Title
PHX Sky Train Operations and Maintenance Contract 126231 - Amendment (Stage 2 Extension) (Ordinance S-47953)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Operations and Maintenance Contract 126231 with Bombardier Transportation (Holdings) USA Inc., to: extend the term of the Contract for 10 years, for a 20-year aggregate term; and provide operation and maintenance services in support of the Phoenix Sky Harbor International Airport Sky Train. Further request to authorize the City Controller to disburse all funds related to this item. The additional expenditures included in this amendment will not exceed $308,567,412.
Report
Summary
The PHX Sky Train is an important transportation asset to Phoenix Sky Harbor International Airport (PHX). Sky Harbor Boulevard and the surrounding roadway system accommodate all traffic at PHX, and they are used by passengers, employees, airport businesses, and the public to access PHX terminals. While PHX continues to improve this roadway system, it has limited capacity for airport traffic. The PHX Sky Train provides a much needed second mode of transportation for connecting passengers between PHX terminals and parking garages and lots. The Stage 2 extension to the Rental Car Center will replace the need for airport shuttle buses, thereby reducing roadway and terminal curb congestion.
The PHX Sky Train system has been developed in three stages. Stage 1 extends from 44th Street to Terminal 4, which opened for passenger service in April 2013. The extension of the system from Terminal 4 to Terminal 3 (Stage 1A) opened in December 2014. The final phase of the project (Stage 2) extends the Sky Train system from Terminal 3 to the Rental Car Center and is expected to open in summer 2022.
The Stage 2 extension will add two and a half miles of dual-lane guideway, two new stations at 24th Street and the Rental Car Center, and 24 additional train cars. After it is completed, the system will consist of five miles of dual-lane guideway, six stations, and a total fleet of 42 train cars.
Bombardier was originally selected for this work using a two-step design-build-operate-maintain procurement process in accordance with Arizona Revised Statute Title 34, as managed by the City Engineer.
The Stage 2 extension requires Contract 126231 (Contract) to be amended to allow for the increase in operations and maintenance associated with the extension of the system to the Rental Car Center (Stage 2).
This Contract is essential to the health, safety, and welfare of the public and critical to operations for the City.
Contract Term
The Contract commenced on April 1, 2013 and has a 10-year term. The Contract extension will begin on or about June 1, 2022 for an additional 10-year term; the aggregate contract term for operation and maintenance of the entire system will be 20 years, with no options to extend.
Financial Impact
The initial authorization and previous amendments for the Operations and Maintenance contract were authorized for an expenditure not-to-exceed $85,819,679.07. This amendment will increase the authorization for the contract by an additional $308,567,412, for a new total not-to-exceed contract value $394,387,091.07, which includes a not-to-exceed five percent annual economic price adjustment.
Funding is available in the Aviation Department’s operating budget.
Concurrence/Previous Council Action
The City Council approved:
- Operating System Operations and Maintenance Contract 126231 (Ordinance S-36228) on July 10, 2009;
- Operating System Operations and Maintenance Contract 126231 - Amendment (Ordinance S-39113) on July 3, 2012; and
- Operating System Operations and Maintenance Contract 126231 - Amendment (Ordinance S-41273) on Nov. 19, 2014.
Location
Phoenix Sky Harbor International Airport - 3400 E. Sky Harbor Blvd.
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.