Report to the BOARD OF AIRPORT COMMISSIONERS
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1 Los A ngeles W orld A irports Report to the BOARD OF ARPORT COMMSSONERS tem h 0 r ApProve b : ntissar am,,s a.-f Airports Engineer Meeting Date: August 20, "Af Reviewed by oger A. on, Deputy Executive Director City 'Pm'..."..- dli-lash- j CAO Review: D Completed Reviewed for 1 O Pending N/A Date 1 Approval Status i Ay 1 1 Capftal Budget! YOND NA( DS 06/20/13 DYN Operang Budget irtl NA i RW.. CEOA 06f25/13 Y 0 N 1 ES Gina Marie Lindsey, - Executive Direct. Procurement 1 06/24/13 ; Y O N Cand 1 MT! SUBJECT: Approve CGMP for Terminal 2 Renovation - Electrical Upgrades»pproval of Component Guaranteed Maximum Price (CGMP 03.01) to Contract No. DA-4779 with Turner Construction Company for 'Terminal 2 Renovation", electrical upgrade work package at Los Angeles nternational Airport and appropriate funds in the amount of $247,200. RECOMMENDATONS: Management RECOMMENDS that the Board of Airport Commissioners: 1. ADOPT the Staff Report. 2. DETERMNE that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article, Section 2.f of the Los Angeles City CEQA Guidelines. 3. APPROVE Component Guaranteed Maximum Price (CGMP 03.01) Package, in the amount of $247,200, as part of Contract No. DA-4779 with Turner Construction Company for the "Construction of Central Terminal Area mprovements" at Los Angeles nternational Airport. 4. APPROPRATE capital funds in the not-to-exceed amount of $247,200 for this work. 5. AUTHORZE the Executive Director to execute CGMP Page 1 Turner CGMPO3 T2 Electrical nvestigationcdoc
2 DSCUSSON: 1. Executive Summary Staff requests the Board of Airport Commissioners approve Component Guaranteed Maximum Price package (CGMP 03.01) to Contract No. DA-4779 with Turner Construction Company (Turner) for the project entitled "Terminal 2 Renovation" for initial work on the electrical upgrade work package at Los Angeles nternational Airport (LAX) and appropriate funds in the amount of $247,200. This CGMP is Phase of the overall scope of work to upgrade the electrical system in Terminal 2. The scope of work for this phase includes an initial, comprehensive assessment of the existing system to determine its functionality to support the required upgrades. Data from this assessment is required to complete plan preparation and obtain Los Angeles Department of Building and Safety plan check and permits. Staff will return to the Board in October 2013 to approve and fund the remaining phases of the electrical upgrade work in Terminal Prior Related Actions The Board, by Resolution No dated September 19, 2011, approved using alternate project delivery methods for certain improvements in the Central Terminal Area (CTA) at LAX. On March 7, 2012, the City Council approved Ordinance No , Council File No , authorizing the use of Alternate Project Delivery Methods for certain projects in the CTA, including the Midfield Satellite Concourse. On June 18, 2012, the Board authorized the Executive Director to advertise and release a Request for Proposals (RFP) using Competitive Sealed Proposals to procure a Construction Manager at Risk and Design-Build firm to construct select capital improvement projects within the CTA at LAX (Resolution Number 24822). On December 17, 2012, by Resolution Number 24985, the Board awarded Contract No. DA to Turner for the project entitled "Construction. of Central Terminal Area mprovements" at LAX. This contract provides for the use of both Construction Manager at Risk (CMAR) and Design-Build project delivery methods. The contract has a maximum not-to-exceed limit of $300,000,000 and a budgeted owner's contingency of $75,000,000. Original Contract Amount $ 300,000,000 Owner's Contingency 75,000,000 TOTAL $ 375,000,000 To date, the Board has appropriated the following for Contract DA-4779: Pre-Construction Services $ 1,500,000 CGMP's ,604,600 Owner's Contingency 379,275 TOTAL $ 3,483,875 Page 2 Turner CGMPO3 T2 Electrical nvestigationadoc
3 m 3, Current Action Staff requests Board approval of CGMP 03.0, and appropriation of funds in the amount of $247,200 for the first phase of an electrical upgrade work package under Contract No. DA-4779 with Turner Construction Company. Background Terminal 2 is the second largest international terminal at LAX. Last year Terminal 2 served approximately 4.6 million international passengers. The terminal is approximately 30 years old and in need of improvements. LAWA has initiated a Terminal 2 mprovement Program designed to significantly improve the Terminal's level of service. The Terminal 2 mprovement Program will provide major upgrades to the ticket lobby, bag claim, and concourse areas, as well as construction of all new concessions. To support these improvements, the building systems will have to be upgraded to ensure they meet current building codes, provide long-term reliability, and can accommodate future demands due to the terminal upgrades and potential future increased passenger traffic within the terminal. Upgrading of the electrical system within Terminal 2 is a fundamental pre requisite improvement to all future renovations in Terminal 2. The Terminal 2 electrical system has gone through numerous changes over the years including the addition of undocumented new electrical loads impacting the equipment's ability to meet current and projected future demands and to comply with current building codes. To accomplish the improvement in Terminal 2, staff is working with Turner to develop component work packages that will be routinely presented to the Board for approval and funding. These work packages may be delivered through CMAR methods whereby Turner constructs the work based on design documents provided by LAWA or through Design-Build methods based on design documents prepared by Tumer. n both cases, Turner guarantees a component maximum price, or CGMP, for the scope of work. The electrical scope of work will be done by Turner using the design-build method, whereby Turner will retain an electrical