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Committee endorses final modification to airport hotel project contract, approves $4.6 million increase

Budget and Finance Committee · October 4, 2018

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Summary

The committee forwarded Modification No. 5 to the PGH Wong contract for the SFO airport hotel program, increasing the contract by $4.6 million and extending its term; the Budget Analyst recommended approval and said this likely will be the final modification.

The Budget and Finance Committee moved Modification No. 5 to a project-management contract with PGH Wong for the on‑airport hotel project at San Francisco International Airport to the full Board with a positive recommendation. Kathy Weidner (San Francisco International Airport) said the modification would increase the contract by $4.6 million and extend the term to June 10, 2019 (as presented in the committee record) to support the Grand Hyatt hotel and associated roadway and aircraft‑parking reconfiguration. She told the committee the hotel is expected to be completed by the end of 2019.

Sevin Campbell of the Budget Analyst Office summarized procurement history, noting the original contract was competitively awarded in February 2015 and that the airport has increased the contract over time; the BLA recommended approval and indicated this should be the last modification. A public commenter criticized airport spending and urged pausing the project; the clerk ended the comment when the speaker's time expired.

The committee forwarded the modification to the full Board with a positive recommendation. Departments and the Budget Analyst provided supporting budget detail in the BLA report; the committee record contains some garbled date and numeric transcriptions and those items should be verified in the BLA and airport materials before publication.