DEPARTMENT: Aviation
DEPARTMENT HEAD: Frank Miller
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Settlement Agreement for Runway 4/22 Extension - Phase III
SUMMARY:
This Ordinance authorizes the execution of a settlement agreement with Yantis Company (Yantis) in the sum of $197,000.00, associated with the Runway 4/22 Extension - Phase III project at the San Antonio International Airport. The funds are available from Airport Passenger Facility Charge and Federal Aviation (FAA) Improvement Program funds.
BACKGROUND INFORMATION:
The Aviation Department, in partnership with the FAA, has developed a Runway 3/21 (now 4/22) Extension - Paving and Electrical for Runway 21 and Taxiway Q project at San Antonio International Airport. This project provided for 1,000 feet critical extension of Runway 22 and Taxiway Q together with the relocation of electrical cables and other airfield facilities located in or impacted by the extension.
Phase III included the extension of Taxiway N which required the relocation of two roads - Northeast Entrance Road and Airport Perimeter Road - and security fencing. This phase also relocated the Navigational Aides and completed the required airfield electrical improvements for Runway 4/22, Taxiway Q and Taxiway N.
Settlement Agreement
In October 2011, City Council authorized a construction contract with Yantis Company in the amount of $6,545,449.80 through Ordinance 2011-10-20-0852. On January 15, 2014, Yantis submitted a delay claim in the amount of $670,024.00 for its work associated with the Project. On February 13, 2013, representatives from the City, AECOM, Inc (the project engineer) and Yantis met to discuss and negotiate the claim.
A settlement was negotiated between the parties whereby the City released the $316,386.76 in retainage that it was holding and, upon approval by City Council, will pay Yantis an additional $197,000.00 to settle all claims associated with the project. The terms of the agreement are contained in the attached settlement agreement.
ISSUE:
This Ordinance is a continuation of City Council policy to settle disputes arising from contracts on City projects to avoid litigation when an equitable settlement is in the best interest of the City.
ALTERNATIVES:
City Council could choose not to approve the negotiated settlement which would likely result in litigation of the issue. Aviation staff believes it is in the best interest of the City to settle this matter and avoid the uncertainty and risks associated with litigation.
FISCAL IMPACT:
The funds are available from FAA Improvement Program grant funds and Airport Passenger Facility Charge funds. Excess grant funding will be moved from Phase IV project to Phase III. The FAA has authorized the use of the grant funds for the settlement claim.
RECOMMENDATION:
Staff recommends the approval of the settlement agreement with Yantis for the Runway 4/22 Extension - Phase III project.