NVF:KWF:CAG
3/30/2023
T-44957 / 2009846_2 1
Council Agenda:4-18-23
Item No.:5.2
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
RESOLUTION NO. ______________
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN
JOSE (A) FINDING THAT THE AWARD OF THE
PROPOSED PRE- DEVELOPMENT AGREEMENT (PDA)
FOR THE 10183 - DESIGN-BUILD-FINANCE-OPERATE-
MAINTAIN: DIRIDON STATION TO AIRPORT
CONNECTOR (PROJECT) WILL RESULT IN LOWER
COSTS AND/OR FASTER PROJECT DELIVERY THAN IF
THE CITY USED THE TRADITIONAL PUBLICLY FUNDED
DESIGN-BID-BUILD METHOD OF PROJECT DELIV ERY;
(B) AUTHORIZING THE CITY MANAGER OR THEIR
DESIGNEE TO NEGOTIATE AND EXECUTE THE PDA
WITH THE SAN JOSÉ CONNECTION PARTNERS, LED BY
PLENARY AMERICAS US HOLDINGS INC. (PLENARY) TO
CONTINUE PROGRESS ON THE PROJECT; AND (C)
AUTHORIZING THE CITY ATTORNEY TO NEGOTIATE
AND EXECUTE A THIRD AMENDMENT TO THE
AGREEMENT WITH ASHURST LLP FOR LEGAL
SERVICES RELATED TO THE PROJECT, INCREASING
COMPENSATION BY $100,000 FOR LEGAL SERVICES TO
BE PROVIDED THROUGH PDA IMPLEMENTATION FOR A
TOTAL AMOUNT NOT TO EXCEED $375,000
WHEREAS, the City of San Jos é (“City”) owns and operates the San Jos é Mineta International Airport (“Airport”); and
WHEREAS, City is proposing to construct a transit solution referred to as the Airport Transit Connector Project (“Project”) that will connect passengers directly from the Diridon Station to the Airport; and
WHEREAS, on August 11, 2021, City and Ashurst LLP entered into a Legal Services Agreement, as amended (“Ashurst Agreement”), to support City by devising the optimal commercial, legal and financial structure for the Project and preparing the Project’s Pre- Development Agreement (“PDA”); and
NVF:KWF:CAG
3/30/2023
T-44957 / 2009846_2 2
Council Agenda:4-18-23
Item No.:5.2
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
WHEREAS, on April 26, 2022, City Council adopted uncodified Ordinance No. 30755, known as the “Airport Transit Connector Procurement Ordinance”, that authorized the use of a design-build-finance-operate-maintain (“DBFOM”) method to procure and deliver the Project, subject to City Council making findings that using such a method will save money or result in faster Project completion; and
WHEREAS, on May 10, 2022, City issued the “ 10183 Design-Build-Finance-Operate- Maintain the Airport to Diridon Station Connector Request for Proposal” (“RFP”); and
WHEREAS, the results of City’s evaluation of the proposals to the RFP are summarized in the memorandum Staff has submitted to Council for this item, dated March 27, 2023 (“Council Memorandum”); and
WHEREAS, the Council Memorandum also finds that the award of the PDA for the Project using the DBFOM method will result in lower costs and/or faster Project delivery than if City used the traditional publicly funded design-bid-build method of project delivery; and
WHEREAS, City desires to authorize City Manager or designee to negotiate and execute the PDA with San José Connection Partners, led by Plenary Americas US Holdings I nc. (“Plenary”) to continue progress on the Project; and
WHEREAS, City desires to authorize City Attorney to negotiate and execute a Third Amendment to the Ashurst Agreement for legal services related to the Project, extending the term for a one-year period, expiring on June 30, 2024, and increasing compensation by $100,000, for a total amount not to exceed $375,000;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
NVF:KWF:CAG
3/30/2023
T-44957 / 2009846_2 3
Council Agenda:4-18-23
Item No.:5.2
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
(a) The award of the proposed PDA using the DBFOM method for the Project will result in lower costs and/or faster Project delivery than if the City used the traditional publicly funded design-bid-build method of Project delivery.
(b) The City Manager or their designee is hereby authorized to negotiate and execute the PDA with Plenary to continue progress on the Project.
(c) The City Attorney is hereby authorized to negotiate and execute a Third Amendment to the Ashurst Agreement for legal services related to the Project, extending the term for a one- year period, expiring on June 30, 2024, and increasing compensation by $100,000 for legal services to be provided through PDA implementation for a total amount not to exceed $375,000.
ADOPTED this _____ day of ___________, 2023, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
MATT MAHAN
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk