Recommendation:
Enact an ordinance appropriating $1,109,700.00 from the HAS Renewal and Replacement Fund (8010) for the Aircraft Support Systems Operations and Maintenance Services Agreement with JBT Aerotech Corporation.
Specific Explanation:
On September 30, 2020, City Council enacted Ordinance 2020-0848, awarding an Aircraft Support Systems Operations and Maintenance Services Contract to JBT Aerotech Corporation (Contract No. 4600016250) and setting a maximum contract amount of $22,168,833.31 ($839,824.27 appropriated from the HAS Renewal and Replacement Fund (8010) and $21,329,009.00 allocated from the HAS Revenue Fund (8001)). The contract term is ten years and may be terminated at any time with 30 days’ written notice by the City.
JBT Aerotech Corporation is responsible for providing complete maintenance of existing aircraft support systems located at Terminals A and D for Passenger Boarding Bridges (PBBs) and associated equipment: ground power units, pre-conditioned air units, domestic water cabinets, buses, mobile stairways, disabled passenger lift, and portable water units.
Future service life renewal work includes the following:
- Installation of a refurbished PBB
- Replacement of five (5) PBB overhead canopies
- Replacement of two (2) PBB Pre-Conditioned Air Units (supports cooling of aircraft cabin)
- Replacement of seven (7) PBB Air-Conditioned Roof Top Units (supports interior cooling of PBB)
- Replacement of flooring for fourteen (14) PBBs
- Replacement of two (2) PBB Cab and Programmable Logic Controllers
HAS plans to utilize the Renewal and Replacement Fund (8010) to cover the costs associated with the other service requests (OSRs) to install a refurbished PBB and to replace and upgrade aging equipment that has reached the end of service life expectancy. 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 deals 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.
It is now requested that City Council enact an ordinance appropriating $1,109,700.00 from the HAS Renewal and Replacement Fund (8010). A corresponding amount will be deallocated from the HAS Revenue Fund (8001), and the maximum contract amount will remain $22,168,833.31.
Project Costs:
|
Council Action
|
HAS Revenue Fund (8001)
|
HAS Renewal & Replacement Fund (8010)
|
Total
|
|
Ordinance 2020-0848
|
$21,329,009.04
|
$839,824.27
|
$22,168,833.31
|
|
This Council Action
|
- $1,109,700.00
|
$1,109,700.00
|
$0.00
|
|
Total
|
$20,047,309.04
|
$1,949,524.27
|
$22,168,833.31
|
MWBE Participation:
The MWBE goal for this project is 5%. JBT Aerotech Corporation is currently achieving 5.7% participation towards the goal. The HAS Office of Business Opportunity will continue to monitor this contract in accordance with its procedures.
Capital Fiscal Note:
No significant Fiscal Operating impact is anticipated as a result of this project.
Director’s Signature:
___________________ __________________
Mario C. Diaz Jerry Adams
Houston Airport System Chief Procurement Officer
____________________
Andy Icken
Chief Development Officer