TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 36074 with Lean Technology Corporation, of Irvine, CA, for Engineering Design Services for the Rehabilitate Runway 12-30 Lighting Project, to increase the contract amount by $134,247, with a 10 percent contingency in the amount of $13,425, for a revised contract amount not to exceed $659,172, for the current contract term ending October 14, 2023;
Authorize City Manager, or designee, to increase the contract award to The Kennard Development Group, dba KDG Construction Consulting, of Glendale, CA, for Construction Management Services for the Rehabilitate Runway 12-30 Lighting Project, by $356,995, with a 10 percent contingency in the amount of $35,700, for a revised contract amount not to exceed $904,195, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; and
Increase appropriations in the Airport Fund Group in the Airport Department by $540,367, offset by funds available. (Districts 4,5)
DISCUSSION
City Council approval is requested to amend Contract No. 36074 with Lean Technology Corporation (Lean) for Engineering Design Services and to increase the contract award to The Kennard Development Group, dba KDG Construction Consulting (KDG), for Construction Management Services, for the Rehabilitate Runway 12-30 Lighting Project (Project).
On August 10, 2021, the City Council authorized the City Manager to adopt Specifications No. RFQ AP21-054 and award a contract to Lean for Engineering Design Services for the Project, in the amount of $465,000, with a 10 percent contingency in the amount of $46,500, for a total amount not to exceed $511,500.
The Airport Department (Airport) has executed a contract with Lean and the design and construction bidding for the Project have been completed. As part of the engineering design process, Lean performed an investigation of the existing runway lighting fixtures and its components and submitted their findings and recommendations to the Airport. After a thorough review of the report, Airport staff determined that replacement of the Touchdown Zone Lights (TDZ) was required. This additional scope of work includes the removal and replacement of asphalt pavement, pavement grooving and will require adjustments to the project schedule and runway closings (TDZ Additional Scope).
On August 10, 2021, the City Council also authorized a contract award to KDG for Construction Management Services for the Project, in the amount of $465,000, with a 10 percent contingency in the amount of $46,500, for a total amount not to exceed $511,500, for a period of two years, with the option to renew for three additional one-year periods.
The contract execution process with KDG was paused to allow for the completion of Lean’s investigation resulting in the TDZ Additional Scope. Additional resources and time are required for construction management services by KDG because of the TDZ Additional Scope. The additional aggregate contract authority for both Lean and KDG’s contracts in the amount of $540,367 is now required for the Project, which is anticipated to begin July 2022.
This matter was reviewed by Principal Deputy City Attorney Richard F. Anthony on May 2, 2022, Purchasing Agent Michelle Wilson on April 28, 2022, and by Budget Analysis Officer Greg Sorensen on April 29, 2022.
TIMING CONSIDERATIONS
City Council action is requested on May 17, 2022, to ensure contracts are in place expeditiously to meet the anticipated Project commencement start of July 2022.
FISCAL IMPACT
The revised aggregate contract amount for both contracts will not exceed $1,563,367. An increase in appropriation in the amount of $540,367 is requested in the Airport Fund Group in the Airport Department, offset by Airport operating funds available. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. It is anticipated that the revised contract award will continue to have a positive impact on the local job market.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CYNTHIA GUIDRY
DIRECTOR, LONG BEACH AIRPORT
APPROVED:
THOMAS B. MODICA
CITY MANAGER