Port of Oakland Airport Parking Management RFP: Addendum 3 Questions Received From Interested Parties and Responses From: Talent Tree, Inc. 1. Please describe the current marketing program for the parking at the airport. Response: The Port launched one marketing program in the Spring of 2007 and is about to launch another. Each involved promoting rate modifications and service improvements through: • a coupon downloaded from the Port’s website, where users had to input personal data to obtain the coupon (for a limited time) • internet advertising (Google adwords) • drive time radio ads • other ad placements 2. Currently, your parking contractor has a unionized workforce, is this mandated by any authority or will the incoming contractor have the choice of whether to unionize the workforce or not? Response: The Port does not require that the contractor have a unionized workforce. A contractor must comply with existing state and federal labor laws and with the City of Oakland’s Living Wage Ordinance. 3. The parking contractor that held the contract before 5 Star, did they also have a unionized workforce? Response: Yes 4. Can you please provide a complete listing of all bidders? Response: The list will be made public when there is a Board Agenda naming the recommended company. The list of firms represented at the Pre-proposal Conference (and therefore authorized to submit proposals) was already distributed. 5. On the hybrid fee schedule, will the current $150,000 marketing budget remain and our marketing allocation be used to enhance the current marketing plan? Response: The Port has budgeted that amount for marketing in the FY 2008-09 budget. However the Port makes no representations as to whether and how those dollars may be spent, nor does it make any representations of marketing budgets and spending commitments for subsequent years. 6. Would you please provide current and former marketing campaigns with results? 1. Response: See description in response to Question 1. The current campaign has not yet begun and will focus on promoting the Airport Daily Parking Lot. The Spring 2007 campaign focused on promoting the Airport’s Economy and ValuPark lots. Concurrent with that advertising campaign, the Airport increased shuttle frequency and reduced maximum daily rates in those lots. As a result from May through July 2007, volume increased by an average of 20% per month in Economy and 12% per month in ValuPark compared to year-ago levels. Total parking volume also increased from June through September 2007, but that also reflected increasing air passenger activity. Some of the increased business in those two lots may have been due to construction activity in the Daily Parking Lot. Also during this period the ratio of parking to terminating passengers continued to decline but by a much lower rate than had been the case in the same period of the previous year. 7. In the bid meeting, did you say that the shuttles are under a separate contract? Response: Yes. 8. In the RFP you state that any “alternative” proposal that does not include both the standard management fee schedule along with the hybrid fee schedule will not be accepted. Would you consider an alternative proposal that covers all fees and saves money for Oakland International Airport? Response: At this juncture respondents are directed to submit two proposals that conform to directions provided in the RFP as amended. 9. Would you consider retaining the credit card processing function if the management fee and the profit sharing percentage were considerably less than anticipated? Response: No because one of the Port’s goals is for the contractor to assume responsibility for PCI compliance, and the contractor would have to maintain the relationship with the credit card processors to assume that responsibility. In addition, the contractor is required to comply with all laws, including those relating to the use of credit cards. The cost of maintaining such relationships should be reflected in your fee proposal. 10. Would you consider contracting directly with the armored car service if the management fee and the profit sharing percentage were considerably less than anticipated? Response: The Port prefers that the contractor maintain the contractual relationship with the armored car service and assumes that the cost of such service will be a reimbursable expense. (See Agreement Exhibit D, Page D-3, paragraph 4.f.). From: Five Star Parking 11. RFP Page 49, Proposed Credit Card Commission Rates. Can you please clarify the total rate required? For example, are we to factor credit card transaction fees into the specified given rate? Response: The requested information should be the best (lowest) rates that your company can obtain from the credit card industry and apply to this contract, i.e. what the Port/Airport would pay in credit card commissions/transaction fees. 12. Can you clarify the impact of the City of Oakland’s Business