Recommendation to adopt resolution authorizing City Manager, or designee, to execute all documents necessary to enter into a contract, including any necessary amendments, with Anser Advisory, LLC, dba Simplus Management, LLC, of Cypress, CA, to continue construction management services for the Phase II Terminal Area Improvements at the Long Beach Airport, in the amount of $3,947,343, for a period of three years, with option to renew for two additional one-year periods, at the discretion of the City Manager; and Increase appropriations in the Airport Fund Group in the Airport Department by $3,947,343, offset by funds available. (District 5)
Report from Long Beach Airport recommendation to adopt resolution to enter into a contract with some place management to continue construction management services for the Phase two terminal area improvement at the Long Beach Airport in the amount of 3,947,343. District IV. And again in motion in the second, please. And actually, Mr. Mayor, this is one we'd like to give a staff report on. Let's find a motion in a second, please. Still need emotion. Okay. Thank you. Mention this over to Mr. Modica. Thank you very much, Mr. Mayor. So we would like to have a report on where we are with our terminal project improvement project and the Phase two. The staff has put a lot of work into reviewing that project and bringing you a recommendation on how to continue certain aspects of it during this COVID crisis. So I will turn it over to Cynthia Guidry and her team to walk through a quick PowerPoint presentation. Good evening, honorable mayor and members of the City Council. I will do a brief staff report on this item along with Stefan Lum. He is our Phase two program manager. So hopefully it's cued up. Before you just start out, I'll give you a brief status update on Long Beach Airport. I felt it was necessary to just provide a little bit of a landscape of where we are as the backdrop of where we are for the Phase two terminal air improvement program. So as you know, due to the coronavirus pandemic travel and the travel restrictions that we have, the industry is really feeling a tremendous impact to to all the airports as well as to the airlines at Long Beach Airport. We have an over 95% decline in passenger travel. And although we have been really pressing hard to increase our safety protocols, social distancing protocols per the Long Beach Health order, it is definitely a different experience at the airport as you come in and out of the facilities. Can you. Thank you. We have been working very closely with the airline community to really look at the the impacts to to the airport as well as the surrounding businesses. We anticipate at this point a very slow recovery period, and that's very common among the industry. But specifically at Long Beach Airport, our revenue decreases have really been been hit from all sources. We we've estimated it roughly until the end of this fiscal year, 10 to 20 million and revenue impact to the airport. And that's really related to the decline in the number of passengers coming in and out of the airport, as well as all the different services that they would use, such as renting a car or the concessions, those type of things. Right now, the airport is spending a tremendous amount of our reserve cash. We were in a very good financial position pre-COVID. But, you know, if you save money for rainy days and it's pouring right now, and so we are looking at our operational expenses and reducing as much as where we can. And as you know, we were very fortunate to receive 18.4 million due to the CARES Act fund that the federal government expended out to the airport and various industries last month. However, that that amount is really going to only cover us for the next roughly 6 to 7 months. So with that, I have step in line and I want to turn it over to him to really talk about specifically the phase two program where we are and the answer item that we have before you. Thank you. Thank you, Cynthia. Honorable Mayor and city council members. I'd like to, uh, give you a little briefing on the Phase two program adjustments that we've been working on since since the COVID 19 impacts to our revenue. What you're looking at here is what we call scenario five. We've been evaluating and refining multiple scenarios to primarily focus on two two main items, manage and mitigate the airport's cash expenditure and position the program in the best position possible for a flexible future flexibility and for future success. Some of the primary items you're seeing right here is, uh, we're going to be continuing with the Seabus project, and that's due to be because it's primarily TSA grant funded. And we are going to continue the ticket in Berlin ticketing facility to a logical, hard stop, basically slab on grade. These impacts are going to have a 6 to 12 month program. Overall program schedule impact. And it could be longer or shorter depending on future economic conditions. I do we do note that we're delaying our baggage claim project about 17 months due to the fact that we do have existing baggage claim facilities and that is a project we can defer to manage our cost expenditures. We do want to note that there are exit ramps that are included in the contract that are available and there are certain decision points that will have to be coming up. The first one being in the first quarter of 2021. And that decision point really is, is the airport in a position to move forward and and restart ticketing after you see it? We take a we take a slight pause after a quarter for 2020. Answer advisory on doing business as simple as management will continue to provide construction management services for the service and ticketing facility. As we move forward and as we move forward, will evaluate the Phase two program needs at that time. So today's actions in next steps. Our recommendation for Council is for the approval of the answer advisory contract for the Phase two Construction Management Services. Our next steps for the airport is to collaborate with Switzerland builders that the design builder on this contract and all their subcontractors on any schedule changes. And these the three sequencing. We will continue to monitor the economic conditions and our revenue scene. If flights return within 6 to 12 months and will inform council if any exit ramps need to be implemented, and then the final next step is to basically execute the airport's capital program that provides the best flexibility and remains viable and puts the best puts the airport in the best position for success. Thank you. Okay. Thank you very much. I'm going to. I know we had another person in motion. I know it's in the airports in five. So if we don't if there's any objection, all that country motion after the the motion or the motion. Mr.. Any objection and customers in Dallas will will second that our customer mango. See proposed. Changes. Can you hear me now? Yes. I appreciate the airport for bringing this forward. I met with both Tom and the airport earlier in the week, and I'm supportive of the decision. We do need to be cautious as we move forward, and I appreciate the cautious steps we're taking, and I hope the council will support it. Right. Thank you. And councilman's in the house. I just wanted to say congratulations, Cynthia, on this great project. I know that there's been a lot of bad news happening, and it's so nice to have something refreshing like. Like a project like this. I know you've been working on it for a very long time, but, you know, just seeing that it's moving forward is it's really exciting to me. So congratulations and look forward to supporting this. Thank you, Councilmember Richardson. Thank you. And I support the plan. Thank you. And with that, we'll take a vote. Roll call, please. District one. I. District two. I. District three. I district for. My. District five. I. District six. I. District seven. By District eight. District nine. All right. Ocean carries. Thank you. Now we're going on to the next item, which is actually what I'm going to do that I'm actually going to go back to. I'm 16. That actually requires a second vote, which we didn't take. So let me go back to 16. And Adam, you've got the second vote on that item. Second vote for item 16, district one. I. District to. Oh, I'm sorry. We need a motion. A seconder. Waiting for that. I get the motion. The second speaker. All part of the initial motion here like this. The motion by Richardson second by Sunday has a roll call vote. District one. District two. I'm District three. First District four. I District five. District six. II. District seven. Five. District eight. District nine. All right. Motion carries. Thank you. Item 14. A report from Parks, Recreation and Marine. Recommendation to award a contract to Park Wood Landscape Maintenance to provide landscaping services for Queensway Bay for a total annual contract amount. Not to exceed 756,572 for a period of three years and amend interim units contract with green tech landscape to increase the contract amount by 160,947.