To: Board of Supervisors
Department or Agency Name(s): Transportation and Public Works
Staff Name and Phone Number: Johannes J. Hoevertsz 707-565-2231
Vote Requirement: Majority
Supervisorial District(s): All
Title:
Title
Airport Modular Hold Room Expansion
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Recommended Action:
Recommended action
Approve and award the Modular Hold Room Expansion Bid to the lowest and best value bidder, and authorize the Director of Transportation and Public Works to execute an agreement with Q & D Construction LLC for those successfully bid construction services.
end
Executive Summary:
The Department of Transportation and Public Works Airport Division (Airport) is requesting the approval and award of the Modular Hold Room Expansion Bid to the lowest and best value bidder in the amount of $3,995,000, and authorization for the Director of Transportation and Public Works to execute the related agreements with Q & D Construction LLC for those construction services.
Discussion:
The Charles M. Schulz - Sonoma County Airport is the sixth (6th) fastest growing commercial airport in the nation. From 2015 through 2018, passenger traffic grew by 59%. In addition, the Airport evolved from a single commercial airline in 2015 (Alaska) to four airlines in 2019 (Alaska, American, Sun Country and United). Service now includes 15 daily flights to 11 non-stop destinations including Denver, Dallas, and Minneapolis/St. Paul. In calendar year 2018, passenger count exceeded 440,000 and is projected to exceed 480,000 in 2019.
The Airport remodeled the passenger terminal in 2011. However, in February 2016, the Board approved a contract with Mead and Hunt for design of a new, permanent passenger terminal in anticipation of additional passenger growth. In preparation for the terminal expansion and with the arrival of American and United Airlines, the Airport constructed a temporary ticketing facility in February 2017. Construction of Phase One of the tensile passenger hold room, was completed in June 2017. In 2018, the Airport began design of Phase Two of the passenger hold room which included permanent bathroom facilities, addition of a fire suppression system, relocation of the security checkpoint, and improvements to ground support equipment (GSE) electrical systems.
On April 30, 2019, the Airport Manager presented to the Board future plans for improving the Airport terminal which included the remodel and modernization of current terminal facilities, adding 30,000 square feet, relocating and increasing the baggage carousel capacity, relocating and increasing the size of security screening , and overall improvements to the passenger experience.
In order to facilitate the permanent terminal improvements, the current modular tent will need to be expanded to accommodate passenger screening and security during construction. On January 29, 2019, the Board adopted a resolution authorizing the Chair to execute a contract for the purchase of a 4,000 square foot extension to the passenger hold room structure for $167,634.
On May 2, 2019, the Airport issued an invitation to bid for all interested contractors able and qualified to construct the modular tent extension. On May 16, a pre-bid conference and site walk through was held at the Airport for all interested parties. Ten individuals attended representing seven (7) parties. The bid included the construction of a permanent restroom, installation of sprinkler systems, installation of new Ground Service Equipment Charging Stations (GSE) and aircraft ground power equipment, automated passenger exit lane, extension of utilities, and installation of the sprung tent structure.
On June 6, 2019, one (1) bid was submitted and opened by representatives of the Sonoma County Purchasing Division and the Airport. That bid was from Q & D Construction LLC, for $3,995,000. The engineers estimate for this project was $3,277,000. The bid amount is 18% over the engineers estimated costs for this project due to the following reasons:
• Construction pricing higher than expected due to a strong economy, very low unemployment, a very competitive construction market, and material cost increases.
• Contractors in Sonoma County and surrounding areas have a construction backlog, due to rebuilding from fires. As a result, the prime contractor had difficulties in getting subcontractors for several elements of this project.
In an effort to minimize costs, Q & D Construction has confirmed they will use value-engineering practices in an effort to bring final project costs closer to the original engineer’s estimate. Based on the willingness of Q & D Construction to work within the County’s budget to accomplish our objectives, the Airport is recommending awarding the sole bid. Airport staff believes the award is in the best interest of the County and enables the Airport to move forward with preparations for the larger terminal project. The Airport expects change orders related to value engineering cost reductions as a result of product substitutions, more efficient means and methods, and removing non-essential items to reduce final costs of the project.
