agenda indianapolis airport authority august 18, 2017 … · agenda indianapolis airport authority...

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Agenda

Indianapolis Airport Authority August 18, 2017

8:00 AM

I. Call to Order

II. Approval of Minutes of the IAA Board’s Regular Meeting of July 21, 2017

III. Ordinances, Resolutions and Public Hearings

a) Consider for approval, Ordinance No 1-2017, concerning the Indianapolis Airport Authority

budget for 2018, as more particularly described in said BP2017-08-01.

b) Consider, for approval, Resolution No. 10-2017, concerning dedication of revenues collected

from Passenger Facility Charges (“PFC”) and Customer Facility Charges (“CFC”) to pay debt

service for the Authority’s outstanding revenue bonds for 2017, as more particularly described

in said BP2017-08-02.

IV. Board Reports

President’s Report – None

V. Official Actions

a) Consider, for approval, the individual items on the IAA General Agenda, dated August

18, 2017.

VI. Staff Reports

Executive Director’s Report

a) IAA Q2 2017 Core Value Winners b) IND Airport Charity Golf Outing – Bill Stinson c) Indy ACE Academy Report – Ryan Lynch, Director

VII. Board Communications

Next Meeting: Friday, September 15, 2017 @ 8:00 a.m.

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MINUTES Board of Directors Meeting

Indianapolis Airport Authority

The Regular Meeting of the Indianapolis Airport Authority (IAA) Board was called to order at 8:05 a.m., on July 21, 2017, in the Airport’s Board Room at Indianapolis International Airport. Present at commencement of the meeting and comprising a quorum were: Barbara Glass, President Steve Dillinger, Vice President Alfred Bennett, Secretary Mike Wells, Member Kelly Flynn, Member Jack Morton, Jr., Member Toby McClamroch, Member Mamon Powers III, Member Lynn Gordon, Advisory Member Brian Tuohy, Board Counsel IAA Executive Staff attending: Mario Rodriguez, Executive Director Mike Medvescek, Sr. Director of Operations & Public Safety Marsha Stone, Sr. Director of Commercial Enterprise Robert Thomson, Sr. Director of Finance Jeffery Mallamad, General Counsel Jarod Klaas, Interim Director, Engineering, Planning & Development Lisa Bierman, Sr. Executive Assistant Maria Wiley, Sr. Director of Audit, Compliance & Procurement Reid Goldsmith, Sr. Director of Information Technology Rachel Hernandez, Sr. Director of Human Resources Bill Stinson, Sr. Director of Public Affairs APPROVAL OF MINUTES Upon a motion by Mr. Flynn, seconded by Mr. Bennett and unanimously passed, approval was given to the Minutes of the Regular Meeting of June 16, 2017. ORDINANCES, RESOLUTIONS AND PUBLIC HEARING President Glass introduced Mr. Robert Thomson, Sr. Director of Finance, who gave a brief presentation regarding the Indianapolis Airport Authority 2018 Budget. Next President Glass opened a Public Hearing regarding Ordinance No. 1-2017, there being no comments or discussion from the public the hearing was closed.

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IAA Board Meeting Minutes July 21, 2017 Page 2 of 3

BOARD REPORTS President’s Report President Glass introduced Mr. Powers, Chair of the Terminal Optimization Committee who gave a brief report of the first meeting of the committee which was held on June 30, 2017. The committee discussed the charge of the committee and highlights of the key focus items for the IAA. OFFICIAL ACTIONS INTRODUCTION AND APPROVAL OF THE INDIANAPOLIS AIRPORT AUTHORITY’S GENERAL AGENDA, DATED July 21, 2017: President Glass introduced and then verbally described each of the individual items listed on the General Agenda. Following a brief discussion of each listed item, President Glass asked for separate motions of approval. The following actions were then taken by the IAA Board: BP2017-07-02. Upon a motion by Mr. Wells, seconded by Mr. McClamroch and unanimously passed, approval was given to BP2017-07-02. BP2017-07-04. Upon a motion by Mr. McClamroch, seconded by Mr. Bennett and unanimously passed, approval was given to BP2017-07-04. BP2017-07-05. Upon a motion by Mr. Gordon, seconded by Mr. Bennett and unanimously passed, approval was given to BP2017-07-05. BP2017-07-06. Upon a motion by Mr. Flynn, seconded by Mr. Gordon and unanimously passed, approval was given to BP2017-07-06. BP2017-07-07. Upon a motion by Mr. McClamroch, seconded by Mr. Gordon and unanimously passed, approval was given to BP2017-07-07. STAFF REPORTS Executive Director’s Report

Mario Rodriguez, Executive Director of IAA, announced that for the second year in a row, IND has been recognized by Travel + Leisure magazine readers one of the top domestic airports. In 2016 and 2017 IND ranked second on the list. Next, Mr. Rodriguez introduced Maria Wiley, Sr. Director of Audit, Compliance and Procurement to give a brief presentation on IAA policy and governance updates. Next, Mr. Rodriguez introduced Jarod Klaas, Interim Sr. Director of Planning and Development to give a brief update on construction projects at IND. Lastly, Next, Mr. Rodriguez introduced Holli Harrington, Director of Supplier Diversity which announced and presented IAA’s 2017 AMAC Airport Top Flight Award.

