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Airport Commission Meeting Notes

March 17, 2020 Airport Commission Meeting Notes 

Present:     President Mazzola, Vice President Johns, Commissioner Guggenhime, and Commissioner Yeung. 

All regular calendar items passed on a 4-0 vote unless otherwise noted. Discussion included below, where applicable.

DIRECTOR’S REPORT

Airport Director Ivar Satero thanked the Commission Secretary for the extensive preparations made for the meeting.

Competitive Process Communications – Airport Quiet Period Policy: In the wake of the indictment of Public Works Director Mohammed Nuru and the subsequent audit and investigation, the Airport is establishing and formalizing policies around the Quiet Period associated with contracting RFPs it issues. At the next Commission meeting, Staff will propose a policy for approval. The Airport has done this in the past for specific items, such as the RFP for the hotel operator and one or two mass RFP procurements for food and beverage. This policy will now be applicable to all processes at the Airport, which will envelop all communications that are inappropriate from the time of the issuance of the RFP to award of the contract. It includes communications with Commissioners, Staff, and panel members. Proposers must testify that they’ve followed the Quiet Period policy. Members of the selection panel will also have to testify that they will adhere to the policy and have not been improperly contacted prior to completing their work.

Community Impacts from Ground Based Noise: Noise has been a hot topic in the community with FAA changes in arrival and departure procedures in order to make the national airspace system more efficient. Ground Based Noise is a particular nuisance to communities adjacent to the Airport, such as Hillsborough, San Bruno, Millbrae, and Burlingame. Ground Based Noise encompasses noises emitted from aircraft run-ups, taxiing, use of auxiliary power units, maintenance operations, construction, and other types of on-airport activities. The SFO Roundtable is studying the effects of Ground Based Noise supported by data from the Airport. It will look at such things as the potential impacts of noise reflectivity, the built environment that exists, and if there has been a reconfiguration that has contributed to the change. Data from the Airport includes those from noise monitors in the community and 3D modeling of Ground Based Noise from its consultant. 

Coronavirus Disease 2019 (COVID-19): The Airport team has done incredible work in the past couple of weeks in responding to the unprecedented set of circumstances. First and foremost, the priority is protecting the health and well-being of the traveling public and employees. Last week, the Airport recognized the need for a more significant organizational structure and communication plan, and it created a COVID-19 Leadership Team comprised of senior staff and key personnel. The team has created an action plan for all the initiatives that the Airport needs to move day-by-day and protect passengers. The team meets daily. Two priorities have been developed. The first piece is the importance of focusing on the Airport’s finances and revenues and small business support. The Airport has established two sub-committee groups to develop those plans around support and make timely decisions around finance and revenues. In particular, the food and beverage vendors have a lot of small businesses involved. The second piece is engaging with the airlines and having more real-time conversations with airlines and tenants/stakeholders. Staff have established twice-a-week telecons that are separate open lines with airlines and food and beverage providers. It has been well-received and well-attended. Cheryl Nashir has stepped into the acting role of Chief Finance and Business Officer.

Mayor London N. Breed has issued a shelter-in-place order, and the Airport has identified essential vs. non-essential staff. Effective this morning, the Airport is running an essential staff-only operation. It had gone into a telecommute operation a few days ago. The operation of the Airport and protection of Airport passengers and Staff remain the priorities. The Airport is reducing the number of checkpoints with TSA. The City considers public works construction an essential activity. Staff are working with contractors and sub-contractors to maintain the momentum in the Airport’s construction program. Staff are making decisions on the Harvey Milk Terminal 1 opening, including airlines supporting the terminal as well as construction resources, and will keep the Commissioners informed. 

International passenger traffic is down 35-40% and continuing to decline. Domestic passenger traffic is down 12-15%. United recently announced a 50% reduction, and other carriers have announced a reduction of 75%. Airport financial actions include suspending all non-essential hiring and travel and postponing non-essential RFPs. The Airport has a number of levers at its disposal to mitigate the crisis and continues to monitor on a real-time basis through its sub-committee. The next step is to establish trigger points if more aggressive action is necessary. Staff are also engaged at the federal level and have been part of the crafting of a framework for federal relief. There are proposals of up to $10B for airport relief, and Staff will keep Commissioners informed. Regarding small businesses, concessions are seeing a 50-70% decrease in spending. Essential vendors are staying open, such as food and beverage, newsstands, currency services, and CLEAR-registered travel. Retail is considered non-essential, and Duty Free and specialty retail are closing. Staff are working with concessionaires on hours of operation. Restaurants are converting to take-out only. The Airport is also implementing a forbearance program for concessionaires, which would be rent relief for a certain duration. The Airport anticipates a forbearance of two months of rent relief with repayment within a certain time period once conditions improve. 

