SUBJECT: SEE BELOW DATE: February 4,2016

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1 CITY OF cr 3 SAN IPSE CAPITAL OF SILICON VALLEY TO: HONORABLE MAYOR AND CITY COUNCIL COUNCIL AGENDA: 2/23/16 ITEM: * fl ' 1.\b Memorandum FROM: Barry Ng Kimberly J. Becker SUBJECT: SEE BELOW DATE: February 4,2016 Approved Date SUBJECT: NORMAN Y. MINETA SAN JOSE INTERNATIONAL AIRPORT - FEDERAL INSPECTION SERVICES CURBSIDE IMPROVEMENTS, FIS BAGGAGE HANDLING SYSTEM IMPROVEMENTS AND GROUND TRANSPORTATION ISLAND AND ROADWAY IMPROVEMENTS PROJECT RECOMMENDATION (a) Adopt a resolution authorizing the Director of Public Works to: 1. Determine the lowest responsive and responsible bidder, decide any bid protests, and award the construction contract for the Airport Federal Inspection Services (FIS) Curbside Improvements, FIS Baggage Handling System Improvements, Ground Transportation Island and Roadway Improvements (GTI) Project in an amount not to exceed $9,600,000 and an additional fifteen percent of construction contingency. 2. Issue any single and/or multiple change orders up to the amount of the Project contingency. (b) Adopt a resolution making findings that specifying specific companies and product by brand or trade name in the bid specifications for this Project is necessary for the following specific elements of this project to match other products in use at the Airport: (i) Fire Alarm and Sprinkler Controls; (ii) Door Security Access Controls; (iii) Information Technology; (iv) Intercom/Public Address/Paging; (v) Security Cameras; (vi) Low Voltage/Data Cabling; and (vii) Building Management System. OUTCOME Approval of this item will allow the City to award and execute the contract within the timeframes needed to complete the work, minimizing the impact of construction on the operation of the

2 Subject: 8146-SJ International Airport FIS & GTI Improvements Page 2 Airport. Approval of a fifteen percent contingency will provide funding for any unanticipated work necessary for the proper completion of the Project. BACKGROUND Mineta San Jose International Airport has experienced positive passenger growth, which includes an increase in international passenger traffic. All Nippon Airways (ANA) started service to Tokyo in June 2013 and Hainan Airlines started service to Beijing in June Additional growth is expected with new service from British Airways, Air Canada and Lufthansa that will start in early summer of The international service is reflective of a robust air service market that will add up to seven international flights per day after the start of three new airline services. With the success of the domestic air service growth coupled with the new international flights, it is important that the Airport provide an essential operating environment, provide airport passengers with an efficient transition through the Airport, and provide passengers with an inviting and welcoming experience at the Airport. These three projects were presented at the December 7, 2015 Transportation and Environmental Committee and discussed at the Community and Economic Development Committee on January 25,2016. Unspent Bond Proceeds In 2007, the Terminal Area Improvement Program (the "TAIP") was created with an available funding amount of $1.3 billion. The funding source for the three proposed projects is a portion of the remaining unspent bond proceeds from the TAIP. Consistent with Internal Revenue Service (IRS) rules and the terms of the TAIP bond issuance, the City must spend the unspent bond proceeds on eligible Airport capital projects by July 31, The project is currently advertising with a construction completion of April 30, 2017 to allow for all paperwork to be processed by City staff for the July 31, 2017 deadline. Local and Small Business Projects will be openly advertised to the contracting community to allow interested contractors, subcontractors and vendors to participate in the bidding process. To encourage contractor participation for the bidding process, the Airport outreached to the local contracting firms about upcoming opportunities in a pre-announcement meeting held on December 17, Project scope and tentative schedule information were posted on BidSync to provide advance preview of the project details. Since the current project is not federally funded, the City's Disadvantaged Business Enterprise (DBE) Program for Federal Aviation Administration (FAA) grant funded capital projects is not applicable. However, Staff will encourage local and small business participation through the advertisement on the project, at the pre-bid meeting, and notifying the small and local business community through and phone outreach.

