olos Angeles World Airports

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1 i Approval i BY I' olos Angeles World Airports lc W w.00 REPORT TO THE BOARD OF AIRPORT COMMISSIONERS Meeting Date: Iten',. Approved byeg.. Campb- irports Engineer 8/18/2016 Reviewed by: 'og ra. Johnso,/Deputy Executive Director f City A tor -,. 1 CAO Review: Reviewed for Date I Capital Budget 8/4/2016 I x i Completed Pending N/A Status By NY N NA NE Deborawllñt - Chief Executive Officer Operating Budget 7/18/2016 I DID N DNA RW CEQA 7/20/16 I t7y N I AE Procurement I 7/19/2016 NY N D Cud I MT Guest Experience 7 /18/2016 NY N 1 SUBJECT: Approve Administrative Change Order No. 05 with Contract No. DA with Turner I PCL, A Joint Venture Approve a no -cost Administrative Change Order 05 (Component Guaranteed Maximum Price (CGMP) Early Work Package) for Contract No. DA with Turner PCL, a Joint Venture (TPJV) and appropriate capital funds in the amount of $59,077,469 for the Midfield Satellite Concourse North Project at Los Angeles International Airport. RECOMMENDATIONS: 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.f of the Los Angeles City CEQA Guidelines. 3. APPROVE a no -cost Administrative Change Order No. 05 to Contract No. DA with Turner I PCL, a Joint Venture. 4. APPROPRIATE capital funds in the amount of $59,077,469, which includes construction costs. Page 1

2 5. AUTHORIZE the Chief Executive Officer to execute Administrative Change Order No. 05 upon approval as to form by the City Attorney. DISCUSSION: 1. Purpose Staff recommends approval of the Administrative Change Order No. 05 (CGMP Early Work Package) and appropriate funding to allow Los Angeles World Airports (LAWA) to perform the following construction work as part of the Midfield Satellite Concourse (MSC) Project. The CGMP Early Work Package Scope Elements are: 1. Site Demolition 2. Shoring - MSC, Gateway, Tunnels (PAX & Utilidor) 3. Earthwork 4. Wet & Dry Utilities 5. Steel Mill Order Purchase (partial) 6. Tunnel - Formwork, Rebar and Waterproofing (West half) 7. North Baggage Structure - Design Services This CGMP Early Work Package does not increase the MSC Project Budget nor does it change the existing DA contract upper limit. The MSC contractual milestones for Substantial Completion and Final Completion also remain unchanged. The CGMP Early Work Package Scope Elements 1 through 7, listed above, are portions of work that are part of Phase 2 Construction of this Design Build project. Scope Element 7 is for design of a remote baggage structure needed as part of the solution to the baggage handling system issues of Tom Bradley International Terminal (TBIT). 2. Prior Related Actions September 19, Resolution No The Board of Airport Commissioners requested the Los Angeles City Council consider and approve an ordinance allowing for alternate delivery methods and a competitive sealed proposal selection process for select projects. November 7, Resolution No The Board amended Resolution No to include the proposed 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 Design Build Contracts. March 7, 2012 The City Council approved Ordinance No authorizing an Alternate Project Delivery method for the Midfield Satellite Concourse, Council File March 18, Resolution No Page 2

