TITLE
Recommendation to authorize City Manager, or designee, to execute a Facility Modification “Other Transaction Agreement,” and any necessary amendments, with the United States Department of Homeland Security, Transportation Security Administration, and increase reimbursement by $4,750,000, for a total reimbursement amount not to exceed $11,400,000, for the construction of an In-Line Checked Baggage Inspection Screening Facility at the Long Beach Airport. (District 5)
DISCUSSION
On July 10, 2018, the City Council authorized the City Manager to execute the Transportation Security Administration (TSA) Facility Modification “Other Transaction Agreement” (OTA) for reimbursement of up to $6,650,000 for the construction of an In-Line Checked Baggage Inspection Screening Facility (CBIS) as part of the Phase II Terminal Area Improvement Project at the Long Beach Airport (Airport). The reimbursement amount was based on independent cost estimates provided to the Airport.
Swinerton Builders, the contracted Design-Builder, has completed the development of the Guaranteed Maximum Price (GMP) for construction of the CBIS facility. The results of this work showed that TSA-eligible costs for reimbursement exceeded the original amount the Airport requested from TSA.
The current allowable and allocable cost identified in the GMP is $12,000,000. The TSA is currently reviewing the GMP and the allowable and allocable costs associated with the CBIS. Should the TSA concur with the GMP and approve the funding of 95 percent of the allowable and allocable costs, the reimbursement from TSA is estimated to be up to $11,400,000.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on August 18, 2018 and by Revenue Management Officer Geraldine Alejo on August 27, 2018.
TIMING CONSIDERATIONS
City Council action is requested on September 11, 2018, to ensure the City has the authority to accept increased grant funding from TSA. Failure to meet TSA’s deadlines coul...
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