Los Angeles World Airports

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1 Los Angeles World Airports m RESOLUTION NO BE IT RESOLVED that the Board of Airport Commissioners approved Resolution requesting the Los Angeles City Council consider and approve an ordinance allowing its Chief Executive Officer to use Alternate Project Delivery Methods and the Competitive Sealed Proposal Selection Process to procure Design-Build or Construction Manager At Risk contracts for delivery of select Capital Improvements Projects related to the Airport Police Facility at Los Angeles International Airport (LAX), as referenced in the Board-adopted staff report attached hereto and made part hereof; and LAX Van Nwys City of Los Angeles Eric Garcetti Mayor Board of Airport Commissioners BE IT FURTHER RESOLVED that the use of Design-Build and Construction Manager at Risk as Alternate Project Delivery Methods or the Competitive Sealed Proposal Selection Process for select Capital Improvements Projects should be authorized based on operational need, schedule, and technical aspects of the LAX Airport Police Facility and that awarding to the lowest responsive and responsible bidder is not practicable or advantageous; and Sean 0. Burton President Valeria C. Velasco Vice President Jeffery J. Daar Gabriel L. Eshaghian Beatrice C. Hsu Thomas S. Sayles Dr. Cynthia A. Telles Deborah Flint Chief Executive Officer BE IT FURTHER RESOLVED that the adoption of ordinances that do not result in impacts on the physical environment, is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article II Section 2(m) of the Los Angeles City CEQA Guidelines; and BE IT FURTHER RESOLVED that actions taken on this item by the Board of Airport Commissioners will become final pursuant to the provisions of Los Angeles City Charter Section 371(b). 0O0 I hereby certify that this Resolution No is true and correct, as adopted by the Board of Airport Commissioners at its Regular Meeting held on Thursday, February 16, Sandra J. Miller - Secretary BOARD OF AIRPORT COMMISSIONERS UI j \\ \ 1 Worfff Way Los Angeles California Mail RO. Box Los Angeles California Telephone Internet

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2 ESTg raff d IE&1 j*.-»&j A Si.' Silijiii Si or inrorts j6 2k{ 6 Ait \; - W. icsj 8fllig flfa lbi 4. 1;[,v-aVv SK ' if. REP'ORT'im# 3^.5 :' xi?ly ' 'r*' n - - V " I V4i i*.. :vf j v-ik1'^' 9 1 a$ yt,\ ** 1 m * BOARD OF AIRPORT COMMISSIONERS m i % Meeting Date: Myc^.'!'.wW* A Approved by/ Gnbg S. fcapipbell Cbi jrports Engineer Reviewed by: V CynftriiC^Mtffry, D^ptily ecutive Director CAO Review: Completed Pending N/A Approval A, Reviewed for Date Status X City/Attbrn Finance 1/13/2017 Deborah Fnnt^-Gbief Executive Officer CEQA 1/12/2017 Procurement 1/17/2017 Guest Experience 1/19/2017 BY N NAkw BY N NIM BY nnncundkt BY DN BY SUBJECT: Resolution Requesting Los Angeles City Council Consider and Approve an Ordinance Allowing for Alternate Delivery Methods and Competitive Sealed Proposal Selection Process Resolution requesting the Los Angeles City Council consider and approve an ordinance allowing the Board of Airport Commissioners to authorize its Chief Executive Officer to use Alternate Project Delivery Methods and the Competitive Sealed Proposal Selection Process to procure Design-Build or Construction Manager At Risk contracts for delivery of select Capital Improvements Projects related to the Airport Police Facility at Los Angeles International Airport (LAX). RECOMMENDA TIONS: Management RECOMMENDS that the Board of Airport Commissioners: 1. ADOPT the Staff Report. 2. DETERMINE that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2.m of the Los Angeles City CEQA Guidelines. 3. FURTHER ADOPT resolution requesting the Los Angeles City Council to consider and approve an ordinance allowing the Board of Airport Commissioners to authorize its Chief Executive Officer to let Design-Build or Construction Manager at Risk contracts for delivery of select Capital Improvement Projects related to the LAX Airport Police Facility pursuant to the Competitive Sealed Proposal selection process. 4. FIND that use of Design-Build and Construction Manager at Risk as Alternate Project Delivery Methods or the Competitive Sealed Proposal Selection Process for select Capital Improvements Projects should be authorized based on operational need, schedule, and Page docx

