BOARD OF DIRECTORS MEETING Minutes of June 21, 2017 The regular meeting of the Board of Directors was held in the Fifth Floor Conference Rooms at Two Potomac Yard, 2733 Crystal Drive, Arlington, VA. The Chairman called the meeting to order at 10:00 a.m. Sixteen Directors were present during the meeting: William Shaw McDermott, Chairman Warner H. Session, Vice Chairman Earl Adams, Jr. Anthony H. Griffin Katherine A. Hanley Barbara B. Lang Robert W. Lazaro, Jr. Caren Merrick A. Bradley Mims Thorn Pozen David G. Speck William E. Sudow J. Walter Tejada Mark E. Uncapher Nina Mitchell Wells Joslyn N. Williams The Secretary and Executive Management were present: John E. Potter, President and Chief Executive Officer Margaret E. McKeough, Executive Vice President and Chief Operating Officer Jerome L. Davis, Executive Vice President and Chief Revenue Officer Chairman McDermott reported that the Board Office had received an invitation from the Maryland Chapter of the Conference of Minority Transportation Officials (COMTO) to a reception on Tuesday, June 27, at 6:00 p.m. at the BWI Marshall Airport to honor Brad Mims on his recent appointment as the President and Chief Executive Officer of COMTO. He congratulated Mr. Mims once again on his appointment.
I. MINUTES OF THE MAY 17, 2017 BOARD OF DIRECTORS MEETING The Chairman called for the approval of the Minutes of the May 17, 2017 Board of Directors Meeting, which were approved [with one abstention from Anthony Griffin]. II. COMMITTEE REPORTS a. Business Administration Committee Caren Merrick, Co- Chair Ms. Merrick reported that the Business Administration Committee had met that morning. The Committee had approved two recommendations: 1) to award a contract for a Fixed Base Operator (FBO) concession at Washington Dulles International Airport (Dulles International) and 2) to award a diesel fuel contract at both Airports. Ms. Merrick stated that she would offer both resolutions later in the day s Board Meeting. Ms. Merrick also reported that the Committee had concurred with the pre-solicitation terms for the refuse removal and recycling services contract at Dulles International, Dulles Toll Road, and Ronald Reagan Washington National Airport (Reagan National). b. Executive and Governance Committee William Shaw McDermott, Chair Chairman McDermott reported that the Executive and Governance Committee had met May 17 in executive session to discuss legal matters relating to the adoption of Board policies. He stated that pursuant to Article IX, Section 3(e) of the Metropolitan Washington Airports Authority (Airports Authority) Bylaws which provide in part that the Board's consultation with legal counsel pertaining to compliance with specific constitutional, statutory or other requirements imposed on the Airports Authority and other legal matters, and the Board's discussion of those subject matters indicate that these may occur in executive session. c. Strategic Development Committee Nina Mitchell Wells, Co- Chair Ms. Wells reported that the Strategic Development Committee had met that morning and on May 17. She stated that in May, the Committee had concurred with the pre-solicitation terms for an
Architectural/Engineering/Planning consultant for Airport Planning Services for the Airports Authority. Staff had presented informational reports on activities at Reagan National, the National Environmental Policy Act process for the Airport Layout Plan, and Project Journey. Ms. Wells also reported that the Committee had endorsed the recommendation to approve Dominion Virginia Power's request for an easement along Route 606 at Dulles International at the day s meeting. She stated that she would offer a resolution later in the day s Board Meeting. She noted that staff had also presented the Airline Business Development Information report and an update on Project Journey. III. INFORMATION ITEMS a. President s Report Mr. Potter reported that it had been an exciting month. He stated that the recent bond refunding was a great step forward in the Airports Authority s effort to control expenses and hold down Cost per Enplanement (CPE) at Dulles International. The bond sale of approximately $450 million in refunding or refinancing of existing bonds exceeded the Airports Authority s expectations. Mr. Potter recalled that at last month s meeting, staff estimated that the maximum savings could be $50 million. He reported that the great news resulted in $63 million in net present value savings, which translates into over $117 million in gross savings over the term of the repayment period. Even more great news is that approximately 80 percent of the savings will accrue to the benefit of Dulles International, which will be a significant contribution to the Airports Authority s primary goal to reduce CPE at Dulles International. Mr. Potter noted that the financial success is subsequent to what he reported last month with regard to the Airports Authority s credit rating upgrade at Moody's, and the timing of the upgrade was one of several key factors that contributed to the outstanding result achieved at the bond sale. Although Mr. Potter stated that he would rely on Andy Rountree, Vice President for Finance and Chief Financial Officer, to thank all involved for their efforts, he thanked Mr. Rountree since he led the charge and coordinated the efforts. He noted that greater detail would be provided later that day in the Finance Committee Meeting. Mr. Potter congratulated the entire team noting that ultimately the passengers are
