Tuesday, August 13, 2019 10:00 AM Room 104, City Hall

Airport Commission

,

Regular Meeting http://www.rochestermn.gov/

~ Agenda ~ Michon Rogers

507-328-2700

Tuesday, August 13, 2019 10:00 AM Room 104, City Hall

Airport Commission Page 1 Printed 8/9/2019

I. Call to Order

II. Approve Minutes

III. Airport Financials

IV. Action Items

1. Professional Services Agreement with Mead & Hunt for design, enginieering, bidding, and construction administration services for a project to purchase and install a backup generator for the Terminal Building.

V. Information Items

1. Airport Operational Data

2. Restaurant RFP Discussion

VI. Other Business

VII. Adjournment

X:\2879900\192442.01\CFEE\Agreement\Draft\Task Order 2016-10 Standby Generator Terminal Design & CA.docx 05-17

TASK ORDER #2016-10

TO

PROFESSIONAL SERVICES AGREEMENT

BETWEEN: City of Rochester (CLIENT)

AND: Mead & Hunt, Inc. (CONSULTANT)

A Wisconsin Corporation

EFFECTIVE DATE: August 9, 2019

RECITALS

This is the Task Order 2016-10 to the Professional Services Agreement dated effective August 9, 2019, between the

CLIENT and Mead & Hunt, Inc. The Professional Services Agreement effective May 16, 2016 is referred to herein as

the Contract.

AGREEMENT

1. Services to be provided. The Scope of Services is to provide a new Standby Generator for Terminal Engineering

Design, Bidding, and Construction Administration Services. The full Scope of Services is defined in Exhibit A.

2. Schedule. The project shall be completed as follows:

Design and Bidding Services: Within 90 days of Notice to Proceed.

Construction Administration: Within 90 days of approved construction completion.

3. Consideration. The services shall be provided for the lump sum of $NINETY NINE THOUSAND FOUR HUNDRED

EIGHTY FOUR Dollars ($99,484) as described in Exhibit B. Progress payments shall be made in accordance with

the Contract.

APPROVAL AND ACCEPTANCE: Approval and acceptance of the TASK ORDER including any attachments shall

incorporate this document as part of the CONTRACT between the OWNER and the CONSULTANT dated May 16,

2016. All work and services defined in this TASK ORDER shall be performed in accordance with the terms and

conditions of the aforementioned CONTRACT between the OWNER and CONSULTANT.”

Accepted by: CITY OF ROCHESTER

By:

Name:

Title:

The above person is authorized to sign for Client

and bind the Client to the terms hereof.

Date:

Approved by: MEAD & HUNT, INC.

By:

Name: Bryan Page

Title: Vice President

Date: August 8, 2019

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X:\2879900\192442.01\CFEE\Agreement\Draft\RST Standby Generator Exh A v2.doc A-1 Mead & Hunt, Inc.

Exhibit A

Scope of Services

Provide New Standby Generator for Terminal

Engineering Design, Bidding, and Construction Administration Services

Rochester International Airport (RST)

Background

The scope of services for this Task Order 2016-10 includes design, bidding, and construction

administration associated with installation of a new standby generator at the Rochester International

Airport (RST). The objective for this project is to provide an optional standby backup power source that

will keep RST operational during times of power outages and sustain normal operations. RST has

experienced several power outages recently that have had a significant impact on operational costs as

well as passenger reliability. The base of understanding and assumptions made under this task order are

as follows:

• Actual peak demand information received from RPU indicates the peak demand over the past 18

months for the Terminal building is 366kW.

• There are plans for future expansions to the terminal which include a new boarding bridge as well

as an additional 10,000SF of holdroom space. These loads will be factored into the design

capacity of the new generator.

• RST has indicated that their boarding bridge usage is anticipated to increase. Specifically, with

regards to planes utilizing the Ground Power Unit connections at the ends of the boarding

bridges. An increase of this usage will drastically impact the boarding bridge demand.

• Of all the loads listed above, emergency loads (14.5kW demand), required standby loads (41.4

kW demand) and elevator loads (40kW demand) are currently backed by the existing 200kW

generator added as part of the CBP and terminal expansion project. All other loads (and

anticipated future loads) would be backed by the new generator we currently anticipating for this

project.