Tax obligations for reimbursable costs as provided in the City’s Tax Ordinance 5.04.030, which has recently been interpreted by the City’s Finance & Management Agency to mean that parking operators at the Oakland International Airport are now liable for a business tax assessed on all reimbursable expenses paid by the Port of Oakland to the management company at a rate of 3.60% per $1,000. As you may be aware, in previous contracts such taxes applied only to management fees paid to the operator. Should parking operators include this additional cost of nearly $17.5K per year in their management fee or show it as a separate line item elsewhere in the document? Response: DEFERRED. We will transmit a reply within one week, i.e. by June 27, 2008. From: Parking Concepts 13. For budgeting and employee retention requirements, please provide current staffing list by seniority (recognized by Local 853) that includes seniority date and current rates of pay. Response: The Port is reimbursing the current contractor based upon the positions shown below. For more information contact Mr. Ron Paredes of Teamsters Local 853, at 510-300-6451. Position # Staff Non-Union: General Manager 1 Assistant General Manger 1 Operations/Finance Manager 1 Receptionist 2 Payroll and Accounting Clerk 1 Reporting-Accounting Clerk 1 Audit Manager 1 Audit clerks 6 Supervisors 12 AirBart Counters 3 Facility Specialists 5 Employee Lot Attendant 1 sub-total 35 Self Park Union: Cashiers (FT and PT) 29 sub-total 29 Valet Union: Cashiers (FT and PT) Ramp Attendants/Key Room/Drivers 26 sub-total 26 Grand Total 90 14. Please provide the current Collective Bargaining Agreement with Local 853. Response: The Port is not a party to the current contractor’s agreement with the union. You may inquire about it with either of the parties to that agreement (see response to Question 13). 15. Does the current operator use radio communication furnished by the airport? If not, please identify any issues or restrictions to the operator if the operator seeks approval for the installation of radio repeaters / tower on-site for radio communication. Response: They are furnished by the Port. 16. Please provide credit card usage information including a) percent of annual gross sales from credit card (we note the airport budgeted $1.13 million for credit card commission but gross revenue figures are not provided), b) average number of transactions per month and c) average dollar amount per transaction. Response: For May 2008: a) credit card transactions = 83% (and growing); (b) Average transactions per month = 52,039; and (c) Average dollar value per transaction = $48 17. Are there any credit card processing / clearing house providers that the newly installed ACS PARCS equipment cannot support through its integrated credit card processing functions? Or, please list the credit card processing / clearing house providers that ACS PARCS equipment is “certified” or commonly uses. Response: The Port currently uses NPC and Alliance Data for credit card processing. ACS claims that their system can also interface with ADS, PaymenTec, and TSys (formerly Vital). ACS is also working to interface with Fifth Third Bank and JetPay as well as other gateway providers – these should be available within the next six to twelve months. 18. Does ACS impose any charges or fees (initial, percent, per transaction, fixed, etc.) associated with credit card transactions through their equipment and if so, what is the fee charged by ACS (separate from credit card processing companies). Response: No. ACS does not impose any additional fees beyond what the credit card processors charge. ACS provides the interface to the credit card processors. 19. Please provide the airport’s ACS contact person and information. Response: The deadline for posing (written) questions on all aspects of the RFP and current operations was June 6, 2008. Moreover the RFP provides that any questions or requests for information must be posed to Mr. Stephen Gordon with the Port of Oakland, and not a Port contractor. 20. Please provide the scope of work and service the parking operation currently pays for Security Services (separate from armored car). Please identify if the portion paid by the parking operation is separate (with its own contract) or part of the airport’s larger contract for Security Services. If separate and only for the parking operation, please provide copy of the current contract. Response: The Alameda County Sheriff (ACSO) provides security to several parts of the Airport including the Parking Lots. In addition, certain Airport Landside Operation staff is authorized to issue motor vehicle citations. The parking contractor does not maintain a security sub-contract. 