the winners because they will benefit from lower costs on United Airlines and all other Dulles International carriers. Mr. Potter reported that another major event that will certainly help boost the Airports Authority s business was the travel industry's IPW Conference. As Mr. Davis had reported, Dulles International was a major sponsor. Mr. Potter stated that IPW also exceeded the Airports Authority s expectations when more than 6,000 people attended from over 70 countries, the majority of whom arrived through either Reagan National or Dulles International. He also stated that 1,300 industry decision-makers, who construct travel packages, also attended IPW. Additionally, 500 journalists were in town, and the Conference received excellent press. Mr. Potter noted that it had been the journalists responsibility to highlight tourism destinations in the United States, and the Airports Authority certainly hoped that the National Capital Region would be included in their stories. As Mr. Davis had previously reported, Mr. Potter stated that 1 million additional new international visitors are expected into the region over the next three years, which would be a great boost not only to business at Dulles International, but also for the economy in the entire region. He advised that Maryland, the District of Columbia, and the Commonwealth of Virginia, as well as the Airports Authority and other representatives, were part of the Capital Region USA, which sponsored IPW and worked very hard to present the region in a great light. Mr. Potter recognized the Airports Authority s partners, including Destination DC and U.S. Travel. He stated that Elliott Ferguson, President and CEO, Destination DC, had coordinated the entire Conference. Mr. Potter acknowledged and extended thanks to Directors Kate Hanley, Bob Lazaro, Walter Tejada, Caren Merrick, Thorn Pozen, Bill Sudow, and David Speck for their participation in the IPW Conference. As part of the innovative technologies introduced at Dulles International, Mr. Potter stated that when visitors currently arrive at Dulles International, they experience one of the country's fastest and most efficient security and passport control processes deployed by the U.S. Customs and Border Protection (CBP). He explained that the modified egress test mode eliminates the final step in the customs process for passengers who are not required to go through secondary screening, which is the vast majority of travelers. Mr. Potter stated that passengers would no longer be required to present the yellow forms after they retrieve their bags and exit Customs. For passengers required to go through secondary screening, the airlines would pull their bags from the
baggage claim area into secondary screening. Mr. Potter clarified that all passengers would still receive a yellow form and that random checks may occur to select passengers not required to go through secondary screening to do so. The test initiative, which was underway prior to the IPW Conference, was advantageous. It helped to accelerate the customs process for many passengers arriving at Dulles International. Mr. Potter stated that Chris Browne, former Vice President and Airport Manager [at Dulles International], had begun the accelerated customs process, and that Brian Leuck, Acting Vice President and Airport Manager, is continuing the efforts, which also required construction to create an alleyway for the passengers required to go through secondary screening. He further stated that the Airports Authority is very proud that Dulles International has been the leader amongst major airports in America in terms of passengers time to clear Customs. Mr. Potter extended thanks to the entire Dulles team, Engineering staff, and everyone who participated in implementing the test initiative. He reported that it was indicative of the importance of a strong partnership with the Transportation Security Administration (TSA) and CBP. Mr. Potter also thanked Wayne Biondi, CBP Port Director for the Port of Washington Dulles, for his cooperation. Mr. Potter reported that another significant boost [to the Airports Authority s efforts to lower the CPE] is the FBO contract, which the Board would consider shortly. He stated that the proposed contract award would increase the FBO revenue from the current level of $6.8 million to more than $17 million in the first year of the new agreement. The increased revenue would ultimately benefit the costs for the airlines that operate at Dulles International. Mr. Potter reported that the total minimum revenue of more than $91 million over the next five years, beginning next year, is a step forward in controlling CPE and growing business revenue at Dulles International. He complimented Ms. McKeough and Colleen Von Hoene, Manager, Airport Administration at Dulles International, on devising a strategy to determine whether the solicitation would be advertised, as well as the terms of the contract. Mr. Potter also reported that Roger Natsuhara, Vice President for Engineering, will continue to provide Project Journey updates. Details regarding changes in traffic patterns, new pickup points at Reagan National, and other important pertinent information will be provided timely prior to the occurrences so that the announcements can also be covered by the media and receive appropriate press and attention.
