~TG~ ~AT~~ 71~ Ig8 "cennectar ramp" between the two trails needs to be constructed on approximately ~o,ooo square feet at the southwest Garner of the Goff Course leasehold. Both the Third Supplement and the First Amendment delete the required ~ O,goo± square feet. Since rental is not charged on a per square foot basis, there is no adjustment in rental by deleting this area. The Port will be responsible for all construction costs of the Bay Trail and for cents of relocating any required Golf Course fencing and landscaping. 3. FAA's Right to Construct Navigational Aids: The Federal Aviation Administration FAA} proposes to construct and operate an instrument landing system (ILS} and medium- intensity approach lighting system with runway alignment indicator lights ~MALSR~ which vuill allow precision flight approaches by aircraft to Runway ~~ Left at the Airport. There is currently an ILSlMALSR system on Runway ~7 Right within the Subleased Premises. For Runway ~l Left, the iLS portion will not be located an the Subleased Premises fit wilt be within the boundaries of the Airport}; whereas, the MALSR portion will impact the 3~d, 4~h and ~ Tt" fairways of the Galf Course. The FAA has worked with Oakland Golf to design the MALSR layout to minimize this impact. Various sections of the Lease ~Sectian 5(a}~, Second Supplemental Agreement to the Lease [Section ~~, Sublease Section 3.~a}~, and exhibits Exhibit C -- Oakland Golf Gourse Funding and Development Agreement Section 4.Og~ reference the FAA and Oakland Gail's requirements to accommodate navigational aids, including the possibility of lLS1MALSR for Runway ~l Left, V1lhile the City acknowledges that the MALSR portion of the facilities may not optimize the golfing experience, the passibility of these FAA-mandated facilities being constructed and operated an the Subleased Premises -- and Oakland Golf's requirement to accommodate such facilities ~- is a fang known fact, However, the Third Supplement and the First Amendment will eliminate any ambiguity concerning the requirement far Oakland Galf to cooperate wi#h the FAA to construct and operate the MALSR at Metro when and if the FAA is prepared to da so. 4, Elimination of Rent Credit far Capital improvement Fund: As detailed in the "Rent Credits" section above, Oakland Golf is required to make contributions to a ClP Fund and is authorized to take a rent credit of onewhalf of tha# amount against rentals otherwise owed. This CiP Fund credit results in the Port and the City actually receiving less than the MAG. The City and Oakland Golf have agreed that the ClP Fund will be amended as follows: A. Far each Rent Relief Year, Oakland Golf's required contribution to the CIP Fund would be reduced from ~~/~ of Grass Revenues to ~°/o of Gross Revenues; B. At the expiration of the Rent Relief term, Oakland Golfs contribution to the C1P Fund would be increased to 3°l0 of Gross Revenues; C. if Oakland Galf exercises any of its options to extend the term of the Sublease, its contribution to the ClP Fund would be increased to 4°/0 of Gross Revenues during the option term; and; ~. Oakland Gaff would no longer be authorized to take any credit against rentals otherwise due far its contributions to the ClP Fund and thereby eliminating the CIP Fund credit against the MAG payable to the City and the Part. Oakland Golf Agenda Report.~3 (~7-~1.08~.doc BOARD MTS. QAT~: 7l ~ 1 ~8 5. Miscellaneous Issues Ciarificatian: The City, Port and Oakland Golf have determined that while amending the agreements, it is an appropriate time to clarify other issues which will be incorporated into the Third Supptemerrl andlor the First ~mendmenf: A. The Rental Commencement Date for the Sublease is May ~ , 2Q~3 with rental adjustments each May ~ s~ thereafter. This date complicates budgeting for the parties, so the rental revision date would be adjusted tv each July ~ St of each year. B. Formally terminate the EBMUD irrigation grater agreement and delete Oal~land Golf s rent credit far same. C. Clarify the City's hiring and recruitment requirements. D. UC Short~Game Facility: Oakland Golf and the Regents of the University of California RUC} have entered into a license agreement whereby UC has constructed