Adoption of a resolution authorizing the Director General Services to amend the agreement with Airport Group International, Inc. (AGI) to add $60,000 for reinforcing the baggage handling equipment for a total contract cost of $690,000.
BACKGROUND
In December, 1998, Council awarded an agreement to AGI for the repair and maintenance of the passenger loading bridges and baggage handling equipment at San Jose International Airport Terminal A.
Maintenance is scheduled as prescribed by the manufacturer. Repairs are those due to normal wear and tear. The agreement also allowed work required by conditions other than routine preventative maintenance or normal wear and tear could be assigned to the contractor.
Due to high passenger levels, Terminal A conveyor has been deemed in need of renovation. AGI evaluated the conveyor and determined that strengthening the conveyor could extend its service life by five (5) years.
Airport reviewed various options presented by AGI such as installing a new conveyor, major overhaul or strengthening the devices. Since it is the Airport’s intent to replace all conveyor systems terminal wide within the next five (5) years, it was determined that AGI's estimate to strengthen all carrier assemblies at a cost of $60,000, including taxes, was the best solution for the City.
Therefore, an amendment to the agreement adding the additional $60,000 and the renovation to the project is required. AGI has been servicing the equipment since 1998 and is very familiar with the equipment. It would not be advantageous for the City to seek other competitive pricing for the work.
Not applicable.
This memorandum has been coordinated with the City Attorney’s Office, Budget Office, and the Airport Department.
Fund: Airport Maintenance & Operating Fund-523
Amount: $32,927,249
Budget Document: 2000-01 Adopted Operating Budget, Pg. 410
FRANCIS B. MCVEY
Acting Director, General Services Department