THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This action will amend the Addendum to the Signatory Terminal Building Lease Agreement ("Signatory TBLA") to provide funding for additional scope to modernize additional areas for the T3 Modernization Project, extend the contract time to December 30, 2021, and modify certain terms and conditions of the Addendum.
This item supports the Board's Value for "Ensuring economic opportunities for all people and businesses in Broward County," its Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs" and its Objective to modernize passenger facilities in Terminals 2 and 3 at FLL.
The Office of Economic and Small Business Development (“OESBD”) established a Community Business Enterprise (“CBE”) goal of 22% for this project. JetBlue Airways Corporation (“JetBlue”) has committed to 22% CBE participation. To date, JetBlue has been paid $85,596,814 and has paid its sub-contractors $26,554,003, for 31.02% CBE participation (Exhibit 3).
On September 27, 2011 (Item No. 62), the Board approved the Signatory TBLA between Broward County and JetBlue, commencing for a period of five years, expiring on September 30, 2016. On October 28, 2014 (Item No. 6), the Board approved the Fifth Amendment to the Signatory TBLA between Broward County and JetBlue, which extended its term for ten years, expiring on September 30, 2026.
On June 4, 2013 (Item No. 88), the Board approved the Addendum to the Signatory TBLA for JetBlue to manage the design, construction and installation of an In-Line Baggage Screening System in T3; in the amount of $55,000,000.
As the T3 In-Line Baggage Screening System project advanced, it became apparent that there was an opportunity to further phase the T3 Modernization Project more efficiently by having JetBlue perform additional, specific elements of the Modernization Project as part of their scope of work, as those projects directly impacted the In-Line Baggage Screening System and the increased growth to JetBlue operations. The First, Second and Third Amendments to the Signatory TBLA provided additional scope, funding and time to allow for the modernization of additional areas in T3, which were designed and constructed in a phased approach.
On June 7, 2016 (Item No. 65), the Board approved the Third Amendment to the Addendum to the Signatory TBLA with JetBlue, for additional scope to modernize additional areas in T3 for an increase in the amount of $11,900,000, increasing the total Addendum amount from $86,000,000 to $97,900,000. A history of the Amendments to the Addendum to the Signatory TBLA is included in Exhibit 4.
The proposed Fourth Amendment to the Addendum to the Signatory TBLA ("Fourth Amendment") is for an increase in the amount of $137,165,000 for JetBlue to perform additional modernization work in T3. The project consists of approximately $101,256,496 for modernization work and $35,908,504 for the associated terminal connector bump out. The estimated total cost of $137,165,000 is based on projections by JetBlue and Broward County Aviation Department (“BCAD”).
The additional work to modernize areas of T3, as described in Exhibit Q of the Fourth Amendment (Exhibit 2), includes: 1) Concourse E & Concourse F Renovations: replacement of the existing restrooms with new, centrally located, double-sided restrooms, partial ceiling replacement, new wayfinding signage and new passenger seating with charging stations; 2) Las Olas Corridor (post-security walkway): located between Concourses E and F, this work also includes a new, centrally located, double-sided restroom, renovation of existing concession spaces, the addition of a new VIP Lounge, and a new breach-exit control system built in accordance with Transportation Security Administration standards; 3) North Lobby Renovation: work includes demolition and relocation of new ticket counters, ceiling upgrades, wayfinding signage, terrazzo floor additions, and a new central escalators/stairs configuration; 4) Baggage Claim and Arrival Level Renovations: work includes replacement of the existing baggage claim devices with seven new secure baggage claim devices, partial ceiling upgrades, and modifications to the wall separating the secure and non-secure areas; 5) Entrance Vestibule Upgrade: work in this transitional area between the lobby and curbside includes demolition of existing wall panels and replacement with new wall tile, refurbishment of existing elevators and the addition of two new elevators; 6) Chiller Plant Expansion: work includes modifications to the existing chiller plant and the addition of one new chiller. This additional work is estimated to be $101,256,496.
In addition, JetBlue will complete the terminal bump out (extension) to the east side of T3 to interface with the new terminal connector between Terminal 2 (“T2”) and T3. Work includes structural modifications to the Concourse E ramp, additional concession space and a new bus stop for ground-board operations. This additional work is estimated to be $35,908,504.
Delta Air Lines, Inc. ("Delta") will complete the terminal connector between T2 and T3 as outlined in the First Amendment to the Second Addendum to its Signatory TBLA, to be presented to the Board in conjunction with this action. Coordination between JetBlue and Delta will continue to ensure the seamless interface of the bump out and the terminal connector between T2 and T3.
These projects are an operational necessity to allow for continued FLL growth and will upgrade the service level in T3 to be consistent with the service level in Terminals 1, 2 and 4. The projects were coordinated with the current Terminal Master Plan concepts and will provide increased space and an enhanced customer experience.
Additionally, the proposed Fourth Amendment extends the contract time to December 30, 2021 for completion of the additional work. The Fourth Amendment also modifies certain terms and conditions of the Addendum, including Sections 6.11 - 6.13, which provide JetBlue time to determine if such additional work can be completed for $137,165,000 and by December 30, 2021. Should JetBlue determine that either or both of those conditions cannot be met, JetBlue and BCAD will meet, and may recommend to the Board a further increase in the contract price and/or time, a reduction in scope, or other modification to allow for completion of the additional work. If JetBlue and BCAD do not agree on the recommended modification, or the modification is rejected by the Board, the Fourth Amendment may be terminated with 30 calendar days written notice by either party.
Approval of the Fourth Amendment extends the Addendum to December 30, 2021, and increases the Addendum amount by $137,165,000, for a revised total Addendum amount of $235,065,000.
In accordance with the terms of the Addendum to the Signatory TBLA, JetBlue will comply with Broward County’s competitive bidding process and contract requirements such as the CBE Program. Also, BCAD staff will continue to provide oversight of the project through weekly project meetings and approval of invoices.
The proposed Fourth Amendment (Exhibit 2) has been reviewed and approved by the Office of the County Attorney and the Risk Management Division. Signature pages for Exhibit 2 will be forthcoming and will be noted in the Monday Night Memorandum.
The amounts referenced in this agenda have been rounded to the nearest whole dollar. Vendor payments will be based on the maximum amount payable under the Addendum. The Agreement Summary Sheet reflects the actual amount of the award. |