Broward County Commission Regular Meeting
Director's Name: Mark Gale
Department: Aviation Division: Capital Development
Information
Requested Action
title
MOTION TO APPROVE First Amendment to the Second Addendum to the Signatory Terminal Building Lease Agreement between Broward County and JetBlue Airways Corporation, for management of the construction of Terminal 5 at Broward County’s Fort Lauderdale-Hollywood International Airport, to provide additional funding for increased costs and additional scope, and to modify the terms of the Second Addendum, for an increase in the amount of $97,440,000, increasing the total not-to-exceed amount from $306,000,000 to $403,440,000; and authorize the Mayor and Clerk to execute.
body
Why Action is Necessary
In accordance with the Broward County Procurement Code, Section 21.47.a. Broward County Board of County Commissioners (“Board”) approval is required for all changes to an agreement.
What Action Accomplishes
Approves the First Amendment to the Second Addendum to the Signatory Terminal Building Lease Agreement (“First Amendment”) between Broward County (“County”) and JetBlue Airways Corporation (“JetBlue”), to provide funding for increased costs and additional scope and to modify the terms of the Second Addendum to the Signatory Terminal Building Lease Agreement (“Second Addendum”), for the Terminal 5 (“T5”) project at Broward County’s Fort Lauderdale-Hollywood International Airport (“FLL”).
Is this Action Goal Related
Yes
Previous Action Taken
None
Summary Explanation/Background
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
The Office of Economic and Small Business Development (“OESBD”) established a County Business Enterprise (“CBE”) goal of 15% for the professional services portion of this project. JetBlue committed to 15% CBE participation. To date, JetBlue has been paid $1,705,748 and has paid its sub-contractors $216,174 for 12.67% CBE participation (Exhibit 2).
This action approves the First Amendment between the County and JetBlue to provide additional funding for increased costs and additional scope, and to modify the terms of the Second Addendum for the T5 project at FLL.
On June 15, 2021 (Item No. 128), the Board approved the Second Addendum between the County and JetBlue for management of the T5 construction project, to be substantially complete within 890 calendar days after issuance of the third Notice to Proceed in the not-to-exceed amount of $306,000,000. Additional information on the Signatory Terminal Building Lease Agreement and subsequent actions are included in Exhibit 3.
Construction associated with this project will build the new T5, located east of Terminal 4 (“T4”). The new T5 will consist of a two-level, five-gate domestic concourse with the corresponding ticketing, inbound and outbound baggage processing, a security screening checkpoint, retail, food and beverage concessions with support spaces, public spaces, a circulation area, and other airport support spaces necessary for operations. Construction includes a new terminal connector between T4 and T5, allowing secure and non-secure passenger access between these terminals. In addition, the project will construct a new pedestrian bridge for passenger access from T5 to the Cypress Garage. The project will also increase the existing remote aircraft parking positions from five to eight and relocate them south of T4. This process will allow operations to tug aircraft from contact gates, temporarily stage them at remote parking, and then tug them back to the gate in time for a departure, thus utilizing the space while the unused aircraft is parked remotely, resulting in maximized gate capacity.
Since the execution of the Second Addendum with JetBlue, the cost of the original project has experienced cost increases primarily due to escalating costs and the inclusion of additional scope. The Producer Price Index (“PPI”) indicates that from July 2021 to November 2022, construction costs increased by approximately 32%. Escalated costs were attributed to the COVID-19 pandemic, labor shortages, supply chain disruption, and material shortages of specific construction materials such as copper, steel, and polyvinyl chloride, which are used to produce building materials. Costs for interior finishes such as drywall, tile, terrazzo, metal panels, and glass have also increased considerably, along with roadway materials such as concrete and asphalt.
The additional scope of work includes the construction of a new Point of Entry (“Gate 504”), the construction of a temporary roadway, and the implementation of five design refinements recommended by the design team. Gate 504 will facilitate secure access to the Airport Operations Area and includes a guardhouse, staff parking, two ingress inbound traffic lanes, and one egress outbound traffic lane. Additionally, a temporary roadway is necessary to allow vehicular access from Terminal Drive to Perimeter Road while T5 and a new permanent access roadway are being constructed. The location of the existing roadway conflicts with the construction of the foundations for T5. Both the temporary roadway and Gate 504 were previously slated to be performed separately by Broward County Aviation Department (“BCAD”), but in reviewing the overall project integration, BCAD determined that it would be advantageous to include them as part of the T5 project.
Finally, the design team recommended five design refinements which were accepted by BCAD. These recommendations include raising T5’s finished first floor elevation to +9.0’ Mean Sea Level to harden the facility from sea level rise; incorporating Preconditioned Centralized Air Units; incorporating more robust Architectural Cooling Towers; adding a new generator within the facility’s new central energy plant; and moving the location of the new central energy plant closer to T5 to avoid conflicts with existing utilities under Perimeter Road. These design refinements will improve the efficiency and sustainability of the project.
Approval of the proposed First Amendment provides funding for increased costs and additional scope, and modifies the terms of the Second Addendum, for an increase in the amount of $97,440,000, for a revised total not-to-exceed amount of $403,440,000.
The proposed First Amendment has been reviewed and approved as to form by the Office of the County Attorney.
Source of Additional Information
Mark E. Gale, A.A.E., CEO/Director of Aviation, (954) 359-6199
Fiscal Impact
Fiscal Impact/Cost Summary
All costs associated with this project are budgeted for in the Aviation Department FLL Capital Fund 40350 and 40450.