Memorandum CAPITAL OF SILICON VALLEY

Transcription

1 COUNCIL AGENDA: 10/06/15 ITEM: I CITY OF, SANlOSE Memorandum CAPITAL OF SILICON VALLEY TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Kimberly J. Becker Barry Ng SUBJECT: SEE BELOW DATE: Approved D " e f/23 /ir SUBJECT: MINETA SAN JOSE INTERNATIONAL AIRPORT - AIRFIELD FENCE IMPROVEMENTS 2015 REBID RECOMMENDATION a. Reject all bids received on July 9, 2015 for the 7981 Mineta San Jose International Airport - Airfield Fence Improvements 2015 Project, Federal Aviation Administration, Airport Improvement Program Project No. 87. b. Report on bids and award of contract for the 7981 Mineta San Jose International Airport - Airfield Fence Improvements 2015 RE-BID Project to the low bidder, Granite Rock Company, Inc., for the base bid and Add Alternate No. 1 in the amount of $3,730,629; and approve a 10 percent contingency in the amount of $373,063, all subject to the appropriation of funds, and subject to award and execution of an Airport Improvement Program grant from the Federal Aviation Administration. OUTCOME Approval of the recommendation will allow the execution of the construction contract for the Mineta San Jose International Airport - Airfield Fence Improvement 2015 RE-BID project immediately upon Council approval. The 10 percent contingency will provide funding for unanticipated work that may be necessary for the proper completion of the project. This project is contingent upon award and execution of an Airport Improvement Program (AIP) grant from the Federal Aviation Administration (FAA). Funds identified by the FAA for this project are Federal Fiscal Year 2015 discretionary funds. Discretionary funds cannot be carried over past the fiscal year in which funding is awarded.

2 Page 2 BACKGROUND Due to security related incidences that have occurred at Mineta San Jose International Airport and the media attention that it has generated, the Federal Aviation Administration (FAA) identified grant funding for the Airport to use to provide enhancements to the existing Air Operations Area (AOA) perimeter fence. This project was originally advertised on June 10, 2015, and bids were opened on July 9, Prior to awarding the project to the apparent low bidder, Granite Rock Company, Inc., it became evident that there was difficulty finding suppliers of the "welded wire" fencing material that could meet all of the requirements set forth in the project Plans and Specifications, specifically the "Buy American" requirements as set by the FAA's AIP grant program. In addition, the Airport's requirement of maintaining the top of the fence parallel with the variable slopes of the existing ground elevations of the airport's perimeter would have been very difficult to construct with "welded wire" fencing material as specified in the project plans and specifications. Substitution of 1 -inch chain-link fence in-lieu of the welded-wire type fencing would have been acceptable; however, making the substitution could have eliminated potential bidders had the fence material been the 1-inch chain-link from the start. Airport and Public Works staff determined that the change in fencing materials from "welded wire" to 1 -inch chain-link was significant enough to justify rejecting all bids and re-bidding the project. ANALYSIS The Airport is implementing a new 10-foot high standard security fence to select areas of the airport (see Exhibit A), which exceeds the current FAA and Transportation Security Authority (TSA) 6-foot high standard security fence. An enhanced security fence will deter unauthorized access to the airfield, thus enhancing the safety and security of the airfield. The contracting opportunity was advertised on BidSync, an online bid solicitation website the City uses to facilitate its procurements, and on the Airport's website. The second set of bids for this project was opened on August 27, 2015, with the following results: Contractor Granite Rock Construction, Inc. (San Jose) Base Bid Add Alt Total Total Bid Variance Amount Over/ (Under) Percent $2,779,660 $950,969 $3,730,629 ($319,371) (8) Engineer's Estimate $3,100,000 $950,000 $4,050,000 Schembri Construction Co., Inc. (San Francisco) $3,975,548 $1,199,155 $5,174,703 $1,124,703 28

