TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary to amend Contract No. 35531 with Anser Advisory, LLC (formerly DBA Simplus Management LLC), of Santa Ana, CA, to provide construction management services for the Phase II Terminal Area Improvements at the Long Beach Airport, to increase the contract amount by $3,538,000, for a revised contract amount not to exceed $7,485,843, for a period of three years, with option to renew for two additional one-year periods, at the discretion of the City Manager; and
Increase appropriations in the Airport Fund Group in the Airport Department by $3,538,000, offset by funds available. (District 5)
DISCUSSION
City Council approval is requested to amend Contract No. 35531 with Anser Advisory, LLC (Anser), to increase the contract amount by $3,538,000, for a new total amount of $7,485,843.
On May 12, 2020, the City Council adopted Resolution No. RES-20-0061 and awarded a contract to Anser to continue providing construction management services for the Phase II Terminal Area Improvements (Phase II) at the Long Beach Airport (Airport), in the amount of $3,947,343, for a period of three years, with option to renew for two additional one-year periods.
Since the contract was awarded, the Airport has re-sequenced the Phase II program schedule due to the impact of the COVID-19 pandemic. The primary objective of re-sequencing the schedule was to reduce short-term cash expenditures, while continuing with the prioritized portions of the program. The Airport has since substantially completed the Checked Baggage Inspection System (CBIS) facility, which is funded in part by a grant from the United States Department of Homeland Security, Transportation Security Administration. The Airport has also initiated construction on the Ticketing Building, Baggage Claim Area, and associated hardscaped areas.
The initial Anser contract award covered construction management services for the CBIS and Ticketing Building underground work (utilities, foundation, and slab). The Ticketing Building has progressed beyond this milestone, is currently at 70 percent completion, and is estimated to be complete by first quarter 2022. Construction of the new Baggage Claim has also commenced, is at 15 percent completion, and is estimated to be completed in fourth quarter 2022. The re-sequencing of the Phase II necessitates an amendment to increase the contract authority above the amount originally authorized by the City Council.
The requested increase amount of $3,538,000 to complete the first three project components is anticipated to allow construction management services to continue through fourth quarter 2022. The Airport continues to evaluate economic conditions and impacts due to COVID-19, to ensure operations remain consistent and continuation of Phase II remains viable. Should the remaining program components continue, such as Historical Terminal Improvements, Meeter and Greeter Plaza, and associated enhancements, staff will return to the City Council to request additional contract authority and an increase in appropriations for costs projected through first quarter 2024.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on August 12, 2021 and by Budget Analysis Officer Greg Sorensen on August 16, 2021.
TIMING CONSIDERATIONS
City Council action is requested on September 7, 2021, to maintain continuous construction management services for Phase II.
FISCAL IMPACT
The total contract amount with Anser will not exceed $7,485,843 for a period of three years. All other terms and conditions of the contract remain the same. An appropriation increase of $3,538,000 is requested in the Airport Fund Group in the Airport Department, offset by funds available, for construction management services. Should the program require additional budget, staff will return to the City Council to request additional authority and the appropriations necessary for construction management services to complete subsequent project components. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. The continuation of this contract is anticipated 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