TITLE
Recommendation to authorize City Manager to execute all documents necessary for an agreement with Richard J. Mendoza, Inc., a California corporation, doing business as Mendoza & Associates, for consulting services for construction management of the Phase 1 Terminal Improvements at the Long Beach Airport for an initial 42-month term in an amount not to exceed $3,500,000; and execute any amendments to extend the term for up to one additional year and authorize additional services within the provisions of the contract. (District 5)
DISCUSSION
On April 24, 2007, the City Council authorized the preparation of final plans and specifications, cost estimates and a financing plan for construction of the Airport Terminal Improvement Project (Project). On April 12, 2010, the Long Beach Cultural Heritage Commission approved a Certificate of Appropriateness for the terminal component of the Project, the Phase I Terminal Improvements. On April 15, 2010, the Long Beach Planning Commission approved the site plan for the Phase I Terminal Improvements, which will replace the existing temporary trailer facilities with permanent holdrooms and concession facilities.
The City has historically used consultants on an as-needed basis for capital improvement projects related to the Airport in an effort to augment available staff in the Airport's engineering division. A Request for Qualifications (RFQ) was conducted in accordance with Administrative Regulation 8-4, "Selecting Professional Services," as well as Federal Aviation Administration requirements, for consulting services for construction management for the Phase I Terminal Improvements. The RFQ was released via the City's Purchasing website and 13 firms submitted qualifications in response to the RFQ, including two firms from Long Beach. Not all of the firms were able to provide evidence of experience in aviation construction projects. The selection committee evaluated each RFQ and, based on qualifications and proposed approaches for construction management, four firms were selected for an interview presentation. The selection committee determined that Mendoza & Associates (Mendoza) was best qualified for the Project. Based in San Francisco, California, Mendoza is also a State certified Disadvantaged Business Enterprise (DBE) that supports the City's Federal DBE goal, which ranges from two to six percent. Mendoza has opened a local office in Long Beach at the Kilroy Airport Center.
The proposed agreement for consulting services for construction management for the Phase I Terminal Improvements will contain the following major terms and provisions:
· Client: City of Long Beach.
· Consultant: Richard J. Mendoza, Inc., a California corporation doing business as Mendoza & Associates.
· Services: Consulting services for construction management of the Phase I Terminal Improvements may include design level constructability review, cost estimating, construction scheduling, construction cost controls, construction phasing within an existing and operating terminal facility, inspections, materials testing, surveying and labor compliance.
· Term: The 42-month term shall be effective as of July 12, 2010 and shall terminate on January 11, 2014.
· Option to Extend: The City shall have the ability to extend the term of the agreement for up to a one-year period.
· Service Fee: The fee for services based on the projected schedule and tasks is estimated to range between $2.8M and $3.5M depending on the actual construction contract amount, number of additive alternatives awarded and unforeseen conditions. The estimated fee for services shall be composed of the following phases:
Pre-Construction Phase $ 223,000
Construction Phase $2.5M - $3.1M
Post-Construction Phase $ 116,000
As allowed under purchasing guidelines and in an effort to remain on schedule for the Phase I Terminal Improvements, the Airport issued a $10,000 purchase order on July 12, 2010, with Mendoza to commence preliminary Pre-Construction Phase work. Pursuant to City Council approval of the agreement, the purchase order amount will be included in the Service Fee listed above and the effective date of the agreement shall be July 12, 2010.
This letter was reviewed by Deputy City Richard F. Anthony on July 19, 2010 and Budget Management Officer Victoria Bell on July 16, 2010.
TIMING CONSIDERATIONS
City Council action is requested on August 10, 2010, to allow for the immediate execution of the agreement for the full commencement of the Pre-Construction Phase of the services.
FISCAL IMPACT
Sufficient funds are budgeted in the Airport Enterprise Fund (EF 320) in the Airport Department (AP) for the Pre-Construction Phase of the agreement. There is no impact to the General Fund.
It is anticipated that Airport and Financial Management will return to City Council in late October 2010 for City Council approval of the financing plan for the sale of bonds for the Phase I Terminal Improvements. The Construction and Post-Construction Phases of the agreement not currently budgeted will only proceed at such time that appropriations have been approved by the City Council in association with the approvals for the financing plan for construction of the Phase I Terminal Improvements. The agreement will provide for approximately five full-time equivalent jobs.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MARIO RODRIGUEZ
DIRECTOR, LONG BEACH AIRPORT
APPROVED:
PATRICK H. WEST
CITY MANAGER