COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

 

DATE:

June 25, 2007

BOARD MEETING DATE:

July 10, 2007

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

 

TO:

Honorable Board of Supervisors

FROM:

James C. Porter, Director of Public Works

SUBJECT:

Rejecting the Bids for the Construction of T-Hangar Aircraft Storage Buildings, T-Shade Canopies, Taxiway Reconstruction and Other Related Improvements at the San Carlos Airport - (AIP Projects No. 3-06-0210-08/09/11), Adopting Amended Specifications for the Project and Authorizing the Director of Public Works to Re-Advertise the Project for Bid

 

Recommendation

Adopt a resolution:

 
 

1.

rejecting the bids for the construction of T-hangar aircraft storage buildings, T-shade canopies, water main improvements, taxiway reconstruction, drainage improvements, power service upgrades and other related improvements at the San Carlos Airport (Airport); and

 
 

2.

adopting amended project specifications, and authorizing the Director of Public Works to re-advertise the project for bid.

 

Vision Alignment

Commitment: Ensure basic health and safety for all.

Goal 7: Maintain and enhance the public safety of all residents and visitors.

 

Construction of the proposed T-hangar buildings and T-shade canopies will provide increased protection and security of aircraft for the benefit of Airport users.

 

Background

Previous Board Action

Adopted Resolution No. 68679 on April 24, 2007, adopting plans and specifications, determining prevailing wage scales, and calling for sealed proposals for the construction of T-hangar aircraft storage buildings, T-shade canopies, water main improvements, taxiway reconstruction, drainage improvements, power service upgrades and other related improvements at the Airport.

 

History

 

The construction of the new hangars and T-shades will help address the long wait and high demand for these facilities at the Airport, as was described in our April 24th Board Report for this project (see attached).

 

On May 31, 2007, bids were accepted for the project and subsequently referred to this office for checking and recommendation. The bids have been checked and the following is a summary of the bids received:

 
 

1.

Schembri Construction Co., Inc. (Schembri)

$5,894,416

 
 

2.

Interstate Grading and Paving

$6,217,965

 
 

3.

Granite Rock Company dba Pavex Construction

$6,269,051

 
 

Discussion

The engineer’s bid estimate for the project was $5,280,000 and Schembri’s bid ($5,894,416) was the lowest bid received. However, due to the specialty nature of aircraft hangar building construction, none of the bids received complied with the requirements of the California Department of Transportation (DOT) Standard Specifications section 8-1.01 that the contractor self-perform at least 50 percent of the total contract work. The County is able to delete this requirement from our standard specifications if we determine it is in our best interest to do so.

 

After consultation with County Counsel, we are recommending that the bids received on May 31, 2007 be rejected as non-conforming; that the project specifications be amended to delete the DOT Standard Specifications section 8-1.01 requirement for the contractor to self-perform at least 50 percent of the work; and that the project be re-bid.

 

Our consultant engineer has also updated the project specifications with a revised cost estimate and provided additional technical information in response to questions and comments from contractors during the bid process. We believe that the revised cost estimate for the project is appropriate for the scope of work described in the project.

 

A resolution has been approved as to form by County Counsel.

 

Fiscal Impact

The revised cost of the project is estimated at $5,485,000 and is proposed to be financed as follows:

 
 

Loan from DOT

$4,000,000

 
 

FAA Grants 3-06-0210-08/09/11

$ 760,000

 
 

State 5% Matching Grant

$ 40,000

 
 

Airport Enterprise Fund

$ 685,000

 
   

Total

$5,485,000

 
 

The FAA and State grant funded portion of the project will be initially financed from the Airport Enterprise Fund as the Federal and State grants are received on a reimbursable basis. The Airport Enterprise Fund has sufficient funds available to handle the cash flow requirements of this project while the loan agreement is processed and the grant payments are being requested of the FAA and the State.

 

There is no impact to the General Fund.

 

Attachment:

Board Report dated April 24, 2007