21. Please provide the scope of work and service the parking operation currently pays for Janitorial Services. Please identify if the portion paid by the parking operation is separate (with its own contract) or part of the airport’s larger contract for Janitorial Services. If separate and only for the parking operation, please provide copy of the current contract. Response: Five Star Parking has a separate contract for janitorial services, a portion of which is a reimbursable expense. The cost per month for the reimbursable portion is $3,182 (including the Taxi Holding Lot, Economy Lot and Valet Break Room). The monthly cost of the non-reimbursable portion (Parking Maintenance Office cleaning) is $1,709. 22. Please provide the contact information and firm names performing security guard and janitorial services. Response: See responses to Questions 20 and 21. 23. Presented as Exhibit D of the RFP (Proposed Airport Parking Budget: FY 2008-09), there is a line item expense for Traffic Control in the proposed annual amount of $10,188. Please provide detail on what this cost is budgeted to cover. Response: Includes delineators, pole adhesive, striping materials, barricades, electronic message board repairs, caution tape 24. Presented as Exhibit D of the RFP (Proposed Airport Parking Budget: FY 2008-09), there is a line item expense for Other Expense in the proposed annual amount of $17,732. Please provide detail on what this cost is budgeted to cover. Response: Includes paper and toner-cartridges related to ACS reporting. 25. Presented as Exhibit D of the RFP (Proposed Airport Parking Budget: FY 2008-09), there is a line item expense for Miscellaneous Supplies in the proposed annual amount of $16,200. Please provide detail on what this cost is budgeted to cover. Response: Includes safety vests, janitorial products, small signage projects. 26. Presented as Exhibit D of the RFP (Proposed Airport Parking Budget: FY 2008-09), there is a line item expense for Repair and Maintenance in the proposed annual amount of $32,400. Please provide detail on what this cost is budgeted to cover. Response: Includes auto repairs, and gate repairs and supplies. 27. Presented as Exhibit D of the RFP (Proposed Airport Parking Budget: FY 2008-09), there is a line item expense for Bank Charges in the proposed annual amount of $16,512. Please provide detail on what this cost is budgeted to cover. Response: This is for credit card / check verification fees. 28. Within the Agreement provided, it states in Section 6.5 that, “...Operator will deposit…in the depository provided by the Port.” What charges is the operator to budget? Response: Armored car service From: Ampco System Parking 29. RFP - Page 3 - Section 6.6.1 - Please confirm that the experience noted in the 2nd bullet point (for off-airport experience) is only required if Proposer does not have qualifying experience managing on-airport parking facilities, as described in the first bullet point. Response: That is correct. Providing evidence of the required levels of either on- Airport experience or off-Airport experience (or both) will satisfy the minimum qualifications as described in the RFP. 30. RFP - Page 4 - Section 7 - Can the Airport provide a list of the current ACDBE certified subcontractors (and the services provided) being utilized in connection with the current airport parking management contract? Response: While some are certified under the Port’s Local Impact Area (LIA) criteria, none are ACDBE-certified. The following link has a list of firms that are certified DBEs/ACDBEs: http://www.dot.ca.gov/hq/bep/find_certified.htm From: InterPark 31. Will the Port reconsider its decision to reduce the Economy/ValuPark rate to the lowest rate when the lots are consolidated? i.e., would the Port consider a hybrid rate between the current Economy/ValuPark rates, such as $17/day? Response: Yes – the Port will be open to modifying the maximum 24-hour rates in the Economy Lot or other facilities shortly after the lot consolidation occurs. 32. Will the Port consider the Operator’s recommendations regarding operating cost efficiencies? If so, can these cost efficiencies be included as a component in the Variable Fee structure? Response: The Port will consider any recommendations regarding operating cost efficiencies. However please do NOT incorporate your ideas on achieving cost savings into the Fee Proposal Worksheets shown on RFP pages 45-50. Please list those ideas separately in Proposal Section 4.6 – Scope of Services- Other Recommendations. 33. Is the Port obligated to select the low-cost Management Fee Proposal? Response: No. Please see the Evaluation Criteria on RFP Section 17 on page 13. Please also note that the selection of the contractor is solely in the discretion of the Port’s Board of Commissioners as described in RFP Part I-Section 15-Page 12. 