3 Subject: 8146-SJ International Airport - FIS & GTI Improvements Page 3 ANALYSIS Airport staff has focused on how best to use these available capital funds to perform essential capital work to meet the needs of the increasing number of passengers using the Airport. The projects within this funding source focus on enhancing the customer experience, by providing pedestrian street level roadway crossings at Terminal A, and modernizing and enhancing ground transportation facilities to be consistent with those at Terminal B. In order to meet the constrained delivery timeframe for this project and to maintain coordination of the construction activities between the three projects, it was determined that all three projects should be bundled together as one large project. Having one responsible contractor for all three projects will substantially reduce the risk for construction delays and contract coordination disputes that could result by having individual contractors for the respective projects. Bundling these projects, rather than bidding them separately, will allow the maximum duration construction schedule to facilitate project completion within the advertised deadline of April 30, Additionally, this will avoid separate independent bids that can increase each respective project budget and risk increasing the overall construction schedule by several months. By having one contractor, access to and around the respective work zones will become his sole responsibility which will provide for better airport vehicle and pedestrian circulation around the work zone. In addition, the delegation of authority to the Public Works Director will save approximately four weeks in contract award processing time which will allow for an earlier construction start. Base Bid: Package C This includes the Ground Transportation Island and Roadway Improvements, which will improve pedestrian safety at Terminal A, enhance ground transportation facilities to be similar to those provided at Terminal B, and enhance customer services for Terminal A and FIS arriving passengers. A new ground transportation island in the median of Terminal A roadway will be constructed to allow bus pick-up and drop-off of passengers. The project will improve the merging traffic flow along the Terminal A roadway. All shelters and railings will be replaced to have the same quality facilities as provided in front of Terminal B. The project construction budget is estimated at $4,750,000 including bid additive alternates 6 and 7 shown in table below. Bid additive alternate 1: Package B The FIS Baggage System Improvements project will improve the baggage delivery process for arriving international passengers. Currently, the international baggage room has one baggage delivery carousel. International passengers usually have more baggage than domestic passengers. The airport has contracted service agents that align the baggage on the current baggage carousel and pull baggage off the carousel in order to manage the large volume of international baggage. This project will result in a 2,700 square foot expansion of the arrivals baggage claim room and add a flat plate baggage carousel, including modifications to the existing life safety, security access control and Closed Circuit Television (CCTV) systems. Also

4 Subject: 8I46-SJ International Airport FIS & GTI Improvements Page 4 included in the renovation will be the relocation of existing Smarte Cartes. The project construction budget is estimated at $2,160,000. Bid additive alternate 2: Package A This includes the FIS Curbside Improvements, which will enhance the customer experience by providing an enclosed waiting area for family members of arriving international passengers. The current facility provides only an open area protected by an overhang, exposing the area to weather elements with the closest public restroom facilities are located in Terminal A. The improved enclosed waiting area will include new restroom facilities in the new waiting area, comfortable seating and a warm welcoming atmosphere that reflects well on the City of San Jose and Silicon Valley. The project construction budget is estimated at $2,160,000 including bid additive alternates 3, 4 and 5 shown in table below. Packages A, B and C represent the three major areas of construction work. The hierarchy of these packages are such that Base Bid Package C has the most significant scope of work with a larger budget, Packages A and B are structured into additive bid alternates as they have the secondary and tertiary levels of importance. If the bid amounts are in line with the engineer's estimate, all these packages will be included into the construction contract. However, if the bid amounts are lower than the estimated total, the following minor bid alternates will be included in the construction contract up to the maximum amount of the delegation request. Additional minor bid alternates for Packages A and C BID ADD. ALT. DESCRIPTION Engineer's Estimate 3 FIS Curbside Baffle Ceiling $20,000 4 FIS Curbside Furniture, Fixtures and Equipment (FF&E) $70,000 5 FIS Curbside Monument Sign $206,000 6 GT Island Median, FIS Curbside Bollards $208,000 7 GT Island Median North of Pedestrian Bridge $750,000 TOTAL $1,254,000 Bid opening is scheduled for February 25, Awarding the contract as soon as practicable following the bid opening may provide up to four additional weeks of construction time toward the goal of completing the work by April 30, 2017 as stated in the contract bid documents. For this reason staff is seeking Council approval to delegate authority to the Director of Public Works for the award of this contract. Delegation would include the authority to decide any bid protests, to make the City's final determination as to the lowest responsive and responsible bidder, or to reject all bids and re-bid the project.