Commissioner Johns asked if retail folks will be in a different category of relief. Director Satero responded that they would receive the same rent forbearance for those two months. Commissioner Johns asked if the Airport knew what was happening to the retail employees. Director Satero said the Airport does not but is assisting with placements. Commissioner Guggenhime asked how the Airport will accommodate current passengers. Director Satero responded that the Airport must balance the concessions that are open with the volume of passengers. Staff are conducting an analysis to determine what the right amount of services are based on reduced volumes. Essential services will be maintained, but Staff are working with concessionaires so that they’re not losing money. Commissioner Yeung asked three questions: What is the level of coordination with CBP and CDC to monitor incoming passengers and at the same time prevent social clustering? Does requiring take-out place pressure on common areas/lounges? Do employees of vendors have access to City employee benefits for small businesses? Director Satero responded that the Airport is having multiple conversations a day with federal partners. They are monitoring activity in arrivals on an hourly basis. SFO hasn’t had the same levels of congestion as other airports, which may be attributed to the misapplication of screening requirements at other airports. There are some wait times that makes it difficult to mitigate closeness. Staff are working with CDC to expedite processing. Returning passengers from alerted destinations receive a questionnaire. If they are exhibiting any symptoms, they are subject to additional screenings. There are also random temperature screenings at the jet bridges. Some pre-clear flights will also receive screening. The Airport is lucky to have 30+ CDC personnel onsite. President Mazzola commented on the need to protect vendors’ employees. Director Satero continued that the common areas are expansive, and people have been cognizant of maintaining social distancing. As passengers get grab-and-go food, they should be able to find space in the terminals to maintain necessary separation, but Staff will continue to monitor. Emylene Aspilla said that the extended sick time is for employers who fall under the paid sick leave ordinance, which doesn’t apply to SFO workers. She has reached out to Labor Standards and Enforcement to see if it could potentially apply to the Airport. The policy allows employers to extend paid sick leave by five days. Airport employees follow the MCO and the HCO for time off. Those in the City proper follow the paid sick leave ordinance. Commissioner Johns asked if there is a policy for passengers arriving with symptoms. Director Satero said a call goes immediately to the San Mateo County Department of Public Health, and the passenger would be transported directly offsite to a facility. Commissioner Johns asked if there has been any follow-up on the Alaska Airlines employee who was found to have coronavirus. Director Satero said Staff has followed up on the employee’s path of travel and did a lot of enhanced cleaning in those spaces. They are also looking at who may have been in contact with similar surfaces and have been in contact with those people to monitor their health. Ralf Ruckelshausen added that they put a list together of the path of travel and notified all involved companies yesterday with a list of their employees. Staff are also in close contact with Alaska Airlines as they’re doing their own self-quarantine. 

Speakers:

  • Kevin Westlye, High Flying Foods, stated that restaurants are down over 50% in the entire airport and can’t see the bottom of the well. He was hoping to see a rent forgiveness program of all MAG, percentage rent, and fees for 60 days. They are bleeding through reserves. Businesses are trying to do the right thing and not lay off employees but need more help. He would like to ask the Airport to reconsider the policy and allow rent to be forgiven and not repaid. 

SPECIAL ITEMS

Ø  Item No. 1: Election of Vice President 

President Mazzola stated that since Vice President Linda Crayton resigned for health reasons, the Commission needs to fill her unexpired term. He nominated Commissioner Johns, who has been on the Commission for 16+ years. The vote passed unanimously. Vice President Johns said she will do her best to fill big shoes.

ITEMS INITIATED BY COMMISSIONERS

No items initiated by Commissioners. 

REGULAR CALENDAR

Ø  Item No. 2: Award of Four Harvey Milk Terminal 1 Food and Beverage Concession Leases in Phases 3 and 4

     Lease 10 - Gourmet Grab & Go Market: ProperFood SFO Airport, LLC

     Lease 12 - Casual Dining and Bar: HFF SFO Two, LLC

     Lease 13 - Coffee or Coffee & Retail – A Small Business Enterprise Set-Aside: Culinary Heights Hospitality

     Lease 14 - Japanese or Poke – A Small Business Enterprise Set-Aside: Heigh Connects, LLC

Cheryl Nashir presented on the item for approval of four food and beverage leases in Harvey Milk Terminal 1. The entities recommended for award include two that the Airport is already doing business with and two entities that will be new to SFO. With Airport Commission prior authorization, Staff conducted an RFP process for five leases in Harvey Milk Terminal 1. One lease only received a single proposal, which was disqualified for not meeting minimum qualifications. For the remaining four leases, Staff received between two to six proposals each.  A second disqualification was necessary for an incomplete proposal submittal. 

