MOTION TO APPROVE First Amendment to the Addendum to the Signatory Terminal Building Lease Agreement between Broward County and Delta Air Lines, Inc., for the management of the design, construction, and installation of an In-line Baggage System in Terminal 2 at the Fort Lauderdale-Hollywood International Airport, for an increase in the amount of $9,000,000, increasing the total Addendum amount from $33,000,000 to $42,000,000, and increasing time by 273 calendar days, for a revised time of 813 calendar days; and authorize the Mayor and Clerk to execute same.
(Commissioner Wexler pulled this item.)
ACTION: (T-10:29 AM) Approved with Yellow-Sheeted Additional Material, dated June 24, 2014, submitted at the request of Aviation. (Refer to minutes for full discussion.) (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: 8-0. Vice Mayor Ryan was not present during the vote.
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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 T2 at FLL.
The Office of Economic and Small Business Development (OESBD) established a Community Business Enterprise (CBE) goal of 22% for this project. Delta committed to 22% CBE participation. To date, Delta has been paid $23,559,216 and has paid $7,519,557 to CBE firms, for a 31.92% participation.
On September 27, 2011 (Item No. 49), Motion B: the Board approved the execution of an Other Transaction Agreement (OTA) HSTS04-11-H-CT1327 with the Department of Homeland Security, Transportation Security Administration (TSA), in the amount of $12,362,427 (Federal Share), to financially participate in the design, engineering and construction-related services to provide for the TSA Checked Baggage Screening Project in T2 at FLL. This agreement required a County match of $1,373,603.
On September 27, 2011 (Item No. 62), the Board approved the Signatory Terminal Building Lease Agreement (TBLA) between Broward County (County) and Delta commencing on October 1, 2011, for a period of five years, expiring on September 30, 2016.
On June 12, 2012 (Item No. 2), Motion A: the Board waived the Procurement Code to allow Delta to manage the design, construction and installation of an In-line Baggage System in T2, and Motion B: the Board approved the Addendum to the TBLA between the County and Delta, in the amount of $33,000,000, to provide management of the design, construction and installation of an In-line Baggage System in T2 at FLL. Delta does not receive a fee or other compensation for its management of this project.
As the In-line Baggage System project advanced, it became apparent to Broward County Aviation Department (BCAD) staff that there was an opportunity to phase the Terminal Modernization project more efficiently by having Delta perform certain specific elements of the project as part of their scope of work. These elements include relocating the airline ticket offices for Delta and Air Canada, lobby and ticket counter spaces, impacted concession spaces, new communications room, new electrical closet, reconfiguration of the Delta Baggage Service office, and the Transportation Security Administration (TSA) Human Resources offices. By reallocating the aforementioned project scope elements, which align with the Terminal Modernization project, BCAD is able to alleviate future disruption to airline operations 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 $6,000,000.
Additionally, during construction, TSA notified BCAD that there was a manufacturing delay of the previously approved luggage detection units. Due to this delay, TSA has advised BCAD that a modified design for the In-Line Baggage System will be necessary to incorporate the TSA approved alternative luggage detection units. Delta and TSA are reviewing the value of this additional scope, which is a maximum not to exceed amount of $3,000,000. Delta will only be reimbursed based on the final agreed amount approved by the TSA for this work. TSA has agreed to increase their funding participation by the final agreed amount, which will be brought back to the Board for approval at a future date.
This proposed First Amendment is for an increase in the amount of $9,000,000, increasing the total Addendum amount from $33,000,000 to $42,000,000, and increasing the time by 273 calendar days for a revised time of 813 calendar days. This additional time extension allows for the design, procurement, relocation and construction to modify infrastructure in T2.
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. |