Los Angeles

Board of Airport Commissioners

February 13, 2023 Resolution #14

Agenda Item 14

RESOLUTION NO. - Award of five (5)-year Progressive Design-Build Contract to Hensel\nPhelps Construction Co.: Covering Phase 1 (design and preconstruction) of the Landscaping\nImprovements Program at Los Angeles International Airport, for cost not to exceed\n$13,067,519; and appropriation of capital funds of $16,919,023\nPURPOSE: The award of contract to Hensel Phelps Construction Co. will enable design and\nfuture construction of landscaping improvements that will enhance user experience at Los\nAngeles International Airport (LAX). If approved, the Landscaping Improvements Program\nwould provide new outdoor plazas, parking garage façade improvements, landscaping,\ntechnology innovation, pedestrian paths of travel, and other amenities at the LAX campus,\nthereby increasing revenue potential and enhancing user experience for passengers, employees\nand guests.\nRECOMMENDATIONS: Adoption of the Report requesting that the Board of Airport\nCommissioners determine that this action is not a project as defined in the California\nEnvironmental Quality Act (CEQA) (Pub. Resources Code Section 21065, State CEQA\nGuidelines Section 15378) and is also exempt from CEQA pursuant to State CEQA Guidelines\nSection 15036 and Article II, Section 2.f and Article III, Class 6 (2) of the Los Angeles City\nCEQA Guidelines; find that the work can be performed more economically or feasibly by an\nindependent contractor than by City employees; further find that the proposal from Hensel\n14. Phelps Construction Co. represents the lowest ultimate cost (as defined in Charter Section 371)\nto the City; further find that the award of contract is in compliance with Los Angeles City\nOrdinance 187476 approved by the City Council on May 4, 2022; approve Award of Design-\nBuild Contract to Hensel Phelps Construction Co., subject to change order authority by the\nChief Executive Officer, or designee, as necessary, whereas potential future approval of Phase 2\nis subject to completion of appropriate analysis under CEQA and all other applicable\nrequirements; further approve a budgeted owner's contingency of $1,369,600 for Phase 1 of the\ncontract that can only be utilized through change orders authorized by the Chief Executive\nOfficer, or designee, or the Board of Airport Commissioners; further approve appropriation of\ncapital funds of $16,919,023 for said Phase 1 of the contract, including, but not limited to\ndesign, permitting, preconstruction services, Guaranteed Maximum Price development, soft\ncosts, and project contingency, whereas staff will return to the Board of Airport Commissioners\nupon completion of the Guaranteed Maximum Price proposal and request approval of a contract\namendment for Phase 2 of the contract and appropriation of the associated funds; authorize the\nChief Executive Officer, or designee, to approve and execute change orders to the contract up to\nthe budgeted Owner's Contingency of $1,528,100 for Phase 1 of the contract, provided that,\nprior to execution of any change order in excess of $500,000, the Board of Airport\nCommissioners shall have reviewed and authorized execution thereof, and such authorization\nshall become final pursuant to City Charter Section 245; and further authorize the Chief\nExecutive Officer, or designee, to execute said Contract after approval as to form by the City\nAttorney and approval by the Los Angeles City Council. (Terri Mestas)\n14 report