TITLE
Recommendation to authorize City Manager to execute an “Other Transaction Agreement,” and any necessary amendments, with the United States Department of Homeland Security, Transportation Security Administration, for reimbursement of up to $460,000 for design services related to an In-Line Checked Baggage Inspection Screening Facility. (District 5)
DISCUSSION
On May 8, 2018, the City Council authorized the execution of a design-build contract for the Phase II Terminal Area Improvements, which includes the design and construction of a new In-Line Checked Baggage Inspection Screening facility (CBIS). The Transportation Security Administration (TSA), under the direction of the Department of Homeland Security, is responsible for security of all airports and, under federal law, provides passenger and checked baggage security screening at the Long Beach Airport (Airport). TSA’s Electronic Baggage Screening Program monitors the status of existing Explosive Detection System equipment to ensure compliancy, functionality and efficiency. TSA has notified the Airport of Fiscal Year 2018 (FY 18) funding available for the design of a new CBIS.
The “Other Transaction Agreement” (OTA) sets forth the terms and conditions and establishes the respective cost-sharing obligations of the TSA and the Airport with respect to the design services necessary to implement the CBIS. The design services will result in 30, 70, and 100 percent drawings, specifications, and estimates of probable construction costs for the CBIS, and will be submitted to TSA for review.
The estimated eligible costs for the design services of the CBIS is $431,106. Airport staff time is estimated to be $20,000 for project management. TSA will reimburse the Airport for 95 percent of the allowable, allocable, and reasonable costs up to a total of $460,000.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on ----------------------May 1, 2018 and by Budget Analysis Officer Julissa José-Murray on May 3, 2018.
TIMING CONSIDERATIONS
City Council action is requested on May 22, 2018, to ensure the OTA is fully processed in the strict timeframe required by TSA. Failure to meet TSA’s deadlines could result in loss of funding.
FISCAL IMPACT
Funding for the design of the CBIS is included in the total project costs of the Phase II Terminal Area Improvements project. The amount of Federal OTA funds requested for this design effort is estimated not to exceed $460,000. The OTA is a reimbursement agreement and the Airport must initially fund the project. Reimbursement from TSA will be requested up to the $460,000 maximum, as allowed. The obligation of Airport funds to participate in the OTA totals $23,000. It is anticipated that this project will have a positive impact on the local job market.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JESS L. ROMO, A.A.E.
DIRECTOR, LONG BEACH AIRPORT
APPROVED:
PATRICK H. WEST
CITY MANAGER