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IAA Board Meeting Minutes July 21, 2017 Page 3 of 3

ADJOURNMENT President Glass announced that the next IAA Board meeting is scheduled for August 18, 2017. There being no further business, the meeting was adjourned at 8:40 a.m.

INDIANAPOLIS AIRPORT AUTHORITY *

By: ________________________________ Barbara Glass, President DATED: __________________________

By: ________________________________ Alfred R. Bennett, Secretary

* Signed under authority of IAA Board Resolution #7-2017

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General Ordinance No. 1-2017 BP-2017-08-01

BP-2017-08-01 Page 1 of 1

BOARD MEMO – 2018 BUDGET ORDINANCE

To: IAA Board of Directors From: Robert Thomson, Sr. Director of Finance Date: August 3, 2017 Board Date: August 18, 2017 Subject: 2018 Budget Ordinance Attached is the 2018 Budget Ordinance No. 1-2017 as approved and recommended by the Finance and Audit Committee. This Budget Ordinance when adopted establishes the maximum appropriation (expenditure) levels for 2018.

The budget process requires an Introduction (completed June 16, 2017), an Initial Hearing and presentation (completed July 21, 2017) and the adoption of the Budget by August 31, 2017. The Board will be asked to consider for approval the 2018 Budget Ordinance during the August 18, 2017 meeting. The Indianapolis City-County Council (Council) requires the Board to accept the 2018 Budget Ordinance by August 31, 2017. The Council Municipal Corporations Committee will hold a hearing on September 20, 2017 to review the 2018 Budget and the Council will approve the budget on October 9, 2017.

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Resolution No. 10-2017 BP2017-08-02

BP2017-08-02

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To: IAA Board of Directors From: Robert B. Thomson, Sr. Director of Finance / Treasurer Date: August 3, 2017 Board Date: August 18, 2017 Subject: Adoption of Resolution No. 10-2017 Background The Authority staff is asking the Board to adopt Resolution No. 10-2017 (the “Resolution”), dedicating revenues collected from Passenger Facility Charges (“PFC”) and Customer Facility Charges (“CFC”) to pay debt service for the Authority’s outstanding revenue bonds for 2017. In order to reflect the Authority’s PFC and CFC revenues available to pay certain outstanding Authority debt when calculating 2017 debt service coverage ratios, an official Board action to dedicate these PFC and CFC Revenues to pay debt service on the Authority’s outstanding revenue bonds is necessary. The Resolution is being put forth as a dedication of revenues to pay debt service as modeled in the airline use agreement. Recommendation Consider for approval adoption of Resolution 10-2017 dedicating revenues collected from Passenger Facility Charges and Customer Facility Charges to pay debt service for the Authority’s outstanding revenue bonds for 2017.

BOARD MEMO – REVENUE DEDICATION

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General Agenda Page 1 of 1

IAA Board Meeting General Agenda August 18, 2017

General: BP2017-08-03

Consider, for approval, the Neovia Logistics Foreign Trade Zone Operator Amendment #1 and Minor Boundary Modification concurrence.

Capital: BP2017-08-05

Consider, for approval, an award of contract for Parking Garage Improvements 2015 – Bid Package No. 2 at Indianapolis International Airport to Glenroy Construction Co., Inc. for the base bid and alternates No. 1 and 2 in an amount not-to-exceed $3,102,000.00 plus a 3% construction reserve of $93,060.00 for a total of $3,195,060.00. Glenroy Construction Co., Inc. was the lowest responsive and responsible bidder. Supplier diversity participation is MBE 10.86% (Harmon Steel, Inc.), and WBE 8.54% (DECO Coatings, Inc. & HG Metals).

BP2017-08-06

Consider, for approval, a professional services contract with Wessler Engineering Inc. for enabling projects for FedEx expansion at the Indianapolis International Airport in an amount not-to-exceed $2,000,000.00. (fees and expenses).