a short~game practice facility an previously undeveloped land within the leasehold. The First Amerrdmenf confirms that in the event the Sublease is suspended ar terminated, the license will not be terminated and the City will assume the role of licensor, E. Gakland Golf will permit the City to use Metro twice a year at no cost for golf tournaments pies use of Metro's club house for a maximum of twelve ~~~} times per year. F. As noted above, the City has appointed the Part its agent for collection of rentals and other charges, Currently, the Lease requires the Port to forward to the City fifty percent ~5~°/0} of such revenue within ten ~~ 0} days; this is administratively difficult and impractical. The Third Supplemen! extends this time frame to thirty X30} days for the Port to forward funds to the City. BUQGET & FINANCIAL IMPACT The above-stated changes reflect a reduction FY~B-D9 from approximately $2G5,~Og to contemplates the Board's approval of the anticipates annual revenue of $~ 8~,~Og, wl+ reduced MAG plus its share of projected p~ ~5o,00Q rv $18~,QQ~}. in the Pork's 50°~o share of MAG revenue in $132,6DQ. The draft FY08-~9 Budget hhages to the Lease and Sublease, and ch would include the Port's share of the ~centage rental approximately $~ 3~,5~ 3 + STAFFING IMPACT' There will be no change in Port staffing as a result of entering into the Thad Supplemenf and concurring with the First Amendmer~f. Gak~and Golf-Agenda Repor#A3 (07-0~•08~,do~ Bo~Ra MTG~ DATE: ~~~los SUSTAINABILITY There are no obvious enviranr~en#al opportunities involved with entering into the Thad Sup~lemenf and concurring with the Firsf Amerrdmer~f, ENViRGNMENTAL This prajec# has been determined to be categorically exempt from requirements of the California Environmental Quality Act ~CEQA} pursuant to Class I of Port Guidelines Section ~~3o~~p} which exempts renewals, extensions, ar amendments to leases or license and concession agreements where the premises or licensed activity was previously leased or licensed to the same ar another person, and involving negligible or na expansion beyond that previously existing. MARITIME AND AVIATION PRG,~ECT LABQf~ AGREEMENT MARLA The matters contained in this Agenda Report do not fall vuithin the scope of the Port of Oakland NIAPLA and the provisions of the MAPLA do not apply. However, if the tenant performs construction type work that requires a Port permit and if the f~APLA is in effect for tenants when Part Permits are requested, the MAPLA can apply to those activities. C~~IVNER CGNTRGLLED INSURANCE PRGGRAM OCIP} Qwner Controlled Insurance Program does not apply to the Thad Supplemenf or to the ~irsf Amer~dmenf. GENERAL PLAN Pursuant to Section 727 of the City of Oakland Charter, this project has been determined to conform to the policies fvr the transportation designation of the Oakland General Plan. LIVING 1NAGE Based upon a review of the terms of the agreement and information provided by the tenant, it appears that the Port Living Wage requirements do not apply because the tenant is not a Port Aviation or Maritime business, thus not subject to Section 728 of the Charter tenancy agreements are net subject to Part Ordinance Na. 36~6~. However, the tenant will be required to certify that should living wage obligations became applicable, the tenant shall comply with all of its obligations. ~aicfand Goff-Agenda Report.03 X07-0~-08).doc R~ARD ~T~~ SATE: ?I~IgB OPTIONS The Qakland City Council has passed its Resolution No. 8'114 which amends its Sublease and aperafing Agreemenf with aakland Golf, LLC pursuant to a First A-nendmenf fa Sublease and Operating Agreement, To implement the changes contemplated by this Firsf Amendmenf, the Port and the City first need to amend the base Lease for Metro; a Third Supplemental Agreernenf fa Amended and Restated Lease for this purpose has been drafted. Subsequently, the Port needs to concur with the City's execution of the Firsf Amendment. Qnce these documents have been fully-executed: ~ Qakland Golf will receive rent relief of a maximum of $~ ,o0g,g~0 over afive-year term; ~ The leasedlsubleased premises will be reduced by ~ g,gg4± square feet at the southwest corner of Metro so that the Port can