• The existing terminal building heat is sourced from the OPS building. Investigation will be

performed, and recommendations made to ensure terminal heating is operational during loss of

RPU power.

• The existing TUG lane will be impacted by construction. Design will be done to minimize TUG

traffic disruptions.

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We have projected our design loadings for the existing terminal to be the following:

Estimated Loads (kW)

Load Connected Demand % of Demand

Emergency (egress lighting and fire alarm panel) 14.5 14.5 3.85%

Required Standby Loads (CBP, security, cameras, telecom,

minimal heat) 92 41.4 11.00%

Scanning Equipment & TSA Checkpoint 15.5 10 2.66%

Building HVAC Misc. 89 40.1 10.65%

Chiller 141 70.5 18.73%

Non-egress lighting 80 65 17.26%

Receptacles and Misc power 160 35 9.30%

Elevator Loads 75 40 10.62%

Boarding Bridges 360 60 15.94%

Total: 1027 376.5 100.00%

The proposed project site is identified on the attached sketch.

This scope of services for these two components of work includes four separate tasks. The tasks are

defined as:

• Task 1 – Standby Generator Design

• Task 2 – Bid Administration

• Task 3 – Construction Administration

• Task 4 – Project Closeout

Task 1 – Standby Generator Design

Subtask 1.1 – Coordination

Coordination will involve additional communication/coordination with the City, FAA, and MN/DOT for

establishing the grants for the project. During this process the Consultant will assist the Sponsor in

applying for the grant. Task included in this process are:

• Assistance in completing the programming sheets (e.g. Pre-Application, Final Application etc.)

• Process Notice of Proposed Construction (Form 7460) including Airport Safety Plan

• Environmental Checklist documentation

• Project Narrative

• Required photographic documentation of existing conditions

Under this task the Consultant will also communicate the details of the project options and will provide

information as necessary to gain approvals for the project.

Subtask 1.2 – Site Information Gathering

The Consultant will travel to the site for gathering necessary site information in order to complete the

design. The Consultant will investigate the components integral to the operations within the terminal

building that will need to be considered in the design of the new generator. The Consultant will use

existing as-built information to develop the plan sheets.

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Subtask 1.3 – Project Engineering Narrative Report

The Consultant will provide a narrative report identifying the findings of the information gathering. The

report will identify recommended course of action including the size and location of the new unit. The

Consultant will also provide an anticipated schedule and opinion of probable construction cost.

Subtask 1.4 – Design and Construction Plan Sheets

The Consultant will provide a design and a set of plans for the new standby generator. The plan sheets

will include a Title Sheet, Construction Operations Plan, Project Layout and Details.

Subtask 1.5 – Design Specifications and Contract Legal Documents

Work under this task will include providing construction technical specifications and the contract legal

documents (e.g. bid form, wage rates, state requirements) for the project.

Subtask 1.6 – Construction Operations Plan / Construction Safety Phasing Plan (CSPP) / 7460

The Consultant shall prepare a Construction Operations Plan which complies with FAA Advisory Circular

5370-2G. The plan will identify construction runway safety areas (RSA’s), taxiway safety areas (TSA’s),

and object free areas (OFA’s). This plan will minimize construction time needed inside these areas. Haul

routes will be carefully considered and shown on the plan. Temporary traffic control needs will be

addressed. The Consultant will submit this plan to the Airport and FAA for Approval. Any agency

comments will be included in the plans.

The nature of this project will require a Construction Safety Phasing Plan (CSPP) for the project in

accordance with Federal Advisory Circular (AC) 150/5370-2G. Consultant shall complete a project

Operations Plan sheet that will depict the proposed improvements and show operational safety

requirements on the Airport during construction per AC 150/5370-2F. This work will also require

development of a Safety Plan Compliance Document (SPCD) for monitoring compliance with the plan.

This task will include assisting the Contractor in developing the SPCD plan and all coordination, edits and

approvals of the plan with the FAA.

Prepare FAA Form 7460-1. Consultant will review the 7460-1 information with the Airport and FAA and

upload the 7460-1 information utilizing the FAA Obstruction Evaluation/Airport Airspace Analysis

(OE/AAA) website.