BP2017-08-07

Consider, for approval, a professional services contract Amendment No. 1 with Kimley-Horn for Utility Corridor Relocation - Cargo Apron at Indianapolis International Airport in an amount not-to-exceed $123,422.00. Supplier diversity participation is MBE 2.99% (VS Engineering), and WBE 68.39% (Journey Engineering, LLC).

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BP2017-08-03

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N

To: IAA Board of Directors

From: Marsha Stone, Sr. Director of Commercial Enterprise Date: July 27, 2017 Board Date: August 18, 2017 Subject: Neovia Logistics Services, LLC - Foreign Trade Zone Operator Amendment #1

and Minor Boundary Modification (MBM) Background The Indianapolis Airport Authority (IAA) is the Foreign Trade Zone (FTZ) “Grantee” representing central Indiana communities. In 1980, IAA created a separate company, the Greater Indianapolis Foreign Trade Zone, Inc. (GIFTZ), a not-for-profit 501C (6), to administer the FTZ program on its behalf. Neovia Logistics Services, LLC (Neovia Logistics) is an active local participant in the Foreign-Trade Zone program. They are requesting concurrence for a Minor Boundary Modification to activate an additional 37,000 square feet of storage and distribution warehouse space at second site that is located at 7535 Company Drive, Indianapolis, IN. Neovia Logistics’ first FTZ site is located at 850 North Graham Road, Greenwood, IN and encompasses 456,000 square feet. Neovia Logistics is requesting the first Amendment to their existing Foreign Trade Zone Operator Agreement executed on June 19, 2015, to expand to a second site.

Scope The GIFTZ Board concurred with their requests on July 25, 2017, and recommends to the IAA Board issue concurrence for a Minor Boundary modification and the execution of FTZ Operator Amendment #1.

Schedule August 18, 2017: IAA concurrence of Neovia Logistics Minor Boundary Modification and execution of Amendment #1 to their Foreign Trade Zone Operator Agreement.

Revenue and/or Operating Cost Implications Revenue: Revenue impact will remain unchanged at $24,000/annum.

BOARD MEMO – NEOVIA LOGISTICS SERVICES, LLC, FTZ OPERATOR AMENDMENT #1 & MINOR BOUNDARY MODIFICATION

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Memo Re: Neovia Logistics Services, LLC, FTZ Operator Amendment #1 and Minor Boundary Modification

BP2017-08-03 Page 2 of 2

Operating Costs: There are no additional costs associated with the execution of the FTZ Operator Amendment #1 and concurrence for a Minor Boundary Modification.

Supplier Diversity Participation Not applicable. Recommendation The IAA staff recommends the IAA Board consider for approval the Neovia Logistics Foreign Trade Zone Operator Amendment #1 and Minor Boundary Modification concurrence.

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BP2017-08-05

BP2017-08-05 Page 1 of 3

To: IAA Board of Directors From: Jarod Klaas, P.E., Interim Sr. Director of Planning & Development Date: August 9, 2017 Board Date: August 18, 2017 Subject: Award of Construction Contract with Glenroy Construction Co., Inc. for Parking

Garage Improvements 2015 – Bid Package No. 2 at the Indianapolis International Airport (Project No. I-15-009)

Background The Indianapolis Airport Authority (IAA) parking garage at the Indianapolis International Airport (IND) is one of the largest open garages in the State of Indiana. The garage is a cast-in-place post-tensioned concrete structure constructed from 2006 to 2008 and commissioned with the opening of the new terminal in 2008. Given the age of the garage continued capital improvements and rehabilitation of this asset is required to ensure the maximum useful life is obtained. As part of the continuing improvements and rehabilitation of this asset, CE Solutions Structural Engineers (the Engineer of Record for this project) prepared the plans and specifications for the “Parking Gargage Improvements 2015” project. In light of the comprehensive nature of the project, and to ensure customer service remained at a high level during construction activities, the IAA split this project into two separate bid packages, with Bid Package No. 1 issued in 2016. On June 1, 2017, the IAA Executive Director approved the public bidding process of Bid Package No. 2, which includes a base bid and three alternate bids. On July 20, 2017, the IAA Staff received two bids for Bid Package No. 2. The base bids, which include rehabilitation of the four outer staircases, concrete spall repair, beam and girder crack repair, and protective sealing of the 5th deck ranged from $2,928,000.00 to $3,530,919.56. The bids for alternate No. 1, which include partial expansion joint seal repair/replacement on parking level 5, ranged from $110,090.00 to $149,000.00. The bids for alternate No. 2, which include expansion joint seal repair/replacement for certain joints on parking level 4, ranged from $17,985.00 to $25,000.00. And, the bids for alternate No. 3, which include window washing monorails at 4 outer stairwells, ranged from $95,000.00 to $120,000.00. After a review of the bids received, the IAA determined this contract should include the base bid and bid alternates No. 1 and 2.

