The Airport Terminal Building Emergency Generator Replacement Project, included in the City's Capital Improvement Program, will replace the existing emergency generator with a significantly larger generator system capable of providing enough backup electricity to operate the whole Airport Terminal Building. During the system design stage, the Airport directed CTA to evaluate three additional items: (1) Cost savings associated with "Peak Shaving," (2) Alternate generator building locations, and (3) The evaluation of the specifications for an alternative generator system that was not included in the original design specifications. These items were not part of the original scope of work on this project and CTA is requesting additional fees for providing these additional services. These items are discussed in greater detail as follows:

• A "peak shaving" study was implemented to determine if the Airport would realize a significant electrical cost savings by using the new generators to provide power to the Terminal Building during peak electrical demand times when the costs per kilowatt hour is several times greater than the rate during normal electrical usage. CTA's study compared the costs of the implementation and maintenance of the generators against the reduction of electric utility costs for several different sizes of generator sets and found that the Terminal Building's electrical load profile is too flat for peak shaving to provide any significant savings.
• The original site of the generator building was anticipated to be located on the air carrier parking ramp on the north side of the Terminal Building.  However, the most efficient/cost effective electrical backup system utilizes three smaller generators as opposed to one or two larger ones. The extra room needed for the third generator made the building's size too large to be located on the air carrier ramp.  Subsequently, locations on the east and west ends of the Terminal Building were studied and a site on the east end of the Terminal was selected.
• After the project specifications were released to prospective contractors, the Airport received a request from another generator manufacturer, whose system uses a different control system than what was specified, to be added as an approved equal to the bid specifications. After meeting with this generator manufacturer's supplier, CTA spent additional time reviewing this system to ensure it would fully meet the Airport's generator criteria.  Based on this review, it was agreed that this system would be added as an approved equal to be considered for this project. It should be noted that adding this generator equipment as an approved equal increased the competition between the generator suppliers, which is one of the contributing factors for the bids received being $150,000 below budget.

The Council may:

• Approve Change Order One with CTA Architects Engineers; or
• Not Approve Change Order One with CTA Architects Engineers, eliminating the opportunity to pay CTA for work performed.

The total cost of Change Order One is $16,350. The contract would increase from $56,680.36 to $73,030.36. The total adjusted fee is 8.5% of the construction contract, which is below the 10-12% normally expected for this type of project. The source of funding for this Change Order One is the Airport's Passenger Facility Charge capital fund, which has budgeted funds available for the adjusted fees.

Staff recommends that the City Council approve Change Order One with CTA Architects Engineers Services Contract in the amount of $16,350 for the architectural and engineering services provided for the Airport Terminal Building Emergency Electrical Generator Replacement Project at Billings Logan International Airport.