Subtask 1.7 – Meetings

The Consultant will prepare for and attend a meeting at RST for discussing the proposed project with

RST representatives. The Consultant will also provide concept plan sheets to the City and communicate

via a telecon to discuss the progress of the design project.

Task 2 – Bid Administration

Subtask 2.1 – Furnish Bid Documents

Consultant shall prepare, reproduce, and distribute bidding documents to interested contractors and

suppliers. The Consultant shall keep a current list of plan holders and distribute this to interested parties

upon request. The Consultant will also post the Bid Documents to an electronic bid posting site for

electronic download for interested bidders. This task also includes coordination required to facilitate these

requests.

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Subtask 2.2 – Respond to Bidders Questions

During the bidding process, the Consultant will be available to clarify bidding issues with contractors and

suppliers, and for consultation with the various entities associated with the project. This item also includes

contacting bidders to generate interest in the project.

Subtask 2.3 – Prepare and Distribute Addendums

Consultant shall issue addenda as appropriate to interpret, clarify, or change the bidding documents as

required by the Sponsor or the State. Addenda will be made available to the planholders, either through

mail, electronic mail, hand delivering or via facsimile transmission.

Subtask 2.4 – Pre-bid Conference

A Pre-Bid meeting will be held at RST to address bidder/contractor questions and to discuss operations at

airport during construction.

Subtask 2.5 – Bid Opening

Consultant shall attend the bid opening at City Hall, as identified in the Bid Advertisement and to process

the bid documents.

Subtask 2.6 – Bid Review and Bid Tabulation

Consultant shall advise the Sponsor as to the acceptability of any subcontractors, suppliers, and other

persons and organizations proposed by the bidders and as to the acceptability of substitute materials and

equipment proposed by bidders. The Consultant shall prepare a spreadsheet that includes all bid items

for the purpose evaluating the lowest bidder. The Consultant shall input the as-bid unit prices into the

spreadsheet and to verify mathematical computations of the bids. The Consultant will then provide

recommendations to the Sponsor as to the name of the apparent low bidder.

Subtask 2.7 – Prepare Recommendation for Award

The Consultant will prepare a recommendation of award for the Sponsor to accept or reject the bids as

submitted. If rejection is recommended, the Consultant will supply an explanation for their

recommendation and possible alternative actions the Sponsor can pursue to complete the project. Once

the Contract Award is made the Consultant will distribute the bid tabulations on request of the Sponsor.

Task 3 – Construction Administration and Observation

Subtask 3.1 Construction Administration and Observation

The Project Manager (PM) will provide required construction inspection, documentation and coordination

for the standby generator work. It is anticipated the project construction will be completed within 120

working days of construction contract award. Included in this effort are:

• A Pre-construction Conference conducted at RST and attended by the PM.

• Three site visits by the PM during construction. One trip at the beginning of project, one periodic

site visits during construction, and one trip at the end to observe the finished construction and to

develop a punch list as necessary.

• The PM shall coordinate and schedule construction, answer questions, observe quality control

activities, process progress reports, process pay requests, and record as-built changes.

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• Construction progress documentation

• Reviewing and processing requests for payment

• Technical assistance

• Review and recommendations for approval of submittals

• Owner coordination

Task 4 – Project Closeout Services

Subtask 4.1 Project Closeout

The Project Manager (PM) will prepare the required final closeout documentation as required. Included in

this effort are:

• Final punch list as needed

• Record Drawings

• Project closeout forms

Deliverables

• Project Engineering Narrative Report

• CSPP and 7460

• Project Bidding Documents

• Final Closeout Documentation

• Proposal includes delivery of bidding documents.

Remarks:

• For paper reduction reasons, the deliverables shall be delivered in electronic format unless

otherwise noted.

• It should be noted that this Scope of Services does not include the electronic transfer of design

data or CAD files. If this information is requested by the Contractor or others, it shall be done

under a separate agreement with the Contractor.

• This agreement does not include any hazardous material mitigation.