5 c HONORABLE MAYOR AND CITY COUNCIL Subject: 8146-SJ International Airport - FIS & GTI Improvements Page 5 Staff recommends the following: 1. Delegation of authority to the Director of Public Works to award up to $9,600,000 should bidders submit bids higher than the estimated cost of work. The available amount of the bond program allows up to $9,600,000 for construction funding. While staff hopes that bid results will be in line with engineers estimate, the higher delegation of authority for $9,600,000 allows a safeguard if bids come in higher than estimated. 2. A 15 percent contingency that is consistent with Council Capital Project Contingency Policy, Resolution No. is 71319, for renovation work to accommodate scope modifications and unforeseen conditions. 3. Delegation of authority to the Director of Public Works for the issuance of change orders up to the amount of the contingency, in order to keep the critical construction timeline. Sole Source Requirements for Certain Project Elements State law (Public Contracts Code 3400), subject to certain exceptions^ prohibits the City from drafting bid specifications for public works contracts: (a) in a manner that limits the bidding, directly or indirectly to any one specific company; or (b) that call for a designated material, product, thing or service by specific brand or trade name, unless the specification is followed by the words "or equal" so that bidders may furnish any equal material, product, thing, or service. However, the law provides for an exception to these requirements where specifying a specific company or product by brand or trade name is necessary to match other products in use on a particular public improvement. For these projects, staff has identified the following companies and products as necessary to match other products in use at the Airport and therefore recommends that Council authorize the following "sole source" specifications for the projects: Fire Alarm and Sprinkler Controls: The Airport has one integrated fire alarm system that operates campus-wide. Additions must match existing equipment to ensure complete monitoring and control of smoke and fire-related life safety systems occurs. The existing system is based on Siemens equipment. Only vendors trained and authorized by Siemens may modify their equipment. The local Siemens office has been performing work at the Airport for several years. Door Security Access Controls: Additions to the Door Access Control system must match existing equipment in order to be able to communicate with the existing security control and monitoring system in order to preserve uninterrupted coverage and reporting for Airport security staff. The existing system is based on Stanley Security equipment. Only vendors trained and authorized by Stanley may modify their equipment. The local representatives for Stanley have been performing work at the Airport for several years. Information Technology (IT): The Airport provides a common technology platform on which all data communication is required to operate. New additions to the system must match existing equipment already in place and be able to communicate with the existing infrastructure. AirIT is the vendor who has the

6 Subject: 8146-SJ International Airport - FIS & GTI Improvements Page 6 contract to provide IT services at the Airport and is charged with ensuring compatible equipment is utilized and connections are maintained. Intercom/Public Address/Paging: Public address throughout the Airport takes place through one integrated system which utilizes zones for maximum effectiveness. Additions to this system must be able to communicate by means of individual, zone-addressable products which match the existing equipment in place. ComNet currently has the contract for providing this service at the Airport. Security Cameras: The Airport's security cameras are controlled by, and provide information through, one integrated system that operates campus-wide. Continuity with the existing camera system must be maintained to ensure uninterrupted coverage and operability for Airport security staff. GS4 is the current holder of the contract to provide security camera services for the Airport. Low Voltage/Data Cabling: Cabling standards must be maintained in order to be in compliance with the Airport's own security requirements as well as those of governmental agencies such as US Customs and Border Protection and the Transportation Security Administration. Cabling vendors working on Airport projects must have knowledge and previous experience of these requirements to ensure acceptable work is accomplished. The Airport has contracted with ProTec to provide these services which has extensive knowledge of existing Airport cabling pathways and the different standards required in various areas of the Airport. Building Management System fbmsl: The existing building management system, which monitors and controls facility systems throughout the Airport campus, provides a resource-efficient means of operating the Airport. The technology of two vendors, Thermal Mechanical and Emcor, is compatible with the current BMS. Both of these vendors have worked at the Airport for several years and are authorized to perform work on and provide equipment which integrates well with the current Airport BMS. EVALUATION AND FOLLOW-UP No subsequent Council action is necessary. Staff will monitor the impact of this action and communicate any issues to Council through a staff report. PUBLIC OUTREACH/INTEREST To solicit contractors, this project held a pre-announcement meeting on December 17, The project will be listed on BidSync and advertised in the San Jose Post Record. Bid packages for all Department of Public Works construction projects are provided to various contractor organizations and builders' exchanges.

