MOTION TO APPROVE First Amendment to the Addendum to the Signatory Terminal Building Lease Agreement between Broward County and JetBlue Airways Corporation, for the management of the design, construction, and installation of an In-line Baggage System in Terminal 3 at the Fort Lauderdale-Hollywood International Airport, for an increase in the amount of $7,000,000, increasing the total Addendum amount from $55,000,000 to $62,000,000, and authorize the Mayor and Clerk to execute same.
ACTION: (T-10:23 AM) Approved. (Scrivener’s Error – See County Administrator’s Report: Exhibit 2, Page 2, Paragraph 5 currently reads: Except as modified herein, all remaining terms and conditions of the Agreement, as modified by this Amendment, shall remain in full force and effect. Should read: Except as modified herein, all remaining terms and conditions of the Agreement shall remain in full force and effect.)
VOTE: 9-0.
|
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This item supports the Board’s Vision for "Unlimited Economic Opportunities," its Goal to "increase the economic strength and impact of Port Everglades, the Broward County Convention Center and the FLL in a sustainable manner balancing economy, environment and the community," and its Objective to enhance and renovate Terminals 1, 2 and 3 at FLL.
This action approves an increase in the total Addendum amount for the management of the design, construction and installation of an In-Line Baggage System in T3 at FLL.
The Office of Economic and Small Business Development (OESBD) established a Community Business Enterprise (CBE) goal of 22% for this project.
On September 27, 2011 (Item No. 49), Motion A: the Board approved the execution of an Other Transaction Agreement (OTA) HSTS04-11-H-CT1321 with the Department of Homeland Security, Transportation Security Administration (TSA), in the amount of $34,560,300 (Federal Share), to financially participate in the design, engineering and construction-related services for the TSA Checked Baggage Screening Project in T3 at FLL. The agreement required a County match of $3,840,034.
On September 27, 2011 (Item No. 62), the Board approved the Signatory Terminal Building Lease Agreement between Broward County and JetBlue commencing on October 1, 2011, for a period of five years, expiring on September 30, 2016.
On June 4, 2013 (Item No. 88), Motion A: the Board waived the Procurement Code to allow JetBlue to manage the design, construction and installation of an In-line Baggage System in T3, and Motion B: the Board approved the Addendum to the Signatory Terminal Building Lease Agreement between Broward County and JetBlue, in the amount of $55,000,000, to provide management of the design, construction and installation of an In-line Baggage System in T3 at the FLL. JetBlue does not receive a fee or other compensation for its management of this project.
After completing the bidding process for the development of the In-line Baggage System, it became apparent to JetBlue that the base contract price of $55,000,000 was insufficient to construct the project. Per the bids, the construction cost will be $49,149,000, soft cost will be $4,352,200 and the construction contingency will be $3,698,800, for a total not to exceed cost of $57,200,000. After extensive review and value engineering, JetBlue has requested an adjustment to the contract price in the amount of $2,200,000 to meet the proposed bids. Broward County Aviation Department (BCAD) staff have been active in the process and concur with the need to adjust the contract amount.
Additionally, as planning for the In-Line Baggage System project has advanced, it has become apparent that there are opportunities to phase a portion of the Terminal 4 (T4) Gate Replacement project and the Terminal Modernization project more efficiently by having JetBlue perform certain specific elements as part of their scope of work. These elements will include the construction of the final section of the Pedestrian Bridge which will connect T3 to T4, and includes construction of a building shell above the future In-line Baggage System structure. By including these elements into JetBlue’s scope of work, BCAD will be able to alleviate future disruption to airline operations and security screening processes, and minimize construction costs by not having to perform duplicate work at a later date. The value of this additional scope is a maximum not to exceed $4,800,000.
This proposed First Amendment is for an increase in the amount of $7,000,000, increasing the total Addendum amount from $55,000,000 to $62,000,000.
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. |