To: HONORABLE MAYOR AND CITY COUNCIL	From: Ralph G. Tonseth
Subject: SECOND AMENDMENT OF MASTER SERVICES AGREEMENT WITH THE SOURCE GROUP, INC.	Date: June 10, 2003

COUNCIL DISTRICT: City-Wide

RECOMMENDATION

Approval of a Second Amendment to the Agreement with The Source Group, for environmental consultant services at the Norman Y. Mineta San Jose International Airport, extending the term of the Agreement from June 30, 2003 to June 30, 2004.

BACKGROUND

The Environmental Section of the Norman Y. Mineta San Jose International Airport has previously prepared a Business Plan that specified a number of projects focused toward establishing the Airport as a “good environmental neighbor” consistent with the Airport’s City Service Area (CSA) Business Plan. Because many of these projects are complex, and due to limited resources in the Airport’s Environmental Section, a Master Service Agreement was awarded to The Source Group on May 10, 2002 for $99,000.

The Source Group was awarded the Master Service Agreement (MSA) after three firms underwent a pre-qualification process according to City practices in response to an Airport prepared Request for Qualification (RFQ) solicitation.

A first amendment to the Master Services Agreement was approved by City Council on September 10, 2002 that increased the amount to $279,000, and extended the time to June 30, 2003. The first amendment was primarily needed to provide services on the new Compressed Natural Gas (CNG) fueling station, and for a variety of services to the Master Plan Division.

Work on existing projects will continue into Fiscal Year 2003-04. Further, new projects are in the planning stages for FY 2003-04, that due to limited and insufficient technical resources within the Airport, will require the continuation of The Source Group’s skilled consulting and contractor services.

ANALYSIS

The Source Group has performed satisfactorily under the current contract. Work on existing task orders is still in progress and will continue into FY 2003-04. As additional environmental projects are now being scheduled for FY 2003-04, additional task orders will be required. Consequently, staff recommends that the Master Services Agreement be amended for an extension of time to proceed with these existing and future projects.

PUBLIC OUTREACH

Not applicable.

COORDINATION

Preparation of this proposed amended Consultant Services Agreement has been coordinated with the City Attorney’s Office.

COST IMPLICATIONS

This amendment extends the term of the agreement and has no fiscal impact. This recommendation is consistent with the Council-approved Mayor’s Budget Strategy recommendation, General Principles #5, “We must be open to alternative ways to deliver services through appropriate community partnerships, public-private partnerships, and by outsourcing or bringing services back in-house to be delivered by city staff.”

BUDGET REFERENCE

Fund #	Appn #	Appn. Name	RC #	Total Appn.	Amt. for Contract	Adopted Budget Page	Last Budget Action (Date, Ord. No.)
523	0802	Non-Personal/ Equipment	225120	$35,472,216	-0-	Page 821	02/11/03 – Ord. No. 26833
527	4007	Advanced Planning	127221	$ 1,189,000	-0-	Page 65	02/11/03 – Ord. No. 26833
		Total		$36,661,216

CEQA

Resolution No. 67380, 71451, PP# 03-06-213.

RALPH G. TONSETH

Director of Aviation

Airport Department