End of Exhibit A

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Exhibit B Aviation Services Engineering Fee Proposal CLIENT RST

AIRPORT: PROJ. No: PendingLOCATION: DATE: 8/8/19

AIP PROJECT NO. REV. NO:

PROJECT DESCRIPTION:

TOTAL

Task 1 - Standby Generator Design 1.1 Coordination $5,099.001.2 Site Information Gathering $4,133.001.3 Project Engineering Narrative Report $9,468.001.4 Design and Construction Plan Sheets $20,304.001.5 Specifications and Contract Legal Documents $16,283.501.6 Construction Operations Plan / CSPP $1,479.501.7 Meetings $2,743.50

Expenses $4,050.00SUBTOTAL TASK 1 $63,560.50

Task 2 - Bid Administration 2.1 Furnish Bid Documents $1,062.002.2 Respond to Bidders Questions $2,837.002.3 Prepare and Distribute Addendums $375.502.4 Prebid Conference $2,624.002.5 Bid Opening $2,391.002.6 Bid Review and Tabulation $1,039.502.7 Prepare Recommendation for Award $375.50


Task 3 - Construction Administration and Observation 3.1 Construction Administration and Observation $12,620.00


Task 4 - Project Closeout Services 4.1 Project Closeout $6,424.00

Expenses $625.00SUBTOTAL TASK 4 $7,049.00

TOTAL $99,484.00

TOTAL MEAD & HUNT FEES $99,484.00

PrincipalProject Engineer Electrical (PM)

Project Engineer Civil Engineer III Tech III Technical Editor Admin Asst. Clerical Total Cost

$249.00 $164.00 $164.00 $128.00 $105.00 $92.00 $95.00 $72.00 Hours Summary

Task 1 - Standby Generator Design

1.1 Coordination

Estimated Total Man-hours 4 16 8 0 0 0 1 1 30 $5,099.00Summary Costs $996.00 $2,624.00 $1,312.00 $0.00 $0.00 $0.00 $95.00 $72.00 $5,099.00

1.2 Site Information Gathering

Estimated Total Man-hours 0 12 6 7 0 0 3 0 28 $4,133.00Summary Costs $0.00 $1,968.00 $984.00 $896.00 $0.00 $0.00 $285.00 $0.00 $4,133.00

1.3 Project Engineering Narrative Report

Estimated Total Man-hours 1 24 8 19 6 6 3 1 68 $9,468.00Summary Costs $249.00 $3,936.00 $1,312.00 $2,432.00 $630.00 $552.00 $285.00 $72.00 $9,468.00

1.4 Design and Construction Plan Sheets

Estimated Total Man-hours 2 52 12 43 32 2 2 1 146 $20,304.00Summary Costs $498.00 $8,528.00 $1,968.00 $5,504.00 $3,360.00 $184.00 $190.00 $72.00 $20,304.00

1.5 Specifications and Contract Legal Documents

Estimated Total Man-hours 0.5 47 5 26 20 18 5 1 122.5 $16,283.50Summary Costs $124.50 $7,708.00 $820.00 $3,328.00 $2,100.00 $1,656.00 $475.00 $72.00 $16,283.50

1.6 Construction Operations Plan / CSPP

Estimated Total Man-hours 0.5 1 2 6 0 0 1 0 10.5 $1,479.50Summary Costs $124.50 $164.00 $328.00 $768.00 $0.00 $0.00 $95.00 $0.00 $1,479.50

1.7 Meetings

Estimated Total Man-hours 0 8 8 0 0 0 0.5 1 17.5 $2,743.50Summary Costs $0.00 $1,312.00 $1,312.00 $0.00 $0.00 $0.00 $47.50 $72.00 $2,743.50

Expenses RateAuto Rental 0 0 0 0 0 0 0 0 0 Days $75.00 $0.00

Mileage 0 800 200 0 0 0 0 0 1000 Miles $0.75 $750.00Lodging 0 1 0 0 0 0 0 0 1 Days $125.00 $125.00

Survey Subcontract 0 0 0 0 0 0 0 0 1 $3,000.00 $3,000.00Meals 0 2 1 0 0 0 0 0 3 $25.00 $75.00

Reproductions 0 0 0 0 0 0 0 0 1 $100.00 $100.00Other 0 0 0 0 0 0 0 0 0 $50.00 $0.00

