MAC CONTRACTORS FORUM

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1 MAC CONTRACTORS FORUM Metropolitan Airports Commission 1

2 INTRODUCTIONS Eric Johnson, Director, Commercial Management & Airline Affairs The MAC Concessions Team Liz Grzechowiak, Assistant Director, Concessions & Business Development Kate Webb, Manager, Contracts & Proposals Matt Grimm, Manager, Concessions & Business Development Isabella Rhawie, Manager, Concession & Business Development Paula Minell, Lease File Administrator 2

3 INTRODUCTIONS Jake Hoehn, Bradford Airport Logistics The MAC Team John Nelson, Project Manager Rick Valentino, Manager of Facilities Brian Weidemann, Building and Fire Inspector AROUND THE ROOM 3

4 AGENDA Overview of MSP and Metropolitan Airports Commission (MAC) Concessions square footage Design and construction standards and criteria Permits Insurance Challenges Badging Parking Staging and material delivery Night work Shut downs Inspections 4

5 WELCOME TO MSP! MSP is one of the nation s busiest airports with approximately 35 million passengers per year. MSP is an international airport, a hub for Delta Air Lines and a gateway to Minnesota and the Upper Midwest region. Additional information about MSP is available at MSP is owned and operated by the Metropolitan Airports Commission (MAC). 5

6 WHAT IS THE MAC? WHAT IS THE MAC? MAC is governed by a board of 15 Commissioners Eight metro Commissioners appointed by the Governor One appointed by St. Paul Mayor One appointed by Minneapolis Mayor Four Governor appointed Commissioners from Greater Minnesota One Governor appointed Commission Chairperson. MAC owns and operates seven airports in the metropolitan area (MSP) Six reliever airports: St. Paul Downtown, Flying Cloud, Crystal, Anoka County-Blaine, Lake Elmo and Airlake 6

7 TERMINAL 1-LINDBERGH MAP 7

8 TERMINAL 2-HUMPHREY MAP 8

9 MSP TOTAL CONCESSION AREA Total Concessions 168,851 Sq Ft Retail 31,212 Food & Beverage 121,322 Convenience (News) 16,317 9

10 CURRENT CONCESSIONS IN PHASES I & II Total Concession Area 2015 & 2017 RFP's 125,543 Sq Ft Retail 29, Retail Units Food & Beverage 80, F&B Units Convenience (News) 16, News Units 10

11 CONCESSIONS OPPORTUNITIES PHASE I Total Concessions area Available in Phase 1 72,000 Total sf 15 F&B 36,000 21% 14 Conv. / News 12,000 7% 21 Retail 24,000 14% 11

12 CONCESSIONS PLANNING AND IMPLEMENTATION TEAM (CPIT) The CPIT is a group of MAC, Concessionaire, and Consultant representatives who coordinate the concessions construction projects at MSP Terminal 1 and MSP Terminal 2. MAC representatives include: Commercial Management and Airline Affairs Building Official Airport Development MAC Architectural and M&E Consultants Airport Operations / Facilities Others 12

13 CPIT PROCESS Assurance that MAC utilities are provided to the site specific shell space Tracking of executed lease agreements Review, comment, and approval of site specific Concept Designs Review of the Bid Documents received by the Concessionaire Construction Document plan review comments Review of applicable permits, including Hennepin County Health Department F&B Construction schedule, progress, and store opening dates Project Close-out documents 13

14 DESIGN & CONSTRUCTION STANDARDS All tenant designs and construction shall comply The CPIT will communicate this with the tenant and Architect This requirement includes plumbing, HVAC and electrical work The construction documents (plans and specs) need to reflect this This will be a condition of your permits 14

15 MAC TENANT DESIGN GUIDELINES Access to MDCS and Tenant Design Criteria Why? CPIT review, comment, and approval 15

16 ESTIMATES / BIDS Estimates The Concessionaires are responsible for preparing estimates for work covered by their construction contracts Concessions Bids The individual Concessionaires are responsible for their Bid requirements, information to bidders and bid forms The Concessionaire presents the lump sum contractor bids, the schedule of Spec Division values, and the cost of materials and labor provided by Others to the CPIT The MAC PM prepares a bid review report to the CPIT The CPIT, or its designee, provides its bid review findings to the Concessionaire 16

17 BADGING NEW COMPANIES Paperwork Submission: Company Profile Sponsorship Letter (customer) Two Authorized Signer Agreement Forms Refer to our website mymspconnect.com for instructions and fillable pdf forms 17

