To: HONORABLE MAYOR AND From: Katy Allen

CITY COUNCIL Ralph G. Tonseth

Subject: SEE BELOW Date: 12-09-03

Council District: Citywide

SUBJECT: NORMAN Y. MINETA SAN JOSE INTERNATIONAL AIRPORT RUNWAY 30L EXTENSION – 2004 PROJECT

REASON FOR SUPPLEMENTAL MEMO

To provide additional information regarding the bid and award of the project.

RECOMMENDATION

Adoption of a resolution authorizing the City Manager to award the Norman Y. Mineta San José International Airport Runway 30L Extension – 2004 Project to the lowest responsive bidder, and approval of a 15 percent contingency, in an amount not to exceed the funds appropriated for the Project.

CEQA: Resolution Nos. 67380 and 71451, PP 03-10-344.

ANALYSIS

The bid opening for this project was originally scheduled for December 4, 2003. Of the eight general contactors on the plan holder’s list, four requested delay to the bid opening. Upon evaluation of these requests, and in consideration of the complexity of the work, staff extended the bid opening date to December 11, 2003.

Review of the bids is expected to take 5 to 8 working days and to be completed no later than December 23, 2003. The review time required is primarily due to the need to confirm compliance with the Federal Disadvantaged Business Enterprise requirements.

The project scope requires the closure of Runway 12R/30L during the majority of the construction work. In order to meet the very critical schedule, it is recommended that the City Manager be authorized to award the project. This will enable staff to continue project activities, most importantly contract processing, during the City Council break.

The City Manager will award the project subject to the following conditions:

1. If the amount of the bid plus the contingency would exceed the funds appropriated for the Project, the award will be referred to Council.

2. If there is a bid protest, the award will be referred to Council.

3. If there are issues of responsibility of the lowest responsive bidder, the matter will be referred to Council.

COST IMPLICATIONS

1.	AMOUNT OF RECOMMENDATION: (Engineer’s Estimate) $16,211,255
2.	COST OF PROJECT:
	Project Delivery	$ 3,964,211*
	Construction	17,276,284**
	Contingency	2,431,688
	TOTAL	$23,672,183
	* A total of $225,625 was expended in Fiscal Years 2000-2001 through 2002-2003 for project delivery costs. ** This amount includes costs for the construction contract, an agreement with the Federal Aviation Administration, and other construction related expenses.
3.	SOURCE OF FUNDING: 526 – Airport Revenue Bond Improvement Fund*
	*Funding of $20,970,000 is currently budgeted for this project in the FY 2003-04 Adopted Capital Budget. Additional funding will be requested in the FY 2004-05 Capital Budget for Project Delivery and Contingency to complete the project.
4.	FISCAL IMPACT: This project is consistent with the Council-approved Budget Strategy Economic Recovery section in that it will spur construction spending in our local economy. The project has been reviewed and was determined that it will have no significant adverse impact on the General Fund operating budget.

BUDGET REFERENCE

Fund #	Appn #	Appn. Name	RC #	Total Appn*	Amt. for Contract	Adopted Budget Page	Last Budget Action (Date, Ord. No.)
526 (546)	5426	Extend and Strengthen Runway 30L	11874X	$20,970,000		Page 36	10/14/03 Ord. No. 26997

CEQA

Resolution Nos. 67380 and 71451, PP 03-10-344.

KATY ALLEN RALPH G. TONSETH

Director, Public Works Department Director of Aviation