Mr. Potter reported that the airlines have to work parallel with the Airports Authority to complete some of the required work. He stated that Ms. McKeough and Paul Malandrino, Vice President and Airport Manager [at Reagan National], had devised a strategic plan to move American Airlines (American) hangar operations from the north end to the south end. Since American had cleared out the hangar, demolition could now begin. Mr. Potter reported that American is moving to Hangar 4. He shared a slide of the new hangar and the celebration American held for its employees. Mr. Potter reported that the capacity of the new American hangar doubles the volume of overnight work that now can be done at Reagan National. He extended thanks to American for its continued partnership and support and congratulated the airline on a seamless move. Although the Board had not yet approved the FBO contract award, Mr. Potter prematurely thanked Signature for its aggressive bid and stated that the Airports Authority is pleased that it will remain at Dulles International. Mr. Potter reported that the Airports Authority is moving ahead with its efforts to inform passengers and the general public about Project Journey and the improvements it will bring. Maps, signs, media advisories, notices, and radio advertisements will be provided. In addition to these efforts, Mr. Potter stated that travelers will also be able to communicate with someone using a cell phone or other electronic device. Mr. Potter reported that additional details would be provided. He stated that the Airports Authority had conducted a soft launch of its new website, which the Board had approved, and lots of compliments were being received through passenger feedback lines. Mr. Potter reported that the Airports Authority is very much concerned about the passengers ability to access any information they want online using their electronic devices. Mr. Potter reported that the prior week Julia Hodge, Vice President for Supply Chain Management, welcomed her first child, Mia Elise Hodge. He stated that mom and daughter are doing well. Mr. Potter congratulated Ms. Hodge and her husband, Ivan. On behalf of the Board, Chairman McDermott extended personal congratulations to Ms. Hodge and her husband on the birth of their daughter. Chairman McDermott stated that 70 years ago this spring, Branch Rickey brought Jackie Robinson to the major leagues. At that time,
people complimented him on how lucky he was after skirting many, many problems. Mr. Rickey said, famously, "Luck is the residue of design." During the day s presentations, there had been several references to luck. Chairman McDermott announced to staff that, We know that behind all this good luck, there is a lot of design. He extended a broad thanks to staff and noted that additional reports would be presented at subsequent meetings about the Airports Authority s luck. Mr. Mims stated that he also served on the Transportation Research Board (TRB) Transit Cooperative Research Program (TCRP). At its May meeting, the entire TRB-TCRP Board comprised of CEOs throughout the country received a presentation regarding the Airports Authority s refinancing efforts. Mr. Mims advised that people are watching the wonderful and innovative things happening at the Airports Authority, especially those associated with finance. b. Executive Vice President s Report Ms. McKeough advised that she was reminded that June 21 is the first official day of summer, which tends to be one of the busiest travel seasons at both Airports. She shared the April traffic statistics, which had been provided to the Directors for the day s meeting (Tab 10.2). Ms. McKeough stated that she was pleased to report that the positive growth at Reagan National and Dulles International continues. She reported that positive growth had occurred in domestic and international air traffic. Most significantly, April was the eleventh consecutive month of positive growth at Dulles International. Ms. McKeough reported that passenger traffic at Reagan National had increased approximately 3.9 percent from January through April, compared to the prior year. During the same timeframe at Dulles International, passenger traffic had increased 6.6 percent, resulting from a 7 percent increase in domestic activity and a 5.8 percent increase in international activity. Ms. McKeough anticipated that the growth would continue as the busiest travel months have begun. She reported that the travel statistics that she shared exceeded the forecast built into the Airports Authority s financial plans for the year. In addition to the modified egress pilot that Mr. Potter reported on, Ms. McKeough advised that there are two additional technology pilots underway that allow customer participation at Reagan National and Dulles International. Although the Airports Authority is not leading
