Subject: EXTENSION OF CONSULTANT AGREEMENT – FINANCIAL EASIBILITY CONSULTANT
COUNCIL DISTRICT: City-Wide
1. Exercise the first option to extend the term of the Agreement for Consultant Services between the City of San José and Landrum & Brown, Inc. for one year at no additional compensation.
2. Adoption of a resolution authorizing the City Manager to exercise the remaining two one-year options to extend, at no additional compensation.
The airport financial feasibility consultant is a financing team member who is involved in the planning of the permanent financing program for the Norman Y. Mineta San Jose International Airport’s Master Plan projects. On October 31, 2000, the City Council adopted a resolution authorizing the negotiation and execution of an agreement with Landrum & Brown to serve as airport financial feasibility consultant for the Airport Master Plan.
The original agreement with Landrum & Brown was for a term from October 16, 2000, to June 30, 2002, in an amount not to exceed $500,000. Landrum & Brown’s scope of services includes tasks such as financial analyses of Master Plan projects, the completion of a 10-year financial plan, the preparation of feasibility studies to support specific bond issues, and preliminary financial planning for the consolidated rental car garage. Subject to available funding, under the agreement, the Director of Aviation may request additional services as needed during the term of the agreement.
The agreement allows the City the exclusive right to extend the contract with three one-year extensions. The fee structure for the years in which the contract may be extended will be the same as the fee structure in the original term of the agreement. Exercising the first one-year option to extend the term of the agreement will allow the continuation of the contract. No additional funding is needed at this time. It is recommended that the City Manager be authorized to exercise the remaining two one-year options to extend, so long as no additional compensation is being added. Staff will return to the City Council to obtain approval at such time that additional compensation is being requested.
This memorandum has been prepared in coordination with the City Attorney’s Office.
This is an extension to the term of the agreement at no additional compensation.
RALPH G. TONSETH
Director of Aviation