18 AUTHORIZED SIGNERS DEFINITION: Representative with the company who will serve as the first point of contact Review, Authorize and Sign Badge Applications for other employees Respond to badge audits Responsible for proper deactivation and return of all badges Must pass background check and be approved for a badge 18

19 AUTHORIZED SIGNERS Authorized Signer Training: Class offered twice a month 9:00am to 11:00am registration is required Fingerprinting offered after class for signers Parking is validated 19

20 AUTHORIZED SIGNERS Badge Approval will take an average of seven to ten business days Signer returns for the badge and will take SIDA Training (if required) Both signers must be in possession of their badge before sending employees to start the process VERY IMPORTANT TO START THE PROCESS EARLY 20

21 EMPLOYEES Start with the fingerprinting process, offered: Mondays through Thursdays 7:00am to 3:00pm Clearance for badges is typically approved within seven to ten business days Employee returns for the badge, takes SIDA Training (if required) Mondays & Wednesdays 9:00am Tuesdays & Thursdays 12:00pm 21

22 COST & BADGING FEES Fingerprinting - $60 per applicant, non-refundable Badge - $20 per applicant, non-refundable Contractor Fee - $200 per applicant, refundable IF the badge is returned within 30 days of expiration 22

23 CERTIFICATE OF INSURANCE General contractor is required to provide Certificate of Liability insurance at the time of permit application. The values are $1,000,000.00/$500, MAC is to be named as additional insured on the certificate. Plumbing / HVAC contractors must follow state licensing requirements. 23

24 CERTIFICATE OF INSURANCE (COI) The Contractor cannot commence work nor allow any subcontractor to commence work until all insurance required by MAC has been procured by the Contractor and approved by the MAC. Insurance must be kept intact and in force throughout the term of the contract. Certificate of Insurance (COI) Specifics: Contractors must provide MAC with 4 copies of a COI using the standard ACORD form as evidence of the required insurance; The COI must indicate that at least 15 days prior notice will be given to the insureds in the event of cancellation, nonrenewal or any material change in the policies. The COI must be signed and dated by an authorized representative of the insurance company. 24

25 REQUIRED INSURANCE Workers Compensation Insurance The Contractor must procure and maintain workers compensation insurance for all his or her employees engaged in work on the project as required by statute. The Contractor must also require that all subcontractors and subsubcontractors provide workers compensation insurance for their employees. The Contractor must also provide employer s liability insurance with a limit of $100,000/500,000/100,

26 REQUIRED INSURANCE Contractors Comprehensive General Liability Insurance (GL) The Contractor must procure and maintain throughout the term of the contract comprehensive GL insurance covering personal injury including bodily injury, and property damage liability; (NOTE: The property damage liability portion of the policy must not contain any exclusions with reference to damage due to blasting, collapse, or underground facilities.) with a combined single limit of $1,000,000 for each occurrence and aggregate; naming the Contractor as insured; naming the MAC as additional insured; (NOTE: In lieu of the MAC being named as an additional insured on the Contractor s comprehensive GL insurance, the insurance may provide liability coverage for the benefit of the MAC by means of an Owner s protective liability endorsement or policy.) providing contingent liability for the operations of subcontractor and subsubcontractors, and; covering completed operations and products liability as well as broad form contractual liability. 26

27 REQUIRED INSURANCE Comprehensive Automobile Liability Insurance The Contractor shall provide comprehensive automobile liability insurance covering bodily injury and property damage; with a combined single limit of $1,000,000 for each occurrence, and; for all automobiles owned by the Contractor and all hired and non-owned vehicles. The Contractor must also require that all subcontractors and subsubcontractors maintain the same form of insurance. The Contractor must also provide contingent automobile liability insurance for the operations of subcontractors and subsubcontractors to assure coverage. 27

28 REQUIRED INSURANCE Builders Risk Insurance Unless otherwise provided, the Tenant must purchase and maintain property insurance upon the entire work at the site to the full insurable value. This insurance shall include the interests of the MAC as the named insured and provide coverage on an All Risk basis in accordance with the conventional All Risk Builder s Risk forms currently in use. Any loss to the property which would not be covered under the All Risk Builder s risk form which is the result of the carelessness or negligence of the Contractor or Subcontractor shall be borne by the Contractor. Any insured loss is to be adjusted with the MAC and made payable to the MAC as trustee for the insured as their interest may appear. The policy shall have a maximum deductible of $10, Each Contractor and Subcontractor shall be responsible for his own coverage up to the deductible amount. 28