34. Can the Operator’s bank account reside with the Operator’s financial institution? (in order to process credit card transactions, the bank accounts must be in the Operator’s bank network). Note that InterPark would provide regular sweeps to the Port’s bank account. Response: The funds will have to be initially deposited into an account with a Port- approved bank with the Port named on the account in a manner acceptable to the Chief Financial Officer of the Port. 35. Does the Operator have flexibility to offer an alternative to the Performance Bond, such as posting a Letter of Credit? Response: No 36. When will the Teamsters Automotive Employees Union, Local 853, Agreement be available for Operator review? When does current term of this Agreement expire? Response: See response to Question 14. Our understanding is that the current contract term expires on June 30, 2012. 37. Will the Operator be allowed to conduct environmental site assessments? Are previous environmental reports available for review? Response: Proposers may conduct an environmental assessment of the site at their own expense, subject first to obtaining a right of entry from the Port, and comply with conditions imposed by the Port. However the Port will make any environmental documents pertaining to relevant project sites available on its website. Proposers should be aware that all affected lots have recently been either fully re-constructed or re-surfaced (slurry-sealed); and the Port will not permit drilling through these newly constructed surfaces. . 38. Will the Port of Oakland indemnify the Operator for Port breaches of its obligations under the Management Agreement, such as PCI Compliance, and for existing environmental conditions and environmental conditions not caused by Operator, and for claims arising from the Port’s negligence and willful misconduct? Response: No. 39. Is the Operator required to be qualified to do business in California as of the date of the Proposal? Or can we complete this process subsequent to the Port’s awarding the contract? (Note that InterPark Incorporated is a Maryland Corporation - since 1996 - but would need to become qualified in California) Response: The Proposer must be in legal existence on the day that their proposal is submitted. However it may qualify to do business in California within 10 days following receipt of notice of a proposed award from the Port. 40. Can the Port provide more historical information regarding insurance rates, claims history, etc.? Response: Current monthly rates for General Liability are $5,188 for Self Park and $418 for Valet per month. Claims history: There have been three incidents since 2000: (1) a “trip and fall” due to construction, paid out through the construction project; (2) a “trip and fall” due to uneven pavement, again, during heavy construction and paid out by the construction company; and (3) a shuttle bus shelter was wind- blown onto a vehicle. The Port paid this claim. 41. If insurance rates increase significantly during the term of the Management Agreement, can that increase be exempted from the annual CPI maximum? Response: Insurance rates as shown in the Fee Proposal Worksheets are not tied to the CPI. Also please see response to Question #60 below. 42. Can you explain why the PTR threshold is considered more highly correlated with Airport Parking Revenue? Response: Parking exit transactions typically correlate more closely with terminating (arriving) airline passengers than enplaning (departing) airline passengers. From: Central Parking System 43. Considering the time it takes to complete the certification process for the ACDBE participation (for sub-contractors or JV arrangements), would the Port consider extending the due date for submission of proposals to July 31, 2008? Response: No. 44. Can the port provide a copy of the current Operator's collective bargaining agreement as well as an employee seniority list with Teamster's local 853? Response: Please see response to Question 14. 45. RFP, Page 2 Paragraph 4 - As the term for the "fixed" fee proposal remains at one (1) year with four (4) one-year options, if this option is selected by the Port, and should the agreement not be extended through all five (5) years, will the Operator be reimbursed for any non-reimbursable operating expenses (mandatory three (3) service vehicles, for instance) that have been incurred for the sole purpose of providing the services at OAK? Response: If the Port terminates the agreement in less than three years for reasons other than cause, then the Port will pay the residual value of the vehicles purchased by the Contractor for the sole purpose of this contract, only if the vehicles have been maintained in a state of good repair. Residual value shall be based either on the “Kelley Blue Book” value or a five-year (60-month) straight line depreciation, whichever is less. The Port will also take good title to those vehicles, free and clear of all liens and encumbrances. If the Port terminates the agreement for cause in less than three years, then the Port would have no obligation to compensate the Contractor for the cost of the vehicles. If the agreement is terminated after three years for any reason, then the Port would have no obligation to compensate the Contractor for the cost of the vehicles. 