3 Page 3 The low bid submitted by Granite Rock Construction, Inc. is eight percent under the Engineer's Estimate. The project also has a single Add Alternate which consists of creating additional apron area near commercial aviation gates 2 and 3. Staff considers the low bid submitted for this project to be competitive and legitimate for the work to be performed and recommends award of the contract, including approval of the Add Alternate as part of the award of contract for the project, to Granite Rock Construction, Inc. Granite Rock Construction, Inc. has previous experience working on airfield projects at Mineta San Jose International Airport. Council Policy provides for a standard contingency of ten percent on public works projects involving parks, utilities, construction of a building, etc. The standard contingency is appropriate for this project. DISADVANTAGED BUSINESS ENTERPRISE PARTICIPATION Since this project is funded in part with a federal US Department of Transportation/FAA grant, the federal Disadvantaged Business Enterprise (DBE) Program regulations found in 49 CFR Part 26 apply. The City's current DBE participation goal for its US Department of Transportationfunded Airport improvement program is 14.5% annually. City staff did extensive outreach to encourage DBE participation. Outreach efforts included: Identification of potential/possible subcontracting opportunities - 25 work areas identified; Identification of 150-certified DBEs in those 25 subcontracting work areas; Outreach letters mailed to 150-certified DBEs and 8 potential prime contractors; blast to ethnic chambers, San Jose Chamber and other interested organizations including Minority Business Consortium - information provided project information, subcontracting opportunities (NAICS Codes and CalTrans Work Codes) bid date and time and DBE certification requirements; Follow-up blast to 26 certified DBE fencing contractors; Posting project on Airport's website; and Follow-up phone calls to 62 certified DBEs in the work areas of paving, fencing, trucking and demolition. Granite Rock Company committed to $957, or 25.67% in DBE participation. The DBEcertified subcontractors who will perform on this project are Golden Bay Fence Plus Iron Works, Inc. (Stockton) and Bay Line Cutting & Coring, Inc. (Berkeley). This project is ideally suited to generate strong DBE participation since a major component of the project is fencing and there a number of DBE certified fencing contractors. The DBE participation rate in this project is

4 Page 4 directly linked to Golden Bay Fence Plus Iron Works providing a major component in the project and further enhanced by Bay Line Cutting & Coring, Inc., an additional DBE subcontractor. With this project and the Airfield Improvements 2015 project that was awarded in June, the City will achieve 15.53% DBE participation for federal fiscal year 2015, thereby exceeding the 14.5% annual goal. EVALUATION AND FOLLOW-UP This project is currently within budget and on schedule. No additional follow up action with the Council is expected at this time. PUBLIC OUTREACH To solicit contractors, this project was listed on Bidsync and advertised in the San Jose Post Record. Bid packages for all Department of Public Works construction projects were provided to various contractor organizations and builders' exchanges. This memorandum will be posted on the City's website for the October 6, 2015 Council agenda. COORDINATION This project and memorandum have been coordinated with the Departments of Finance and Planning, Building and Code Enforcement, City Manager's Budget Office, and the City Attorney's Office. FISCAL/POLICY ALIGNMENT The services covered under this agreement support the ongoing operation and development of the Airport, consistent with the goals and policies of the City of San Jose General Plan and Airport Master Plan. COST SUMMARY/IMPLICATIONS 1. AMOUNT OF RECOMMENDATION/COST OF PROJECT: Project Delivery $ 872,516 Construction $ 3,730,629 Contingency $ TOTAL PROJECT COSTS $ 4,976,208

5 Page 5 COST ELEMENTS OF CONTRACT: Demolition $ 105,685 Storm Water Controls $ 30,585 Fence Installation $ 708,352 Grading and Paving $ 258,172 Concrete Placement $ 1,614,180 Electrical $ 251,405 Other $ TOTAL CONTRACT AMOUNT $ 3,730, SOURCE OF FUNDING: Airport Capital Improvement Fund Airport Revenue Bond Improvement Fund 4. FISCAL IMPACT: The project has been reviewed and it was determined that it will have no significant adverse impact on the General Fund operating budget. BUDGET REFERENCE The table below identifies the fund and appropriations proposed to fund the contract recommended as part of this memorandum and remaining project costs, including project delivery, constructions, and contingency costs. Fund # Appn # Appn. Name Total Appn Adopted Capital Budget Page Last Budget Action (Date, Ord. No.) Perimeter Fence Line Upgrades $4,030,000 V-779 6/23/2015, Ord. No Perimeter Fence Line Upgrades $2,600,000 V-779 6/23/2015, Ord. No Subtotal $6,630,000

6 Page 6 CEOA Resolution Nos and 71451, PP /s/ KIMBERLY J. BECKER Director of Aviation /s/ BARRY NG Director of Public Works For questions please contact Michael O'Connell, Deputy Director, Public Works Department, at Attachment KJ:MAO:ms:sb:rlc

7 NORMAN Y. MIK-ETA SAN JOSE " tnternat IONA L* A I R P O R T 1701 AIRPORT BLVD. SAN JOSE, CALIFORNIA &1 -AIRFIELD FENCE IMPROVEMENTS JOIS EXHIOITA