Memorandum

City of Lawrence

City Manager’s Office

To:	Dave Corliss City Manager
From:	Dena Mezger, Asst. Public Works Director/Airport Manager
cc:	Chuck Soules, Public Works Director Aviation Advisory Board
Date:	August 16, 2007
Re:	Agenda item – Airport Improvement Project 3-20-0047-14-2007

Please place the following item on the City Commission consent agenda for consideration at their August 23, 2007 meeting:

Airport Improvement Project – Runway Safety Improvements

Project Status.  Several activities associated with this project have taken place and were awaiting the grant offer from FAA to proceed.  Now that we’ve received that grant offer, we can proceed with the following:

· On March 27, 2007, the City Commission authorized the City Manager to enter into a contract with Airport Development Group (ADG) for $54,500 for engineering services (bidding and special services) for the runway improvement project, pending a grant offer from FAA.

· On May 23, 2007, the FAA notified the City that our request to utilize a sponsor force account (Public Works Department staff) for construction observation services on the subject project was approved.

· Bids were opened on May 1, 2007 for Schedule 1 for the runway safety area construction project.  On May 15, 2007, the City Commission authorized the City Manager to enter into a contract with the low bidder, Hamm, Inc., for $443,678, pending approval from the FAA and subject to the level of FAA funding available for the project.  In a May 31, 2007 letter, the FAA concurred with the award of the contract to Hamm Inc. for development proposed by this project.

· A grant application was submitted to FAA on May 28, 2007 requesting FAA participation for the project.  Today we received a grant offer from FAA for 95% of the project, with a maximum financial obligation of $966,254.  The City’s share (5%) of the project costs total $50,856.

This project is in the Airport Master Plan and the City’s Capital Improvement Plan and is endorsed by the Aviation Advisory Board.  The City’s share of the project costs will be debt financed.  A breakdown of project costs is as follows:

          Administration                                    $      10,000

          Engineering                                               54,500

          Gas line relocation                                    488,400

          Construction                                            443,678

          Inspection (in-house)                                  20,532

          TOTAL                                                       $  1,017,110

Commission Action.   Staff recommends acceptance of the FAA grant offer.  Therefore, we seek City Commission approval to authorize the City Manager to execute the following documents:

v Bidding and special services contract for $54,500 with ADG

v Construction contract for $443,678 with Hamm Inc.

v FAA grant agreement for the amount noted above.