29 TENANT PERFORMANCE BOND REQUIREMENTS When any leasehold improvements are constructed, installed or renovated, the Tenant must procure and furnish to the MAC payment and performance bonds. Each bond must not be less than the cost of the construction, installation or renovation; must be for the use of the MAC and all persons doing work or furnishing skills, tools, machinery, materials, insurance premiums, equipment or supplies of the construction, installation or renovation; must be conditioned for payment of claims as required and in full compliance with Minnesota Statues , and; must remain in force and effect throughout all construction and until the Tenant submits -- and MAC approves -- lien waivers from all contractors and subcontractors. A sample Contractor s Payment Bond is available by request. 29

30 MAC PERMITS Demo Building Structural Plumbing HVAC Foundation Telecommunication Fire Marshal Signs 30

31 MAC PERMITS Permit fees shall be paid at the time of permit issuance. Checks only. Permit fees are based on valuation of total work being done. The fee also includes a plan review fee for the building permit only. The permit fee is based on the 97 Uniform Building Code fee schedule and can be made available to you upon request. The permit fee for plumbing and HVAC work is 2% of the value of that work for each trade discipline. No plan review fee for these. As of today, sign permits are no fee. If a demo permit is issued to you as part of the specific tenant work you have been awarded, this is a no fee permit. Hennepin County is the permitting authority for all food related tenant work that takes place on our campus. They require up to a thirty day review period. 31

32 MAC PERMITS PROCESS MAC is the permitting authority for all work that takes place on the campus. The exception is electrical permits. This is handled by the State board of Electricity/MN DOLI. Permits that MAC will issue: Building, Plumbing, HVAC, demo, Sign, Fire Marshal Documents required at the time of application for permit; permit application, two sets of plans (which may include structural and calcs), all plans are required to be signed by the appropriate design professional. Certificate of Insurance from the contractor Some projects may require review for SAC (Sewer Availability Charge) by the Met Council. If all documents are in order, ten day maximum turn around. 32

33 FIRE MARSHAL The Airport Fire Department (AFD) will review individual projects for impacts to building fire protection and life safety features for MN State Fire Code and MAC Design and Construction Standard compliance. We will also give guidance and approval for impacts or disruptions to existing building fire alarm and sprinkler systems that your project may have. This also includes impacts caused by demolition or normal construction activities. Prior to Construction: Submit one set of general construction drawings to the AFD for review. 33

34 FIRE MARSHAL ANY work that includes modifications or installation of any fire protection system requires a Fire Marshal Permit. Required permits shall include the following for submittal: 1. A fully completed permit application. 2. Two sets of all appropriate submittal documents; including working plans, technical calculations, product cut-sheets, etc. 3. A check for fee payment, if applicable. All fire alarm and sprinkler system designs and installations must be made by qualified individuals, as indicated by appropriate NFPA standards. 34

35 FIRE MARSHAL Each tenant space must have one sprinkler control valve that is reviewed and approved by AFD during the design phase. Fire alarm and sprinkler system design work must be performed by someone with knowledge of the existing building systems. Engineering firms and/or designers that fail to provide documentation that clearly accounts for the entire system and their design qualifications will be rejected. 35

36 FIRE MARSHAL During Construction: Contact AFD PRIOR to any work to conduct a site-visit; the purpose of the site visit is to review your demo work and impacts to the existing fire alarm, sprinkler system, commercial hood fire extinguishing systems, portable fire extinguishers, Knox boxes, AED and fire department emergency access. We will also review if you will need any hot work permits for your project. For permitted work of fire protection and fire alarm systems, you will need to schedule rough-in and final inspections, witness testing (ex. - sprinkler hydro tests) and final acceptance tests. Remember to have your inspection card available on-site for signature. Unauthorized disruptions or negative impacts to fire protection and fire alarm systems may result in work stop orders to be issued by the AFD. 36

37 FIRE MARSHAL Contact Information: AFD Fire Marshal Assistant Fire Chief Nathan Kreye Phone: Building and Fire Inspector Brian Weidemann Phone: &

38 PRE-CONSTRUCTION MEETING Attendees MAC staff, concessionaires, general and sub-contractors Topics (Partial List) Scope of Work: restricted work and special requirements Contract Status: bonds, insurance, notice to proceed Airport Security and Site Security MAC Permits and Testing Site Use and MAC Coordination Construction Schedules and Meetings Project Documents Project Clean-up and Closeout 38

39 CHALLENGES There will be certain challenges, costs, and considerations that are unique to operating within an airport environment: Extended Schedules MSP operates 365 days per year Project schedules must accommodate passenger schedules by completing most work during non-traditional hours Additional Costs Associated with Employees Badging Fees Parking Fees Logistical Considerations Demo and Dumpster Placement Material Deliveries Staging and Storage Security Shut downs 39

