LEGISLATIVE ACTION ITEM
SPONSOR: Grover C. Robinson, IV, Mayor
SUBJECT:
title
AMENDMENT NO. 1 TO CONSTRUCTION MANAGER AT RISK CONTRACT BETWEEN CITY AND BRASFIELD & GORRIE, LLC (THE ‘GMP AMENDMENT’) FOR HANGAR 2 OF PROJECT TITAN/MRO CAMPUS AT PENSACOLA INTERNATIONAL AIRPORT
end
RECOMMENDATION:
recommendation
That City Council authorize the Mayor to execute Amendment No. 1 (the “GMP Amendment”) to the Construction Manager at Risk Contract (“CMAR Contract”) between the City and Brasfield & Gorrie, LLC which provides for the construction of MRO Hangar 2 (including appurtenant aprons, taxiways, and parking facilities) of Project Titan with a Guaranteed Maximum Price (“GMP”) not to exceed $51,642,000, plus a project contingency not to exceed $1,125,000, as further described below. Further, that City Council authorize the Mayor to take all actions necessary related to the finalization, execution, and performance of the GMP Amendment by the City, including but not limited to the approval of amendments, modifications, budgets, plans and specifications, cost estimates and breakdowns, and schedules; provided that the total cost of Project Titan shall not exceed the amount of committed funds, currently $210,125,000.
end
body
HEARING REQUIRED: No Hearing Required
SUMMARY:
Project Titan at Pensacola International Airport is the continuation of the development of a commercial aircraft maintenance, repair, and overhaul (“MRO”) campus at Pensacola International Airport that began with the occupancy of MRO Hangar 1 by VT MAE in the summer of 2018. Project Titan consists of the construction of three (3) additional MRO Hangars, including warehouses/support services centers and an administrative office facility, all of which will be leased to VT MAE under the Master Lease Agreement previously approved by City Council. Brasfield & Gorrie, LLC (“B&G”) was selected as the Construction Manager at Risk to build MRO Hangar 2 of Project Titan, and, pursuant to the City Council’s previous approval, the City has entered into the Construction Manager at Risk Contract (the “CMAR Contract”) with B&G for MRO Hangar 2. The CMAR Contract provides that upon completion of design, the parties will enter into an amendment to the CMAR Contract setting forth the Guaranteed Maximum Price (“GMP”) for which B&G will build MRO Hangar 2, which is the GMP Amendment attached to this Memorandum. This GMP Amendment provides that B&G will build MRO Hangar 2 for a Guaranteed Maximum Price not to exceed $51,642,000 and provides for related items that the CMAR Contract requires to be memorialized in a contract amendment. The GMP will not increase unless the parties all agree to decreased expenditures for the remainder of Project Titan so that the total cost of Project Titan shall not exceed the amount of committed funds, currently $210,125,000. This action provides the Mayor with the authority and flexibility to accommodate changes to MRO Hangar 2 so long as the total cost of Project Titan remains within amount of the committed funds.
This action is recommended now, prior to 95% completion of the design work and receipt of final pricing, in furtherance of the recent concurrence between the City and VT MAE on November 4, 2020, towards the commencement of construction of Hangar 2 and the full development of Project Titan. To date, significant progress has been made regarding the design and development of Hangar 2 and the concept development of Hangars 3 and 4, including warehouses/support services center and the administrative office facility. For Hangar 2, plans and specifications have been completed to the level of 60% design, appropriate value engineering has been undertaken, and the estimated cost of construction has been aligned with the budget. On that basis, the parties have agreed on the scope and proposed budget for Hangar 2, as noted above. Also, concept plans for the balance of Project Titan (Hangars 3 and 4, including warehouses/support services center, and administrative office) have been developed, and based on such plans, scope and estimated cost of construction has been determined to be within the total remaining funds available.
Time is of the essence with regard to the development of Hangar 2 and Project Titan. Unique to northwest Florida, the massive rebuilding associated with the natural disasters of Hurricane Michael and Sally alone have created significant competition for labor and materials. Further, major construction projects such as the Baptist Hospital campus, the 3-mile bridge project, and Tyndall AFB all impact this project. Consequently, it will be necessary to secure favorable pricing and commitments timely and efficiently.
In connection with Hangars 3, 4, and the Administrative Office Facility, the project delivery approach is expected to be a “Design/Build” methodology. The City will need to engage the professional services of a Project Manager and also will need to retain a Design-Builder. In each instance, the City will conduct an RFQ and/or RFP process, and each professional will be selected by an independent review panel in a competitive process. Both contracts will be presented to City Council for approval at the appropriate time.
