SAN FRANCISCO AIRPORT COMMISSION MINUTES

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1 SAN FRANCISCO AIRPORT COMMISSION MINUTES Special Meeting 9:00 A.M. Room City Hall #1 Dr. Carlton B. Goodlett Place (400 Van Ness Avenue) City and County of San Francisco GAVIN NEWSOM, MAYOR COMMISSIONERS LARRY MAZZOLA President MICHAEL S. STRUNSKY Vice President LINDA S. CRAYTON CARYL ITO ELEANOR JOHNS JOHN L. MARTIN Airport Director SAN FRANCISCO INTERNATIONAL AIRPORT SAN FRANCISCO, CALIFORNIA 94128

2 Minutes of the Airport Commission Special Meeting of CALENDAR AGENDA RESOLUTION SECTION ITEM TITLE NUMBER PAGE A. CALL TO ORDER: 3 B. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 1. Reject Bid for Contract 8235E - Terminal 3 Food and Beverage Redevelopment Construction C. NEW BUSINESS: 5 D. CLOSED SESSION: Potential Litigation 5 E. ADJOURNMENT: 5 Minutes,, Page 2

3 A. CALL TO ORDER: AIRPORT COMMISSION SPECIAL MEETING MINUTES The special meeting of the Airport Commission was called to order at 9:00 AM in Room 408, City Hall, San Francisco, CA. B. ROLL CALL: Present: Absent: Hon. Larry Mazzola, President Hon. Caryl Ito Hon. Eleanor Johns Hon. Michael S. Strunsky, Vice President Hon. Linda S. Crayton F. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: Item No. 1 was moved by Commissioner Ito and seconded by Commissioner Johns. The vote to approve was unanimous. 1. Reject Bid for Contract No. 8235E - Terminal 3 Food and Beverage Redevelopment Construction No Resolution rejecting the bid for Contract No. 8235E, Terminal 3 Food and Beverage Redevelopment Construction and authorizing the Director to re-bid this contract when ready. Mr. Ivar Satero, Deputy Director, Bureau of Planning, Design and Construction explained that this bid, submitted by Proven Management, Inc, came in at $1- million over the construction estimate. Six bidders came to the pre-bid conference. Up until the time of bid we anticipated that we would receive a number of bids, however, only one bid was received. Pavex called a half hour prior to the bid explaining that their computer crashed and all of their numbers were lost. The next two days were spent analyzing the bid and doing an assessment of our estimate versus what was bid. The budget is very tight for the food and beverage program. We have another bid coming up on the Terminal 1 food court. When we developed the estimate we took what we did in the prototype Minutes,, Page 3

4 food court in the Terminal 3 mezzanine and applied that to develop the engineer s estimate off of the actual cost of that work. In reviewing the numbers we found that the contractor s demolition numbers were much higher than we anticipated. The same was true for Pavex. They put a lot of risk management into that bid item and padded their numbers significantly. Perhaps it wasn t as clearly defined in the document as it should have been. Things can be done to mitigate that. We are proposing a simplified bid and we will manage the risk, specifically the demolition, by putting it as a time and materials bid item. Therefore, the contractor does not need to cover the risk by increasing the cost of that item. We can also mitigate our cost by value engineering the contract to a certain extent, for examply we can replace the booths with tables. The analysis showed that the number is higher because of the demolition work and because the contractor will be working post security. We have increased our engineer s estimate by $250,000, up to $4.25 million. We believe we can bring the bid numbers down through value engineering and with the Airport assuming the risk of demolition. The HRC goals for MBE/WBE participation are 16% and 3%, which staff believes is achievable. We believe we will achieve a competitive environment with these changes It is a two-week minimum bid time so we will go out for re-bid immediately with a simplified contract. Commissioner Ito asked why we only received one bid. Mr. Satero said that their first thought was to put the Terminal 1 and 3 contracts into one construction package but the contractors felt it was too spread out. Pavex had joint ventured with Trico and JBI as a sub. We expected to get at least one of them as a general contractor. Mr. Tom Rodriques, Project Manager, responded that he spoke with Proven and Pavex and asked if there were any demotivators in the bid package. He was told that there were not. He put in calls to all of the other contractors who didn t bid but attended the pre-bid meeting and purchased bid documents. He is waiting for returned calls. Commissioner Johns said that given the lack of interest she hoped that we will end up with a contractor who really wants to do the job and will meet the deadlines. Mr. Satero said that Proven and Pavex want to do the job. We believe we can bring the bid number down by protecting the bid with bid alternates such as the booths and an allowance for demolition. We are also Minutes,, Page 4

5 H. NEW BUSINESS: looking at the corrian design. The numbers where high because there is a lot of corrian. The terrazzo is also a potential area of simplification This is the Public Comment section of the calendar. Individuals may address the Commission on any topic within the jurisdiction of the Airport Commission for a period of up to three (3) minutes. Please fill out a Request to Speak form located on the table next to the speaker s microphone, and submit it to the Commission Secretary. There were no requests from the public to speak. CLOSED SESSION: The Commission did not go into closed session. Discussion and vote pursuant to Sunshine Ordinance Section on whether to conduct a Closed Session. The Airport Commission will go into closed session in accordance with Government Code Section (b)(1) to confer with legal counsel regarding potential litigation Discussion and vote pursuant to Brown Act Section and Sunshine Ordinance Section on whether to disclose action taken or discussions held in Closed Session. J. ADJOURNMENT: There being no further calendared business before the Commission the meeting adjourned at 9:10 A.M. Jean Caramatti Commission Secretary Minutes,, Page 5

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