40 CONTRACTOR AND SUPPLIER PARKING Parking is provided in either Short Term or General Parking areas at regular rates. Parking ramps and Valet have a 7 foot clearance. One area of Short Term has a clearance of 8 2. If needed, contact us to arrange a time and alternative location to drop off or pick up supplies and materials as they are not permitted at the Ticketing and Baggage Claim curbs. No storage is provided. Contractor ZipPass. Charged to a credit card on file. $20/month plus $2/hour (max. $48/day). Can be traded between vehicles. Questions: contact Landside Operations during business hours at:

41 OFFSITE PARKING The contractor is responsible for arranging their own parking of vehicles. In some cases you may request a parking pass from the MAC Landside office to park on the secured side of the airport. If a parking pass is granted the staff will assist you where a vehicle can be parked. You must adhere to all rules and regulations required by the TSA and MAC Police. 41

42 DUMPSTERS / ROLL-OFFS Locations must be pre-approved by MAC Facilities Management Office We will do our best to find a suitable location as close to the construction area or material haul route as operationally possible (Reminder - Airline and Airport operations will have priority) You are responsible! All materials must be contained within the unit. Units must be covered as to prevent any material from flying around. (high winds, thunderstorms, jet blast) FOD (Foreign Object Debris) prevention Pick-up / hauling coordination depending on location (In gate areas with airline flight schedules) 42

43 STAGING AND MATERIAL DELIVERY Coordinate dock time for receiving of materials and delivery to tenant site. There is very little opportunity to allow for storage of material outside of the tenant space you will be working on. Scheduling for deliveries as well as the amount of material being delivered is very important. No staging or storage of material will be allowed in corridors or loading dock areas NO EXCEPTIONS. MAC staff is currently reviewing potential sites around the campus for possible temporary (one or two day) storage of larger or unusual items. 43

44 RECEIVING AND DISTRIBUTING MAC Facilities manages this contract with assistance from the Concessions Department. The process allows for greater efficiency and consistency of deliveries to Concessionaires from outside vendors. Bradford receives, visually inspects and ships materials to MSP concessionaires from a centralized location. A unique barcode system tracks deliveries and keeps a record of all invoices from the vendors. Receipt of goods begins at 2:30 AM and deliveries are made until roughly 3:30 PM to approved storage locations within the terminals. Tenants submit a list of suppliers to Bradford initially and a distribution schedule is arranged. Delivery drivers are badged and cleared by APD and TSA to commence deliveries to the Bradford loading dock. 44

45 NIGHT WORK In some cases night work will be required to be less disruptive to other MAC tenants and the traveling public. Areas that may include this type of work include; construction of the temporary barrier wall facing the mall/concourse, significant demolition work, loud noise producing tools, major utility shut downs. If night work is anticipated, we ask that you contact the MAC Facilities, the MAC Construction Coordinator and Bradford in case of off hours material deliveries. MAC Construction Coordinator will meet you on site to go over location of the construction barrier wall. Normal night work begins no earlier than10 pm and is completed by 5 am. 45

46 INFRASTRUCTURE SHUT DOWNS MAC and its continuing consultants will coordinate water, sewer, electrical, HVAC, fire-protection, and other shut-downs required to support the construction of the new tenant spaces. MCE will provide coordinate and provide this coordination through MAC s Airport Development Department, and the notices will be distributed throughout the MAC and to the tenant. Notices usually require one week for coordination, and a two week period for notification for the work. Most shut downs of infrastructure is required to be night-work due to the impact on airport operations. National holidays and weekends usually are not available for shut downs. 46

47 INSPECTIONS Prior to start of construction the MAC Trades (electric, plumbing and EMC) want to be notified, which may include a site inspection. All other inspections follow state code requirements: rough in (which includes framing) prior to covering and all final inspections before occupancy. This also includes Fire Marshal and Telecommunications. Some projects may also require special inspections depending on the scope and type of work. Green inspection record is required to be on site at all times. Each inspection is required to be signed on the card. This is for all trade disciplines, including the state. NO EXCEPTIONS! State Board of Health also has rough in and finals. You re responsible to schedule those inspections. 47

48 CONSTRUCTION PUNCHLIST Attendees MAC staff, consultants, concessionaires, general and contractors Purpose Inspection of fixtures, furnishes, finishes and equipment for quality of work, completeness, and missing items Listing of items needing correction Contractor check-off 48

49 PRESENTATION & ATTENDEE LIST We ll post today s presentation and attendee list on our online Resource Page. Airport-Authority/Business- Opportunities/2017-RFP- Information.aspx rfp@mspmac.org with questions. 49

50 QUESTIONS? 50

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