DEPARTMENT: Aviation
DEPARTMENT HEAD: Russell J. Handy
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Construction Award for Perimeter Road Reconstruction - Package 2 Project at the San Antonio International Airport
SUMMARY:
This Ordinance will authorize a construction contract with J3 Company, LLC (J3) in the amount of $445,594.71 for the Perimeter Road Reconstruction - Package 2 project. An additional $259,505.29 is available in the project for the soft costs including contingency. This project was included in the grant application for the Federal Aviation Administration (FAA) Airport Improvement Program (AIP) that City Council authorized in June 2017 through Ordinance 2017-06-29-0517.
BACKGROUND INFORMATION:
The City regularly partners with the FAA for continued AIP funding for eligible projects at the Airport. AIP funding is based on the Airport’s preliminary submittal of its annual Airport Capital Improvement Plan (ACIP) to the FAA. Through the ACIP, the Airport identifies priority projects to be funded. These AIP projects may be eligible for grant funding of up to 75% of eligible project costs with the City providing the matching share of 25%. With this grant program, the Airport System is able to share costs with the FAA on large and critical airfield projects at the San Antonio International Airport.
The FAA notified the City that it had awarded an AIP grant for this project in the amount of $528,825.00. The City is providing its required match in the amount of $176,275.00 from the Airport Improvement & Contingency Fund.
Perimeter Road Reconstruction
The airport perimeter road is located in the airfield area and is utilized as a means to keep non-essential vehicle traffic out of the aircraft movement areas and runway and taxiway system. The condition of Perimeter Road requires reconstruction in areas. The Perimeter Road Reconstruction project will be constructed in multi-phases due to limited FAA funding; the first phase was substantially completed in September 2017 and reconstructed approximately 1,240 linear feet of road. This year’s grant award included the second phase of construction for Perimeter Road and will reconstruct 780 linear feet of the road. This phase is connected to the first phase on the northeast side of the airport and will complete the area previously identified as a safety concern. Further phases will occur depending upon FAA funding.
Solicitation
The low bid solicitation for this package was released in May 2017. Five bids were received on Tuesday, June 20, 2017. Atkins North American, Inc. evaluated the bids and determined the lowest, responsive bid was J3.
Disadvantaged Business Enterprise
The solicitation was released under the FAA Disadvantaged Business Enterprise (DBE) Program. The Small Business Division of the Aviation Department reviewed and approved the Good Faith Effort Plan submitted by J3.
ISSUE:
This action continues the City Council’s policy of utilizing federal funds for airport projects when available, enhancing airfield capacity and safety, and improving land uses at the San Antonio International Airport.
ALTERNATIVES:
City Council could choose not to approve awarding the construction contract; however, the City is not equipped or staffed to construct the project.
FISCAL IMPACT:
Funding in the amount of $445,594.71 for the construction contract with J3 for the Perimeter Road Reconstruction - Package 2 project is available in the FY 2018 - FY 2023 Capital Budget. The project includes $259,505.29 for soft costs including contingency. The FAA grant portion of the project is in the amount of $528,825.00, while the City’s match is $176,275.00. The City’s portion will be funded from the Airport Improvement & Contingency Fund with the intention of reimbursing the Fund using Passenger Facility Charge Funds subject to FAA approval.
RECOMMENDATION:
Staff recommends the authorization of construction contract with J3 for the Perimeter Road Reconstruction - Package 2 project.