To: HONORABLE MAYOR AND From: Katy Allen

CITY COUNCIL

COUNCIL DISTRICT: Citywide

SUBJECT: NORMAN Y. MINETA SAN JOSE INTERNATIONAL AIRPORT - RELOCATION OF THE REMOTE TRANSMITTER/RECEIVER PROJECT

RECOMMENDATION

a. Report on bids and take appropriate action based on the evaluation of the bids for the Norman Y. Mineta San José International Airport – Relocation of the Remote Transmitter/Receiver Project.

b. Approval to designate the Norman Y. Mineta San José International Airport - Relocation of the Remote Transmitter/Receiver Project as a covered project subject to the terms of the San José International Airport Master Plan Project Labor Agreement.

BACKGROUND

The existing Remote Transmitter/Receiver (RTR) is a Federal Aviation Administration (FAA) facility consisting of radio equipment, antenna towers and maintenance facilities supporting the operation of the Airport Traffic Control Tower (ATCT) and runway navigational aids. The existing RTR facility occupies a FAA leasehold on the west side of the Airport on Coleman Avenue (see attached map).

On February 2, 2002, Council approved a minor amendment to the Airport Master Plan to relocate the existing RTR facility to a 0.65 acre site located near the corner of Martin Avenue and Brokaw Road adjacent to the existing long-term parking lot and the ATCT (see attached map). This relocation will enable a general aviation fixed base operator, ACM Aviation, Inc., to move from the east side to the west side of the Airport in conformance with the Airport Master Plan.

This project consists of constructing a new RTR facility on a new site. The project includes construction of four radio antenna towers, a building to house radio and electronic equipment and another building to contain the FAA equipment shop.

The FAA has reviewed the project plans and specifications and has authorized the City to advertise for bids.

Construction is scheduled to start in July with completion in May 2004.

ANALYSIS

A supplemental memo will be provided after bids are opened on May 8, 2003.

Council policy provides for a standard contingency of ten percent on public works projects involving utilities. The standard contingency is appropriate for this project.

The latest Engineer’s Estimate for this project indicates that costs are anticipated to be greater than the current budget allocation. The main reason for this is increases in project scope requested by the FAA to meet new security and design standards. An appropriation adjustment to the Remote Transmitter Receiver Relocation appropriation will be requested with the supplemental memorandum.

Project Labor Agreement

On June 25, 2002, Council approved a Project Labor Agreement (PLA) for all Phase 2 core projects of the Airport Master Plan. The Phase 2 core projects expressly made subject to the terms of the PLA were the planned Central Terminal, Public Parking Garages and the Employee Parking Garage. The PLA further provides that other Master Plan projects can be added to the list of covered projects without further negotiations with the mutual consent of both parties.

It is recommended that the PLA be included in this project. The benefits of a PLA, which include promotion of labor harmony, simplified superintendence and superior training for labor apply to this project as well as the named projects. Because a PLA is beneficial, it is appropriate to apply it to all eligible projects.

As required pursuant to the terms of the PLA, the Santa Clara and San Benito Counties Building and Trades Council have been asked to confirm its agreement to add this project to the list of covered projects that are subject to the PLA, and they have agreed. All provisions required by the PLA have been incorporated into the contract for this project.

PUBLIC OUTREACH

To solicit contractors, the project was listed on the City’s Internet Bid Line and advertised in the San Jose Mercury News and San Jose Post Record. Bid packages for all Department of Public Works construction projects are provided to various contractor organizations and builder’s exchanges.

AIRPORT MASTER PLAN CONSISTENCY

The San José Municipal Code requires that capital projects at the Airport be consistent with the adopted Airport Master Plan. The relocation of the RTR site is explicitly identified in the Airport Master Plan as amended in February 2002, and is therefore consistent with the Master Plan under Municipal Code Section 25.04.210(B)(1).

COORDINATION

This project and memo have been coordinated with the City Attorney’s Office, the City Manager’s Budget Office, the Departments of Airport, Finance and Planning, Building, and Code Enforcement and the Federal Aviation Administration.

COST IMPLICATIONS

1.	AMOUNT OF RECOMMENDATION: (Engineer’s Estimate) $ 1,800,000

2.	COST OF PROJECT:
		Project Delivery	$ 925,201	*
		Construction	2,783,000	**
		Contingency	180,000
		TOTAL	$3,885,201	*

*Portion of the costs were included in prior years.

** This amount includes costs for the construction contract, a future demolition contract and an agreement with the Federal Aviation Administration.

3.

SOURCE OF FUNDING

527 - Airport Renewal and Replacement Fund***

***Funding of $1,667,000 is currently budgeted in the 2002-2003 Adopted Capital Budget, Airport Renewal and Replacement Fund (Fund 527). An appropriation adjustment will be recommended in the Supplemental Award of Contract Memorandum to provide for additional funding.

4.	FISCAL IMPACT AND OPERATING COSTS: The facility will be owned and operated by the FAA, therefore, it will have no impact on the operating budget. Development and construction of the Remote Transmitter/Receiver Relocation Project supports economic recovery while having no effect on the General Fund.

BUDGET REFERENCE

Fund #	Appn #	Appn. Name	RC #	Total Appn.	Amt. for Contract	Adopted Budget Page	Last Budget Action (Date, Ord. No.)
527	5928	Remote Transmitter Receiver Relocation	11452X	1,667,000	1,800,000	Page 45	02/11/03-Ord. No. 26833
		Total		1,667,000	1,800,000

CEQA

Resolution No. 67380, PP 03-03-096

KATY ALLEN

Director, Public Works Department

Director, Public Works Department