3 The Board authorized release of a Request for Proposals (RFP) to procure a Construction Manager at Risk (CMAR) to perform pre- construction and construction services for the Enabling Projects for the MSC North Project at LAX. July 21, Resolution No The Board approved authorization to advertise a RFP using Competitive Sealed Proposal Selection Process to solicit a Design -Build contractor for MSC North Project at LAX, subject to changes by the Executive Director. December 18, Resolution No (DA -4971) Award of Two (2) -Phase Design -Build Contract to Turner PCL, a Joint Venture: For the Midfield Satellite Concourse North Project at Los Angeles International Airport, for the cost of $961,270,169; and appropriation of $174,889,794 for said project. February 18, Resolution No (DA -4971) Administrative Change Order to Contract with Turner PCL, A Joint Venture to reallocate design funds of $27,481,340 covering the Midfield Satellite Concourse North Project at Los Angeles International Airport; and update said contract to include certain administrative changes. April 21, Resolution No The Board approproved an additional appropriation of capital funds in the amount of $40,000,000 for Inter -Departmental Orders for City Services related to the MSC North Project at Los Angeles International Airport. To date, the Board has approved the following project budget and appropriated funds accordingly: Project Hard Costs Current Budget Prior Appropriations Current Request Total Revised Appropriation Construction Contract $ 961,270,169 $ 86,425,169 $ 59,077,469 $ 145,502,638 Public Art Allowance (1 % of public area) 6,000,000 Construction Support Services 39,085,875 39,085,875-39,085,875 (CALM, Police, City Services) IDOs (DWP and other City Departments) 45,000,000 45,000,000-45,000,000 IDOs (LADBS) 5,000,000 5,000,000-5,000,000 Project Management Office (PMO) 15,000,000 15,000,000 15,000,000 TOTAL HARD COSTS: $ 1,071,256,044 $ 190,511,044 $ 59,077,469 $ 249,588,513 Project Soft Costs: Programming & Procurement Services $ 3,000,000 $ 3,000,000 $ - $ 3,000,000 Project Management Services 69,486,000 34,695,750-34,695,750 TOTAL SOFT COSTS: $ 72,486,000 $ 37,695,750 $ - $ 37,695,750 Project Contingency $ 96,127,017 $ 9,613,000 $ - $ 9,613,000 Prior Planning Costs 8,681,091 8,681,091-8,681,091 TOTAL PROJECT BUDGET COSTS: $ 1,248,650,152 $ 246,500,885 $ 59,077,469 $ 305,578,354 Page 3

4 I Note: Prior Appropriations includes all resolutions mentioned above, as well as $31,611,091 in Planning and Project Management appropriations, approved prior to December 2014, on an individual contract basis. 3. Current Action Background The MSC North project consists of a new multi -level concourse, associated aircraft parking aprons, taxiways /taxilanes, and utilities. This project will be located in the central area of the airfield west of Tom Bradley International Terminal (TBIT) at LAX. The location of the MSC is identified on the diagram below: LAX Terminal Map `- 1UTIUDOR TUNNEL' 'PAX TUNNEL' , T4 77 LAX TERMINAL MAP TPJV was awarded a Design -Build contract to perform design and construction for the MSC in two phases: Phase 1 - Design and Pre -construction and Phase 2 - Construction. Phase 1 Design efforts have progressed and TPJV is preparing to submit its proposed Guaranteed Maximum Price (GMP) for the project to LAWA in September Negotiations will follow with a recommendation to be presented to the BOAC in October The Scope of Work included with this CGMP Early Work Package has been planned specifically to ensure that LAWA's rights, under contract clause SC -2, to not award the Phase 2 - Construction portion of the work, are fully maintained. Further, in accordance with the terms of the DA contract, work included under the CGMP Early Work Package has been or will be competitively bid and procured. Page 4

5 Each portion of this work will result in an improved status of construction for MSC, as the follow - on GMP construction will continue directly from each discrete end point. This CGMP Early Work Package does not impact the Design to Budget Construction Cost of $700,000,000 as this CGMP is part of the $700,000,000. Staff recommends this course of action for three reasons: Taxiway T opening - o Proceeding with the Tunnel formwork, rebar, waterproofing plus the shoring will allow us to maintain the turnover date for the Taxiway T construction. This significantly reduces the schedule risk of the Taxiway T opening. Cost Mitigation - o Market conditions for steel are expected to rise, resulting in potential price increase. By proceeding with an initial mill order for steel, LAWA will avoid cost increases due to market volatility. o Further, early procurement of steel will assist with maintaining the current project completion date. Mitigating the risk of delay to MSC - o The work recommended in this action is on the critical path of the MSC project. Proceeding with Wet and Dry Utility relocations along with earthwork will allow LAWA and TPJV to maintain the Project schedule for MSC while negotiations of the project GMP are underway. This administrative Change Order No. 05 also includes two Volumes of material to be incorporated into the contract. These volumes are titled "CGMP Early Work Package for the Construction of the Midfield Satellite Concourse North ". These volumes include administrative statements clarifying the Scope and terms of the contract. These clarifying statements reflect the actual current scope of the project as it has developed during Phase 1 Design and adjustments to the requirements resulting from study of the project logistics and risks. The Project Procedures developed during Phase 1 as well as detailed assumptions and clarifications, plus modifications to the Project Requirements are included in this material. Page 5

