PUBLIC MEETING NOTICE

NOTICE OF PUBLIC MEETING
PHOENIX AVIATION ADVISORY BOARD
BUSINESS AND DEVELOPMENT SUBCOMMITTEE

Pursuant to A.R.S. Section 38-431.02, notice is hereby given to the members of the PHOENIX AVIATION ADVISORY BOARD, BUSINESS AND DEVELOPMENT SUBCOMMITTEE and to the general public, that the BUSINESS AND DEVELOPMENT SUBCOMMITTEE will hold a meeting open to the public on January 8, 2009, at 2:30 PM located in the Aviation Conference Room, Terminal 3, Level 3, East Mezzanine, 3400 E. Sky Harbor Boulevard, Suite 3300, Phoenix, Arizona 85034.

One or more board members may participate via teleconference.

The agenda for the meeting is as follows:

1.	Call to Order		Chairman
2.	Approval of the October 2, 2008 Meeting Minutes		Chairman
3.	Discussion and Possible Action Items
	a.	Automated Teller Machine (ATM) Concessions Lease Award	Ms. Tamie Fisher
4.	Work Study (Information and Discussion Only)
	b.	Overview of Aviation Department Lines of Business	Ms. Tamie Fisher
5.	Subcommittee Information and Follow-Up Requests (not for discussion or recommendation
6.	Call to the Public: This is the time for the public to comment. Members of the Board may not discuss items that are not specifically identified on the agenda. Therefore, pursuant to A.R.S. Section 38-431.01(G), action taken as a result of public comment will be limited to directing staff to study the matter, responding to any criticism, or scheduling the matter for further consideration and decision at a later time.		Chairman
7.	Adjournment		Chairman

For further information or reasonable accommodations, please call Kate O’Malley, Management Assistant, Aviation Department at 602-273-2075 or TTY relay 1-800-781-1010 as early as possible to coordinate needed arrangements.

The next Business and Development Subcommittee meeting is scheduled to take place Thursday, February 5, 2009.

PHOENIX AVIATION ADVISORY BOARD

BUSINESS & DEVELOPMENT SUBCOMMITTEE

MEETING MINUTES

December 4, 2008

· Subcommittee Members Present

Andrew Cohn, Chair

Paulina Vazquez Morris

· Staff Present

Danny Murphy, Aviation Director

Jane Morris, Assistant Aviation Director

Carl Newman, Assistant Aviation Director

· Item 1 - Call to Order

Meeting called to order at 2:31PM by Mr. Andrew Cohn

· Item 2 - Approval of the October 2, 2008 Meeting Minutes

Ms. Vazquez Morris moved for approval of the minutes. Mr. Cohn seconded the motion.

The motion was approved 2:0.

Item 3a – Cutter Hangar Development Land Lease

Ms. Tamie Fisher presented this item requesting approval to lease up to 60,000 square feet of land at Phoenix Deer Valley Airport (DVT) to Cutter Aviation (Cutter) for corporate hangar development.

Mr. Cohn asked what the current occupancy of the tie downs is. Mr. Gary Mascaro responded that occupancy is at 100%, and added that the Aviation Department is relocating tie downs, not removing. Ms. Fisher added that the Aviation Department sees the new location as a better location.

Mr. Cohn asked if Cutter would hire new employees as a result of this lease. Ms. Fisher advised that Cutter has not yet notified the Aviation Department of any new employees.

Mr. Cohn expressed his concern with liability in regards to failing businesses and wants to ensure staff is not creating additional liability with tenants of the failing business. Ms. Nancy Kesteloot ensured Mr. Cohn that if a company holding a land lease fails, that property would typically come back to the City of Phoenix, who would then be the landlord to any existing tenants. Mr. Cohn added that he would like to see leases with multiple locations be required to cross-default.

Ms. Vazquez Morris motioned for approval. Mr. Cohn seconded the motion.

The motion was approved 2:0.

· Item 3b – Request to Issue Request for Information and Request for Proposals for Advertising Concessions

Ms. Tamie Fisher presented this item requesting the Business and Development Subcommittee’s recommendation to issue a Request for Information (RFI), and a subsequent Request for Proposals (RFP) for the Advertising concession.

Ms. Vazquez Morris asked how long the RFP process would take. Ms. Fisher estimated that the process would take at least a year.

Mr. Cohn asked if Clear Channel was willing to stay on during the interim with no change in fees. Ms. Fisher said yes.

Mr. Cohn expressed his concern with making sure staff gets a decent amount of responses. Ms. Fisher responded that this is a limited marketplace, with two large players. She added that staff has engaged an advertising consultant and is soliciting dialogue with possible players to ensure a competitive response is received.