46. RFP, Page 6 Paragraph 11 - Can the Port provide a detailed list of any "Administrative Fees" levied against the current Operator for non-performance for the last three (3) years? Response: No fees have been levied in the past three years. 47. RFP, Page 24 Paragraph 3 - Exhibit A (l & ll) of the sample agreement provide staffing for the Valet operation and cashiers / LPl /supervisors only for the Self-Park operation. Can the Port provide the current staffing plan for the entire operation, including administrative and maintenance, detailed by position? Response: See response to Question 13. note that LPI staffing was recently terminated due to LPR deployment. 48. RFP, Page 21 Paragraph D - Will the Port consider a bid bond in the amount of $100,000 rather than a certified/cashier's check or letter of credit? Response: No. 49. RFP, Page 26 Paragraph 4.5 - The Operator must commit to remaining PCI compliant. lf upgrades to the PARCS hardware or software is required to maintain future PCI compliance, who will be responsible for the expense of procuring and installing these upgrades? Response: The Port will be responsible for upgrading PARCS hardware or software if such upgrades are required to maintain PCI compliance under normal operating conditions. The Port has no obligation to pay for an upgrade if required to facilitate a discretionary change in programs or procedures proposed by the Contractor. 50. RFP, Page 50 - Credit Card Commission rates - Can the Port provide a three-year history on parking revenue & transactions, detailed by cash, credit card totals and credit card by type? Response: See Response to Question 16. 51. Sample Agreement - Page 3, Paragraph 3.1.a - ls the Valet currently equipped with the ACS PARCS? ls it equipment that is specific to a valet operation? Response: Yes and yes, although some of the components are used in self-park cashier lanes. 52. Sample Agreement - Page 4, Paragraph 3.4 - Resources - Will the Port provide a detailed list of equipment supplies that will be provided to the Operator for use in providing the Services? Response: The Port provides the following equipment that is deemed necessary to conduct on-site (local) operations: • Office furniture and equipment including desktop telephones and lockers • Office computers and printers • Uniforms for select operations employees • Complete PARCS system including hardware, software and ticket stock A detailed inventory of equipment contained in the Parking Management Office (PMO) will be prepared and provided to the new Contractor prior to their assuming occupancy of the PMO. 53. Sample Agreement - Page 4, Paragraph 3.5 - Expense Budget - As "there is no annual operating budget for the AirBart services," is it safe to assume that the costs required to perform these services are included in the Self-Park budget? Response: Yes 54. Sample Agreement - Page 4, Paragraph 3.5 - Expense Budget - Can a surplus in one budget line item be transferred to another budget line item where shortfalls are experienced? Response: Yes, but only with the written approval of the Director or the Designee. Approved requests shall be noted in the narrative cover memo attached to the Contractor’s monthly revenue / expense report; and discussed at quarterly face-to- face budget performance meetings with Port staff. 55. Sample Agreement - Page 7, Paragraph 6.2 - Parking Rates - The Hybrid Fixed/Variable Management Fee scenario gives the Operator the greatest incentive to work with the Port to maximize parking activity, and thus parking revenues, through the use of discount coupons, marketing programs, frequent parker/customer loyalty programs, etc. Will the Port consider giving the Operator a greater control of adjusting the parking rates under this form of Agreement? Response: No. The Director of Aviation, Port Executive Director and ultimately, the Port’s Board of Commissioners will maintain rate setting authority. However the Contractor is expected and encouraged to present alternative rate structures and supporting analysis that are intended to optimize revenue and utilization. 56. Sample Agreement - Page 7, Paragraph 6.3 - AirBart Revenues - lt is assumed that the "coin & currency machines" located at the Airport provide a receipt on the total amount of revenue collected. How are revenues collected from the AirBart buses reconciled? Response: AirBART revenue is collected by Shuttleport (bus operations) Supervisors. Airport Landside Operations staff assist them to place funds in a safe located in Terminal 1. A log sheet is kept on the delivery of money bags. Each bag is logged with tag #, Bus #, the Supervisor’s initials and is dated. There is a required minimum of two people to open the money bags, sort, and count the money. This staff is to be provided by the Contractor. Airport Business staff verify the revenue counted each day, compare bank deposits to the deposit slips, and perform monthly revenue reconciliation. On average money is counted three times per week but the schedule may vary with added days during holiday periods, and the agreement allows the Port to require daily counting. 