complete its required connection of the Bay Trail; ~ The City and Qakland Goif will reiterate the FAA's right to enter upon the leasedlsubleased premises to construct navigational aids; ~ The CIP Fund rental credit will be eliminated, thereby increasing the total rental paid by Qakland Golf to the City and the Port; ~ The rental adjustment date in the Sublease will be changed from May ~ st to July ~ ~~ of each year; ~ The terms and conditions of the EBMUD Irrigation vilater Agreement will be deleted f rorn Lease; ~ The City's hiring and recruitment policies will be clarified; ~ The UC-constructed Short-Game Facility will be documented; ~ The City's free use of Metro will be expanded; and ~ The time frame for the Port to forward funds to the City will be lengthened from ten ~~~~ days to thirty ~3~~ days. The following options are available to the Board: 1. Approve the proposed Third Supplemenf and concur with the City's execution of the Firsf Amendment which will result in the above changes to the Lease and Sublease. ~. Reject the proposed Third Supplement and da not concur with the City's execution of the Firsf Amendment which could result in ~i}the financial failure of Qakland Galf and the reversion to the City of responsibility for managing Metro, iii} potentially even less revenue to the Port if the City is only able to negotiate a less~favorable operating ~a~clar~d Golf•Agen~a Report.03 {~7-0~~08}.dac 8 ~~ARD MTS. DATE: 71~~D$ agreement with a new operator, viii} the Port being forced to condemn the ~ 4,OOg+ square fleet required to complete construction an the Bay Trail, and Div} the Port paying late tees far natforwarding funds to the City within the required timeframe. 3. Reject the proposed Third Supp~en~enf and da not concur with the City's execution of the Firs~Amendrnent, but recommend different terms and conditions. RECOMMENDATION It is recommended that the Board pass a resolution ~i}approving the above-described Third Supplemental Agreement fa Amended and Restated Lease with the City of Oakland, iii} concur with the execution of a First Amendment fo Sublease and Qperafing Agreement between Oakland Golf, LLC and the City of Oakland, viii} authorise the Executive Director to execute the Third Supplernenf, concur with the First Amendment, and any subsequent agreement~s~ needed to document the annual rent relief provided that in na event shall the Port's share of fatal rent relief be in excess of ~~D~,~oD nor the term exceed five ~5} years, and Div} all agreements shall be subject to the Part Attorney's revenue and approval as to form. oak~a~d Gal~ag~r~~a R~port.a~ ~a7-a~-aa~.~oc B~AI~D MTS. DATE: 7'1~ Io8 ~~~r~ ~f Approval of a Third Supplemental Agreement fo Amended and Resfia~ed Lease with the City of Oakland and Concurrence with dart amlm~s~~oners . the Execution of a F~rsf Amendment ~o Sub{ease and Operating A~en~~ ~~~~~ Agreement between Oakland Goff, LLC and the City of Oakland resulting in an Estimated Loss of Revenue of Approximately $5~O,o0~ Metropolitan Golf Links,1o05~ Doolittle drive} '~'4 ~1 v i j I ~~ y' ~ p, b N F I f`~'!~al'~ rJ f ~ `i~•,~ ~~ ,5S ,~`~i 5 ~ ~r./ ~i~~'' CI ~ r .~..D'~~1,1 i TLS ~ .~ ..,... .raL ~~--.w~_ ~„_s~ r~'i... 1 7, .N r7~~~N ~/S~VIJ ~ ~.ti~.+. 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~~ ~ ~~ ~~i UR~~U~1~~~ aaklar~d Goff-Age~~a Report.03 X47-~1-OS~.doc 13 BUARD LTG, DATE: 613105 AGENDA REPORT TITLE: Authorization for the Executive Director to execute an Agreement with XXXX~CXXXX to Provide Information Technology Consulting Services to Assist i~n Preparing a 5~year Information Technology SIT} Master Plan far the Oakland International Airport in an Amount Disclosed to the Board of Port Commissioners AMOUNT: Disclosed to the Board of Port Commissioners PARTIES INVGLVED: xxx TYPE QF ACTIGN: SUBMITTEQ BY: CGMMITTEE ASSIGNED: SCHEDULED FflR CGMMITTEE: APPRGVED BY: Resolution Steven Grossman, Director ofAviation Aviation June 2, 20D7 Ornar Benjamin, Executive Director FACTUAL BACKGRQUND The !T needs and opportunities have grown significantly for airports of Oakland's size aver the past decade. The Part has previously installed common use systems in portions of the Airport and has recently completed