For Lease #10, a Gourmet Grab & Go Market, award is recommended to ProperFood SFO Airport, LLC.  Their concept is Proper Food, which is pre-packaged, fresh, upscale salads, sandwiches, meals, and snacks. They have 10 locations locally and four in New York City. They are a JV between namesake Proper Foods and Silver Dragon Café, both from San Francisco and both new to SFO. 

For Lease #12, a Casual Sit-down Restaurant and Bar, award is recommended to HFF SFO Two, LLC for the concept Balboa Café.  The operator, High Flying Foods, is a tenant already. It operates some Peet’s Coffee & Tea locations, Gotts Roadside, and Farmerbrown.  For this opportunity, it licensed local icon Balboa Café, a San Francisco restaurant that is more than 100 years old.  

For Lease #13, a Small Business Enterprise Coffee or Coffee/Retail location, award is recommended to Culinary Heights Hospitality, which will operate a Ritual Coffee Roasters location. Ritual is a San Francisco-based brand, and the ownership of Culinary Heights Hospitality are tenants of the Airport under different business names. They operate Andale Mexican, 24th & Mission Taco House, and Valencia St. Station.

Finally, for Lease #14, a Small Business Enterprise Sushi and/or Poke concept, award is recommended to Heigh Connects, LLC, which will be a brand-new operator for SFO. Heigh Connects is a Seattle-based company. They will operate a Sam Choy’s Poke to the Max. They operate three locations in the Seattle area including one at Sea Tac Airport. They have a franchise operator in San Bruno and well-known food trucks in both Washington and the Bay Area. 

There were two protests on this RFP. One protest alleged that the proposer chosen for the coffee lease was beyond the size requirement. This protest was found to be without merit. The other protest pointed out that the proposer for the sushi/poke lease was not in good standing with the franchise tax board in California. The proposer was able to show they were in good standing in Washington, where they presently operate, and they cured a minor defect related to their standing in California to Staff’s satisfaction.

The lease terms are all 12 years with one 2-year option to extend. Rent is the greater of Minimum Annual Guarantees set by the Airport or tiered rent of 8%, 10% and 12%. All these leases require Board of Supervisors approval.

Commissioner Yeung commended that three out of four of the awardees are San Francisco-based companies. He is disappointed that the sushi/poke restaurant is not since there are such a significant number of operators in the Bay Area. However, he understands Staff is legally restricted from using geography as a factor. He hopes that the Airport continues to encourage local businesses to bid. 

Speakers:

  • Kevin Westlye, High Flying Foods, said they are thrilled to bring Balboa Café, a historic and iconic restaurant, to the Airport.
  • Hilary Newsome, Balboa Café, said the business is thrilled with the opportunity. It is part of the San Francisco legacy business community and is 107 years old. Today is the first day it’s been closed in the last 30 years.

Ø  Item No. 3: Award of Three Harvey Milk Terminal 1 Retail Concession Leases in Phases 3 and 4

     Lease 8 - A Traveler’s Retreat: Minute Suites Travelers Retreat SFO, LLC

     Lease 11 - An Apparel/Lifestyle Store: Genesco Partners Joint Venture #11

     Lease 12 - A Bookstore: HG SFO Retailers 2017 JV

Cheryl Nashir presented on the item for approval to award three retail leases in Harvey Milk Terminal 1. These leases are to open between May 2021 and March 2023. With Airport Commission prior authorization, Staff conducted an RFP process for three retail leases in Harvey Milk Terminal 1, and five proposals were received by the specified submittal date. Lease #8 is called a “Traveler’s Retreat.” The entity being recommended for award is Minute Suites Travelers Retreat SFO, LLC, for their concept, a Minute Suites and a Be Relax Spa. Minute Suites will be a new tenant for SFO. Their JV partner, Be Relax, recently won two spa leases at SFO but have not completed construction yet. Staff are excited about this pairing which would be an oasis for guests. It includes 12 private rooms, showers, massage rooms, spa services and related retail merchandise.

