ORDINANCE deappropriating $1,748,998.08 from HAS Airports Improvement Fund, appropriating $10,717,935.95 from HAS Renewal and Replacement Fund, and amending Ordinance No. 2017-0485 to increase the maximum contract amount for On-Call Airport Professional Planning Consulting Services Contracts with HNTB CORPORATION, LEIGHFISHER, INC, and RICONDO & ASSOCIATES, INC (Project Nos. 739A, 739B and 739C) - DISTRICTS B - DAVIS; E - MARTIN and I - GALLEGOS

RECOMMENDATION:

Enact an ordinance to de-appropriate $1,748,998.08 of the HAS Airports Improvement Fund (8011), appropriate $10,717,935.95 from the HAS Renewal and Replacement Fund (8010), and to increase the maximum contract amount by $1,000,000.00 to $16,500,000.00.00 for On-Call Professional Planning Consulting Services contracts. (Projects 739A, 739B, and 739C)

SPECIFIC EXPLANATION:

On June 28, 2017, City Council approved Ordinance 2017-0485 for On-Call Airport Professional Planning Consulting Services contracts with HNTB Corporation, LeighFisher, Inc., and Ricondo & Associates, Inc. Services are obtained through Letters of Authorization (LOAs). The contract has a term of 3 years with 2 one-year options and an effective date of July 10, 2017. The first option year will be exercised on July 10, 2020. Ordinance 2017-0485 set a maximum contract amount of $10,000,000 ($2,500,000.00 allocated from the HAS Revenue Fund (8001) and $7,500,000.00 appropriated from the HAS Airport Improvement Fund (8011)).

It was determined that most of the work was not capital in nature, so on April 3, 2019 City Council approved Ordinance 2019-0238 de-appropriating $4,000,000.00 of the HAS Airport Improvement Fund (8011). The same amount was allocated from the HAS Revenue Fund (8001) as well as an additional $5,500,000.00, increasing the Maximum Contract Amount to $15,500,000.00.

An increase in the maximum contract amount by $1,000,000.00 is now needed to accommodate unforeseen planning mitigation studies. Additionally, guidance pertaining to the Houston Airport System’s Master Bond Ordinance recommended a reclassification of professional services costs to the HAS Renewal and Replacement Fund (8010). The chief reason for this guidance has to do with the reference in the Bond Ordinance related to use of the Renewal and Replacement Fund for costs associated with the repair, replacement, or renovation of depreciable property when the cost does not qualify as a capital expenditure per generally accepted accounting. Similar language is found in the master lease agreements with the airlines operating at both Intercontinental and Hobby airports. Therefore, it is now requested that City Council enact an ordinance to de-appropriate $1,748,998.08 of the Houston Airport System (HAS) Airport Improvement Fund (8011), appropriate $10,717,935.95 from the HAS Renewal and Replacement Fund (8010), and to increase the maximum contract amount to $16,500,000.00.

DBE Participation:

The current DBE goal for these projects is 25%. Once all payments are made for approved and ongoing Task Orders, participation for each contractor will be as follows:

HNTB Corporation                            29.72%

LeighFisher, Inc.                               28.45%

Ricondo & Associates, Inc.               41.14%

The Houston Airport System’s Office of Business Opportunity will continue to monitor these contracts and is confident that the goals will be met or exceeded. 

Fiscal Note:

No significant Fiscal Operating impact is anticipated as a result of this contract.

Director’s Signature:

________________________                          _______________________

Mario C. Diaz                                                        Andy Icken

Houston Airport System                                      Chief Development Officer

6/28/2017 (O) 2017-0485

4/3/2019 (O) 2019-0238

$10,717,935.95

HAS Renewal and Replacement Fund

Fund 8010

Todd A. Curry                         281/233-1896

Robert Barker                         281/233-1953