$4,050.00

Task 2 - Bid Administration 2.1 Furnish Bid Documents

Estimated Total Man-hours 0 1 2 0 0 0 6 0 9 $1,062.00Summary Costs $0.00 $164.00 $328.00 $0.00 $0.00 $0.00 $570.00 $0.00 $1,062.00

2.2 Respond to Bidders Questions

Estimated Total Man-hours 0 8 6 2 0 0 3 0 19 $2,837.00Summary Costs $0.00 $1,312.00 $984.00 $256.00 $0.00 $0.00 $285.00 $0.00 $2,837.00

2.3 Prepare and Distribute Addendums

Estimated Total Man-hours 0 1 1 0 0 0 0.5 0 2.5 $375.50Summary Costs $0.00 $164.00 $164.00 $0.00 $0.00 $0.00 $47.50 $0.00 $375.50

2.4 Prebid Conference

Estimated Total Man-hours 0 8 8 0 0 0 0 0 16 $2,624.00Summary Costs $0.00 $1,312.00 $1,312.00 $0.00 $0.00 $0.00 $0.00 $0.00 $2,624.00

2.5 Bid Opening

Estimated Total Man-hours 0 4 10 0 0 0 1 0 15 $2,391.00Summary Costs $0.00 $656.00 $1,640.00 $0.00 $0.00 $0.00 $95.00 $0.00 $2,391.00

2.6 Bid Review and Tabulation

Estimated Total Man-hours 0.5 1 4 0 0 0 1 0 6.5 $1,039.50Summary Costs $124.50 $164.00 $656.00 $0.00 $0.00 $0.00 $95.00 $0.00 $1,039.50

2.7 Prepare Recommendation for Award

Estimated Total Man-hours 0 1 1 0 0 0 0.5 0 2.5 $375.50Summary Costs $0.00 $164.00 $164.00 $0.00 $0.00 $0.00 $47.50 $0.00 $375.50



Other 0 0 0 0 0 0 0 0 0 Trips $625.00 $0.00Meals 0 1 2 0 0 0 0 0 2 $25.00 $50.00

Reproductions 0 0 0 0 0 0 0 0 20 $50.00 $1,000.00Other 0 0 0 0 0 0 0 0 0 $52.00 $0.00Other 0 0 0 0 0 0 0 0 0 $450.00 $0.00Other 0 0 0 0 0 0 0 0 0 $100.00 $0.00Other 0 0 0 0 0 0 0 0 0 $50.00 $0.00

$1,650.00

Task 3 - Construction Administration and Observation 3.1 Construction Administration and Observation

Estimated Total Man-hours 4 30 28 8 4 0 4 4 82 $12,620.00Summary Costs $996.00 $4,920.00 $4,592.00 $1,024.00 $420.00 $0.00 $380.00 $288.00 $12,620.00


Mileage 0 1200 600 200 0 0 0 0 2000 Miles $0.75 $1,500.00Lodging 0 3 0 0 0 0 0 0 3 Days $125.00 $375.00

Materials Testing 0 0 0 0 0 0 0 1 1 $1,800.00 $1,800.00Meals 0 3 3 1 0 0 0 0 7 $25.00 $175.00

Reproductions 0 0 0 0 0 0 0 0 0 $100.00 $0.00Survey Supplies 0 1 0 0 0 0 0 0 1 $50.00 $50.00

Other 0 0 0 0 0 0 0 0 0 $450.00 $0.00Other 0 0 0 0 0 0 0 0 0 $100.00 $0.00Other 0 0 0 0 0 0 0 0 0 $50.00 $0.00

$3,900.00

Task 4 - Project Closeout Services 4.1 Project Closeout

Estimated Total Man-hours 0 8 8 0 0 24 16 1 57 $6,424.00Summary Costs $0.00 $1,312.00 $1,312.00 $0.00 $0.00 $2,208.00 $1,520.00 $72.00 $6,424.00



Other 0 0 0 0 0 0 0 0 0 Trips $625.00 $0.00Meals 0 1 1 0 0 0 0 0 0 $25.00 $0.00

Reproductions 0 0 0 0 0 0 0 0 1 $50.00 $50.00Survey Supplies 0 0 0 0 0 0 0 0 0 $50.00 $0.00

Other 0 0 0 0 0 0 0 0 0 $450.00 $0.00Other 0 0 0 0 0 0 0 0 0 $100.00 $0.00Other 0 0 0 0 0 0 0 0 0 $50.00 $0.00

$625.00

TOTAL $99,484.00

Rochester International AirportRochester, Minnesota

Design, Bidding, & CA for New Standby Generator for Terminal

Total Expenses

Item No.