Lease #11 is for a large corner store identified as apparel or lifestyle. Only one proposal was received from Genesco Partners Joint Venture #11 and their Johnston & Murphy store. This brand historically was for men’s shoes, but it has been refreshed and made relevant for the travel market by adding women’s and men’s apparel, separates, accessories and shoes. This tenant is a JV partnership between Genesco, a former tenant of SFO, and 20% ownership by ACDBE partner Corliss Stone Littles, who operates the Sunglass Hut stores at SFO and is a partner on L’Occitane which is set to open in Harvey Milk Terminal 1 next week. 

Lease #12 is for a bookstore, and the award is recommended to HG SFO Retailers 2017 JV for Green Apple Books – a well-known San Francisco concept.  Green Apple Books opened in 1975 and is a San Francisco Legacy Business. The ownership here is 80% Hudson Group (a large airport retailer the Airport is already doing business with) and two ACDBE partners, each with 10% ownership.  One is local, and one is from Los Angeles. The lease terms are all 12 years. Rent is the greater of Minimum Annual Guarantees which were proposed by the proposers or percentage rent as set by the Airport. 

Vice President Johns asked about the Green Apple Books contract and Green Apple’s specific role. Ms. Nashir responded that it is a license arrangement. Green Apple Books is not one of the owners but will be paid a licensing fee. It will also be involved in design and merchandising in order to protect the integrity of its brand. Licensee partners are usually present on a monthly basis. Vice President Johns asked if it’s the Airport’s first contract with Green Apple. Ms. Nashir confirmed.

Ø  Item No. 4: Award of the Harvey Milk Terminal 1 Airport Lounge Lease to ALD Development Corporation dba Airport Dimensions 

Cheryl Nashir presented on the item for approval to award the Airport Lounge Lease in Harvey Milk Terminal 1. The award is recommended to ALD Development Corporation doing business as Airport Dimensions. Airport Dimensions will call its operation at SFO “The Club at SFO.” With Airport Commission prior authorization, Staff conducted an RFP process for an Airport Lounge in Harvey Milk Terminal 1. Two proposals were received by the specified submittal date. The evaluation panel scored Airport Dimensions as the highest responsive and responsible proposer. Their business model is a pay-per-visit arrangement or a club membership.  Airport Dimensions operates 24 clubs around the globe including at Atlanta Hartsfield-Jackson, Dallas/Ft. Worth, Miami, and London’s Heathrow and Gatwick Airports.  Their services will include concierge services, fitness, spa treatments, showers, resting area, a children’s room, and food and beverage. They have partnered with local non-profit “La Cocina” for monthly catering events. The lease term is 12 years with 2 one-year options to extend. Consistent with the airline lounges, rent is simply set at a dollar per square foot rate and adjusted annually. Starting rent for the Airport Dimensions Lounge is $3.1M per year. Location is in the Mezzanine, which is a very prime location. This lease will require Board of Supervisors approval as well.

Nancy J. Knipp, president of Airport Dimensions Americas, submitted a comment in writing in support of the item.

Ø  Item No. 5: Award of the Terminal 2 Bookstore Lease to Books, Inc.

Cheryl Nashir presented on the item for approval to award the Terminal 2 Bookstore Lease to the incumbent – Books Inc. with the concept Compass Books. The company was the sole proposer. Compass Books has operated at SFO since 1995 and has 11 local locations including San Francisco, Berkeley, Alameda, Palo Alto and others. It has been in the Terminal 2 location since T2 opened in April 2011. It also has a location in Terminal 3, right across from the main security checkpoint. Compass Books is a locally owned company. The lease term is 10 years. As annual rent, Compass Books will pay the greater of a Minimum Annual Guarantee of $220,000 or tiered percentage rent – 8% for sales to $2M and 10% for sales over $2M. This lease also requires the Board of Supervisors’ approval.

Ø  Item No. 6: Award of the Terminal 3 Boarding Area E Pop-Up Retail Program Lease - Space 1 Merchandising America, Inc. dba PACK-N-GO 

Cheryl Nashir presented on the item for approval to award one Terminal 3 Boarding Area E pop-up retail lease. With Airport Commission approval, Staff issued an RFP in September for two opportunities.  The stores are side-by-side in Boarding Area E.  Staff received two proposals by the scheduled due date.  One proposal had to be disqualified as it exceeded the size standard for a pop-up lease.  Airport criteria states that annual sales cannot exceed $3M for all the businesses owned by the proposer.