these efforts, it is very supportive of the efforts at both Airports as these types of advancements progress across the country. Ms. McKeough stated that there is a huge effort throughout the industry on behalf of all stakeholders to advance the use of biometrics to process passengers through the airports in every possible way that a passenger needs to move through an airport. She reported that one pilot underway at Dulles International in Concourse A/B is known as biometric exit, whereby CBP uses facial recognition for departing international customers to verify and comply with a Congressional mandate to track the movement of international passengers as they depart the country. Ms. McKeough explained that random selections are made as the passenger prepares to board an international flight at the jet bridge, at which time a CBP representative takes a photograph of passengers as they are exiting the country. Within seconds, the CBP representative can compare that photo to the same facial recognition photographs taken to review passports at the point of entry into the United States. Mr. Speck inquired as to whether the passengers are aware that they are being photographed, to which Ms. McKeough responded affirmatively. With the airline s coordination, passengers are asked to step aside so the photograph can be taken, and the entire process is completed in less than five seconds. Ms. McKeough stated the new technology pilot has caused no delays in the ability for a passenger to board the aircraft and the flight to depart as scheduled. She noted that Dulles International served as the second airport for the pilot; Hartsfield-Jackson Atlanta International Airport was the first. Ms. McKeough reported that the second pilot is underway at Reagan National Airport. Delta Airlines (Delta) is working together with its strategic partner, CLEAR. She recalled that the Board had approved a contract with CLEAR, which is a service provider that offers a membership program at both Airports that helps passengers process through the TSA lines. Ms. McKeough stated that the pilot allows select Delta passengers, who are CLEAR members, to use a fingerprint biometric to access the Delta clubs. She further stated that the future objective is to progress the fingerprint recognition in such a way that Delta customers could use it with TSA at the security checkpoint and at the ticket counters. If there is an approved federal government form of biometrics, fingerprint recognition would be the way travelers traverse through airports instead of using a paper or electronic boarding pass.
Ms. McKeough recognized Buffie Schilling, an Airports Authority medic, and Jeff Crosby an Airports Authority firefighter, for their efforts when the Airports Authority provided assistance as part of the mutual aid response during the prior week's horrific active shooter event involving Members of Congress in Alexandria. She reported that when Ms. Schilling and Mr. Crosby arrived on the scene, they were asked to provide medical services to one of the injured Capitol Police individuals while waiting for the helicopter transport to the hospital. Ms. McKeough acknowledged both employees for the good work and medical care that they administered and noted that the person whom they treated continues to be hospitalized but is expected to make a full recovery. Ms. McKeough shared a story that reminded everyone that the Airports Authority is in the business of serving others and ensuring that their travel experiences through both Airports are the best that they can be. She observed that although the Airports Authority is committed to helping everyone navigate through Reagan National and Dulles International, it is not a normal occurrence that a family takes the time to publish a photographic book of its members experiences traveling through Dulles International and share it while extending thanks, which represent the sentiments from the Frost family. Ms. McKeough introduced the Wings for All program. She reported that both Airports participate in the program that is administered by a nonprofit organization that helps special needs family members learn how to travel through an airport. Ms. McKeough explained the experience as a simulation of how to navigate through the airport to learn whether a family s special needs loved one can adapt to the experience of travel through the airport. She shared photos of the Frost family s May 25 event when two grandsons experienced the Wings for All Program at Dulles International, including a personal visit from the pilot and a tour of the cockpit. She reported that the family sent a photo book and letter, from which she shared the following excerpts: "The outstanding professionals at United Airlines and Dulles Airport displayed such poise, care, and professionalism in showing these special kids about what United Airlines and flying really stood for. Robbie and Tanner just thought the whole day was out of this world. All day, Robbie carried a model airplane from United Airlines with him, and afterwards, Robbie felt so positive and unafraid of flying, exactly what the program was designed to do." Ms. McKeough observed that the Frost family is a great reminder of the Airport Authority s business and the need to make a difference in