BOARD MEMO – CONTRACT AWARD

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BP2017-08-05 Memo Re: Contract Award

BP2017-08-05 Page 2 of 3

In addition to the contract amount, IAA staff is requesting a construction reserve of 3% of the total contract amount for this project. A construction reserve of 3% has previously been approved by the IAA Board on other projects and successfully implemented to ensure timely approval of minor changes necessary due to unforeseen conditions and circumstances. There are sufficient dollars within this project’s budget to accommodate the funding of the 3% contingency for construction reserve. Change orders exceeding the construction reserve will be submitted to the IAA Board for approval. Scope The scope of work for Bid Package No. 2 (base bid and bid alternates No. 1 and 2) includes the rehabilitation of the four outer staircases, concrete spall repair, beam and girder crack repair, protective sealing of the 5th deck, concrete deck expansion joint replacement in limited sections of levels 4 and 4 and other miscellaneous rehabilitation of the garage structure. Budget The Glenroy Construction Co., Inc. contract for the base bid, bid allowances and bid alternate No. 1 and 2 is $3,102,000.00, which is within the approved 2017 Reforecast Capital Budget.

This project will be 100% Airport cash funded. This project is being undertaken to preserve an asset. Without these improvements, the structure will continue to deteriorate in excess of normal maintenance and its remaining useful life will be reduced. As a result of the necessity to maintain the asset in working order, this project is exempt under the Authority's hurdle rate policy and has not been subjected to an internal rate of return calculation. Schedule Contract award is anticipated August 18, 2017, and the substantial completion is expected to be December 2018; weather permitting for sensitive material application. Supplier Diversity Participation

Parking Garage Improvements 2015 Project

Bid Pk #1 Contract Amount (including 3% reserve) 7,380,980.00$

Bid Pk #2 Contract Amount (including 3% reserve) 3,195,060.00$

Design 868,536.20$

Construction Management 100,750.00$

Advertisements for Bid 279.00$

Total Anticipated Project Cost 11,545,605.20$

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BP2017-08-05 Page 3 of 3

The Director of Supplier Diversity has approved the following:

Recommendation The IAA staff recommends the IAA Board consider for approval an award of contract for Parking Garage Improvements 2015 – Bid Package No. 2 at Indianapolis International Airport to Glenroy Construction Co., Inc. for the base bid and alternates No. 1 and 2 in an amount not-to-exceed $3,102,000.00 plus a 3% construction reserve of $93,060.00 for a total of $3,195,060.00. Glenroy Construction Co., Inc. was the lowest responsive and responsible bidder. Supplier diversity participation is MBE 10.86% (Harmon Steel, Inc.), and WBE 8.54% (DECO Coatings, Inc. & HG Metals).

MBE WBE VBE MBE WBE VBEHarmon Steel 337,000.00$ -$ -$ 10.86% 0.00% 0.00%

HG Metals - 96,000.00 - 0.00% 3.09% 0.00%DECO - 169,000.00 - 0.00% 5.45% 0.00%

Totals 337,000.00$ 265,000.00$ -$ 10.86% 8.54% 0.00%

Firm%Amount

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BP2017-08-06

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To: IAA Board of Directors From: Jarod Klaas, P.E., Interim Senior Director of Planning & Development Date: August 15, 2017 Board Date: August 18, 2017 Subject: Approval of a Professional Services Contract with Wessler Engineering, Inc. for

enabling projects relative to the Fed Ex Expansion at the Indianapolis International Airport (Project Nos. I-17-077 & I-17-078)

Background FedEx has committed to expansion at the Indianapolis International Airport that will have major economic impacts on the community. Their expansion will necessitate the relocation of Seerely Creek Basin as well as addition of a new western basin. These enabling projects must be completed prior to FedEx initiating their expansion. On July 11, 2017, the IAA issued a Request for Qualifications (RFQ) per Federal Aviation Administration (FAA) requirements to select a designer for this project, with responses due on August 1, 2017. Two proposals were received. A review committee made up of four IAA representatives reviewed and ranked the proposals. Wessler Engineering, Inc. was ranked highest by the committee to meet this project’s design requirements. To assist IAA in formulating and engineering the required enabling infrastructure projects in support of the FedEx expansion, staff selected Wessler Engineering Inc, using a qualification based selection process, and is requesting via this Board Paper the execution of a professional services contract with Wessler Engineering to initiate the design of IAA’s enabling projects. Given the timeline in which IAA’s infrastructure projects must be operational to support the FedEx expansion, it is critical that this contract is executed at the August Board meeting. This contract is directly related to the IAA enabling infrastructure projects listed above and is no way related to the proposed Inland P3 project.