The sole proposal scored and deemed responsible and responsive was from Merchandising America, Inc.  Its concept is called Pack-N-Go. It will be a travel merchandise-related store selling luggage, backpacks, bags, travel accessories, pillows, blankets, windbreakers and so forth. The owner is a former employee of a former retailer at SFO called Pacific Outfitters.  She is a local resident and ACDBE certified, and this will be her first retail endeavor as an owner. The term is two years, and rent is $27,000 per year or 8% of gross revenues. She will also pay an improvement reimbursement fee to the Airport equaling $20,523 per year in reflection of the investment SFO made in the store.

Commissioner Guggenhime commented that the score was in the 77 area and asked if that was acceptable. Ms. Nashir commented that it was lower than what RDM typically sees. However, Staff know the woman and will work with her on merchandising, which they have done with other pop-up tenants. RDM is fortunate to have staff who were general managers of big box stores or airport locations. The owner also has experience with Pacific Outfitters. The low score may have reflected a lack of sophistication with putting together a proposal.

Becky Zhou, Merchandising America, Inc., submitted a comment in writing in support of the item. 

Carlton Gill, Merchandising America, Inc., submitted a comment in writing in support of the item.

Ø  Item No. 7: Approval of Amendment No. 1 to the International Terminal Duty Free and Luxury Stores Lease No. 17-0303

     DFS Group, L.P.

Cheryl Nashir presented on the item for approval for Amendment No. 1 to the DFS Group Duty Free lease.  This lease was awarded in 2017 and includes 16 locations.  The tenant is a partnership between DFS Group with 75% ownership and five 5% ACDBE partners.  Four are local, and one is from Los Angeles.  The tenant had a Development Period during which stores are renovated, construction is phased, and rent is held at 30% of gross revenues. There is no Minimum Annual Guarantee.  The Development Period ends on March 31, and the base 14-year term starts. Full rent also starts. They have a $42M Minimum Annual Guarantee and a percentage rent structure of 45.8% of sales up to $100M and then two more tiers (41.8% and 30%). Sales for this first lease year – which is technically the nine-month period from April 1 to December 2020 - will be significantly less than that forecasted by both the Airport and DFS. During this initial nine-month period, it is estimated that losses to DFS would be $15M (perhaps above $20M) or more and losses of $1.5M or more for each of the five joint venture partners because they are 5% full owners.  By altering the rent structure for the first lease year to be 33% of gross revenues with no Minimum Annual Guarantee, losses are greatly reduced for DFS and, more significantly, for its five 5% partners. 

With the Shelter-in-Place order which commenced today, DFS will be closing their stores. Their sales for the remainder of the year will be even lower. Staff will also be suspending rent for a period and feel it is still worthwhile to go forward with this Amendment, nonetheless.  The full rent structure with the $42M MAG and high percentage rents will be even more unsound based on what is currently happening. Before that closure, their base rent structure would represent 64% of their gross sales through the end of the year. Now, it will be quite a bit higher, and it does not appear to be tenable. Staff are asking for authorization to set DFS’ rent for the first lease year at 33% of gross revenues. This amendment will also require approval from the Board of Supervisors. 

Vice President Johns asked for clarification on the fee structure. Ms. Nashir confirmed there will be no MAG, and the rent will be 33% of gross revenues for the first year. Vice President Johns asked if this is the first official movement in response to the crisis and if this will have a precedence going forward. Ms. Nashir responded that this recommendation was formulated 30 days ago, and Staff have been talking about it internally for months. Duty Free sales were down significantly starting last Fall due to Chinese currency value and the actions China is taking in allowing more Duty Free purchases to be made in the country upon arrival. Staff has viewed it as a temporary condition that might change as global conditions evolve. It is not specifically related to COVID-19, although it exacerbated it. 

Ø  Item No. 8: Determination to Proceed with the Taxiway B5 Rehabilitation Project and Authorization to Advertise for Bids for Contract No. 11100.61, Construction Services for the Taxiway B5 Rehabilitation Project

Ø  Item No. 9: Authorization to Accept and Expend Federal Aviation Administration Grant Funds for an Airfield Improvement Project

     $7,500,000 

Items 8 and 9 were called together.