Engineering Fee

Total Expenses

Total Expenses

Total Expenses

X:\2879900\192442.01\CFEE\Agreement\Draft\RST Standby Generator Exh B 1

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7/18/2019

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Inside Concession ProgramInformation/Networking Meeting

July 16, 2019 1:30 p.m.

Second Floor Conference Room

• Welcome and Introductions

• Understanding Our Airport

• Review of Current Concessions Program

• Doing Business at the Airport

• Goals of New Concession RFP

• Business Arrangements

• ACDBE Program

• RFP Process

• Q&A

• Tour of Facilities

Agenda

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• John Reed, Executive Director

• Tiana O’Connor, Marketing & Communications Manager

• Kurt Claussen, Deputy Airport Director

• Adam Holz, Finance Manager

• Lynn Leibowitz, Airport Financial Consultant

• Monica Weddle, Airport Financial Consultant

Welcome and Introductions

• The estimated population of the Rochester Metropolitan Statistical Area (MSA) in 2018 was 220,000. In addition, approximately 3 Million visitors came to Rochester in 2018.

• The Bureau of Economic Analysis estimated 32% of the total workforce of the Rochester MSA were in the healthcare and social assistance industry.

• The Mayo Clinic, headquartered in Rochester with campuses in Minnesota, Arizona and Florida, employs an estimated 35,000 employees locally.

• The Destination Medical Center (DMC) Act enacted in June 2013 seeks to expand the existing clinic into a worldwide premier DMC.

Understanding our AirportRST Community

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Understanding our AirportRST Air Service

Understanding our AirportRST Passenger Activity

116,251 115,036

145,517

187,547

100,000

110,000

120,000

130,000

140,000

150,000

160,000

170,000

180,000

190,000

200,000

2015 2016 2017 2018

Historical Enplanements

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Understanding our AirportRST Passenger Activity

‐

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

2015 2016 2017 2018

Historical Enplanements by Carrier

Delta American United Charters

Understanding our AirportSample Flight Schedule

Carrier Destination Departure Time Capacity **United Chicago 5:30 a.m. 50American Chicago 6:08 a.m. 70Delta Atlanta * 6:10 a.m. 70Delta Minneapolis 7:10 a.m. 50American Chicago 9:57 a.m. 70United Chicago 11:56 a.m. 50Delta Minneapolis 12:56 p.m. 70American Chicago 2:55 p.m. 50United Chicago 3:35 p.m. 50Delta Minneapolis 3:56 p.m. 70Delta Atlanta 3:54 p.m. 70Delta Minneapolis 5:46 p.m. 50American Chicago 6:05 p.m. 50

* Subject to seasonal adjustment

** Based on current aircraft that may be upgauged on peak days

Sample Departure Schedule - Subject to Change

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• RST currently has 4 departure gates with one TSA Screening Checkpoint

• Gates 2 and 3 are located on the first floor

• Gate 1 is located on the second floor, northwest corner

• Gate 4 and anticipated Gate 5 are located on the second floor, northeast corner

• Airport controls gate assignments and usage

• Frequency of flights ranges from 12‐13 per day

• Non‐scheduled charter flights operate 1‐2 times per month

Understanding our AirportRST Gates and Holdrooms

Understanding our AirportCurrent Gate Configuration

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• New Holdroom Seating recently installed

• Addition of Gate 5 anticipated in 2020

• In 2020, a 4‐year $67 million replacement of Runway 2‐20 will begin

• Long term Master Plan Study underway will be completed by late 2019/early 2020

• Airport recently completed installation of a new parking lot control system improving the ease of entering and exiting the parking facilities

Understanding our AirportCapital Improvement Program

• Post‐Security sit‐down, primarily made to order, dining facility approximately 3,655 square feet located on the first floor