6 Scope Element 1 - Site Demolition Select site demolition will clear key designated areas in preparation for MSC construction. This demolition, as illustrated, is of existing airfield pavement in areas of significant work which will be major excavations and fill areas. By opening the areas for excavation and the fill areas we can balance the earthwork and fill thus avoiding the need to remove soil from the site and then in return import more soil later for the fill areas. This activity will mitigate schedule risk in opening Taxiway T. IrBITI BRADLEY WEST] PAVING DEMOLITION AREAS AA HANGAR CGMP SITE DEMO OVERALL PLAN Page 6

7 Scope Element 2 - Shoring - MSC, Gateway, Tunnels (PAX & Utilidor) Proceeding with shoring design, permitting and installation will prepare the site for the start of tunnel construction. Shoring of the tunnel construction is done in areas where we are unable to lay -back the perimeter of construction. Proceeding with this work early mitigates the lengthy permitting and installation period before the start of effective construction of the tunnel in the area of Taxiway T. (TRITI 'BRADLEY WESTI '.e.ü9.,...`n :, MSC] AA HANGAR Page 7

8 Scope Element 3 - Earthwork Preparation of the site through performing front end portions of the earthwork will facilitate the construction of MSC. There are major excavation areas on this site as well as a major fill area. The earthwork can be balanced by performing this work concurrently. Completing this work early will prepare the site earlier for the utility and foundation portions of the work. ITBITI IBRADLEY WESlj AA HANGAR CGMP EARTHWORK OVERALL PLAN Page 8

9 Scope Element 4 - Wet & Dry Utilities Relocating utilities will clear the area for start of Gateway, tunnel and MSC construction. The major DWP feeders providing power to the West side of LAX need to be relocated as part of the MSC project. Proceeding early with the placement of the new DWP duct banks will allow the cutover of power from the existing duct bank to the new duct bank earlier. This and the other utility work proposed will allow for an earlier start of construction of the foundations for MSC.!BRADLEY WESTI jf ; SEMPRA NATURAL GAS RELOCATE NEW STORM DRAIN & SIPHON STRUCTURES NEW FIRE & DOMESTIC WATER.A LAWA & DWP POWER RELOCATE AA HANGAR CGMP UTILITIES OVERALL PLAN Page 9

10 Scope Element 5 - Steel (Mill Order) Purchase (partial) As part of the CGMP Early Work Package, TPJV will proceed with a mill order purchase of major steel materials for the MSC and Gateway structures by October 10, This will allow the steel to be on site in July /August of 2017 for the start of the steel erection. The value of this steel is budgeted at a total of $8,000,000. This major steel includes the raw steel for columns, beams, and other steel components. By purchasing this steel as part of the CGMP Early Work Package, the material cost will not continue to escalate and the schedule will be fixed for receipt of these items. Scope Element 6 - Tunnel - Formwork, Rebar and Waterproofing (West half) This tunnel early material procurement is for the west portion of both the tunnels only. Starting procurement of these materials as part of the CGMP Early Work Package will allow the start of the field work on the tunnels in January Scope Element 7 - North Baggage Structure - Design Services The North Baggage Structure is a key element of the Baggage Optimization solution for Bradley West Terminal and MSC. In order to ensure that the baggage system additions are fully functional at the time of MSC's opening, it is necessary to proceed with the design at this time. Consequently, these design services are included with this CGMP Early Work Package scope. Page 10