design consultant to prepare plans and specifications that will then be competitively bid by Turner. Staff determined that this is the most efficient method to implement a system improvement of this type making the contractor responsible not only for the construction phase but for the detailed design and plan check, and extensive permitting process and coordination with Los Angeles Department of Building and Safety as well as the tenants in the terminal. All the electrical upgrades in Terminal 2 will be done in at least two phases under CGMP 03. The scope of work covered under the first phase is as detailed below: CGMP (Phase l) The scope of work under this package, known as CGMP 03.01, includes, but is not limited to: Evaluating existing electrical infrastructure, both systems and physical locations, to determine its long-term functionality Determining actual power supply, capacities, loads and timely consumption readings on all of the existing electrical system. Page 3 Turner CGMPO3 T2 Electrical nvestigationadoc
4 7-Th Preparing initial and final reports of findings that will be used to inform the overall scope of the required upgrades and to obtain Los Angeles Department of Building and Safety plan check and permit approvals The cost of work for this Phase is $247,200 which includes the actual cost of the work and Turner's fee which covers profit, general and administrative overhead, and other general expenses. Since the scope of work covered under this CGMP includes preliminary design services only, no construction, a LAWA contingency is not needed at this time. Staff will return to the Board with additional requests for appropriation to fully fund CGMP 03 and its subsequent phases of work anticipated as follows: CGMP 03 - Electrical Upgrade Phase - Electrical Panel & Meter Readings Phase - Electrical Upgrades Cost of Work $ 247,200 LAWA Contingency % Amount 0% $ 0 Total $ 247,200 Total CGMP to Date $ 247,200 0% $ 0 $ 247,200 Budget: The proposed CGMP is based upon Turner's estimate of the cost of work. ADG reviewed the estimate and determined it to be reasonable and within budget for the LAWAestimated value for the work. Staff will return to the Board to request funding for Phase of this CGMP upon completion of Turner's competitive bid process. Minoritv/Women Business Enterprise Participation: Turner committed to an overall 15.3% combined Minority/Women Business Enterprise (M/WBE) participation on the construction phase of the "Construction of CTA mprovements" project under Contract No. DA Turner indicates that the will be no M/WBE participation on this pre-construction scope of work. Requested Board Action Staff requests the Board approve CGMP and appropriate funds in the amount of $247,200 for the first phase of an overall work package, CGMP 03, for electrical upgrades in Terminal Alternatives Considered Use On-call Architectural Services Staff considered using an existing on-call architectural design services contract to perform this system assessment and investigation scope of work, however it was determined that it was more effective and efficient to use the benefds of the existing Design-Build contractor as Turner will be involved in all subsequent phases of the project. n accordance with Resolution No , approved by the Board on December 17, 2012, the CGMP process is the approved method for initiating work under Contract No. DA-4779 with Turner. Defer the work This work is required in order to prepare and finalize bid documents for the broader electrical upgrade in Terminal 2. An upgrade to the electrical system in the terminal is fundamental to carrying out subsequent much needed terminal improvements. Page 4 Turner CGMPO3 T2 Electrical nvestigations.doc
5 ' ascal & ECONOMC MPACT STATEMENT: "Terminal 2 Renovations" is a Board-approved capital project. Staff requests funds in the not-toexceed amount of $247,200 be appropriated and allocated from the LAX Revenue Fund to WBS Element (Terminal 2 Renovations) and other respective WBS Elements as may be required. STANDARD PROVSONS: 1. This action, as a continuing administrative activity, is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article, Section 2.f of the Los Angeles City CEQA Guidelines 2. The underlying contract was approved as to form by the City Attorney. 3. Actions taken on this item by the Board of Airport Commissioners will become final pursuant to the provisions of Los Angeles City Charter Section This action is not subject to the provisions of the Service Contractor Worker Retention and Living Wage Ordinances. 5. Procurement Services Division has reviewed this action (File #5786) and established a 15% combined Minority/Women Business Enterprise level of participation for the Construction Phase and 0% combined Minority/Women Business Enterprise level of participation for the Pre- Construction Phase of the project. Turner Construction Company committed to an overall 15% combined Minority/ Women Business Enterprise (M/W/DBE) participation for the "Construction of Central Terminal Area mprovements" project. Turner estimates a 20% combined M/W/DBE participation for this work package. 6. This action is not subject to the provisions of the Affirmative Action Program. 7. This action does not require a Business Tax Registration Certificate. 8. This action is not subject to the provisions of the Child Support Obligations Ordinance. 9. This action is not subject to the insurance requirements of the Los Angeles World Airports. 10. This action is not subject to the provisions of City Charter Section 1022 (Use of ndependent Contractors). 11. This action is not subject to the provisions of the Contractor Responsibility Program. 12. This action is not subject to the provisions of the Equal Benefits Ordinance. 13. This action is not subject to the provisions of the First Source Hiring Program. 14. This action is not subject to the provisions of Bidder Contributions CEC Form 55. Page 5 Turner CGMPO3 T2 Electrical investigationadoc
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