• Pre‐security ordering available via dedicated phone

• Limited retail offerings

• Vending machines are located both pre and post security

Current Concession ProgramExisting Concession Spaces

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Current Concession ProgramExisting Concession Area

Current Concession ProgramHistorical Concession Sales

$233,223

$268,358

$347,490

$422,716

$‐

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

2015 2016 2017 2018

Historical Gross Sales

Does not include vending

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Current Concession ProgramHistorical Sales per Enplanement

Does not include vending

$2.01

$2.33

$2.39

$2.25

$1.80

$1.90

$2.00

$2.10

$2.20

$2.30

$2.40

$2.50

2015 2016 2017 2018

Historical Gross Sales Per Enplanement

• Airport’s discretion and direction on concessionaire hours

• Typically, the concession should be open when TSA opens and remain open until all flights have departed

• This is a requirement 365 days per year, including weekends and holidays

• Concessionaries are required to extend hours with little notice for irregular operations and airline schedule changes

• Cannot close during the day for breaks and lunches

Doing Business at the AirportHours of Operation

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• Applicants must pass a 10‐year background check that includes fingerprinting

• Before a badge can be issued, applicant must attend security training and pass associated tests

• Currently there is an $80 fee for fingerprinting and security threat assessment per employee (for a two‐year badge) and an $80 badge renewal fee

• Additional fees are assessed for lost badges or badges unaccounted for

• The badging process can take up to two weeks or more

• Once at the airport, all associates go through security screening

Doing Business at the AirportStaffing Requirements - Badging

• Associates must be neat in appearance with clean uniforms and nametags

• Associates must be competent with good communications skills and able to handle the demands of a fast‐paced airport environment

• Customers are waiting to catch their flight – no room for error

• Concession must be adequately staffed as determined by the Airport with an on‐site manager overseeing the day to day operations

• Staffing is challenging in an airport due to fluctuations in flight schedules.

• Associates should be courteous and knowledgeable in addressing general inquiries about the Airport from customers

• Concessionaire staff, who drive to work, are required to park in the designated employee parking location, currently $60 annually per employee

Doing Business at the AirportStaffing Requirements

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• The Airport concessionaire must understand it is operating in a highly secure environment. Penalties for security violations can be costly.

• In order to operate, you most likely will have “prohibited items” at your locations. You are solely responsible for ensuring the “prohibited items” stay securely in your possession.

• You are also responsible for employees working in the secured area that are under your supervision and control.

• You must be flexible. Security requirements change regularly and adaptation must not result in service interruptions.

Doing Business at the AirportTSA and Security

• Deliveries to the airport are unlike deliveries to a street location where the truck parks next to the store and transfers the supplies or products directly into the store

• At the Airport, delivery trucks unload at designated curbside locations

• Supplies/products are inspected/screened (meaning product must be packaged and delivered so that it can be screened)

• Product then delivered to designated location

Doing Business at the AirportProduct Deliveries

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• Commercial General Liability

• Business Auto Liability

• All‐Risk Property

• Workers’ Compensation and Employer’s Liability

• Fidelity Bond

• Builder’s Risk (during construction)

• Business Interruption

Doing Business at the AirportInsurance Requirements

• In the store, associates must be able to conduct transactions (cash, credit, voucher) efficiently, securely, accurately and continuously

• Back of house – secure cash storage, transition, and transmission must be worked out by the concessionaire

• Airport has the right to audit

Doing Business at the AirportCash/Payment Management

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• Airport approves which space(s) will serve alcohol

• Concessionaire must qualify for and obtain the required liquor licenses and will be required to maintain all conditions associated with the liquor license

• There is a reserved liquor license for an airport concessionaire

• https://www.rochestermn.gov/departments/city‐clerk/licenses‐and‐permits/liquor‐licensing

Doing Business at the AirportLiquor Licenses

• Utilities

• Taxes

• Grease interceptors and exhaust systems must be cleaned and maintained as required by the grease trap permit and at a frequency determined by the Airport

• Used cooking oil must be disposed of in accordance with applicable state, local, and federal laws and regulations

• Waste management and recycling

• Use of sustainable, recyclable products (no Styrofoam)