Project work associated with the modular tent extension construction will consist of the following items:
• Installation of utilities including domestic/fire protection water, sewer and drain lines
• Construction of concrete slab
• Construction of Sprung Structures extension
• Architectural work including restrooms, interior partitions, interior finishes, exterior ramps
• Fire protection work
• Plumbing work
The Department of Transportation and Public Works Airport Division is therefore requesting the approval of award of the Modular Hold Room Expansion Bid in the amount of $3,995,000, and that the Board authorize the Director of Transportation and Public Works to execute the related agreement with Q & D Construction LLC for those construction services.
Prior Board Actions:
August 13, 2019 - Design and Construction Management Task Orders Related to Passenger Terminal Modernization at the Sonoma County Airport
April 30, 2019 - Board Presentation Future Growth of the Airport
February 26, 2019 - Mead & Hunt Task Order #9
January 29, 2019 - Sprung Structure Lease Purchase Option & Sprung Structure Extension Purchase
May 8, 2018 - Terminal Expansion Update
May 8, 2018 - Long Term Financing for Terminal Expansion Projects
February 21, 2017 - Approve Sprung Structures Tent Lease
February 9, 2016 - Board Presentation Future Growth of the Airport
February 9, 2016 - Mead & Hunt Master Agreement
September 13, 2016 - Financing Expansion of Existing Passenger Terminal
September 13, 2016 - Approve Contracts for Mead & Hunt Terminal Design
Fiscal Summary
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Expenditures |
FY 19-20 Adopted |
FY20-21 Projected |
FY 21-22 Projected |
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Budgeted Expenses |
$3,995,000 |
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Additional Appropriation Requested |
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Total Expenditures |
$3,995,000 |
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Funding Sources |
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General Fund/WA GF |
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State/Federal |
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Fees/Other |
$2,600,000 |
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Use of Fund Balance (41301 - Airport Enterprise) [CR) please add fund #s and names] [CR) please email M. Arellano and C. Rivera the estimated ending balances AFTER this use]. |
$1,395,000 |
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Contingencies |
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Total Sources |
$3,995,000 |
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Narrative Explanation of Fiscal Impacts:
In May 2018, the Charles M. Schulz - Sonoma County Airport secured a $11,880,000 (BOS Resolution 18-0182) loan from the California Infrastructure and Investment Bank (IBank) in order to finance terminal improvements, addition of a tensile structure and the design of a long-term, permanent terminal facility. Among other items, the IBank loan provided funding for Phase Two of the tensile passenger hold room (including security checkpoint equipment), permanent bathroom facilities, upgrades to GPU and GSE equipment, and installation of an automatic fire suppression system.
The Airport’s fiscal year 2019-2020 budget appropriates $4,848,275 for capital improvement projects, including $3,848,275 for Phase Two of the tensile hold room. A delay in the $350,000 design element for Taxiway D will enable the Airport to reallocate the additional $146,725 of appropriations required for this project. The Airport will be using a combination of IBank loan proceeds ($2,600,000) and available Airport Enterprise fund balance ($1,395,000) to finance this Phase of terminal improvements. The $1,395,000 of fund balance contribution is part of the estimated $8,000,000 Airport share of the overall terminal improvement plan. By June 2020, the Airport anticipates substantial clarification on total terminal construction costs, availability of additional federal grants, and project timing. Once those factors have been defined, Airport staff will engage with appropriate County staff to determine long-term funding mechanisms for the Airport’s total contribution and return to the Board with recommendations.
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Staffing Impacts: |
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Position Title (Payroll Classification) |
Monthly Salary Range (A-I Step) |
Additions (Number) |
Deletions (Number) |
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Narrative Explanation of Staffing Impacts (If Required):
None
Attachments:
None.
Related Items “On File” with the Clerk of the Board:
Modular Holdroom Expansion Bid Book