Consent 1.D.
Regular City Council Meeting
- Meeting Date:
- 06/22/2020
- TITLE
- Amendment to Guaranteed Maximum Price from Sletten Construction Company for Phases II - V Construction for the Airport's Terminal Concourse Expansion
- PRESENTED BY:
- Kevin Ploehn
- Department:
- Airport
RECOMMENDATION
Staff recommends that the City Council approve the amendment to the Gross Maximum Price (GMP) Agreement with Sletten Construction Company adding $40,326,911 for the construction work for Phases Two through Five for the Airport's Terminal Concourse Expansion and increasing the GMP to $43,686,759. The approval and execution of the Agreement is contingent on First Interstate Bank executing a Commitment Agreement with the City for the financing of the Terminal Expansion project.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
| On February 12, 2018, City Council approved a Resolution for an Alternative Project Delivery Contract for the Airport Terminal Concourse Expansion project. Staff subsequently advertised a Request for Qualifications (RFQ) for a general contractor to submit their qualifications followed by a Request for Proposals (RFP) from the general contractors who were prequalified, all for the opportunity to be selected to become the General Contractor/Construction Manager (GC/CM) for the Terminal Concourse Expansion project. After completing this process, on August 27, 2018, City Council approved a contract with Sletten Construction Company to be the GC/CM for the design work and for the Council to approve a Guaranteed Maximum Price (GMP) for the Terminal Construction work. The advantage of utilizing the GC/CM process on this complicated project is the ability to have the general contractor involved in the design process, project planning, construction phasing, and project cost pricing. On August 12, 2019, City Council approved the GMP contract with Sletten Construction Company for Phase One construction work for the amount of $3,359,848. Phase One construction began on September 23, 2019 and work is scheduled to be completed during June and early July 2020. Phase One construction consisted of building a new west end stair tower for the Essential Air Service provider (Cape Air) to allow the continuation of their ground loading operations, six heavy duty vertical steel support columns that were erected in the center of the building and extend from the basement of the Terminal through the existing roof to support the new roof and skylights over the new TSA screening queue area, and the remodel work completed in the basement under the B Concourse where this space will function as a temporary holdroom for all airlines while the new Concourse A and Great Room space are being constructed. Phases Two through Five of the Terminal Concourse Expansion project have been designed and Sletten has been soliciting prices from its subcontractors. Currently, this work is scheduled to begin in late June or early July 2020, with construction lasting approximately three years. Phase Two construction will take place over the next 18 months and includes all new construction of the TSA Queuing and Screening area, Great Room with Passenger Seating/Workspace, Fireplace Area, Bar, Restaurant, Gift Shop, the new Concourse A including four holdrooms, new restrooms, and all other work associated with this new construction. Phase Three work primarily involves relocating TSA and opening the new Screening Area as well as remodeling the old Screening Area. Phase Four work consists of demolition and new construction of the B Concourse on the east end of the Terminal. This Phase also includes removing and replacing the interior stairs, elevator, and escalator in the old Screening Area, which will complete the new Lower Lobby area. Under Phase Four, the new B Concourse will also be constructed and includes four new holdrooms, additional restrooms, and all other associated work in this area. Phase Five involves remodel work of the old A Concourse. This area will become the new EAS holdroom for Cape Air passengers and requires new paint, carpet, and reconfiguration of the existing restrooms. Sletten Construction Company, as the GC/CM, has determined a GMP of $40,326,911 for the Phases Two through Five work. To complete the project the Airport will also purchase, outside of the construction contract, all furnishings, fixtures, and equipment such as passenger loading bridges, elevators, new escalator, and the security and networking equipment for the new Terminal. The Airport will also see to the testing and commissioning of all systems prior to opening. The total overall cost of the Terminal Concourse Expansion project is estimated at $60 million. First Interstate Bank provided the City with a proposal for a financing package for up to $30 million for the Terminal Concourse Expansion project. Final details and underwriting are still being performed by the Bank and a Financing Commitment Agreement is anticipated to be signed by the Bank around July 1st. Once the Agreement is signed, the contractor will be given the notice to proceed with the construction. |
ALTERNATIVES
City Council may:
- Approve the GMP Contract with Sletten Construction Company for Phases Two through Five construction work on the Airport Terminal Concourse Expansion, or;
- Disapprove the GMP Contract from Sletten Construction Company and advise staff on how to proceed.
FISCAL EFFECTS
Sletten Construction Company has provided a GMP of $40,326,911 for Phases Two through Five work for a total construction cost for the Terminal Expansion project of $43,686,759. A portion of this will be funded with local capital funds, which are available in the Airport's Capital Account, and bonds or bank financing to complete this work. Additionally, the Airport will receive Federal Airport Improvement Program (AIP) funds for this work through the AIP Discretionary funding program. The discretionary funds are competitively allocated by the Federal Aviation Administration (FAA) based on availability and need. Staff estimates that approximately $30 million will be funded with FAA AIP grant funds and Passenger Facility Charge (PFC) funds. The balance of the project will be paid with a combination of local funds and debt financing.