57. Sample Agreement - Page 7, Paragraph 6.3 - AirBart Revenues - Can the Port advise as to the current amount of change (coin & currency) required to adequately maintain the AirBart coin & currency machines? Response: The coin and bill machines require a minimum of $10,000-$15,000 on hand at all times. 58. Sample Agreement - Page 7, Paragraph 6.3 - AirBart Revenues - This paragraph notes that AirBart revenues are to be counted and deposited on a daily basis. However Question # 3 of those raised at the Pre-Proposal Conference alludes that the AirBart revenues are counted & deposited three (3) times per week. Please clarify. Response: See response to Question #56. AirBART revenue is typically counted and deposited three times per week. The schedule may vary, particularly during holiday weeks when it may be necessary to add counting days. 59. Sample Agreement - Page 9, Paragraph 7.7 - Computer files - Please clarify what is meant by a "computerized revenue maintenance system." Response: Agreement Section 7.7 on page 9 will be amended to eliminate reference to “AirBart Revenues.” 60. Sample Agreement - Page 10, Paragraph 9.1.a - The Port can limit the budget to a maximum 3% increase each year for each extension term. Please consider adding language to the Agreement that the Port will consider those items out of the control of the Operator (cost of health insurance, union pay increases, etc.) when considering the annual increases to the operating budget. Response: If there are extraordinary increases in insurance or other expenses outside of the control of the operator, the Port will consider reasonable requests for increases in reimbursable costs, together with supporting documentation. Any increase will be in the sole discretion of the Port, and will require an amendment to the contract approved by the Board of Port Commissioners. 61. Sample Agreement - Page 13, Paragraph 10.4.a - Will the "written" evidence that the revenue control system is PCI-DSS compliant be an official certification from a PCI QSA? Response: Yes 62. Will the certification include the Port being listed as a Certified Payment Application on the VISA website? Response: The Port itself is not a vendor of software and as such is not subject to PA-DSS (or PABP) compliance. The Port expects to be in compliance with PCI-DSS by December 1, 2008. The Port’s software vendor ACS expects to be in compliance with PA-DSS by October 31, 2008. 63. lf, during the period of operation that the PARCS is not compliant, will the Port assume all financial responsibility (fines, legal fees, etc.) for any security breach due to a shortcoming of the PARCS? Response: The Port will only assume financial responsibility (fines, legal fees, etc.) for security breaches due to a software or network shortcoming of the PARCS application until such time the PARCS application is brought into compliance. Thereafter, this shall be the Contractor’s responsibility. It shall also be the Contractor’s responsibility at all times for security breaches resulting from shortfalls of Parking Management Office operations with regard to policy, procedure, and process. 64. Would the Port consider remaining the Merchant of Record for the credit card system until such time as the PARCS is PCI compliant? Response: The Port will consider continuing as the Merchant of Record until the PARCS is certified as PCI compliant; at which point the contractor will assume that role and contractual responsibility. 65. Sample Agreement - Page 13, Paragraph 10.4.b - What percentage does the Port currently pay for credit card (discount) fees, and what were the total annual credit card fees by card type, for the last three years. Response: Credit card commission rates during CY 2007 were as follows: American Express: 3.2% VISA / MC: 3.8% Discover: 1.9% During the same period the Port paid $1.1 million in commission based on $30.9 million in merchant revenue for an overall annual commission rate of 3.6%. 66. Sample Agreement - Page 13, Paragraph 11.2 - The last sentence of this paragraph may put the Port in a position of establishing a "joint-employer" relationship with the Operator. Consider removing - the remaining language in the paragraph should provide adequate protection for the Port for the removal of "unacceptable" employees. Response: This sentence will be amended to read as follows: “Operator shall remove any employee of the Operator on the spot from the Services, the Parking Facilities and the Premises, if the Operator is advised that the Director or the Designee has determined in his or her sole discretion that the seriousness of the incident justifies such immediate removal.” 