everyone's life as they travel through the Airports. She stated that she believed the family s gracious remarks deserved recognition for all the great strategic partners that help the Airports Authority s customers get through the supply chain of travel each day, which was followed by a round of applause. Mr. Speck stated that he had recently observed traffic backups coming onto the southern-most entrance of Reagan National when he traveled southbound on the George Washington Parkway (Parkway) during midmorning on several weekdays. He explained that the traffic, most of which appeared to be taxis, was backed up to the extent that it overflowed onto the Parkway. Mr. Speck inquired as to whether the backup happened consistently or on the several occasions that he had observed. Ms. McKeough advised that the Airports Authority s new corporate office space overlooks the referenced area. Since the ramp is the quickest route to the southern end of the Airport, employees use it, as well as taxicab and commercial vehicle drivers. Ms. McKeough stated that when commuters exit the Parkway at that particular entrance and access the ramp, they approach the light at the 233 bridge, which is a very busy interaction on Reagan National. In addition to the area that Mr. Speck referenced, Ms. McKeough stated that traffic also queues up outbound to go northbound on the Parkway. With the limited roadway system at Reagan National, the Airports Authority is continuing its effort to manage the volume of traffic. With Project Journey, the roadways may become even more impacted as a result of the future construction activity. Mr. Speck inquired whether the traffic backup was relatively new, to which Ms. McKeough responded that it was a cyclical occurrence. Mr. Potter noted that the taxis that are a part of the traffic backup that Mr. Speck referenced are generally empty as they are arriving on the Airport to queue up for the peak that occurs later in the morning. Mr. Davis reported that the Office of Revenue is providing its customers with a pleasant and welcoming experience at Reagan National and Dulles International and at their destinations around the National Capital Area. He stated that the Airports Authority is continuing its series of sponsorships of popular summertime events around Washington to further increase the visibility of both Airports, particularly Dulles International, with the traveling public and to give passengers a glimpse of events happening in the region. Mr. Davis advised that the Airports Authority will sponsor the Smithsonian Folklife Festival (Festival) on the National Mall (June 29 July 9) for the third year. The Festival attracts
more than a half million visitors annually and features cultures and lifestyles of people from across America and around the world. During the Festival, the Dulles logo and other Dulles images will appear on signs, advertisements, vehicles, banners, and many other places around the National Mall. Additionally, the new Dulles television commercial called "Time is Slipping Away," which encourages viewers to take vacations by using Dulles International, will be shown 560 times at various venues throughout the Festival. The following announcement will also be made throughout the Festival: "Dulles International is the Smithsonian's preferred airport partner in the region." In conjunction with the rich history and mystique and diversity of circus artists coming to life at the Festival, the Smithsonian is providing circus performers known as the Flying Meatballs to entertain passengers with juggling and other acts in Reagan National and Dulles International on June 28 and 29. Mr. Davis also reported that the Airports Authority s brand would be displayed on both Airports during the Fourth of July weekend, and Reagan National and Dulles International will be illuminated in red, white, and blue to celebrate the holiday. Additionally, a military band called the Patriots Brass Ensemble will perform patriotic songs for the customers' enjoyment during the holiday period. Travelers Aid Volunteers at both Airports will continue the July 4th tradition of distributing small American flags to passengers. Mr. Davis advised that the upcoming activities are part of the Airports Authority s broad marketing effort to increase the number of passengers, flights, and destinations at Dulles International. Mr. Davis reiterated the July 7 inauguration of Air India s nonstop air service between Dulles International and New Delhi. He reported that the Airports Authority looks forward to a very successful partnership with Air India, and it is promoting the new service through all of its marketing channels. He shared a video announcing the new service currently displayed on the video monitors at Dulles International. Mr. Davis reported that the Airports Authority will also have a large promotion of India as a destination, similar to what occurred with Air China promotions. He advised that a large contingent of news media is expected to be on hand at the July 7event, as well as dignitaries from Air India, the Indian government, the District of Columbia, and the Commonwealth of Virginia. Mr. Davis also invited Directors to attend the inaugural event. He stated that New Delhi will be the 33rd nonstop connection to a world capital from Dulles International.
