REPORT TO THE CITY COUNCIL FROM: HENRY THOMPSON, Director of Aviation Airports Department SUBJECT ..Title Actions pertaining to Airports Department - Job Order Contracting (Bid File 12300168) (Council District 4) 1. Adopt a finding of Categorical Exemption pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines 2. Award Job Order Contracting contracts for General Building construction to EXBON Development, Inc., Durham Construction Company, Inc., Ardent General and Puma Construction Co., Inc.; for HVAC construction to Strategic Mechanical, and Mesa Energy Systems, Inc.; and for Electrical construction to Collins Electrical Company, Inc., and Valley Unique ..Body RECOMMENDATIONS Staff recommends that Council adopt a finding of Categorical Exemption and award Job Order Contracting (JOC) contracts for General Building construction to EXBON Development, Inc., Durham Construction Company, Inc., Ardent General and Puma Construction Co., Inc.; for HVAC construction to Strategic Mechanical, and Mesa Energy Systems, Inc.; and for Electrical construction to Collins Electrical Company, Inc., and Valley Unique. EXECUTIVE SUMMARY The Airports Department (Airports) and Facilities Management Division (FMD) have been using the JOC program, as offered by The Gordian Group, successfully since 2014. The JOC Program enables Airports to provide improved responsiveness on building maintenance and construction projects at competitive "local market" pricing. The JOC Program administers competitively bid fixed-unit pricing for construction tasks from local contractors which can be quickly accessed by Airports to perform needed building repairs, maintenance, alterations, installations and other construction services. BACKGROUND On December 17, 2009, September 15, 2015, and again on September 24, 2020, Council approved 5-year contracts with The Gordian Group, Inc., that allowed all City Departments to utilize the JOC Program for building maintenance projects. On September 28, 2017, Council approved a JOC Program specifically for FMD, and on September 24, 2020, a second contract was awarded. Airports obtained Council approval for its first JOC Program on September 20, 2018, and is now seeking authorization to continue with another JOC contract to serve both Fresno Yosemite International and Fresno Chandler Executive Airports. Airports annually budgets for building maintenance and renovation projects as well as various unforeseen facility repairs. The JOC Program allows Airports to utilize the successful bidders for timely execution of construction projects with improved quality at competitive rates. The bid specifications included an extensive unit price catalog of approximately 120,000 typical construction and maintenance construction tasks, pricing, and associated technical specifications. When submitting a bid for the JOC program, each bidder is agreeing to the unit cost per item in this catalog of construction tasks multiplied by their respective adjustment factors. The sum total of adjusted unit costs, as reflected in a Job Order, represents the total cost for a project including mobilization, permitting, overhead and profit. On October 5, 2022, staff released the JOC specifications to Plant Bids and On October 25, 2022, received bids from 11 bidders. Four General Contractors and two each HVAC and Electrical contractors were selected based on the lowest adjustment factors bid for each trade as specified in the bid documents. The term of each contract is for an initial period of one year or a maximum of $1,000,000 whichever comes first and includes two one-year and/or $1,000,000 options. The actual total value of Job Orders accepted by the Airport from any given Contractor will be determined by the Airport with no minimum obligation. At the discretion of the City and if deemed to be in the public interest, the Maximum Contract Value of this Contract may be increased. The Agreement has been reviewed and approved as to form by the City Attorney's Office. ENVIRONMENTAL FINDINGS Staff has determined that Class 1 Categorical Exemptions set forth in the California Environmental Quality Act (CEQA) Guidelines, Article 19, Section 15301 (Existing Facilities) is appropriate for this action, as the proposed projects involve the restoration or rehabilitation of existing facilities. Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to action. LOCAL PREFERENCE Local preference does not apply because federal funding may be used. FISCAL IMPACT This Agreement will be funded through appropriations for specific projects and budgeted maintenance activities, which were included in the adopted FY2023 budget. There is no impact to the General Fund from this action. Attachments: - Bid Evaluation - Sample Contract