67. Sample Agreement - Page 15, Paragraph 12.3 - Utilities - Does the last sentence in this paragraph refer to the cost to purchase cellular phones and monthly service - that is, are these expenses non-reimbursable? Response: Cellular phones and related monthly fees will be reimbursable only for the General Manager and Assistant GM (cost of acquisition not to exceed $100 per phone, and monthly charge not to exceed $70 per phone). All other cellular reimbursable charges are for units associated with remote digital message boards on premises. Other on-site communications are performed using Port-provided radio units. All cashier booths are equipped with land-line telephones. All un-manned lanes are equipped with intercoms. 68. Would the Port consider reimbursing the Operator for long distance phone charges related to providing the Services? Response: No. 69. Sample Agreement - Page 15, Paragraph 12.6 - Will the Operator be provided with a computer network to access the internet or will we need to provide our own? lf not provided by the Port, will these expenses be reimbursable? Response: The network will be provided by the Port 70. Sample Agreement - Exhibit - A-1, Page 2 - Minimum Personnel - Are the "runners" noted in the 2nd paragraph in addition to the "Drivers" listed in the staffing schedule? Response: They are the same. 71. Sample Agreement - Exhibit D, Page 2, Budgeted Reimbursable Expenses - Are the costs of Airport-issued lD badges for Operator's employees reimbursable? lf not, what are the current fees? Response: The Port’s current policy is to not charge contractor employees for the initial badge. However the Port will impose fees to replace lost or stolen badges. 72. Sample Agreement - Exhibit D, Page 3, Paragraph j & Page 4, Paragraph f - These two paragraphs seem to contradict each other. Please clarify if "expenses related to driving or operating Operator's vehicles" are reimbursable expenses. Response: Paragraph (f) on page D- 4 will be modified to say: “Except as otherwise provided in paragraph 4(j) under “Actual Expenses” in this Exhibit “D”, expenses relating to driving or operating Operator’s vehicles.” 73. Sample Agreement - Exhibit D, Page 5, Paragraph gg - Will the Port provide parking to the Operator's employees? lf so, at what cost? Response: For several years the Port’s policy has been to provide free permit parking to employees of on-site contractors. There are no current plans to change that policy. However the Port will not commit to retain free parking and any cost of employee parking at the Airport will not be reimbursable. 74. Sample Agreement - Exhibit D, Page 6 - Third Party Vendors - As an international parking operator, we have many corporate vendors that provide goods/services at dramatically discounted prices that are then passed on to our clients. Considering this, will we be obligated to the conditions on "third party vendors" as outlined in this paragraph? Response: Yes, but that provision, as written, allows the Director or the Designee to give written approval of your existing vendors. 75. Sample Agreement - Exhibit M, Page 2, Paragraph 4 - Minimum Limits of Insurance - ls the $500,000 fidelity bond noted in this paragraph to be provided in addition to the $500,000 coverage in crime insurance required on Page 25, paragraph 17.1 of the Sample Agreement? Response: Only one $500,000 fidelity bond/or insurance policy is required. However, that fidelity bond/or insurance policy must satisfy both the referenced requirements. 76. Sample Agreement - Exhibit M, Page 3, paragraph 1.9 - The amount of the deductible for the crime insurance and the maximum self-insured retention (SlR), $10,000 in both cases, is extremely low for a large-sized, well established company. In fact, many large companies will have a difficult time in securing such a low deductible and/or SlR. Would the Port consider removing or increasing the limit on these criteria? Response: Based upon the facts and circumstances of each incident, and a review of the Contractor’s financials and insurance program, the Port Risk Manager may consider approving a higher amount. Such approvals will be at the Port’s sole discretion. 77. Sample Agreement - Exhibit M, Page 3, Review of Coverage - lf the Port requires a change in insurance coverage that results in an increase in the cost of insurance premiums to the Operator, will the management fee be adjusted to cover those additional costs? Response: Yes 78. Sample Agreement - Exhibit N, Page 1, Payroll Expense Reimbursement - In the 1st sentence, can the Port define what is meant by "unauthorized overtime pay"? Response: The Contractor is expected to operate the facilities competently and efficiently using regular staff and scheduled shifts. Should conditions require the use of overtime due to either sudden needs or because doing so is more efficient than adding staff, the Contractor must notify the Airport Director or the Designee and obtain prior permission.