Doing Business at the AirportOther Costs and Factors

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• Improve the traveler experience for those passing through RST

• Traveler Personas• Business Travelers• Patient Travelers & Their Caregivers• Local Leisure Travelers

• Special Travelers Needs• Medical Needs• Dietary Restrictions• Cultural Differences

• Provide an open, welcoming, relaxing space

Goals of Concession RFP

• Customer service

• Design/Aesthetics/Investment

• Local participation/local regional brands/themes (sense of place)

• Technology driven ordering system capability

• Revenue

• Price/value – Street pricing + 10%

• ACDBE goal/social responsibility

• Minimize administrative burden


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• Customer service

• We will be looking for:An ideal mix of Local, Regional and National concepts

An experienced concessionaire who has the ability to effectively execute in a fast paced and highly structured and regulated environment.


• The current concession agreement expires January 31, 2020.

• Anticipate one 10‐year agreement to include retail and food & beverage including vending.

• Final determination on lease terms for the new terminal facilities will be published in the RFP.

Business ArrangementsLease Terms

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• Initial minimum capital investment is anticipated to be not less than $500,000. The Airport will match $1 for every additional dollar over the minimum capital investment of $500,000 made by the Concessionaire.

• Anticipate Mid‐Term Refurbishment being needed during the term of the lease to be negotiated between the airport and Concessionaire

• Additional annual minimum maintenance expenditures of 0.5% of gross revenues is anticipated. Concessionaire must maintain its locations and resolve maintenance issues immediately without store closure.

• Theme, design and décor should be high grade. Plans and specifications for the construction at the concession locations must be submitted to the Airport for written approval.

Business ArrangementsCapital Investment

• The Airport will receive the greater of:

• The Minimum Annual Guarantee (MAG)

or

• A percentage of gross sales

• The opportunity to rent additional office and storage spaces

• Miscellaneous Fees – badging, parking, fines

Business ArrangementsRent

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• For example, the 1st year MAG is $100,000 and the percentage of gross is 10%

• If gross sales for the year is $1,500,000, 10% is $150,000

• $150,000 is greater than the MAG of $100,000

• Rent for that year would be $150,000

Business ArrangementsMAG vs. Percentage Rent – Ex 1

• For example, the 1st year MAG is $100,000 and the percentage of gross is 10%

• If gross sales for the year is $900,000, 10% is $90,000

• $90,000 is less than the MAG of $100,000

• Rent for that year would be $100,000

Business ArrangementsMAG vs. Percentage Rent – Ex 2

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• Street Pricing + 10%

• Based on the prices in the Rochester Area

• Airport will monitor pricing practices

• Airport employee discounts

Business ArrangementsPricing

• The United States Department of Transportation (USDOT) requires every airport that receives federal grants to maintain a Disadvantaged Business Enterprise (DBE) Program.

• The program for Airport Concession Disadvantaged Business Enterprise (ACDBE), is mandated by Title 49 Code of Federal Regulations part 23 (49 CFR 23).

• More information about the DBE and ACDBE Program can be found at:

https://www.faa.gov/about/office_org/headquarters_offices/acr/bus_ent_program/

• Airports have ACDBE Goals.

ACDBE Program

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Large companies that specialize in Airport Concessions often partner with ACDBE certified business owners to help achieve airport goals.

The ACDBE program has two components – DBE and ACDBE

• Disadvantaged Business Enterprise (DBE) program relates to construction, including professional services

• Airport Concessions Disadvantaged Business Enterprise (ACDBE) program relates to concession or car rental, including professional services, and supplying materials

• Business obtain DBE or ACDBE certification through an application and interview process

ACDBE Program

• City/Airport Company will publish a formal public invitation to submit a proposal for consideration

• Those proposing must rigorously follow all instructions

• Proposals must match the format outlined in the RFP

• It is up to you to watch for RFP notifications and publications

RFP Process

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July 16 Information/Networking Meeting

August Issue RFP

September Pre‐Proposal Meeting/Questions Due/Issue Addendum

October Proposals Due

November Review/Award Concession

Next Steps

Tiana O’Connor

Marketing & Communications Manager

Email: [email protected]

507‐282‐2328 extension 101

Contact Information

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Questions / CommentsTour & Networking

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