Geoff Neumayr presented on the item for approval to proceed with the scope, budget and schedule and authorized a call for bids for construction services for the Taxiway B5 Rehabilitation Project. The existing sub-surface for the pavement area for the taxiway is not able to support the currently used heavier wide-bodied aircraft. Recently, pavement failures on the taxiways have indicated sub-surface failure. These repairs lead to unanticipated taxiway closures and pose a safety and operational issue if they continue to have failures resulting from inefficient sub-surface. This project will replace the sub-surface under the taxiway and adjacent intersecting taxiways in its entirety with the more substantial sub-surface capable of supporting larger aircraft. The taxiway will then be repaved, and new lights will be installed in the repaired taxiway. Staff has worked closely with the FAA to develop closure-phasing plans that will minimize impacts to operations and maintain all required safety protocols. The engineering assessment for this project is between $6.1M and $7.5M with an estimated contract schedule of 155 consecutive days. The SF Planning Department has determined the project is categorically exempt from the California Environmental Quality Act as a Class 1 exemption. This project is eligible for FAA Airport Improvement Program grant funding up to 75% of the allowable costs of this project. Because this contract will have federal dollars, the provisions of the Federal Disadvantaged Program will apply. Although there is no specific DBE participation goal, Staff will encourage an Airport-established DBE participation goal of 10.6% and will encourage all bidders to utilize certified DBE firms to meet this goal.

Commissioner Guggenhime asked about the duration of the project and its impact on traffic. Mr. Neumayr said it will tentatively go out to bid on April 1st, and construction would start three months later. When construction starts, the closure of the taxiway would be around 155 days. It is not a runway closure but a phasing where planes take different directions into the gates. There are protocols in place to make that work.

Kevin Kone presented on the item to accept and expend grant funds from the FAA in the amount of $7.5M for the Taxiway B5 Rehabilitation Project.  AIP grants are contingent upon funding availability and are offered on short notice.  An advance Commission approval positions the Airport to accept the grant offer(s) within the timeframe determined by the FAA. If the Airport Commission approves accepting and expending these grants, and if offered the grant by the FAA, Staff will seek Board of Supervisors approval, which is required by the Administrative Code.

Ø  Item No. 10: Authorization to Accept and Expend Federal Aviation Administration Grant Funds for the Continuation and Expansion of the Noise Insulation Program

     $7,000,000

Ø  Item No. 11: Authorization for Modification No. 2 to Contract No. 50106 for Noise Insulation Consulting Services and to Exercise the Second 1-Year Option and Increase the Contract Amount

     The Jones Payne Group, Inc.

     $2,500,000

Items 10 and 11 were called together.

Kevin Kone presented on the items for approval to support a concerted effort to provide faster noise insulation for eligible homes in the community. Item 10 requests authorization to accept and expend another FAA grant in the amount of $7M for the Noise Insulation Program. This grant falls under the Replacement and Second Chance Acoustic Treatment Initiatives that the Airport Commission approved on Oct. 3, 2017. This grant will cover 80% of the allowable noise insulation cost, and the Airport Operating Budget will make up the difference. If the Airport Commission approves accepting and expending this grant, and if offered by the FAA, Staff will seek Board of Supervisors approval, which is required by the Administrative Code.

Item 11 is a companion item to the grant item. This item is to request approval to exercise the second and final one-year option of the contract and to increase the contract amount by $2.5M for the Jones Payne Group. The Jones Payne Group organization implements all aspects of SFO’s Noise Insulation Program with eligible communities. Most of the funding for this increase will be covered by the $7M grant that was previously presented. The increased contract amount will allow Staff to speed up insulation installations in the next three to four years from 65-80 homes to 145-180 homes. The Jones Payne Group will increase staffing from eight full-time equivalents to 14 to increase production.  

CONSENT CALENDAR

Items 12 – 16

Ø  Item No. 16: Exercise of the One 2-Year Option to Extend the Lease Term of the Terminal 3 Specialty Retail Store Lease A, Lease No. 15-0039 WDFG North America, LLC

Vice President Johns asked why the Airport is choosing to exercise the extension instead of going out for re-bid. Ms. Nashir confirmed that it is something the Airport normally does. Staff have had a hard time leasing specialty retail, and they are happy with the current vendor.

All items on the Consent Calendar then passed on a 4-0 vote.

NEW BUSINESS 

There was no public comment. 

CLOSED SESSION

Commissioners voted 4-0 to move into Closed Session of the Commission regarding The Hertz Corporation; Enterprise Rent-A-Car Co. of San Francisco, LLC; and Avis Budget Car Rental, LLC v. City and County of San Francisco, et al. and Sixt Rent A Car LLC v. City and County of San Francisco, et al.

  

END OF NOTES