COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

August 3, 2007

BOARD MEETING DATE:

August 14, 2007

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

James C. Porter, Director of Public Works

SUBJECT:

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)

Recommendation

Adopt a resolution awarding and authorizing execution of a contract to Schembri Construction Co., Inc. in the amount of $5,797,561.00 for the above referenced project at the San Carlos Airport (Airport):

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

1.

Adopted resolutions accepting Airport Improvement Grants from the Federal Aviation Administration (FAA), and five percent (5%) matching grants from the California Department of Transportation Division of Aeronautics (DOT), which include funding for taxiway reconstruction and drainage improvements in the aircraft apron areas where the proposed T-hangar buildings are to be constructed.

2.

Adopted Resolution No. 68680 on April 24, 2007, authorizing the Director of Public Works to submit an application and execute an agreement with the DOT for a State Airport Loan to help finance the above referenced project.

3.

Adopted Resolution No. 68679 on April 24, 2007, adopting plans and specifications, determining prevailing wage scales, and calling for sealed proposals for the above referenced project.

4.

Adopted Resolution No. 68857 on July 10, 2007, rejecting the bids received on May 31, 2007, adopting amended specifications and authorizing the Director of Public Works to re-advertise the above referenced project for bid.

History

On Thursday, August 2, 2007, bids were accepted for this project and subsequently referred to this office for checking and recommendation.

Discussion

The bids have been checked and the bid by:

Schembri Construction Co., Inc.

706 Sansome Street, Suite 305

San Francisco, CA 94111

at $5,797,561.00 was the lowest bid received.

Schembri Construction Co., Inc.’s (Schembri) bid is six percent (6%) higher than the engineer’s estimate of $5,485,000. Schembri’s itemized bids reflect a higher than estimated cost for the construction of the steel reinforced concrete foundations and floor slabs for the hangar buildings. We are recommending that a contract be awarded, as Schembri’s bid is approximately $97,000 less than the next lowest bid received on either of the two occasions this project has been advertised for bid and we do not believe that significantly lower bids will be received if the project is re-advertised. A summary of the bids received is attached as Exhibit “A”.

The Contract includes all required contract provisions, and the Contractor has documented compliance with all relevant provisions, including the equal benefits and jury duty pay provisions of the County ordinance code.

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

Fiscal Impact

The total estimated cost for construction is $6,377,000, which includes a ten percent (10%) contingency (approximately $579,439) as the work is bid on a unit price basis (i.e., tons of asphalt concrete placed, cubic yards of concrete installed, etc.). The contingency is used to pay the contractor for any additional material placed for the various bid items as the actual quantity used depends on the unit weight and actual limits of the construction project, or to pay for added work resulting from unforeseen conditions not anticipated in the construction contract documents

Exhibit “A” illustrates the proposed financing for this project.

The DOT Airport Loan will be repaid with revenue generated from the rental of the proposed improvements. The FAA and DOT grant funded portion of the project will be initially financed from the Airport Enterprise Fund as the Federal and DOT grants are received on a reimbursable basis. The Airport Enterprise Fund has sufficient funds available to meet 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 DOT.

There is no impact to the General Fund.

Attachment:

Exhibit “A”