3 technical aspects of the LAX Airport Police Facility and that awarding to the lowest responsive and responsible bidder is not practicable or advantageous. DISCUSSION: 1. Purpose Adopt a resolution requesting the Los Angeles City Council consider and approve an ordinance allowing Los Angeles World Airports (LAWA) to use Alternate Delivery Methods and Competitive Sealed Proposal selection process for the delivery of select capital improvement projects and their primary components related to the LAX Airport Police Facility. Primary components include, but are not limited to Administration Building(s), Canine/ Bomb Squad, Shooting Range and Training, Maintenance and Storage, ancillary facilities, associated parking, and their components as they relate to the LAX Airport Police Facility. The use of both Alternate Delivery Methods or Competitive Sealed Proposal selection process will allow for expedited delivery of Program elements. 2. Prior Related Actions October 20, Resolution No The Board of Airport Commissioners (Board) approved Design-Build (DB) and Construction Manager at Risk (CMAR) delivery methods for the LAX Central Utility Plant (CUP) and Bradley West, respectively. On October 30, 2008 the City Council approved Ordinance No , authorizing an Alternate Project Delivery method for the Tom Bradley International Terminal Reconfiguration and CUP Replacement Projects. September 19, Resolution No Requested the City Council adopt an ordinance allowing the use of DB and CMAR delivery methods for the delivery of select elements of the Capital Improvement Program (CIP), including renovations and upgrades to the Central Terminal Area (CTA) and several terminals. November 7, Resolution No Board amended Resolution No to include the proposed Midfield Satellite Concourse (MSC) project at LAX in the requested Los Angeles City Council Resolution and ordinance allowing Alternate Project Delivery methods and Competitive Sealed Proposal Selection process to let CMAR and DB contracts. On March 7, 2012, the City Council approved Ordinance No , authorizing an Alternate Project Delivery method for MSC. December 18, Resolution No Board awarded a two (2) Phase DB contract to Turner-PCL, a joint venture for the MSC North project at LAX. April 16, Resolution No Board requested the City Council adopt an ordinance allowing the use of DB, Design Build Operate and Maintain (DBFOM) or CMAR delivery methods for the delivery of select elements related to the LAX Landside Access Modernization Program (LAMP) at LAX. On May 27, 2015, the City Council approved Ordinance No , authorizing an Alternate Project Delivery method for the LAX LAMP. Page 2

3. Current Action The Los Angeles Airport Police Division (APD) has over 1,000 sworn, and non-sworn Officers, and administrative personnel operating at nine separate locations within LAX.

4 3. Current Action The Los Angeles Airport Police Division (APD) has over 1,000 sworn, and non-sworn Officers, and administrative personnel operating at nine separate locations within LAX. Having various locations can present a challenge for the operations and response to emergency situations. As a result, LAWA Management is considering the development of a Airport Police facility to improve the communication, coordination of operations and resources for essential public safety services at LAX. Design and construction of a new APD facility would consolidate existing police operations and provide accommodations for future department needs. The new facility will be located on the LAX Northside Campus. The new facility would be a 24-hour, 7-day a week purposeful built structure designed to address the needs of critical police and security functions, while supporting new standards for the next generation of law enforcement facilities. Planning & Development staff recommends using an Alternate Project Delivery Method and Competitive Sealed Proposal Selection Process which will allow LAWA to streamline the design and construction process by expediting the delivery of the essential facility. Delivering this project under an alternate project delivery method allows LAWA to benefit from the innovative ideas and best practices employed in the Design-Build or Construction Manager at Risk Industry, as well as offer a potential cost savings by delivering the project under a streamlined schedule. Receiving City Council approval for an alternate delivery method at this early stage, allows the project to progress forward. AIRPORT POLICE FACILITY PROPOSED SCHEDULE CY 2017 CY2018 PROJECT STEPS QI Q2 j Q3 Q4 Q1 I 02 I Q3 04 Board of Airport Commissioners and City Council Approval Complete Conceptual Design & Project Definition Booklet Release Request for Proposals Award Alternate Delivery Contract Finalize Design Documents Construction Period Note: Proposed Schedule is subject to Environmental Review and Clearance. CY2019 Q1 I (32 <23 Q4 CY2020. Qf Q2 Qi Q4 Potential Delivery Methods Los Angeles City Charter Section 371 requires that all contracts, other than certain enumerated exceptions,...shall be let to the lowest responsive and responsible bidder. In most contracts, compliance with this Section has resulted in use of the traditional Design Bid Build (DBB) delivery method. However, experience and past performance is not a significant factor in the selection process. To overcome these disadvantages, City Charter Section 371 (b) authorizes the use of the Competitive Sealed Proposal Selection (CSPS) process to procure contractors through a selection practice which takes qualifications and experience into consideration, in addition to the other technical factors that are critical to the project. The CSPS process is described in detail further later in this report. Page 3