Mr. Davis reported that many people contributed to make the Air India service a reality as the effort had begun several years ago under the leadership of Mark Treadaway, who currently serves as the Vice President of Business Outreach. He acknowledged Mike Stewart, Vice President for Airline Business Development, and his staff. Mr. Davis noted that one of the most significant contributions was a working relationship between the tourism agencies for the Commonwealth of Virginia and the District of Columbia. He reported that the Airports Authority was especially grateful to Governor McAuliffe, Mayor Bowser, and D.C. Deputy Mayor Brian Kenner and his staff. Mr. Davis also reported that Virginia Secretary of Commerce Todd Haymore, Virginia Tourism Corporation Chief Executive Officer Rita McClenny, and the Airports Authority partners at Destination DC led by Mr. Ferguson and Theresa Belpulsi, along with the economic development teams in Loudoun, as well as Fairfax County, had all been instrumental in the success of the nonstop Air India flight from Dulles International to New Delhi. Mr. Davis also recognized Mr. Treadaway for his outstanding leadership on behalf of the Airports Authority for its sponsorship of the IPW Conference, which Mr. Potter and others had already spoken about that day. As previously reported, IPW is another major step forward in the Airports Authority s efforts to raise the visibility of Dulles International and to help grow business at the Airport. Mr. Davis stated that there is some indication that the projected amount could increase by 10 percent so there may be as many as 1.1 million additional visitors in the region expected over the next three years as a result of IPW. He further stated that it would be an amazing return on the investment. The Airports Authority would continue its marketing efforts, and for the first time, Dulles International would have a booth at the World Routes Conference in Barcelona in September, where hundreds of airline and airport representatives will meet to identify and pursue future business opportunities. Mr. Davis recalled that last year s meeting, which was held in Chengdu, China, had been very productive. Mr. Davis reported that a dining publication called The Daily Meal had recently released its list of the 101 best casual restaurants in America, which included only one Washington, D.C. restaurant on the list -- Ben's Chili Bowl (Ben s). The article noted that since Ben s was founded in 1958, it has become an iconic Washington institution located in one of the city's most popular entertainment districts and frequented by famous actors, musicians, and politicians throughout the years. The
restaurant s noteworthy customers included President Obama, Duke Ellington, Nat King Cole, Cab Calloway, Ella Fitzgerald, and Martin Luther King. Mr. Davis reminded everyone that Ben s opened a location at National Hall at Reagan National as part of the Airports Authority s Airport Concessions Redevelopment Program, and it continues to be one of the busiest eating spots in the terminal. Mr. Davis congratulated Ben's on this well-deserved recognition. Chairman McDermott recalled that one of his first questions as a Board Member was related to air service to India. He noted that although it had taken a while for that service to be offered from Dulles International, it is now a reality. IV. NEW BUSINESS a. Recommendation to Award a Contract for a Fixed Base Operator Concession at Washington Dulles International Airport Ms. Merrick moved the adoption of the following resolution, which was unanimously adopted: WHEREAS, In February 2017, the Business Administration Committee concurred with the pre-solicitation terms, using the Best Price, Technically-Acceptable procurement method, for the procurement of Fixed Base Operator (FBO) services at Washington Dulles International Airport (Dulles International); WHEREAS, A Request for Proposals was issued on March 30, 2017 and two proposals were received, both of which were technically acceptable; WHEREAS, Signature Flight Support Corporation submitted the highest financial offer which guarantees the Airports Authority a five-year minimum revenue amount of $91,316,000; and WHEREAS, The Business Administration Committee is satisfied with the results of the competitive procurement process, as presented at its June 21, 2017 meeting; now, therefore, be it
RESOLVED, That the President and Chief Executive Officer is authorized and directed to enter into a five-year contract with Signature Flight Support Corporation, effective November 1, 2017, consistent with the terms presented to the Business Administration Committee at its June 21, 2017 meeting. The final resolution filed in the Board of Directors Office includes a copy of the staff recommendation paper. b. Recommendation to Award a Diesel Fuel Contract at Washington Dulles International and Ronald Reagan Washington National Airports Ms. Merrick moved the adoption of the following resolution, which was unanimously adopted: WHEREAS, The Airports Authority requires diesel fuel to operate its fleet of operations maintenance, public parking, and public safety vehicles; WHEREAS, On March 2, 2017, the Washington Metropolitan Area Transit Authority (WMATA) issued a solicitation for diesel fuel services on behalf of the Metropolitan Washington Council of Governments, using the lowest-priced technically acceptable procurement method; WHEREAS, Mansfield Oil Company was determined to be the lowest-priced technically acceptable offeror; WHEREAS, Utilizing the contract procured by WMATA on behalf of the Metropolitan Washington Council of Governments members results in volume discounts and lower pricing than the Airports Authority could expect to achieve by soliciting pricing from vendors based on the Airports Authority s requirements alone; and WHEREAS, Section 1.3.1 of the Contracting Manual permits the Airports Authority to obtain required goods by utilizing a contract previously awarded by a government entity using competitive procedures; now, therefore, be it