installing new systems in Terminal ~, in the parking lots, and the roadways as part of a renovation and expansion program. The Port is entering into design on a renovation program in Terminal ~ ,which dates from the ~ 9~a's -1 g5o's, including building life safety upgrades and updated communication and special systems. Although the new systems represent a significant upgrade far portions of the Airport from prior era infrastructure, the Port recognizes a need to take a comprehensive look at the Airport's !T infrastructure and systems. An IT systems overview at OAK should consider both recent installations and systems yet to be installed ar upgraded, and consider both individual functionality as well as integration needs, in order to make the best use of staff and budgetary resources as new systems are implemented. The Port Aviation and lT Divisions issued an RFP for IT Master Plan Services in order to accomplish these ab~ectives. As stated in the Request for Proposals ~RFP~, the objective of the lT Master Plan is to provide planning and schematic design documents that Qutline the migration path from current t The Aviation Division has informed the Board of its estimate far the cost of these services. I~ is not disclosed here in the best interest of the public and the competitive process. Actual amounts will be available after all the contract agreement has been obtained. ~4ARD MTG~ DATE 813~Q8 technologies and infrastructure to an integrated information technology system and supporting infrastructure that will provide the Gakland International Airport with a world class techna(agy infrastructure. This migration path or road map would assess the business case for any recommended investments. Gn April 11, ~QDB, the Request far Proposal RFP} far Airport IT consulting services and assistance in preparing an IT Master Plan far the Oakland International Airport was posted to the Port website. Consultant teams were encouraged to use Iocal business enterprises to the extent practical. Each proposing team was required to commit to utilizing Port of Cak(and certified LIAILBA consultants at a minimum of 15a/o, based on the total dollar value of work over the life of the contract, and were encouraged to use small and very small businesses 4SBEII~SBE}, A mandatory Pre-Submittal Meeting was held on April ~5, ~QQB, which included an overview of the project and submittal requirements; answering questions regarding the. RFP; and an opportunity for local and small businesses to contact and #eam with firms planning to submit proposals. Fa((owing the Pre-Submittal Meeting, the List of attendees was pasted to the Port of Gakland website and written answers to all questions received at the Pre-Submittal Meeting ar through email were posted. Cn May 9, 2408, the Port received 4 proposals. ANALYSES Proposals were received from the following four consultant teams: 1. CGR Management Consultants, Gak(and, CA 2. Convergent Strategies Consulting, lnc., San Jose, CA 3. Faith Group, LLC, ST. Louis, MG. 4. Jacobs Carter Burgess, Gakland, CA A panel consisting of Port staff including Airport IT, Port (T, Aviation Divisions, and Social Responsibility reviewed the proposals and determined that three firms met the minimum qualifcations, as stated in the RFP, which included demonstrated recent relevant experience with IT systems in an Airport environment and the use of at least 15°/0 local firms on the team. Although all Learns included at least 15°/o focal firms, only three had demonstrated experience in Airport CT systems and these firms were selected to be interviewed: 1. Convergent Strategies Consulting, Inc. ~. Faith GrQUp, LLC 3. Jacobs Carter Burgess The panel interviewed the three teams on May 28, 2048 and prepared a ranking based on the following criterra: ~ Responder's experience in completing similar work The proposed team's experience and the experience, qualifications, and availability of the Project Manager The Responder's understanding of the project requirements and ability to produce and deliver the required work product within budget and on schedule, ~~ARD MTG. DATA: 813lg8 • Proposed approach and methodology to accomplish the scope of work and project goals including