Addendum 2 2/19/2018

Addendum 2 2/19/2018 City of Mobile Request for Proposals RFP Number: 2018-003 MOBILE ALABAMA CRUISE TERMINAL TERMINAL MANAGEMENT 1. The City ( City ) of Mobile is seeking proposals from maritime terminal management professionals to provide terminal management services for the Mobile Alabama Cruise Terminal (MACT). Proposals remain due to the City on 23 February 2018. 2. The following additional information is being provided to potential vendors in response to questions received during the solicitation. Question 1. In Exhibit B (MACT Berth Schedule), calls are scheduled to 2019. However Carnival is only contracted to November 2018. Do you expect Carnival to extend beyond November 2018? 2. Please provide passenger numbers per call since Carnival started calling MACT. 3. Currently MACT employs 5 full-time staff (plus one vacancy) and 6 part-time staff. How many staff will remain with MACT after May 1, 2018? 4. Do these staff have any pension, medical or other benefits? How will this be dealt with after May 1, 2018? 5. Do you expect that all contracts will be transferred to the new terminal manager including the Carnival contract, security Response Yes, as we have no indications otherwise. Our current schedule has cruises out to 4/29/19. There are 26 calls between 1 Dec 18 and 28 Apr 19. Carnival is currently booking cruises out of Mobile thru 27 Apr 2020. Average passenger count since Carnival restarted operations thru 31 Jan 18 is 2,433 per cruise. This figure is net of non-revenue passengers. How the respondent staffs the terminal and by whom is open to negotiation. Yes, as City employees, our staff has pension, medical and other benefits. How this will be dealt with is open to negotiation. With the exception of the Carnival contract, it s our expectation that the respondent will assume the current contracts and then, at their 1

Question contract etc.? Are there any other contracts to be transferred to the new terminal manager? 6. Are there any taxes (eg sales tax or other taxes) payable on parking fees? 7. Will any equipment be transferred to the new terminal manager? If so, please provide description, book value, condition, recent maintenance history etc. Will equipment be owned or leased by the respondent? 8. What is the current accounting system used by MACT? Can the new terminal manager continue to use the current accounting system? 9. Please describe the type of professional and technical fees paid each year by MACT. 10. In 2017 Actuals, $609,000 was spent on Advertising. Is this also the Marketing Fee paid to Carnival Cruise under their agreement? 11. The Carnival Cruise agreement calls for an annual marketing payment of $800,0000. Why is the amount in Question 10 ($609,000) less than the contracted amount? Are any amounts outstanding or owing to Carnival? 12. Do you expect to transfer the Carnival Cruise agreement to the respondent? 13. In 2017, $115,000 was spent on M&R. Please describe the nature of M&R. Response discretion, renegotiate/renew or replace the contractors. Most contracts renew annually on 1 Nov. As for the Carnival contract, that remains a matter open to negotiation. The City does not collect taxes on parking fees. At present, the City does not intend to transfer ownership of equipment, however, that may be a subject of negotiation. The current accounting system is called MUNIS, an enterprise software application from Tyler Technologies. We do not expect a terminal management company to use this system, rather they should expect to use their own. One objective of using a terminal management company is to relieve the City of duties such as purchasing, accounting, etc. These fees are for contracts providing cleaning services, pest control, website maintenance, Adelte (Boarding Bridge) maintenance, indoor plant service, and portable toilet services. Yes. In 2018, we expect to pay $200,000 per quarter, or $800,000, in marketing incentives to Carnival and we have budgeted $75,000 additional funds for marketing expenses. Because the terminal began operations on 9 Nov 16, Carnival waived the 1 st quarter incentive payment of $200,000 for FY-17. We paid the incentive the remaining 3 quarters and are up to date with all payments. This matter has yet to be determined and subject to negotiations with respondent. Maintenance & repair expenses involve servicing and maintenance to the emergency generator, air conditioning systems, 2

Question 14. Is the new manager expected to maintain the whole MACT facility? Please provide scope of M&R requirements to be assumed. 15. Why does MACT pay a real property lease cost in 2017? 16. Please provide a breakdown of Parking Management costs ($330,000 in 2017). 17. Please provide a breakdown of amounts paid for Security, Fire, Medics, City of Mobile police officers etc. Are all these costs included in the Security line item? 18. a. How many guards and supervisors are ordered on turnaround days? b. How many guards and supervisors are ordered on non-turnaround days? c. How many guards and supervisors are ordered on other days for the MACT Response refrigerators, elevators, escalators, boarding bridge repairs, repair supplies, incidental hardware, golf cart repairs, etc. It will be expected the respondent will maintain all aspects of the facility in a neat, clean and orderly condition. Supervise and ensure that contractors maintain all critical equipment such as emergency generation, boarding bridge, escalators, elevators, in good working order. Maintain all safety equipment such as fire extinguishers. Essentially, anything other than a major capital projects such as structural repairs, replacement of air condition units, etc. will be the responsibility of the respondent. This will have to be delineated further during contract discussions. We pay the Alabama Dept of Transportation for use of a bollard that is located just off the dock. We expect to pay the same or similar amount of $3,380 in 2018 for use of the bollard. We have no other lease expenses. Total payments to Premium Parking: $262,917 Parking Shuttle Fees: $62,181 Total: $325,098 Out of parking revenue, Premium Parking pays all credit card fees. Assuming a 2% rate, we estimate they paid approximately $58,310 in credit card fees on our behalf. City of Mobile Police: $255,251.10 Fire Medics: $17,972.31 Contract Security: $131,317.19 Total Actual Cost over 70 cruise days: $404,540.60 Yes, these are the costs included in Security. Turnaround Day: 14 police officers and 1 Supervisor; 12 contract guards and 1 supervisor. Non-Turnaround days: None On other days, only on a case by case basis for a special situation. We rarely use a guard on an 3

Question facility? 19. What is the total annual cost for the police boat service. How much is being paid under a Port Security Grant. How long is the grant? 20. The RFP (2.1 c) states how respondent will assume current contracts. Please provide a full list of all contracts expected to be assumed by the respondent. Response off cruise day. Total cost, Nov 16 to Nov 17 was $76,678.81 Total paid by grant was $57,509.11 The grant last for 3 years. Our major contracts include: Security: American Guard Service Cleaning: Centaur Building Services Parking: Premium Parking Crew Store Lease Offsite Parking Shuttle: Concord Transportation Services Emergency Generator: Taylor Power Systems Escalators & Elevators: Kone Boarding Bridge: Adelte There are many other smaller service contracts administered by the city s architecture and engineering office listed in item 13. These include: Pest Control-Terminix Portable Toilets-A&M Portables Website maintenance-dogwood Productions Garbage-Republic Services A/C-Star Services Alarms Systems-Johnson Controls Security camera system-tyco Indoor plants-nature Indoors 21. Can the parking facility be used by users other than cruise customers? 22. How many days per year does the Museum require wharf space to host vessels? 23. Please provide any contract or other documentation detailing or supporting payments made to the Mobile Police Dept and Fire/Medics. No, Carnival has exclusive use of the terminal s parking garage for their cruise customers. It is typically full every cruise. Usually two to three times a year. Any vessels berthed are on a not to interfere basis with Carnival Fantasy s berthing arrangement. See the following financial ledger report regarding payments to Mobile Police and Mobile Fire & Rescue. 4

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