RESOLVED, that the Board of Directors approves the award of a contract to Mansfield Oil Company; and 2. That the President and Chief Executive Officer is authorized and directed to enter into a one-year contract, with four one-year option periods with a total five-year period cost anticipated not to exceed $9.1 million, with Mansfield Oil Company for the provision of diesel fuel for Washington Dulles International and Ronald Reagan Washington National Airports, consistent with the terms presented to the Business Administration Committee at its June 21, 2017 Meeting. The final resolution filed in the Board of Directors Office includes a copy of the staff recommendation paper. c. Recommendation to Approve Dominion Virginia Power s Request for Easement along Route 606 at Washington Dulles International Airport Chairman McDermott announced that Mr. Speck had recused himself from participating in matters affecting Dominion Virginia Power. Mr. Speck had stepped away from the table. Ms. Wells then moved the adoption of the following resolution, which was adopted by 15 Directors (Mr. Speck recused himself): WHEREAS, Virginia Electric and Power Company, doing business as Dominion Virginia Power (Dominion), is building new transmission infrastructure to carry additional power to Loudoun County; WHEREAS, The infrastructure to be constructed includes a new overhead transmission line, the Poland Road 230-kV line (Project), which is four miles long, and located in the area of Dulles International and will connect Dominion s existing electrical transmission network, located northwest of Dulles International, to a new substation to be built on Poland Road, south of the Airport; WHEREAS, Approximately one mile of the Project falls within Dulles International;
WHEREAS, In order to construct the Project, Dominion is requesting an easement totaling approximately 13.08 acres across Airports Authority property at Dulles International; WHEREAS, The easement is located on land leased from the federal government and the Secretary must approve the grant of this easement since Dominion is a private, for-profit entity; WHEREAS, Staff also presented the Project to the Federal Aviation Administration which approved an environmental assessment of the construction and location of the Project on Dulles International property, issued a Finding of No Significant Impact, and approved an update to the Airport Layout Plan showing the Project, conditioned on obtaining the Secretary of Transportation s (Secretary) approval; WHEREAS, Dominion has agreed to pay the Airports Authority $2.5 million for the Easement; and WHEREAS, the Strategic Development Committee has reviewed the Easement, as presented by staff at its June 2017 meeting, and recommended that the Easement should be granted; subject to the approval of the Secretary; now, therefore, be it RESOLVED, That the President and Chief Executive Officer is authorized and directed, subject to the approval of the Secretary, to execute an easement across certain Airports Authority land located at Dulles International in favor of Dominion, for the installation of a portion of the new Poland Road 230-kV transmission line, as identified in detail in the documents presented to the Board of Directors at its June 2017 meeting. The final resolution filed in the Board of Directors Office includes a copy of the staff recommendation paper. d. Recommendation to Award a Contract for Group Life and Long- Term Disability Insurance Mr. Pozen moved the adoption of the following resolution, which was unanimously adopted:
WHEREAS, The Airports Authority provides group life insurance and long-term disability benefits through a contract with an insurance company, which company assumes the risk for all benefit payments to which employees and retirees become entitled during the term of the contract; WHEREAS, A portion of the insurance premiums is paid by the Airports Authority and a portion is paid by employees and retirees; WHEREAS, In September 2015, the Human Resources Committee concurred with staff s recommendation to issue a solicitation; WHEREAS, A Request for Proposals was issued on November 9, 2016; WHEREAS, Metropolitan Life Insurance Company s proposal for group life and long-term disability insurance was determined to be technically superior to the other offerors and also offered the lowest price for each of the insurance products; WHEREAS, The fixed premium rate for the three-year base term is estimated at $7.5 million, which matches the existing rate that the Airports Authority is currently paying; WHEREAS, As is customary within the insurance industry, Metropolitan Life Insurance Company did not offer pricing beyond the three-year base term, which will, therefore, require the Airports Authority to treat the future option periods on the contract as a sole source procurement action and exercise of those options will require future Committee and Board approval; and WHEREAS, The Human Resources Committee is satisfied with the results of the competitive procurement process, as presented at its June 21, 2017 meeting; now, therefore, be it RESOLVED, That the President and Chief Executive Officer is authorized and directed to enter into a contract with Metropolitan Life Insurance Company for the provision of
group life insurance and long-term disability insurance for a three-year base period, consistent with the terms presented to the Human Resources Committee at its June 21, 2017 meeting. The final resolution filed in the Board of Directors Office includes a copy of the staff recommendation paper. V. UNFINISHED BUSINESS There was not any unfinished business. VI. OTHER BUSINESS & ADJOURNMENT The Meeting was thereupon adjourned at 10:47 a.m. Respectfully submitted: Monica R. Hargrove Vice President and Secretary