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Airport Noise Insulation Approve Amendment 2 September 19, 2011 of Contract and Change Order • Authorize the appropriation of funds from the Port of Oakland in the amount of $5,054,071 to fund the remainder of the program. BACKGROUND The City of San Leandro entered into a settlement agreement with the Port of Oakland on December 5, 2000, with an addendum dated July 22, 2003. Under the terms of the agreement, the Port agreed to fund a City- administered Residential Noise Insulation Program for 200 homes. On January 26, 2004, the City Council approved the contractual services agreement with C. Kell - Smith & Associates, Inc., for professional services related to the administration of the Residential Airport Noise Insulation Program. On September 2, 2004, C. Kell -Smith administered a lottery to determine which homes would be participating in the program. On January 17, 2006, the City Council awarded the Introductory Phase contract to G.E. Chen Construction, Inc. The Introductory Phase consisted of providing soundproofing to 10 homes to reduce the impact of aircraft generated noise on the occupants. The Introductory Phase was completed and the City Council accepted the work on September 18, 2006. Phase 1 consisted of providing soundproofing to 77 homes. Phase 1 was completed and the City Council accepted the work on March 16, 2009. Phase 2 of the program will provide the same or similar soundproofing as Phase 1 to seventy - three (73) homes to reduce the impact of aircraft generated noise. Phase 2 is a 180 calendar day project with projected completion by December 21, 2012. Phase 3 will provide the same or similar soundproofing as Phases 1 and 2 to 46 homes to reduce the impact of aircraft generated noise and will also be a 180 calendar day project. Construction for Phase 3, per the terms of the addendum to the settlement agreement signed by the City Manager on August 17, 2011, will begin if and when the Port of Oakland's debt service reaches the threshold as agreed upon in the addendum. The contractor in this project works directly for the City and is under the direct supervision of the City's project manager, the Chief Building Official. Funding for Phases 2 and 3 work specified under bid 05- 06.023 (estimated total cost of Phase 2 of this project, including contingency and permit fees, to be valued at approximately $3,424,934; and total cost of Phase 3 of this project, including contingency and permit fees, to be valued at approximately $1,629,137) will come from the Port of Oakland in accordance with the terms of the addendum to the settlement agreement. DISCUSSION The following summarizes the scope of services and the process for selection of the Consultant. General Scope of Work The consultant will be responsible for project management, construction management, architectural /engineering work, and public outreach. The consultant will work with City staff to develop and implement the Program. The consultant will be responsible for