TITLE
Recommendation to authorize City Manager to execute an amendment to extend Agreement No. 32791 with Paradies-Long Beach II, LLC, and Agreement No. 32846 with Paradies-Long Beach, LLC, each for a period of five years at the Long Beach Airport, and reimburse a one-time total lump sum of $200,000 for early opening assistance and other construction-related costs. (District 5)
DISCUSSION
The City of Long Beach (City), following a Request for Proposals (RFP) for Concessions at the Long Beach Airport (Airport), entered into Concession Agreement Nos. 32791 and 32846 (Agreements) with Paradies-Long Beach II, LLC, and Paradies-Long Beach, LLC, respectively (Paradies) on September 25, 2012.
The contracts stated an expected completion date of spring 2013 for the new post-security Passenger Concourse (Concourse). The Agreements define the various food/beverage, specialty beverage/food, and gift/news/retail concessions facilities (Required Improvements) to be constructed within the Concourse by Paradies on or before December 1, 2012 (Completion Date). During construction of the Concourse, the Required Improvements were simultaneously constructed on behalf of Paradies by Horizon Retail Construction (Concessions Contractor) within the Concourse.
Although the Concourse construction had an expected completion date of Spring 2013, due to the customer inconvenience caused by the ongoing construction, as well as the opportunity for earlier revenue generation, it was determined to be in the best interest of all parties to complete the Concourse improvements sooner.
In the summer of 2012, the Concourse improvements contractor (Former Contractor) defaulted and was replaced by a “completion” contractor. Additional funds and division of work were required to ensure the early opening of the new Concourse.
To assist with the early opening, Paradies provided the following:
· Provision of safety personnel to monitor a passenger / baggage tug crossing.
· Furnish and install...
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