BOARD MEMO – CONTRACT AWARD


BP2017-08-06 Page 2 of 2

Scope The full scope of work includes scoping, preliminary design and design support services, engineering, bidding, permitting assistance, construction administration and construction support activities. This initial authorization will focus on scoping, preliminary design, design support and permitting services. Budget The costs associated with this initial effort are within the 2017 reforecast capital budget. Due to the expedited timeline, this project will be an indefinite delivery contract with amendments as necessary to accomplish the project goals. The initial contract amount is $2,000,000.00. Schedule The design contract award is anticipated in August 2017 and the substantial completion date for the projects will be phased from 2019 through 2020. Supplier Diversity Participation The Director of Supplier Diversity established the following participation goals: DBE 18%, MBE 15%, WBE 10%, and VBE 3%. In order to commission the new infrastructure in the timeframe desired, a combination of procurement and delivery methods are being considered. While specific opportunities for Supplier Diversity participation cannot be fully determined at this time, the prime consultant has committed to exceeding the Supplier Diversity participation goals for this contract. Recommendation The IAA staff recommends the IAA Board consider for approval a professional services contract with Wessler Engineering Inc. for enabling projects for FedEx expansion at the Indianapolis International Airport in an amount not-to-exceed $2,000,000.00. (fees and expenses).

BP2017-08-07

BP2017-08-07

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To: IAA Board of Directors From: Jarod Klaas, P.E., Interim Senior Director of Planning & Development Date: August 9, 2017 Board Date: August 18, 2017 Subject: Approval of Professional Services Contract Amendment No. 1 with Kimley-Horn

for Utility Corridor Relocation - Cargo Apron at Indianapolis International Airport (Project No. I-17-004)

Background On January 20, 2017, the IAA Board approved a professional services contract with Kimley-Horn for the above referenced project. Contract services include: design, preparation of bid documents, construction administration, construction inspection, coordination between the various utility companies and final commissioning of the new infrastructure. The utilities involved in this project include Enterprise Petroleum Products (petroleum transmission pipeline), Citizens Energy Group (water and gas lines), AT&T (communication lines), Federal Aviation Administration (fiber optic lines), and IPL and IAA (electrical lines). This action amends Kimley-Horn’s design contract to include additions to the original scope of work resulting from unforeseen circumstances encountered during design and construction, resulting in the need for additional professional services. Scope Additions to the original scope of work are as follows:

1. Additional utility locates (potholing) for unknown/unmarked fiber optic cable. 2. Additional design for 38,000 linear feet of FAA fiber optic cable. 3. Additional bid package for an advanced AOA security fence relocation. 4. Additional design coordination with FedEx team and Enterprise Products to work within

the Enterprise easement. 5. Relocation and removal of additional AT&T duct bank and fiber optic cable. 6. Additional construction observation and oversight of key construction items to mitigate

risk to the IAA. Budget The Kimley-Horn Contract Amendment No. 1 is $123,422.00, which is within the approved 2017 Reforecast Capital Budget for Utility Corridor Relocation - Cargo Apron.

BOARD MEMO – AMENDMENT

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BP2017-08-07

Memo Re: Amendment

BP2017-08-07

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This project will be 100% Airport cash funded. This project is being undertaken to modify existing infrastructure integral to the continued operation of the airport. As a result of the critical nature of the modification, this project is exempt under the Authority's hurdle rate policy and has not been subjected to an internal rate of return calculation. Schedule This amendment does not change the term of the contract. The contract with Kimley-Horn expires on June 1, 2018 to allow for project close-out. Supplier Diversity Participation The Director of Supplier Diversity has approved the following:

MBE WBE VBE MBE WBE VBEJourney Engineering, LLC -$ 84,412.00$ -$ 0.00% 68.39% 0.00%VS Engineering, Inc. 3,685.69 - - 2.99% 0.00% 0.00%

Totals 3,685.69$ 84,412.00$ -$ 2.99% 68.39% 0.00%

Firm%Amount

Recommendation The IAA staff recommends the IAA Board consider for approval a professional services contract Amendment No. 1 with Kimley-Horn for Utility Corridor Relocation - Cargo Apron at Indianapolis International Airport in an amount not-to-exceed $123,422.00. Supplier diversity participation is MBE 2.99% (VS Engineering), and WBE 68.39% (Journey Engineering, LLC).

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