5 Potential Delivery Methods that could be used to develop an Airport Police Facility include the following: Desian-Bid-Build (DBB) Under DBB, the project owner hires a designer to prepare design documents, project plans, and specifications. These documents are incorporated in the Request for Bids which are issued to potential firms to solicit competitive bids. LAWA ultimately awards a contract to the lowest responsive and responsible bidder for construction of the project. Construction Manager at Risk (CMAR) Under CMAR, LAWA would select a construction manager (CM) during the design development process to provide pre-construction services as a member of the program development team. LAWA would also separately contract with a design consultant to complete the project design and provide design support during construction. The selected CMAR assists in design review, facilitates constructability reviews, participates in design packaging phasing and scheduling decisions, cost estimating, other market analysis as appropriate, and then executes construction of the project as the general contractor. The construction manager is considered at risk to deliver the project at an agreed maximum guaranteed price. Desian-Build (DB) Under DB, LAWA would select a single entity to complete the design and construction of a project. The designer-builder is selected following project definition, based on qualifications, which dictate performance requirements and criteria for the finished project. In DB scenarios, LAWA retains control by documenting the criteria to which the design and construction will be measured for project acceptance. Under DB, the responsibility and associated risks related to the design of the project shifts from LAWA to the Design-Builder. Alternative Delivery Methods for the Program As has been previously stated, use of the Alternate Delivery Methods described above is authorized under City Charter Section 371(b). In recent years, LAWA has successfully utilized these methods in the delivery of the replacement of the CUP, Bradley West, and a series of capital terminal improvements. Furthermore, LAWA recently awarded a DB contract to deliver the first phase of the MSC. The traditional delivery method of DBB is not practical or advantageous for the LAX Airport Police Facility. The use of DB or CMAR can expedite a well-defined project by allowing design, pre-construction, and construction to occur simultaneously. Additionally, contractors operating under an Alternate Delivery structure are better positioned to quickly deal with unknown challenges that could threaten a project's delivery timeline. For instance, the LAX Airport Police Facility will be built in areas where construction will inevitably uncover infrastructure conflicts and deficiencies that need to be addressed immediately to prevent significant schedule delays and higher costs. In these cases, the typical DBB approach would not allow LAWA to correct these deficiencies in a timely manner. Authorizing the use of DB or CMAR, will allow staff to develop more robust and responsible approaches and strategies when encountering these challenges including placing risk on the entities most capable of minimizing and mitigating the risks. Page 4

6 For these reasons, staff requests the Board approve the use of DB, CMAR, or other alternate procurement methods, where justified as practical and necessary, through the adoption a City Ordinance and approved by LAWA. Selection Methods - Competitive Sealed Proposal Selection (CSPS) Under the typical selection process using the DBB delivery method, LAWA procures a designer, under a separate Request for Proposal process to prepare the design documents, project plans, and specifications. Once documents are 100% complete, they are incorporated into the Notice Inviting Bids which are issued to potential firms for competitive bids. LAWA then conducts an administrative review of the submissions and ultimately awards a contract to the lowest responsive and responsible bidder for the construction of the project. Experience and past performance are not factored into the selection under this process. As an alternative, Los Angeles City Charter Section 371(b) authorizes the use of CSPS process. This allows LAWA to evaluate and consider not only the construction cost, but also the contractors experience, design and construction approach, staffing organization, resource capacity, project controls, safety, and other critical criteria needs to successfully construct and implement these unique construction projects. Considering the special nature of the LAX Airport Police Facility, and staffs desire to utilize an alternative delivery approach for design, construction, operation, and maintenance of certain projects, LAWA staff recommends that CSPS process be utilized, where appropriate and responsible. City Charter Section 371 (b) requires that prior to using the CSPS process or the use of alternative project delivery methods, the specific projects must first be approved by the City Council via an ordinance. LAWA proposes an ordinance allowing the Chief Executive Officer to use the CMAR, DB (or other procurement methods) and the CSPS method for the LAX Airport Police Facility. Action Requested Staff recommends that the Board authorize a Resolution requesting the Los Angeles City Council to consider and approve an ordinance allowing the Board to authorize its Chief Executive Officer to use Alternate Project Delivery Methods and the CSPS process to solicit DB or CMAR contracts for delivery of projects related to the LAX Airport Police Facility. Fiscal Impact As this is an administrative action, it will have no fiscal impact. Under the CMAR or DB Alternate Project Delivery Methods, LAWA would be allowed to execute contracts with entities responsible for design, design and construction together, or pre-construction services and construction, depending upon the method determined best for a particular project. Staff estimates that the use of an Alternative Project Delivery Method can shorten the project schedule duration by several months, if not years, when compared to the traditional DBB delivery method. Page 5

7 4. Alternatives Considered Take No Action If the Board does not request that the Los Angeles City Council adopt an Alternate Delivery Method Ordinance, LAWA will be required to use the traditional DBB delivery method which may increase risk and delay the implementation of the Project. APPROPRIATIONS: As an administrative action, no appropriation of funds is required at this time. STANDARD PROVISIONS: The adoption of ordinances that do not result in impacts on the physical environment, is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2.m of the Los Angeles City CEQA Guidelines. This item is subject to approval as to form by the City Attorney. Actions taken on this item by the Board of Airport Commissioners will become final pursuant to the provisions of Los Angeles City Charter Section 371(b). This action is not subject to the provisions of the Service Contractor Worker Retention and Living Wage Ordinances. This action is not subject to the Small Business Enterprise Program. This action is not subject to the provisions of the Affirmative Action Program. This action does not require a Business Tax Registration Certificate number. This action is not subject to the provisions of the Child Support Obligations Ordinance. 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 Charter Section 1022 (Use of Independent Contractor). 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 6

WHEREAS, a list of the selected capital improvement projects and their key elements is included as Attachment A; and

WHEREAS, a list of the selected capital improvement projects and their key elements is included as Attachment A; and Los Angeles World Airports RESOLUTION NO. 25681 LAX LA/Ontario Van Nuys City of Los Angeles Eric Garcetti Mayor Board of Airport Commissioners Sean 0. Burton President Valeria C. Velasco Vice President