PRIOR ACTION:
November 14, 2017 - The City and VT MAE executed a nonbinding Memorandum of Understanding for the development of Project Titan.
March 8, 2018 - City Council authorized the Mayor to accept and execute the Florida Department of Economic Development Grant Agreement G0009 in the amount of $4,000,000 to pay part of the cost of Project Titan.
September 13, 2018 - City Council authorized the Mayor to accept and execute the State of Florida Department of Public Transportation Grant Agreement Financial Project 441494-2-94-01in the amount of $3,000,000 to pay part of the cost of Project Titan.
September 13, 2018 - City Council committed funding in the amount of $10,000,000 from Local Option Sales Tax Series IV to pay part of the cost of Project Titan.
November 8, 2018 - City Council authorized the Mayor to execute the First Amended Interlocal Agreement between the City and Escambia County, providing for County funding of Project Titan in the amount of $10,000.000.
February 6, 2019 - City Council committed funding in the additional amount of $5,000,000 from Local Option Sales Tax Series IV to pay part of the cost of Project Titan, thereby increasing the City’s total commitment to Project Titan to $15,000,000.
February 6, 2019 - City Council authorized the Mayor to execute the Second Amended Interlocal Agreement between the City and Escambia County, providing for County funding of Project Titan in the additional amount of $5,000.000, thereby increasing the County’s total commitment to Project Titan to $15,000,000.
March 28, 2019 - City Council authorized the Mayor to accept and execute Grant Award Agreement with Triumph Gulf Coast, Inc. in the amount of $66,000,000 to pay part of the cost of Project Titan.
March 28, 2019 - City Council authorized the Mayor to accept and execute the Master Lease of Real Property to VT MAE for Project Titan.
March 28, 2019 - City Council authorized the Mayor to accept and execute the Project Development Agreement with VT MAE for Project Titan.
March 28, 2019 - City Council authorized the Mayor to accept and execute the Florida Department of Economic Development Grant Agreement G0050 in the amount of $10,000,000 to pay part of the cost of Project Titan.
April 29, 2019 - VT MAE deposited $35,000,000 in escrow for funding of Project Titan.
August 8, 2019 - City Council authorized the Mayor to accept and execute Financial Award No. 04-79-07378 from the U.S. Department of Commerce, Economic Development Administration, in the amount of $12,250,000 to pay part of the cost of Project Titan.
August 8, 2019- City Council authorized the Mayor to accept and execute an amendment to State of Florida Department of Public Transportation Grant Agreement Financial Project 441494-2-94-01in the amount of $8,000,000 to pay part of the cost of Project Titan.
January 16, 2020 - City Council approved the selection of Brasfield & Gorrie, LLC, as construction manager at risk and authorized the Mayor to execute the Construction Manager at Risk Contract between the City and Brasfield & Gorrie, LLC.
March 26, 2020 - City Council authorized the Mayor to accept and execute Florida Department of Economic Development Grant Agreement G0069 in the amount of $4,875,000 to pay part of the cost of Project Titan.
July 16, 2020 - City Council authorized the Mayor to accept and execute an amendment to State of Florida Department of Public Transportation Grant Agreement Financial Project 441494-2-94-01in the amount of $34,000,000 to pay part of the cost of Project Titan.
FUNDING:
Budget: $ 66,000,000 Triumph Gulf Coast
$ 45,000,000 FDOT
$ 35,000,000 VT MAE
$ 15,000,000 City
$ 15,000,000 County
$ 18,875,000 Governor’s Job Growth Fund
$ 12,250,000 U.S. Economic Development Agency
$ 3,000,000 Florida Legislature
$210,125,000 TOTAL FUNDING
Actual:
FINANCIAL IMPACT:
Project Titan is expected to create a minimum of 1,325 full-time, high-skill jobs with an average salary of $44,461. The total project cost of $210,125,000 is being funded by a combination of VT MAE investment, state grants, and local funds, as detailed above under “Funding.” The City’s obligations under the GMP Amendment and the Development Agreement Amendment will be performed using a combination of these funds.
CITY ATTORNEY REVIEW: Yes
11/6/2020
STAFF CONTACT:
Keith Wilkins, City Administrator
Richard Barker, Jr., Deputy City Administrator - Administration & Enterprise
Matt Coughlin, Airport Director
ATTACHMENTS:
1) Amendment No. 1 to the Construction Manager at Risk Contract between the City and Brasfield & Gorrie, LLC
2) Construction Manager at Risk Contract dated February 28, 2020, between the City and Brasfield & Gorrie, LLC
PRESENTATION: Yes end