Mr. Cohn asked why the term of the lease would be changed from five to seven years. Ms. Fisher responded that only the initial term can be used to amortize improvements. This extended term would give the successful bidder more flexibility for digital media or other technology advancements.

Ms. Vazquez Morris asked if a certain percentage of public service announcements would be written into the contract. Ms. Fisher confirmed that a certain percentage of media space would be reserved for PHX airport branding and other public service announcements.

Ms. Vazquez Morris motioned for approval. Mr. Cohn seconded the motion.

The motion was approved 2:0.

· Item 3c – Taxi Meter Rate Increase

Mr. Steve Grubbs presented this item requesting authorization to amend Chapter 4, Article IV, Section 4-83 of the Phoenix City Code pertaining to established fare rates for taxicabs operating at Phoenix Sky Harbor International Airport.

Mr. Cohn asked if other airports used the same index as Sky Harbor to estimate these rates. Mr. Grubbs responded that although there is a full spectrum of indexes to use, staff believes that the Consumer Price Index (All Urban Consumers) is a solid index.

Mr. Cohn asked how much the fee totals for income to the City of Phoenix. Mr. Newman responded that staff would follow up with this figure.

Ms. Vazquez Morris motioned for approval. Mr. Cohn seconded the motion.

The motion was approved 2:0.

· Item 4 – Subcommittee Information and Follow-up Requests

Mr. Cohn expressed his gratitude for staff’s hard work on issues going to subcommittee and the full Board, but added that he’d like to see organizations vying for business at the airport present at these meetings.

· Item 5 – Call for Public Comment

Ms. Nancy Kesteloot introduced Ms. Diana Hinz, a new attorney with the Aviation Department.

· Item 6 – Adjournment

Ms. Vazquez Morris motioned for adjournment. Mr. Cohn seconded the motion. The meeting was adjourned at 3:06 PM.

BUSINESS AND DEVELOPMENT SUBCOMMITTEE REPORT
To:	Business and Development Subcommittee
From:	Danny W. Murphy Aviation Director
Subject:	Automated Teller Machine (ATM) Concessions Lease Award

This report requests the Business and Development Subcommittee’s recommendation to award leases to JPMorgan Chase (Chase) and Bank of America (B of A) for the ATM Concessions at the City’s airports.

Background

The Aviation Department released a Request for Proposals (RFP) for three ATM concession packages on October 8, 2008. Three proposals were received in response to the RFP. One proposal was deemed non-responsive for failing to include a specific bid amount. Staff confirmed the remaining proposers were compliant with the City’s Affirmative Action requirements and determined the proposers met the minimum qualifications established in the RFP.

Discussion

Aviation staff evaluated the proposals based on qualifications and experience and management and operations plan, as established in the RFP.

Chase is the successful proposer for Package 1, with a Minimum Annual Guarantee (MAG) of $336,000. B of A is the successful proposer for Package 2, with a MAG of $300,000. Additional ATM locations may be added in the future at the discretion of the Aviation Director; as ATMs are added, the MAGs will be adjusted accordingly. Package 3 was offered to and declined by both Chase and B of A.

The lease term will be for five years with 1 two-year renewal option to be exercised at the sole discretion of the Aviation Director. The first year’s rent shall be the amount of the proposed bid for each package. In subsequent years of the lease, the annual rent shall be subject to annual adjustments equal to the greater of 3% or Consumer Price Index adjustments. Each successful proposer shall also pay a percentage rent of 50% of all foreign transaction fees.

Recommendation

The Aviation Department requests the Business and Development Subcommittee’s recommendation to award the ATM Concession leases to Chase for Package 1 and B of A for Package 2.

BUSINESS AND DEVELOPMENT SUBCOMMITTEE REPORT
To:	Business and Development Subcommittee
From:	Danny W. Murphy Aviation Director
Subject:	Overview of Aviation Department Lines of Business

Aviation Department staff will provide a brief overview of the Business and Properties Division and the various lines of business that are managed by this division.

BACKGROUND

The Aviation Department’s Business and Properties Division is responsible for leasing real estate, property management, air service development, tenant relations, community outreach, and risk management at Phoenix Sky Harbor International Airport, Phoenix Deer Valley Airport, and Phoenix Goodyear Airport.

DISCUSSION

Aviation Department staff will provide an overview of the various lines of business.

RECOMMENDATION

This item is for information only. No action is requested.

Official Web Site of the City of Phoenix

December 4, 2008

· Item 3c – Taxi Meter Rate Increase

· Item 4 – Subcommittee Information and Follow-up Requests

· Item 5 – Call for Public Comment