11 itbiti [BRADLEY WESIj IGTWI t J---_----.J Lr--r'.. NORTH BAGGAGE STRUCTURE AA HANGAR NORTH BAGGAGE STRUCTURE CGMP Early Work Package - Total Cost: The total project cost for Administrative Change Order No. 05 (CGMP Early Work Package) is $59,077,469, for which an appropriation is being requested. This action is not requesting an additional appropriation for other hard costs, soft costs, or contingency because prior appropriations are sufficient to cover costs projected to be incurred during the duration of the CGMP Early Work Package implementation. The total for CGMP Early Work Package is as follows: Page 11

12 CGMP Early Work Package - Total Cost Early Work $ 45,777,469 (Includes: Cost of Work, General Conditions, and Fee) Structural Steel Mill Order $ 8,000,000 Tunnel Structural Shop Drawings and Submittals $ 1,300,000 CGMP Allowances $ 4,000,000 (Includes $3.45M for North BHS Structure Design Services, $500K for HazMat Abatement, and $50K for Permitting and Fees) CGMP Early Work Package - Total Amount $ 59,077,469 Action Requested Staff requests the Board approve a no -cost Administrative Change Order No. 05 to Contract No. DA with TPJV for the stated portions of the "Midfield Satellite North" project at LAX and appropriate funds in the amount of $ 59,077,469 for construction costs. Fiscal Impact The Midfield Satellite North is an approved capital project at LAX. Costs incurred under this contract will be capitalized and when projects are put in service, those costs will be recovered through terminal rates and charges, as well as through non -aeronautical revenues. 4. Alternatives Considered Take no action and award with the GMP If this proposed action is not approved, Taxiway T would not be finished early and potential schedule risk would not be mitigated. Schedule risk in the relocation of utilities would also not be mitigated and the project will be exposed to cost escalation for steel that can be avoided by this action. APPROPRIATIONS: Staff requests that funds in an amount not -to- exceed $ 59,077,469 be appropriated and allocated from the LAX Revenue Fund to WBS Elements A -700 (Midfield Satellite Concourse North) and other Board approved Capital Projects and their respective WBS elements as may be required. Additional appropriations and allocation of funds will be requested incrementally as part of the Design -Build process. STANDARD PROVISIONS: 1. This action, as a continuing administrative activity, is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article II, Section 2.f of the Los Angeles City CEQA Guidelines. 2. This contract is subject to approval as to form by the City Attorney. Page 12

13 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 Turner /PCL, JV will comply with the provisions of the Living Wage Ordinance. 5. Procurement Services Division reviewed this action (File No ) and established a mandatory 15% Small Business Enterprise goal for the Design Phase of the project and a 15% Small Business Enterprise goal for the Construction Phase of the project. Turner /PCL, JV has committed to 15% SBE participation for the Design Phase and has achieved 19.08% to date. Turner /PCL committed to 15% SBE participation for the Construction Phase, which has not commenced. 6. Turner /PCL, JV is required by contract to comply with the provisions of the Affirmative Action Program. 7. Turner /PCL, JV has been assigned Business Tax Registration Certificate number Turner /PCL, JV is required by contract to comply with the provisions of the Child Support Obligations Ordinance. 9. Turner /PCL, JV will provide insurance documents, in the terms and amounts required, with the Los Angeles World Airports prior to issuance of Notice to Proceed Pursuant to Charter Section 1022, staff determined the work specified on the proposed contract can be performed more feasibly or economically by an Independent Contractor than by City employees. 11. Turner /PCL, JV has submitted the Contractor Responsibility Program Pledge of Compliance and will comply with the provisions of the Contractor Responsibility Program. 12. Turner /PCL, JV has been determined by Public Works, Office of Contract Compliance to be in compliance with the provisions of the Equal Benefits Ordinance. 13. Turner /PCL, JV will be required to comply with the provisions of the First Source Hiring Program for all non -trade Airport jobs. 14. Turner /PCL, JV has submitted the Bidder Contributions CEC Form 55 and will comply with its provisions. Page 13