TITLE
Recommendation to adopt Plans and Specifications No. R-6874 for the construction of Phase I Improvements to the Terminal Area at the Long Beach Airport; and authorize City Manager to award a contract and execute any and all necessary documents with Edge Development, Inc., in an estimated amount of $24,757,741, plus a fifteen percent contingency amount of $3,713,661, if necessary, totaling $28,471,402, and any amendments thereto except for an increase in the total authorization. (District 5)
DISCUSSION
On February 18, 2003, the City Council authorized the completion of an Environmental Impact Report (EIR) for the Airport Terminal Improvement Project (Project). From February 2003 through June 2006, the City conducted the EIR process culminating in City Council certification of the EIR on June 20, 2006. On April 24, 2007, the City Council approved a maximum area of 89,995 square feet for the terminal component of the Project and authorized the preparation of final plans and specifications, cost estimates and a financing plan for construction of the Project.
Focusing on customer service, Airport staff identified three immediate priorities for construction of the terminal component of the Project: permanent structures to serve as passenger holdrooms, a consolidated passenger screening checkpoint and enhanced concession areas. These priorities served as the benchmark for the design of the Phase I Improvements to the Terminal Area at the Long Beach Airport (Concourse Improvements). On April 12, 2010, the Long Beach Cultural Heritage Commission approved a Certificate of Appropriateness for the Concourse Improvements. On April 15, 2010, the Long Beach Planning Commission approved the site plan for the Concourse Improvements.
The Concourse Improvements will replace the existing temporary modular facilities with permanent hold rooms and concession facilities. The project will include 43,690 square feet of construction. Approximately 34,750 square feet of the construction will replace 19,900 square feet currently in use and will house hold rooms, restrooms, concession facilities and secured circulation corridors. A central garden area will connect the new north and south holdrooms. The remaining 8,940 square feet of construction will replace 3,900 square feet currently in use and will be utilized as a consolidated passenger security-screening checkpoint, which will be designed to meet current Transportation Security Administration standards.
Due to the favorable construction market, the Airport has made a determination to include a series of Additive Alternates in the contract award. Additive Alternate A will include the relocation of an existing baggage makeup carousel and canopy allowing for improved passenger egress from the new concourse. Additive Alternate B will include the construction of the new passenger security screening checkpoint listed above. Additive Alternate C will include the removal of an existing canopy that will also allow for improved passenger egress from the new concourse. Additive Alternate D will include the construction of a Meeters and Greeters Plaza that will provide a pleasant, landscaped area for the general public to wait for arriving passengers. Additive Alternate E will include the construction of additional walkway canopies providing an additional covered passenger egress path. Additive Alternate I will include the installation of a temporary hold room that will allow for the permanent holdrooms to be constructed simultaneously to help reduce the overall time impact to the traveling public.
City Council's adoption of the plans and specifications and award of the contract to the lowest responsible bidder are being recommended concurrently in order to expedite implementation of this project. The Concourse Improvements were advertised for bid on October 28,2010, and bids were opened on November 24,2010. Seventeen sets of bid documents were purchased by prospective bidders and six bids were received. There were no local-owned businesses, MBE, DBE or WBE registered firms that submitted bids. Edge Development, Inc., of Temecula, California, has been determined to be the lowest responsible bidder.
In accordance with the California Environmental Quality Act, Environmental Impact Report No. 37-03 related to the Concourse Improvements was prepared and certified by the City Council on June 20, 2006. The Concourse Improvements also received a Categorical Exclusion pursuant to Federal Aviation Administration Order 1050.1 E (in accordance with the National Environmental Protection Act) on September 14, 2010.
This letter was reviewed by Deputy City Attorney Linda Trang and Budget and Performance Management Bureau Manager Lou Palmer on December 2, 2010.
SUSTAINABILITY
The Concourse Improvements have been designed to incorporate many sustainable design features. Upon completion, the new facilities will attain Leadership in Energy and Environmental Design (LEED) certification. The sustainable design features include the incorporation of high-recycled-content building materials, canopies and louvers to provide protective shading, roof-mounted photovoltaic (solar) panels, specialized lighting controls, low-flow plumbing fixtures, state of the art glazing technologies and many other features designed to earn LEED credits. The solar panels will offset approximately 13 percent of the power demand for the new facility. In addition to the LEED Certification process, the Airport has partnered with Southern California Edison through the "Savings by' Design" program to help maximize the energy efficiency of the new facility.
TIMING CONSIDERATIONS
On October 19, 2010, the City Council authorized the sale of bonds to refinance the design costs and finance the construction of the Concourse Improvements, payoff the balance of the Airport Commercial Paper Program and finance the bond issuance costs.
City Council action on this matter is requested on December 14, 2010, in order to execute a construction contract and finance and facilitate the commencement of construction. Groundbreaking for the Concourse Improvements is scheduled for December 22, 2010. Construction is expected to begin in January 2011 with an anticipated completion date of May 2013.
FISCAL IMPACT
The contract award is for an estimated amount of $24,757,741, which includes the Base Bid plus Additive Alternates A, B, C, D, E and I, plus a fifteen percent contingency of $3,713,661, if necessary, for unforeseen conditions. An additional estimated amount of $8,181,315, which is not part of the construction contract award, is needed to cover the City's indirect costs, construction management, materials testing, inspection, design team services during construction, labor compliance monitoring, plan check and permit fees.
Sufficient appropriation was authorized by the City Council in the Airport Enterprise Fund (EF 320) in the Airport Department (AP) on October 19, 2010, as part of the authorization for the sale of bonds. The appropriation will be funded by the proceeds of the bond sale. There is no impact to the General Fund. It is anticipated that the Concourse Improvements will provide for approximately 300 jobs. The contract is subject to Project Labor Agreement No. 31821 authorized by the City Council on August 3, 2010, which contains provisions for priority referrals for Section 3 and local residents.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MARIO RODRIGUEZ MICHAEL P. CONWAY
DIRECTOR DIRECTOR
LONG BEACH AIRPORT DEPARTMENT OF PUBLIC WORKS
APPROVED:
PATRICK H. WEST
CITY MANAGER