a QAlQC plan + Organization and presentation of proposal • Proposed Pricing • Effectiveness in complying with Part policies and requirements as stated in this RFP • Demonstrated commitment to enter into contract with the Port as evidenced by their response to the Port's Professional Services Agreement. ~i~XXXX received the highest ranking, and the Park's Social Responsibility Division has determined that the team is responsive to the Port's Non-Discrimination and Local Business Policy. BUDGET & FINANCIAL IMPACT The current spending request has been disclosed to the Board of Part Commissioners. The budget for this project has been included in the current Feasibility Study and suffcient funds are available through the Element Number A~.00~ ~ gg,g9 which is funded through PFC and Port cash including apportionment to the airline rates and charges cast center. STAFFING IMPACT There will be no change in Port staffing as a result of entering into this agreement. SUSTAINABILITY There are no obvious environmental opportunities as part of this agreement. ENVIRONMENTAL This Board action is exempt from the California Environmental Quality Act ~CEQA} under the general rule in Section ~ bOG~ ~b}~3} of the CEQA Guidelines as this project ~a master plan, in and of itself, will not result in a significant effect an the environment. MARITIME AND AVIATION PROJECT LABOR AGREEMENT MAPLA The contract is far professional services that are not for construction testing and inspection, and the provisions of the Port of Oakland Maritime and Aviation Project Labor Agreement ~MAPLA} do not apply to this work. OWNER CONTROLLED INSURANCE PROGRAM (OCIP) The Ports Owner Controlled Insurance Program (~CIP) will not apply to this agreement BaAR~ MTS. GATE: G131g8 GENERAL PLAN This cantract is for professional services and viii not directly include any alteration of property. Pursuant to Section l27 of the City of Oakland Charter, this agreement has been determined to conform to the policies of the transportation designation afthe Oakland general Plan. LIVING WAGE Based upon a review of the terms of the agreement and information provided by the contractor, it appears that the living wage requirements set forth in Sec#ian 728 of the Charter of the City of Oakland and Port Ordinance Number 3G~5, as amended, do not apply because the contractor employs fewer #han the 21 employees working on Port-related work required for coverage. However, the contractor will be required to certify that should living wage obligations become applicable, the contractor shall comply with all of its obligations. ~PTI~NS The following options are provided for the Board's consideration. option 1: Authorize the preparation and execution of a professional services agreement with X~X~X~CX, the highest ranking responder based an experience, technical approach, and price, to provide airport 'information technology consulting services to assist in preparing a 5- year Information Technology SIT} Master Plan far the ~akiand International Airport. Option 2: Select a different responder from the shock-listed firms to provide airport information technology services to assist in preparing an IT Master Plan. Although the other two short-listed firms met the minimum requirements, these firms were not ranked as highly based an the evaluation criteria provided in the RFP and would not be recommended unless a cantract cannot be negotiated with the highest ranking firm. Option 3: as not proceed with this project and the preparation of a 5-year Airport IT Master Plan. The purpose of the Mas#er Plan is to provide a road map for the implementation of an integrated IT system and architecture. U1lithout such a Master Plan, systems would be implemented in a piecemeal fashion, that would not take full operational and cost advantage of an overall integrated system, resulting in redundant systems in multiple locations, silos of information and operational inefficiencies. RECOtNMENDATION Option 1: Authorize the preparation and execution of a professional services agreement with XX~CX~XX, far airport information technology services to assist in preparing a 5-year information Technology SIT} Master Plan for the Oakland International Airport.