RECOMMENDATION:
Adopt an ordinance appropriating $28,881,014.06 from the Airports Improvement Fund (8011) to the Design-Build Contract with Texas Sterling-Banicki JV, LLC to fund the remaining portion of the Guaranteed Maximum Price (GMP) construction work and contingency for the Taxiway L and Runway 4-22 Shoulders Phase 1 Construction at Ellington Airport (EFD) (Project No. 707).
SPECIFIC EXPLANATION:
On March 6, 2024, City Council adopted Ordinance 2024-112 approving and authorizing a Design-Build Contract with Texas Sterling-Banicki JV, LLC for the Taxiway L and Runway 4-22 Shoulders Phase 1 Construction at Ellington Airport (EFD) and appropriating $16,000,000.00 for Pre-Construction Services (Design) and the Enabling Work and Early Release Packages.
On May 28, 2025, Council adopted Ordinance 2025-435 appropriating $20,000,000.00 and authorizing the Guaranteed Maximum Price (GMP) Amendment No. 1 to the Design-Build Contract. The total GMP is $58,847,074.58, and City Council was advised in the previous action that the remaining GMP cost would be appropriated in FY2026.
It is now requested that City Council appropriate $28,881,014.06 to fund the remaining portion of construction phase services and contingency.
Project Costs (this appropriation):
Construction Phase Services (portion) $ 26,381,014.06
Contingency $ 2,500,000.00
TOTAL $ 28,881,014.06
Grant Programs:
A portion of the spending under this Contract is eligible for reimbursement under the Federal Aviation Administration (FAA) Airport Improvement Program (AIP), FAA Airport Infrastructure Grant (AIG) Program, and the Texas Spaceport Trust Fund (STF).
DBE Participation:
The awarded DBE goal for this contract is 27.09%. The Prime is currently achieving 22.65% DBE participation utilizing 5 goal credit subcontractors at 41% contract progression. The Office of Business Opportunity will continue to monitor this contract for compliance with the DBE Program.
Fiscal Note:
No significant Fiscal Operating impact is anticipated as a result of this project.
Director’s Signature:
______________________
Jim Szczesniak
Houston Airport System