7 February 4,2016 Subject: 8146-SJ International Airport FIS & GTI Improvements Page 7 COORDINATION This memorandum has been coordinated with the City Attorney's Office, and the City Manager's Budget Office. FISCAL/POLICY ALIGNMENT The San Jose Municipal Code requires that capital projects at the Airport be consistent with the adopted Airport Master Plan. The three proposed improvement projects would be minor alterations of existing Airport facilities and are therefore consistent with the adopted Airport Master Plan pursuant to San Jose Municipal Code Section (B)(4). COST SUMMARY/IMPLICATIONS 1. AMOUNT OF RECOMMENDATION/COST OF PROJECT Project Delivery $2,400,000* Construction (Engineer's Estimate includes base bid and $9,070,000 Add Alt 1, 2 only) Contingency $1,360,000 TOTAL PROJECT COSTS $12,830,000 Prior year expenditures $330,190 REMAINING PROJECT COSTS $12,499,810 * Project delivery includes $900,000 for Design Services and $1,500,000 for Construction Management and Inspection Services. 2. SOURCE OF FUNDING: Airport Revenue Bond Improvement Fund 3. OPERATING COST: The project has been reviewed and was determined that it will have no significant adverse impact on the General Fund operating budget. 1. Due to the high importance of the projects and the restrictive timelines, the Airport has requested contract authority 6.5 percent over the engineer's estimate to account for the current, less competitive, bidding environment. BUDGET REFERENCE Funding for the Airport FIS/ GTI Project, is included in the Adopted Capital Budget and Capital Improvement Program (CIP) for The table below identifies the

8 Subject: 8146-SJ International Airport - FIS & GTI Improvements Page 8 appropriation and funds proposed to fund the agreement recommended as part of this memorandum. Fund # Appn # Appn. Name Total Appn Amount For Contract Adopted Capital Budget Remaining Project Costs 526 FIS Curbside 4324 Improvements $3,000,000 $2,160,000 V FIS Baggage System 4299 Upgrades $3,250,000 $2,160,000 V-786 Terminal A Ground Transportation Island $1,719,000 $1,000,000 V-784 Modifications. 526 Landside Program 4380 Enhancements $5,000,000 $4,280,000 V Terminal Area 5253 Improvement, Phase 1 $2,966,000 V-796 Totals $15,935,000 $9,600,000 Last Budget Action (Date, Ord. No.) 6/23/2015, Ord. No /23/2015, Ord. No, /23/2015, Ord. No /23/2015, Ord. No /20/2015, Ord. No CEOA Determination of Consistency with the City of San Jose International Airport Master Plan Final Environmental Impact Report, as Addended, City Council Resolution Nos and 71451, File Nos. PP15-053, PP15-122, and PP /s/ BARRY NG Director of Public Works /s/ KIMBERLY J BECKER Director of Aviation For questions please contact Michael O' Connell, Deputy Director, Public Works Department, at

SAN JOSE CAPITAL OF SILICON VALLEY

CITY OF C2 SAN JOSE CAPITAL OF SILICON VALLEY TO: HONORABLE MAYOR AND CITY COUNCIL COUNCIL AGENDA: 3/29/16 ITEM: t»-\ Memorandum FROM: Kimberly J. Becker SUBJECT: SEE BELOW DATE: March 16, 2016 Approved