RECOMMENDATION:
Enact an ordinance appropriating $14,559,043.74 out of the Airports Improvement Fund for the IAH Skyway Automated People Mover (APM) System Operations and Maintenance Services Agreement with Alstom Transport USA Inc.
SPECIFIC EXPLANATION:
On March 31, 2021, City Council enacted Ordinance 2021-0226, approving and authorizing an Agreement with Bombardier Transportation (Holdings) USA Inc. (now Alstom Transport USA Inc.) for Automated People Mover (APM) Operations and Maintenance (O&M) Services for the Houston Airport System (HAS) at George Bush Intercontinental Airport/Houston (IAH) and appropriating $25,000,000.00 for the first two and one-half years of the Agreement. The Agreement has a term of ten (10) years, ending on April 5, 2031. Bombardier Transportation Holdings USA Inc. was purchased by Alstom Transport USA Inc., and Alstom is the successor in interest to this Agreement.
The Skyway APM at IAH is a Bombardier (Alstom)-engineered driverless transportation solution that provides passengers in the IAH terminals post-security sterile areas the ability to safely and efficiently connect between Terminals A, B, C, and D/E. The Skyway System consists of 16 APM vehicles, four passenger stations, one maintenance service facility, and associated appurtenances. Under the Agreement, Alstom is responsible for the Skyway System’s operation and maintenance, including all management, supervision, labor, parts/materials/consumables, equipment, diagnostics, lubricants, tools, instruments, reports, transportation, insurance, subcontracts, bonds, incidentals, and other related services. Alstom must provide both preventive maintenance (PM) and corrective maintenance (CM) in accordance with applicable standards, best industry practices, and the HAS-approved maintenance program.
On August 30, 2023, City Council enacted Ordinance 2023-0717, appropriating $13,108,044.31 to fund continued operations and maintenance services under the Agreement with Alstom. Those funds are nearing exhaustion, and additional funds are needed while HAS continues to evaluate the Skyway System for a major refurbishment project.
It is now requested that City Council enact an ordinance appropriating $14,559,043.74 to provide funding for an additional year of basic operations and maintenance services as well as other service requests (OSRs) to accommodate the time needed to put a refurbishment project in place. Additional funding may be requested in the future should the refurbishment project necessitate additional time for implementation.
MWBE Participation:
The MWBE advertised goal for this project is 11%. Alstom submitted a participation plan committing to 12% and is currently achieving 12.2%. The HAS Office of Business Opportunity will continue to monitor this agreement in accordance with its procedures.
Fiscal Note:
No significant Fiscal Operating impact is anticipated as a result of this project.
Director's Signature:
_____________________
Jim Szczesniak
Houston Airport System